Regina Housing Market.

[Rareearth]

Every time land values go down in the area, my net worth goes down, ability to borrow, interest rates for operating line, security requirements to buy land ect. I just don't get why or how farmers hope that the price of land goes down? Their ability to buy land, finance and plan anything also goes down, it doesn't make them any more competitive with investors, or neighbours at all.

Steady inflation is actually good for a farmer.

Government policy impact on agriculture should be clearly understood by all farmers by now, example carbon tax

[farmaholic]

.......... I wouldn't sleep at night if my operation was MAX financed using current land values as collateral and almost free money.....

I edited this post and inserted the word max

[macdon02]

I'm wildly bullish ag in general, my issue is deflating crude prices, imo it's a done market, went too high and alternatives are now viable. What we saw in the last budget is govt now has a bullseye on ag, federal and provincial. They can't tax oil Co any more or they are pulling out literally. So with zero intention of shrinking size of govt they found their new golden goose. This applies to municipal govt as well. I'm just not sure a person wants an asset that ties you to a specific location. Homesteaders walked away from land in the past and anything is possible. Get a residential crisis cooking with the debt levels currently and where does govt go for revenue?

[Rareearth]

That's the beauty of being a farmer, we all have opinions and we are all right( at least in our own minds).

I sleep very well at night as I suspect many do.

If I had land free and clear say 4 quarters and it was worth a million dollars, it wasn't used as security or leveraged in any way, that is exactly the same as having a million dollars in the bank receiving 0% interest. It's not quite that simple as the farm has to be looked at and treated as a whole - business.

Now if you go to negative interest rates and deflation --- then you have to pay.

Where would you rather invest , stock market or your family business?

[farmaholic]

Some one once told me to invest in "what you know". So the farm would be the place for me.

[hobbyfrmr]

.......... I wouldn't sleep at night if my operation was financed using current land values as collateral and almost free money.....

It seems to me this is the way its done. Borrow against equity to operate. Machinery lease becomes a dollar per acre operating cost.
I dont know any other way to finance farm activities. By the time you get decent equipment and put a crop in, we're talking in millions of dollars. I dont think there is that much access to unsecured credit.

[farmaholic]

There probably hasn't been a better time to borrow money than through the low interest rates we've experienced....with a degree of caution though.

Where's Errol?

[farmaholic]

How much will the bank/FCC lend you on a $320-480K quarter?

Maybe that is its true value? Kinda a stoopid question...so many variables. Let's say minimum down payment and not alot of ability to subsidize it.

[Rareearth]

Again we all have different priorities, goals, values, risk tolerance ect

These all change regularly depending on many factors, mood is the most challenging for farmers.

[Rareearth]

They all need 60 to 75% security.
Per $100,000 that's cash of 25,000 to $40,000 down or land equity equivalent.

[farmaholic]

There was no need to expand until recently. A new torch bearer in the picture. I'll admit there was so much more I could have done with the equity. But at a certain stage you think that's enough, because under the circumstances the next move is almost a whole new level!

No risk no reward.

[farmaholic]

They all need 60 to 75% security.
Per $100,000 that's cash of 25,000 to $40,000 down or land equity equivalent.

Yup, 25% minimum for me....gets skin in the game 80 on a 320 quarter. I'd do more if I could. Beat it down asap....reduce acquisition cost....purchase price is stupid enough.

[Rareearth]

That's how most farms do it. Unless their is good second income, teacher, nurse, hockey players etc

Well done Farma , live your dream ....

[the big wheel]

FCC appears to have diffferent requirements if your a Chinese or other investor or broad ass or pike you don't need any equity in fact obviously since they lost millions they must have to have zero equity yet at the same time people that have farmed all their lives and built their communities through thick and thin they need more than 75 equity. Or if you've already borrowed stupidly they line up to give loans out because your big. Hahaha morons and somewhat crooked actually. Hey iceman is it true one of the FCC analysts moonlights for the canola capital gang? So let's see turn people down for loans at one place and then get them a loan shark deal at another make big sing up bonus. Hahaha is that how that works. Lol

[sk_wheatking]

Farming....the only business in the world where it seems that the majority wish their biggest and best asset would drop to 1940's value level. And don't rip me a new one there is post after post on here wining about high land values. No other business looks at what they have as being worth too much.