Ontario Teachers are Renting out there land in our area, Lets watch!

[SASKFARMER]

Yes it's Redland farms.

Pike was south and north.

[Ache4Acres]

I'll take any bets that say it goes lower than $75. I bet 100+ is possible. Already lots of interest and hey there are a lot of BTO wannabes out there

[jake550]

[QUOTE=Ache4Acres;320906]I'll take any bets that say it goes lower than $75. I bet 100+ is possible. Already lots of interest and hey there are a lot of BTO wannabes out there[/QUOTE

I suspect you're right on the crazy rent.
But the same people won't buy it when they had the chance for $2,000 or $2,500 an acre.

Is that the kinda price it sold for saskfarmer?

[RTK]

Are guys making money paying $100/ac rents in that area? What are they growing for crops and yields. In my area we are hearing $75 to $80/ac rents - this is 30-35 bu canola and 35-40 bu wheat country and yes we can see less than those numbers. I can not see how that these rents work in our area. I am always looking to expand but renting at these prices makes little sense to me... Unfortunately I had to pass on an opportunity to buy a section - happy to see a young operator get approved by FCC to buy it because I have no idea how it will ever pay for itself. Not sure how it works with no other paid for land; new house; young family but sure hope it works out for them.

[jake550]

Are guys making money paying $100/ac rents in that area? What are they growing for crops and yields. In my area we are hearing $75 to $80/ac rents - this is 30-35 bu canola and 35-40 bu wheat country and yes we can see less than those numbers. I can not see how that these rents work in our area. I am always looking to expand but renting at these prices makes little sense to me... Unfortunately I had to pass on an opportunity to buy a section - happy to see a young operator get approved by FCC to buy it because I have no idea how it will ever pay for itself. Not sure how it works with no other paid for land; new house; young family but sure hope it works out for them.

There are lots of 50+ bushel canola crops and 70+ bushel wheat grown.
Obviously as all farmers know you can never bank on those yields but it has become quite common on the high input fields.

[SASKFARMER]

You are correct jake!

I called when the boom peaked!

Some laughed and said it would continue.


We're now in the next phase where expensive rents end.


History repeats here we go again.

.

[jake550]

You are correct jake!

I called when the boom peaked!

Some laughed and said it would continue.


We're now in the next phase where expensive rents end.


History repeats here we go again.

.

What land sales have there been for less since then?

I'd say there's less land trading hands now because the high prices flushed out anyone thinking of selling. The last stuff that sold here near us was some of the worst cattails and alkili. It sold just prior to seeding and was new high mark for that type of land. Makes that land south of balcarres look like a deal at under $3,000 an acre.

[farmaholic]

All I have to say is I wish I would have bought more before Sask land prices were over-whelmingly successful in playing the catch up game.

I can't imagine paying those rental rates.....when our dirt is bought and paid for....it seems like a lot of margin to give up.

160 acres @ $2500 = $400k minus $100k down.
$300k @ 3.75% interest = $11, 250 interest cost.

versus

160 acres @ $75/acre = $12,000 rent.

Rent equals interest cost. Now hope the principle portion of the loan payment can also be paid from the crop.

Like someone else said....."hello mid 80's". Not a crash but a correction, and it may be a repeat--- where it took "decades" to reach the price paid before the correction.

[SASKFARMER3]

Also the lentil lotto this year with a guarantee with crop insurance is going to end next year. The province wont do that again.

[SASKFARMER3]

A few sales have happened in smaller numbers since and are 2600 range or lower.

Boys I called it and the next step is a realignment of rent.

In a non lentil wet area prices will drop.

With very little insurance guarantee for lentils next year prices will drop.

low prices for our product cause rent realignment.

Welcome to the 80s its not drought and subsidy by Americans its floods and poor quality crops.