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Are MB land prices still climbing?

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    Are MB land prices still climbing?

    Sold some land at $2200/acre last year and price is now near $3500 for swamp. Have an opportunity to aquire a quarter in the under $2700 range. Good drainage class 3. Are we done yet? With Bernanke's new 6.5% unemployment target, are we on QU forever? I think I can borrow at 3 to 3.1%, and I can put quite a bit down, no other land debts. Really though, every aquisition should rest on its own merrits. This type of deal should be nicely accretive if we have another 3-4 years of land inflation left. It feels like it is far from over, but so hard to gauge. What are your thoughts?

    #2
    Sorry, that should read QE forever.

    Comment


      #3
      No other business in the world acquires assets or competing/complementary companies that cannot support themselves as a separate entity upon itself. (The exception to this are the companies that have bad leadership like BroadAcre and OneEarth who's executives only hope to line their personal pockets with big salaries at the expense of a floundering company).


      But again they are business men and not farmers who make decisions based on feeling.

      i will answer your question with another question. When will us farmers quit cutting our own throats?

      Comment


        #4
        it is actually very common for business to
        engage in uneconomic activity. This is
        why dividend paying companies always out
        do non dividend paying companies: they do
        not waste the money on something stupid.
        In the oil sands right now there is no
        investment that would be going ahead if
        someone could operate a calculator. Even
        the Chinese are here to destroy wealth in
        the oil sands.

        Comment


          #5
          careful marshal, grand-pappy always said...be fearful when everyone else is fearless and fearless when everyone else is fearful!(i think ole warren buffet stole this saying and re-phrased it) he practised this religiously and passed down to his family and they purchased farms, homes in the city and other businesses with the same philosophy. Everyone did quite well.

          Comment


            #6
            but it takes patience young grasshopper....patience.

            Comment


              #7
              Talk about Dumb F#ckin Farmers!!!!!!! Sell one 1/4 fer $2200, then buy another fer $2700 a year later, Dumb F#ckin Farmers. I wouldn't give you a $1000 an acre fer that Shit North of Starbuck, Heck any direction from there is SWAMP. Go pay Donemore $3000 fer his Bog, Hahahahahaha!!!!!!! Land Prices are detaching from The Productive Capacity of The Land, Attributed to - Dumb F#ckin Farmers!!!!!!!!!!!!!!!

              Comment


                #8
                BTO_Hutterite: Actually around here it
                actually isn't the farmers driving the
                price of land up it's investors with
                pockets full of cash doing it. The guys
                who actually farm the land(real farmers)
                see it for what it's worth and aren't
                willing to go there.

                The way you talk, there's no place like
                home(quality of farmland). Too bad all
                the Hutterites will own it, probably
                even yours, before your dead body has a
                chance to cool!!

                Comment


                  #9
                  Got That Right, REAL Dumb F#ckin Farmers!!!!!!!!!!!

                  Comment


                    #10
                    Well, it may be dumb, but land prices will probably rise for another 36 to 48 months before it is done. Starting to level off in Iowa, but will likely make smallish gains going forward after two years of 25% gains. Last price expansion lasted 84 months roughly, and we are about half way through, crazy as it seems. Even in the face of high interest rates, land here went up 900% in the last runup. That is just plain history. This of course puts terrible pressure on the young folks who want to farm, never mind what it is going to do to rents. Maybe corn will save us when growing it around here becomes ubiquitous. Just trying to intellectualize this thing without dropping too many F bombs.

                    Comment


                      #11
                      Why are effectively 0% interest rates considered by debtors to be high interest rates?

                      Go figure

                      Comment


                        #12
                        BTO, fly a kite.

                        Comment


                          #13
                          WTF, climbing land values is a good thing!
                          Whats wrong with it, ya wanna be poor all
                          yer life?

                          Comment


                            #14
                            I am with burbert its so awesome thinking I am rich.

                            Comment


                              #15
                              who is stupid? the guy that goes up against the hutterites or the guy going aginst the one earths.

                              Comment

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