At what price would you sell out!

[hobbyfrmr]

At 2700/acre I would sell and relocate, sounds like
I would become freewheat's neighbor and learn to
farm over there.
Just the other day, there was a land rent auction
near Krydor,Sk . Gossip says that land cash
rented for $114.00/ year. I do not know the real
facts, but, at that price I really have to think about
not selling, and just renting out and sitting on my
ass. That is respectable rent with no risk or
physical effort. I plan for next generation to have
my farmland in order to rent out.

[charliep]

Not making that comparison. Just highlighting I paid $135,000 for my house. Maybe could have sold (didn't do) for $350,000. Worth $300,000 today. One year from now? Anybody's guess. Still my house. Able to make the payments/not much mortgage. You are right - not an investment.

When farmers buy land, do you buy a productive asset that produces a product for sale or an investment that will provide long term return on capital? If the latter, why are people complaining when the value of this asset appreciates?

[SASKFARMER3]

At 75 to 100 rent you have a great return and
retirement income.
Problem Charlie is when you go into your bank
and say I guess I'm worth 10 to 17 million and
they say let's let a few years go by before we get
that excited. Land goes up and down the only
thing this time it's big blocks selling.
Serf farmers here we Come ah just like back in
the mother country.

[ColevilleH2S]

" why are people complaining when the value of this asset appreciates?"


Farmers usually spend decades trying to acquire land, and only a few years (if that) of their life looking to sell it.

[Daylate]

I would sign an agreement for sale with two guys i
know for $1/ac. Possesion date 2025. But i have to
wait another year till the youngest son can sign his
name.LOL! Till then ill keep on trying to do whatever
it takes to add sustained equity. Oh boy, semi
retirement is a long ways away.

[HappyFarmer]

My opinion is this.
Get your self in to low/no debt/cash position as fast as possible, strech what you have to the max, and wait until 20 % interest rates hit and then buy, buy, buy with the cash you have all the land you can.
But i could be wrong.

What does everyone else thing.

[hedgehog]

you guys are catching up, now that outside investors can buy in sask, and your wheat is in the free market.
Goodbye cheap land and hello serfdom as sask farmer says.
The old world has caught up with the new.
old world uk rents are only 1% of the value.

[ALLFARMER]

If financially you could retire would you?
How much a year income will you need to live on?
Would you move? Where too?
What kind of beach chair do you like?
At what age do you intend to stop working?
How many people that you know never entered
retirement?

My dad farmed all his life, Alzheimer's started at
age 60 he's 67 now. Incredibly hard, incredibly
unfair.

[Ronski]

My dad retired completely this fall. 78 years old, he's going to concentrate on restoring old iron and enjoying himeself. He's lucky to look and act 15 years younger so he should keep busy for a while.
He was offered several million dollars for his home quarter over 10 years ago and turned it down. He explained to me money is just paper, property has value. The money wouldn't change his lifestyle and he enjoyed what he was doing. (and its been a family farm over 115 years never rented out, never custom farmed and that means a lot to him also).

Interesting to see in the local history books how after the first sale land changed hands every couple decades or sooner but the land held by the old families seems to stay with the name.

Land I bought I feel free to sell but the other I see as my kids as much as mine.

[hobbyfrmr]

Happy, I agree with your thoughts. Trouble is this
area has big efficient farms , they make big
money and are not scared to spend it on land
purchases and rent.
Two options are to rent out for decent money, or
sell for big money, relocate buy for lower values
and move shrapnel to new location.