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Why mega farms won't make it in western Canada?

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    #11
    Or is this the type of guy that is happy to have everything bad happen to him?

    Comment

      #12
      Or are investors looking at the looming U.S. election thinking that low interest rates and Ben B. are done? Maybe they know the top is in on farmland - for now the percieved ROI is not achievable in farmland at these values and they are looking ahead at other investments that will give a higher ROI with possible rissing interest rates and saying whoa on land? Just a thought....

      Comment

        #13
        Furrow:

        Help me get my head around this because you are on this land is overvalued kick ...

        A $25,000 new JD 4430 in 1979, adjusted for the manipulated CPI inflation rate is $74,900 in 2012... yet the same 125 -130 HP tractor today is over 100K and people are paying it.

        What does a 7730 do better than a 4430 for an additonal 25%?

        An $80,000 quarter of land at the peak in 1979 is inflation adjusted to $239,803 in 2012.

        Currency and the buying power as we know it, is about to become ass wipe.

        Do you think farmland prices will come down in that environment?

        Just asking...

        Comment

          #14
          For apples to apples comparison, you
          would have to compare a 4430 to a 6110
          (one of those reduced feature models to
          be comparable) or something like that.
          You will likely find that the new
          tractor compares in price mainly due to
          it like a 4430 would be 2wd. Do you
          think that the ethanol mandate will
          survive a new depression? The other
          thing that happens as food prices
          inflate is that people do go without and
          many are on food aid because they can no
          longer afford to eat. You would be
          surprised at how few calories you could
          survive on. Waste is also reduced. So
          it is very likely we will at some point
          see a commodity pull back. Enjoy the
          ride while it lasts.

          Comment

            #15
            I f/u. It was a 7330 with 2WD not MFWD. I built it online to get the 100K price.

            Comment

              #16
              Burpfart nice to see you crawled out from under
              your rock.
              Simply all the big land deals are sitting in limbo.
              No one has received any titles and only small
              deposits. So are they delaying purchases
              because they figured out that no one wants to
              over pay for poor to marginal land rent or
              purchase. Or on awesome land is rent reaching
              limit. Burpfart that's normal questions that need to
              be asked. Your BS is BS.

              Comment

                #17
                <!DOCTYPE html>
                <html>
                <body>

                <p>FAO STAT EPO</p>
                <img src="http://www.earthpolicy.org/images/uploads/graphs_tables/highlights32_FoodPrices.PNG"
                </body>
                </html>

                Comment

                  #18
                  Here is comparing apples to apples...I bought 1/2 section in 76 for 45000 the seller bought a house in Weyburn with the money. That exact house sold a couple years ago for 290000.That 1/2 would have been worth 150000 then.Now worth 250000.Has finally started to catch back up on lost ground but has room to go up a bit yet. Farmland vs houses in Sask has not kept up like Alberta and Manitoba. It is only catch up time.

                  Comment

                    #19
                    "catch back up on lost ground", now that's funny... or

                    two old guys talking about the value of a dollar. One says to the other, "when I was a boy, my mother sent me to the grocery store with a dollar. When I got home I had six potatoes, two loaves of bread, a gallon of milk, four steaks and a chunk of cheese. The problem today is too many *!#&* security cameras."

                    Comment

                      #20
                      Its all about math and return on capital and inflation.

                      I *** wish interest rates would spike like the early
                      eighties,i could liquidate buy some thirty year bonds
                      and get a job driving school bus,sell them 30's in a
                      few years and buy the dow,then sell in a few years
                      and buy houses in vegas,the perfect 70's-80's-90's-
                      00's investment timeline.

                      Alas we aint in kansas,we are all playing a very high
                      stake game whether we like it or not-dont shoot the
                      messenger -i'm not sure what the next play past
                      tangibles is but houses in vegas are real-real cheap.

                      Comment

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