Without Renters Investors buying land Get a hard Lesson!

[newguy]

Thought I remember Sasks new year
resolution was to be more positive.Sounds
like your glass is still half empty to me.

[sumdumguy]

No, but reality is reality. SF3 is right. The
government has not figured out the long-term
effect of unrealistically low interest rates and has
fueled gargantuan bubbles that will end up
costing us all. They may even take down our
banking system. Government is letting foreigners
come in, borrow our money, push up the price so
our young people cant get a start, and ultimately
they will leave without a trace to pay back
nothing, but small communities will be gone. If
interest rates were 8-10%, think guys would be
paying $100 cash rent , one crop failure and
poof? Then they come crying to the taxpayer
cause poor dears are not able to buy a new
Mercedes or spend the winter in Phoenix. Thats
my rant for today.

[ajl]

Keep putting the information out there
SF3. There will be a few more land owners
joining this crew this fall. Paying big
bucks for ugly land and then shaking down
the operator has to end somewhere.

[SASKFARMER3]

New guy my glass is half full, Farmers are sticking together in a area and telling these land companies to go find some one else for your land.
Guess what its working. See these guys need US farmers. They cant work it them selves and wont.
Look at the Big boys One Moon and Broad ass They do such a good job.
Farmers who are smart will get through this!!!!!!!!!

[furrowtickler]

New guy, i think SF3 is just stating a few very well known facts. 1 investors got caught up im a buying frenzy bubble. 2 some landlords are about to figure out what karma is.
If Drew learner and Tim Ball are right alot of this will play out even more in eastern Sask and Western Man. Cool wetter trend, possible end of Aug frost combined with a latter cool spring. Might be tough to pay big rents with $3 feed wheat.

[ado089]

If I was a couple of years further into my farming career I would not be farming in Canada anymore. There are alot more fertile fertile areas of the world with lower or equivalent land costs way closer to end markets.

[farmaholic]

Ado: There are some political
environments I wouldn't want to farm in
even if the land is better and closer to
ports. I don't know which areas your
referring to, just saying.

Regarding ROI, the landlord deserves a
decent ROI, but if he overpaid for his
asset that isn't my fault. Land should
be valued(for purchase and rent) based
on what it can produce on average.
Taking into account current costs of
producing a crop and what it is capable
of producing. One thing I do have to
say is too bad though, is when things
get tough one of the few places tenants
can reduce their costs is what they pay
to rent land, none of the businesses
that are supplying goods and services
volunteer to reduce their prices.....
so the landlord suffers first.

[ASRG]

Why not a crop share? I rent my land to the same guy (24 years now). I pay 1/3 of fertilizer, seed, and spray. Get 1/3 of crop. I supply the bins. If I choose I can participate in crop insurance (1/3 of the premium/ 1/3 of the payout). I give him a hand if he needs it.
He makes all the decisions on inputs, crops, marketing.
Seems to work.

[furrowtickler]

ASRG, that is fine if the landlord stays current about the COP, but very few landlords keep up with how much things change. If you do thats admireable.
We do a split cash/crop share that works well - we pay all expenses. This works well.

[sumdumguy]

ASRG, you are to be admired, you must trust
your renter. This hasnt worked all that well for us.
Somehow, our fields dont yield much. Also some
years got nothing.

[ASRG]

Well...he's my cousin. Eventually his kids might own my land.If I had to go to another renter I would just sell it. Do I trust him? 100%.

[bucket]

Now you get two gold stars!

[bucket]

That is vision. Looking at the long term while taking care of short term in a friendly and productive way.

[blackpowder]

Newguy. you are right. I'm just pissed about
paying fair cash in years when no crop all the while
treating land as my own and improving it.
Now forced to pay %25 of gross because lower
cost competition offered it. Long term continuing
lease becomes 1 yr terms only. Told glory days will
last forever.
Not crying because my fixed costs can't sustain
it.
Word of advice: try not to write a check for half net
worth to ex-wife.

[tstep]

SF3 I am and have been with you on this all along. Farmers are their own worst enemy. WHY pay these investment companies the big rent dollars,80-120 dollars per acre, just so they can say that they made 6 or 7% return on their investment, while your inputs go up, machinery costs go up , mother nature does what she wants and you do ALL the work. We as farmers have to say to the investment companies this is what we will give you,NOT them telling you what they want..