Land Values

[freewheat]

They don't need it to pencil out. Land always goes up, up, up. Always. Never drops, never has, never will. Not ever. And it doesn't matter if it pencils, so long as you can swing it, subsidizing it with paid for land. Especially so that the neighbor doesn't get it. At least that is what some folks say.

I have asked many times for a plain out and out penciling on this site. No one has put forth any effort to show hard numbers and how it can pencil.

[farmaholic]

I bought land in 1986 for $64K... things got bad and the prices slipped and stayed down for a while. The last time I bought in 2004 I bought for $65K. That's 18 years in between the two purchases where I wouldn't have got what I originally paid for the first stuff. It was just in recent history that things have shot into the stratosphere.

To say it won't go down is going out on a limb. My money is on a correction! Not a collapse, a correction.

My thoughts are, you better be buying it for the next generation because if it does go down you better make sure you have enough time left to see it come back up before you need to dispose of it.

[Robertbarlage]

It won't go down to much with today's technology people with money around the world can buy anything more easily than ever.the world is still getting smaller everyday.

[freewheat]

Farma, I was being sarcastic. lol

[foragefarmer]

Freewheat

When mentioning your neighbors in your posts it comes across that way. Underlying bitterness!!

[freewheat]

Freewheat

When mentioning your neighbors in your posts it comes across that way. Underlying bitterness!!

I am not bitter in the least. Just because I mention my neighbors, and how they operate, does not mean I am bitter. I am a very content individual. I like my farm, I like how much land I have. I like where my farm is going. My neighbors are decent enough people, they just are after the dollar, and only the dollar, so me and them just do not have much in common at this point, though we used to. I have lost more than one good relationship around here due to the dollar, and the focus and goals changing. I find it sad to have lost friends, good friends, to the dollar.

It is simply that I do not know anyone around home here, whose focus is on things in life other than things and more stuff. I feel badly about it.

[freewheat]

Free ! Your always talking about the neighbors kid then look at who gets a chance to complete a block of land !

# neighbor kid didn't outbid you !

# thank a neighbor and your Mom for
selling to you !

I got very lucky on that deal. I concede to that. And yes, I am glad my mom sold to me, and never followed through on her original plan when my dad died.

The seller of the land was a land holding company, not an individual. I did however thank the agent I dealt with, he was awesome, and the banker who had faith in me after so many never did, and so on...

I am very, very thankful...

[furrowtickler]

Hobby , sounds like there will be a few new big lexions to watch in your area this fall. Your right on about being in a productive area, some huge crops come outa that neck off the woods .

[furrowtickler]

The last stuff we bought here was 1300
Some much poorer land here has sold for 2000 plus .
Pretty quiet this year in the area. Nothing locally to speak of up for grabs privately or auction.
Good dirt payed it's due last year in drier areas, yields were double in some cases over lighter soils . Some very high prices were paid for mediocre dirt the past few years.
I think good dirt will hold its value and poor dirt will slide quite a bit going foreward. You need to produce good consistent crops to pay top dollar.

[farmaholic]

Too wet or too dry isn't good for any dirt.

[grassfarmer]

3500 an acre but I won't sell till it hits 5000. I believe it was around somerset a owner offered his land to the renters for 6000, they said no and when tendered out it went for 7200, around winkler area it's going for 10000 an acre, retirement looks good,

I'm amazed at the variation in land prices in MB. $20k bush quarters in the north to $10k an acre at Winkler. I came here because the land was cheap relative to similar land in AB, a little over 1/3 of the price. Some of these high selling places in MB are every bit as expensive as the better land in AB.
As a cow guy I think the opportunities going in northern Manitoba at the moment are just unavailable else where in the world in terms of value. Just wasn't the opportunity for me at this stage of my life.

[15444]

Might have good value, but likely cost you your mind. Takes a certain person to handle far north farming.

[Ronski]

Here's a cut and paste from FCC Land Values. I'm pretty confident my farm isn't getting any larger (hell, even if I won the lottery it wouldn't get much bigger)

Province: Alberta
Region: Alberta Central
Location(s): 195 - Lacombe
Land Type: Cultivated Land
Land Use: Grain
Time Period: 6 months (2015-Sep-1 to 2016-Mar-17)

(All funds in Canadian dollars) $ Per Acre $ Per Hectare
Maximum 8,966 22,153
Average 5,809 14,353
Minimum 4,098 10,126

[AlbertaFarmer5]

Haven't heard of any sales here for quite a while. The value usually has little to do with the agricultural potential and everything to do with the mountain view and recreational potential around here. A bush quarter with a creek and hills will sell for more than good flat black cleared ground. Actual farmland is likely pushing $3000 locally, but most buyers aren't farmers.

It was asked how to pencil it. Here's how I pencilled the last one:

I knew what I could renegotiate the oil lease revenue to. And that amount would cover the interest on the entire purchase price and still have a significant chunk left for principal. Every quarter here has the option of a one out subdivision, which at the time I bought this one, was worth more than a third of the purchase price, makes for a decent rainy day fund. Neighbors all thought I was nuts, wife almost wouldn't let me into the house, but it is making its own payments before I even turn a wheel. It was exactly 3 times the price of the first quarter I bought ~14 years before.

I'm in wait and see mode lately, thinking better opportunities will come. But applying that attitude has been about as effective as planning for higher interest rates during my entire adult lifetime.

[SASKFARMER3]

Funny thing on land values, Some times a guy just gives some young guns a deal. Yes it still happens. Local guy gave two quarters away for what I would call $50,000.00 Cheaper than the going rate. New Canadian from South Africa wanted it and would pay dearly. I probably would have gave him the same.
So their still is deals to be had.
Now We recently sold some property 60Km away and received just around the $2000.00 mark.
Now in our home area land south is trading still for $2362 and up.
Its dirt and will always have some value even after Trudeau is done with us.