Without Renters Investors buying land Get a hard Lesson!

[SASKFARMER3]

Seems some investors are getting a hard lesson in farming North of Me!
A few large tracks of land have been purchased, starting a year ago and finishing with the money delivered to owners just recently.
Now these new owners are shopping the land around to locals for rent.
First rental offer was $60.00 an acre. This land is lets say gently rolling HA HA with total cultivated acreage around 120 acres a quarter.
No one took on the property.
They wanted 9600 a quarter based on full quarters.
Then at Christmas they came around looking for 50 then 40 last month still no takers.
Is 30 for 120 acres in the cards. Yes! Why only 30 because farmers are starting to realize over paying to work for someone else is a recipe for disaster.
Renting 1 OH 1, Don't over pay!!!!!!!!!

[bucket]

That is a very funny story!

[bucket]

I am wondering if the previous owners would have had any trouble finding renters.

[ALLFARMER]

Sask you could at least be nice and offer them a
way out / sell the land to you.

[blackpowder]

Landlords here are in full control. So be it.
But yes, I'm starting to say no and envision future
where I don't farm. Rents here now higher than I
can sustain.

[blackpowder]

Landlords here are in full control. So be it.
But yes, I'm starting to say no and envision future
where I don't farm. Rents here now higher than I
can sustain.

[newguy]

Lots of variables in showing a profit.
Machinery..seed..labour costs have also
been creeping up. Maybe should look at all
costs before blaming not being able to
make a profit on the landlords. Cause if
you cut your acres cost per acre may just
go up. A few years ago some land went
unfarmed. Bet no land goes unfarmed this
year.

[SASKFARMER3]

I ask why any farmer would pay 80 to 120 an acre to rent some ground in Saskatchewan.
If my costs for rent are basically taxes I'm close to 100 an acre money ahead of the other guy right from the start. Same yield or a crop failure and hm I'm sitting in the Cayman and neighbour is sitting in Truck wondering what shell would work the best.
We farmers are our own worst enemy!

[SASKFARMER3]

S3 I challenge you on your low costs of your land.

Yes, yours and my land may be esentially paid for however you are not taking into account the opportunity cost of the cash tied up in the land.

You brag about all the investment property options you come across as you travel all 52 states of the america's and caribean each year.

If the deals are what you say they are, you may be better off renting at $80 to $100 and making a few mill on other options

[Horse]

Hows it go ? Devide and conquer hit the land owner for less rent because mabey he is to the point of do I re-equip mabey get bigger or rent more land .
You cant fight monsanto or exon so pick on the little guy your neibour or ex neibour why because you can
If land is as costly to buy it should be costly to rent rite, Who put the prices where they are not the little guy.

[newguy]

You posted they could not get 40 per
acre.Then said a bit later posted some are
paying up to 120. Which is it???

[SASKFARMER3]

New guy I said the 40 was north of me try 25
miles, god some of you don't get it.
Also this is a fight against land companies. They
are buying and driving up prices it's not farmers,
and again I have two guys in our area who run
billion dollar private companies who aren't buying.
So Chinese investors or Ontario teachers pension
etc, need farmers to work the land take away a
hungry farmer their broke! That's who the fights
with not neighbors.

[Hopperbin]

Not very smart investors there. They should have had a rent offer first then hope for more money in 3 years. rent was nuts compared to land prices anyways so locals did it to themselves, never could figure that one out.

[Hopperbin]

When cost of borrowing went up in the 80's rent went nuts. When the cost of borrowing went down in the 2010s land prices went nuts, as if its like an excuse. Not very scientific. :-)

[SASKFARMER3]

When the drought hit west sask and south rent and land went down.
When the frost hit east and sask land and rent went down.
Mother nature wins!!!!!!!