RB auction

[Partners]

In the back of there New catalog ,, who is the 20,000 acre farm for sale?
Any idea why? Health?..Can't be money cuz there large farms make Mega dollars..

[BreadWinner]

Partners there are allot more unsuccesssfull smaller farms than larger ones. Just saying!!!

[ajl]

There is a 10000 ac farm for sale in S AB around here. farmrealestate.com We will get to see how rich the colonies really are. Farm land has now started its long decent, I think the sellers are too late.

[BreadWinner]

Aji, i think your dreaming. Pockets are allot deeper than you think and land values are going to keep going up.

[Partners]

That is why I am wondering why a Big farm would quit..
We hear some of these Mega Farms are alot deeper in debt that most think..There is a reason why some of them change color every yr..or don't own a combine..or Viterra owns there bins..The truth does leak out ...After all, there grain is just as "worthless" as ours..

[farmaholic]

My saying is, knock yourself out. To each his own. I'm satisfied where I'm at at this stage of my life. I have nothing against the heavy hitters, if they have the drive, ambition and like the challenge go for it.

[blackpowder]

3D?
Death, Divorce, Debt.

[Richard5]

Partners at farm like you talk about that flips colors and the complete line must be filthy stinking flush with cash.

No sound business man would do such a thing unless they were doing it with cash.

Besides it makes no sense for income tax, makes no sense for managing costs because if you do the whole line every year, no matter what the lease debt is, it's still the highest cost since its new.

Prob have 10 mill in the bank at all times. Would love to see the tax structure as its not a good thing to have excess cash in your farm Corp as I understand it

[SASKFARMER3]

Wondering why Big Farms would quit.
Its real easy,
$20 to 25 million pay taxes and live and golf and ski and surf.
Farming the worst occupation in the world where every one else gets a piece and you do all the work.
Wake up, The big guys see a way better life after the farm.

[stonepicker]

So, that must mean that farming is profitable?

[SASKFARMER3]

It is if you buy all your land at under 50000 and then sell it for 400000. Real estate not farming makes money. Farming is a shitty occupation.

[cottonpicken]

I would add and take all the risk.

[mcfarms]

sf3 is right we are all real estate holding companies when you get to it Re,the comment on corps and cash if a incorporated farm has more than 10 percent of its book value , land machinery etc in cash ie a farm worth 3.5 million can have 350000 in cash after that if cra looks at you that theycould deem you to be non active and your income would be taxable at a much higher rate or at least thats hows its been explained to me .further to that if that same corporation gets to a book value of more than 10 million they are taxed differently or has retain earning of again 10 million it affects the smalll business deduction limit which is currently based on income limit of 500000. might have got it wrong but think Im fairly close. where it really screws you is if you are a renter trying to save to buy land because your book value is low and yet you may have a couple bucks saved to buy land someday. the govt wants that money moving its call velocity that way they can take a piece of it every time it changes hands. their whole savings thing they preach is bs. cause they punish you for trying to save.

[MBgrower]

Agree with sk3 if you can sell for millions why not sell it. Youll never have to complain about grain and input prices ever again. Lots of younger people wont want to run a 10 or 20k size farm especially if we go thru a long downturn in commodity prices.

[freewheat]

Contrary to popular belief, big farms get into trouble too. Look at Illinois family farms in the states.

A neighbor here farmed 16 000 acres and passed away a while back. Out of 6 combines, one made it to the auction sale. Very little iron was even close to owned. When it all shook down, it had all been a big facade. The 2004 frost had sucked the life out of his farm, and recovery was impossible. He was a VERY smart operator, a very nice man, and grew good crops.

We all can struggle, big or small, it does not matter a hill of beans.

My point is, assuming that because a guy farmed big, is not always an accurate assessment of how they are doing. And looking at a small guy without fancy stuff and no real drive or desire to farm half the country, does not mean he is not a wealthy fellow.

I have both kinds of neighbors. Truly wealthy small guys, and nearly broke bigger guys.

Size is not the be all.