More about Land Values

[LEP]

Read the following article and the next post about this city slicker
buying a quarter north of Yorkton.

While it is alittle long the dialogue and comments are hilarious.

It is evidence, how a few stats and a small amount of knowledge are a
dangerous thing.

http://www.freedomthirtyfiveblog.com/2012/10/why-invest-in-
farmland.html

[hobbyfrmr]

There are a lot of people in Canada who earn a lot of money.

I just learned a phrase from a neighbor who is in the middle of the parents' estate plans with his non farming siblings.

"nobody wants to farm, but everybody wants the farm."

This is a good blog for bucket to participate. He will sell his farm for the price he is expecting. Good thing you posted this.

[hobbyfrmr]

I read a little more abot this person blogging. Male, mid twenties living in Vancouver and his day job salary is $35,000/year. I give him credit for having collected enough money for the downpayment!

[ajl]

Actually he had to finance most of the down payment at 5.25% on a line
of credit. Why do people calculate the per acre price with the waste
acres in? What is he going to do with bush or slough. Who is going
to farm this land after the current renter retires in two years?
After the winter from hell I imagine people trying to get out of SK.
This will be a learning experience for this investor.

[grrrr]

Judging by the comments, there are a lot of "know nothing about farming yahoos" out there who are looking to be our masters.

[LEP]

My thought exactly. A 2% increase in interest rates and
this guy won't know where to look .

Also comments like he expected his rent to increase
2-3% a year.

Also there was a comment from someone, what do
farmers do when the land is frozen. Thats right buddy
if it didn't freeze I would be working the ground every
month of the year.

[bucket]

hobby

Why don't you hurry up and buy my land for 1200 an acre and resell to these ****ing bozos for 1500 an acre.

Then we can sit back and wait for it to be 300 an acre again and get the real farmers back in like our sons/daughters.

I would hate to see what happens if george soros and brett wilson jumped off a bridge. For sure they would have bungee cords attached, the people following would just jump.

[hobbyfrmr]

Bucket, Originally it was $1000.00/ acre and then
within days price increased to $1200.00 per acre.
I don't chase moving targets.
If you are in the selling mood, that blog had
people interested in owning farmland. The young
guy described all the math involved and it looked
so very appealing.
I think my big investment will be one of those
floating slough pumps and hip waders!

[bucket]

hobby

You are really taking the fun out this.

Apparently that is the way people get more interested is by increasing the price not reducing it.

Somewhere we are going to find the big fish.

Now for christ's sake, help me fish.

[bucket]

Oh shit, and thanks for reminding me, I have to get one of those floating pumps too.

[ado089]

That blog inspired me to list my land.
6.5x, see if can catch a dummy, if not
no big deal. Why fight the system, cash
out and buy back at 50 cents on the
dollar. A buddy of mine was talking to
someone fcc guy, they are expecting alot
of land back in the near future.

[riders2010]

The real dummies are gonna be the people that have no land when the real push from asia comes to buy food to sustain themselves. If they were smart like some of them are they should be owning control of the land even if they don t make a penny off of it. The real value is owning it for when the idea of famine breaks out which is not far around the corner with the weather and population growth being what it is.

[ado089]

Rider,
We aren't there yet, there is no shortage of food for those that have the money to buy it. Those that can't still grow their own. I still maintain that high prices of developed land will lead to development of 10's of millions of acres in South America and Africa and even some parts of Asia and Russia. Besides that when something appreciates 270% in three years when should have only appreciated 6-15% you have to know the pendulum will swing the other way.

[riders2010]

maybe under normal situation, but there is no normal anymore for markets of anything. And things like gov rules changing for land ownership make the old rule of thumb obsolete. The world has been openned up to our farm land, I don't think some have grasped the enormous power of that yet good or bad.

[hobbyfrmr]

I agree with Ado. If a person has thought of selling
for some time and is damn near ready to sell, list
it higher than expected. In my area land is selling.
70 year old farmers selling a section at a time.

One guy sold 2 sections to one buyer. I bid on
some, he called to tell me was unsuccessful. He
chose the buyer but did not disclose name. He
said the price was ridiculously high. I ass ume that
would be over $2000.00/ acre.

Buyers are bullish, they have a positive vision for
the future. There are some new younger farmers
who do a great job, and they have only had to
manage profits.. That is a good thing.

Not trying to insult anyone, but I think newer
farmers are much more on top of their cost of
production and financial ratios. I took those Ag Ec
classes but most of the time my mind was on beer
and girls.