land prices

[riders2010]

any new land sale prices? Some investors realizing better to pay a bit more and have a renter locked in than try to find one later seems to be the thing

[tstep]

If its an investor, why rent it so they can make 6, 7, or 8% return on their investment. Let them sweat it out!!

[ajl]

Auction yesterday at west of Davidson sold 45000-55000 assessment
for around 1000-1100 per cultivated acre which would probably be
steady for the area. A couple of parcels were cheaper. I don't
think this would be a new record so the land market seems to have
stopped moving higher. I am not that familiar with the area so
maybe somebody closer will comment.

[bucket]

If anyone feels they missed out, I can probably be talked into selling at those levels. LMAO all the way to the bank.

[caseman]

how close to lake diefenbaker are u??

[bucket]

Not close enough some days.

Less than 25 miles. And I don't spend enough time there, but at 1000 to 1100 bucks an acre I guess i could find time.

Still LMAO.

There is some irrigation land for sale near riverhurst and elbow. Its listed for 4 and 2 million respectively. 10 years ago it was on a supposedly unreserved auction and the gavel never got dropped, Hodgins walked away as "no sale" when the high bid was 450,000 for the stuff that is now listed at 4 million.

[Partners]

In the Rose Valley-Fosston area, $1000-$1200 per acre..

[ajl]

There is a bunch of Fosston land up for sale by investors right now.
Don't all of you investors head for the exit at once now.

[malleefarmer]

NSW, Victoria and South Australia are
producing the most optimistic results in
a difficult market that has seen Herron
Todd White's (HTW) national farmland
value index dip eight per cent in the
past four years.
Queensland and the Northern Territory in
particular have paid the price for a big
surge in rural land prices in the decade
to 2008, encountering a noticeable post-
GFC "correction" in land prices and
sales activity and more lending sector
emphasis on farmland earnings
capabilities and cashflow.

In fact the NT, squeezed by the 2011
Indonesian live cattle export bans and
weight restrictions and farm debt
pressures, had "no meaningful property
sales activity at all last year", said
HTW's rural director, Tim Lane.

Based on the historical turnover
volumes, the NT now had about five
years' supply of property waiting to
sell, with a similar backlog building in
Western Australia's Kimberley region.

"That may change if some sales go
through and give buyers and sellers a
clearer idea of what the market's new
value really is, but nothing's sold for
some time," Mr Lane said.

"Much of what's for sale isn't big
enough to interest the institutional-
sized investors, but is too much for
neighbours to absorb given the sort of
cashflow they'd need to service the
extra debt and return a profit."

Poor earnings in the dairy industry were
also behind a slump in sales activity in
that sector Australia-wide, despite HTW
finding that good quality farmland in
safe rainfall zones generally otherwise
represented the most sought-afterr
country in the market.

"The economics of dairying - costs faced
by producers compared to the payments
from processors - aren't giving buyers
enough confidence in being able to pay
for new land investments," he said.

A buyer focus on quality property had
seen an average 6pc lift in overall
values of property of 2000 hectares or
bigger on HTW's industry index in NSW
since 2008, and 10pc in SA.

The national index trend was down 8pc.

Queensland and NT were seeing lower
quality country heavily discounted and
driving overall values down about 10.7pc
and 12.5pc respectively.

In the decade prior to 2008 the HTW
farmland price index recorded a jump of
almost 18pc in Queensland values; 35pc
in NT and 10pc in WA, compared to the
national average rise of 15.5pc.

[Goodtime]

Anyone else heard of a couple of bigger farm land deals on the east side of Sask falling through (Churchbridge area being one) and the farmers that were trying to sell not being able to cancel their upcoming machinery auctions?

[Choice2U]

What kind of farm management skills did these guys have? A sale isn't a sale until it is paid for so a deal isn't a deal until you have the money. Are they brain dead or just like living on the edge when they book an auction without having the money for their land.

[Partners]

Fosston land up for sale?

[bucket]

goodtime

Is that churchbridge sale in the Ritchie Bros. catalog?

[Goodtime]

Bucket, yes that one is a Ritchie sale. I would have to agree with you Choice2U, I am not sure how you make a move like that with out a cheque in hand!

[bucket]

Maybe then, grandpappy had the brains and ....


The first generation starts the farm, the second one makes it and the third one loses it.