$75 to $125. An acre rent, explain how you make a profit in Saskatchewan!

[SASKFARMER3]

Ok since rent has gone insane and we all have to
wait to expand our farms, how is any one making
money on rent!
Land lord is laughing all the way to the bank. No
work and a profit more than most made farming.
So who is paying this ridiculous rents.
In our area two to three guys. Ok companies who
weren't around five years ago.
Safety nets are gone Agri stability is gone so no
help, crop insurance probably not, one genius
said they don't take any except hail.
So here is the dilemma we are in Saskatchewan
in 10 years you have two wrecks. The last major
was 2002 and 2004.
So we should see one in the next two years.
Flooding was a disaster but you didn't piss away
millions growing the crop like in 2002. In 2092 we
were still feeding it drugs till end of June.
Simply I hate to see guys fail, but we will have
three groups done after one of these events.
Just hope the government doesn't give them
assistance. If it does up to a certain dollar.
Some say this is prosperity.
I say it's idiots who don't get farming!

[SASKFARMER3]

2002 instead of 2092.

[ColevilleH2S]

SF3
Why have you made it your mission to save your neighbours. Are you jealous they have found success with land, while you timidly stayed out of the market?

Don't beat yourself up with the coulda, shoulda, woulda. It is not healthy. Focus on what you have the power to change, and leave the rest behind. Also resist the urge to look longingly at your neighbours yard and equipment. Envy is a self destructive emotion.

poke poke ;-)

[Hopperbin]

Personally I would accept the offer then later offer 5 percent off if they could pay before they plant the crop and take the one year holiday. Do you think they could pay ahead of planting for 5 percent off? And if they cannot then just laugh at them and plaster it all over the internet.

[SASKFARMER3]

Good comments but I dont look at what these guys drive etc. Couldnt care.
My comments go to the average young guy starting out that wants to be like all the big boys. Most of the old farms have been doing this for years.
You dont get their over night.
ITs fun to sit back and watch a train wreck in slow motion.
But I want some one to come out and explain how at 75 to 125 they expect to make a profit.

[grrrr]

The new normal is 50bu. canola, 60bu. wheat, 80bu. barley good prices, good quality and great harvest weather. That's how you make $125/ac. rent pay. Simple.

[SASKFARMER3]

Coalville broad ass and one world farms don't
impress me. The other guy wasn't around in 2004.
Yes grr the new normal on spread sheets is 50 to
60.
I always said any one can make a profit with their
pencil and paper. Mother Nature still holds the
cards.

[seabass]

We just gave ours up. Tired of always arguing that we take the risk and he sits back and gets his. He comprimised and said he would take a quarter share to mitigate the risk. We said sounds better until he also mentioned he pays no expense for the quarter share. At that point it was go to hell. We said we might aswell farm it and give u all the profit. If theres one thing we learned last year you can spend all the money u want and still end up with nothing. Too much rain early, too hot at wrong time, bugs and the final nail was a wind storm that blew 20 bushels away on it. Then all he has to say is thats farming give me more rent money. We were hoping that if we said no to that high price all the guys in the area would agree and stay away from the fact we would be setting a presedence of stupidity but of course theres always one that says I'll make money at a hundred and so it continues.

[SASKFARMER3]

Toughest thing in the world is to sit back and do nothing.
But boy is it worth it.

[farmaholic]

Don't people remember when some
landlords couldn't find tenants and
asked someone to rent it for enough
money to cover the taxes. Fortunately
it wasn't that bad here but there were
some cheap rents and didn't have to go
far to find that scenario. Let them
knock themselves out. I agree with
those that say, "get ready". Pay down
existing debt, squirrel some cash away
and when this bubble bursts, which it
will, your in a position to get into the
market. I will say that I believe the
land price bar has been raised but I
think it will fall off these highs.
What is the new low? IMHO--Nothing less
than a grand, which isn't bad.

[tizhot]

Hey guys new to posting on this site. Read for a longtime. Anyway. The rents are not attainable in my view. On the perfect year sure but average it out and you better have other land tgoi take care of it. Don't know how the guys do it. Guess thats what going from a good family farm years ago to what was thought fame and fortune can do. Last year farmed -10k ac all rented for around $110 and next spring shes a farm auction. Too bad really. Get rich quick schemes are few and far in between. Sorry my first post was preaching on someones defeat.

[freewheat]

Welcome tizhot!

I see you are in the real world. lol But
one thing I do see, and others often
theorize on, is that having other land
to subsidize more land is a strange
concept. Why not just do better on the
smaller amount of land?

Another thing, is why do most of us
always talk like physical expansion,
rather than tightening our belts and
doing better on what WE ALREADY HAVE, is
the cats meow. Every farm paper is about
expanding your dang farm. Why? Because
we can? Because money is everything?
Because "things and stuff, and new
machinery is impressive"?

I really want to know three things: How
does quarter million a quarter pencil
out?

How does 100 dollar rent pencil out?

And third, How does a 400 000 dollar
combine come out as a good investment?

I just don't get it either...These guys
are absolutely nuts, IMO.

[wd9]

If $50 rent is acceptable, you think
adding 2 to 3 bushels of canola isn't
outrageous either. At least if i rented
out land, i'd look at it that way.

Its only a couple bushels.

[freewheat]

wd, I have some of these landlord types,
lol.

[tizhot]

I will be the first to say that i am not opposed to expansion. In fact I have been looking at expanding more due to "my" situation. But there comes a point that everyone can out grow their means. We have been lucky in this area that the big boys are not here. All around but not here. Yes it will come but for now they have left us alone. Mainly due to the fact that there has not been any land for sale. Small farms make up our area still and for that I am gratefull. That is why I am looking at increasing our landbase.

For our situation $400k combines don't make sense. We don't have crap but new big ticket items are not in our chequebook.