Foreign Land Ownership

[fjlip]

"Re renting: if all you ever did your whole life is rent and supported the ag industry and you don't have any assets after, cash or the land or a really nice house or otherwise.....why did you bother?"

There are some BIG operations that rent half or more around here. All seem to be profitable. Land is paid for after tax, so you live poor die rich or at least your kids will be rich.
Most businesses last about 3 generations then sell out. We are #3.
60% of US farmland is rented. Farmers getting OLDER, and a huge asset transfer happening in next 20-30 years.

[macdon02]

Capital flow folks. Grab a monthly cad chart. Yes Canadian land is cheap if you think the loonie is going higher. But that ain't happening unless crude breaks loose. Yes there's Chinese and European money coming in and is likely in USD. But to exchange USD into Canadian dirt especially when cap gains exemption and restructuring of corporate tax plus foreign ownership tax on real estate is on the table, its a stupid ****ing move imo. Buy dirt in a more favorable tax district. But it isn't my money do as you wish. I'll add that govt on all levels will increase the tax load until oil royalties start getting back to the levels the provinces are budgeting at.

[macdon02]

Actually it makes more sense to buy ranch land in Wyoming where the tax rate is second lowest only to Florida thereby hedging the CAD and still having ag exposure all at lower tax rates. Even an orange grove would make more sense to rent out while renting Canadian grain land. Dyodd. Each to his own. Tax rates matter.

[farmaholic]

Sask sacrificed some of it's own resident's futures for a huge capital injection into the province, some of which will leave the borders as fast as it came in. Rules suppressing land prices are hard to swallow but now the prices have gone beyond making sense....is it still a good investment? Over the looooooong term probably. But twenty years is also a l-l-l-looooong time to wait for the price to recover if it corrects....better make sure you have the "time" to wait. Think about it---it happened before and will likely happen again.

[bucket]

Average age of farmers is what 57.....most are probably second generation. ....and getting sick of it....improving equipment and soil over the last 30 years only to be paid less....capturing carbon and then being told to pay for it as well.....


I'd ****ing leave to and let the foreigners farm it.....we have become pawns but it was because we worked hard and lost sight of what happened. ....better yields with better agronomy and poof we end up with 14 dollar a pound canola seed...

Same thing with wheat pretty soon and seed treatments. ...

We lost sight of the perfect pitch and struck out....

[SASKFARMER3]

Land my favourite topic.

Yes maybe I should of bought from a neighbour the 8 quarters that would of completed my puzzle. It's now owned by a guy who has a address in Vancouver and lives in China full time. Yea he's Canadian wink wink. I like the guy we talk every couple of months about land and different things. Probably if I wanted to I could rent it. But why is the question. Lately most things I have looked into that are farming related I ask why work for someone else. Every thing from insane machinery costs, to insane seed costs to insane chemical costs freight and labour. Rent more they all say the payments are easy just rent more. Dah that's the pry that pisses me off rent more. So wtf we work as farmers for **** all. Just to keep the others in buisiness. This farming is getting more insane every year.
Now on land yes it was a investment that paid big time if you bought in th 90s after the last **** up of 80s.

So yes the 8 would have been a very nice fit but do I regret not buying hell No.

Sooner or later this shit show game called farming is going to change. We farmers can't keep paying unbelievable high prices for everything and hope to stay profitable.

Oh then throw in idiot boy and his catch the tax dodger corporations "Farmers, Dr. And small buisiness owners" so he can hand out our hard earned cash and take selfies and travel the world.

We do run the stupidest occupation out their. Let them buy their food from Costco and Safeway and Walmart because that's where most think it comes from.

Enough rant I still believe this chineese thing isn't going to end good for Canada as a whole.

[jamesb]

what so many people don't realize that the actual governments of India and China would gladly invest billions of dollars into Saskatchewan farmland if they could. Food security to them is paramount. Once its gone its gone.

[farmaholic]

So instead of them taking over a country by force we'll just sell them parts of ours?

I wonder what the foreign ownership rules are of other nations.

Then there's the rules that get bent or skirted around by industrious individuals.....providing investment oopportunities.

[MBgrower]

ive never heard of a non farm business complain about the valuation of their business being too high.

Yes land is expensive, $4000-5000.acre here. but it mostly local farmers buying the land, not Chinese. Land always seems too expensive. 20 years ago land was $1000 an acre and it was deemed too expensive. a smart farm is always buying some land, building an appreciating asset base in which will assist in leveraging the means to grow their business. if you are a farm that relies heavily on rented acres, I'm sorry to say, but you will have a harder time sustaining the business.

[farmaholic]

Cheaper to rent than to buy right now, but I do agree..... ownership is where it's at!

[newguy]

Money brings people.people bring money.Nany farmers had the oportunity to buy more land before investors and did not.Would be nice to turn back the clock but you can not.Sask needs to stay open for business.you better believe the farmers saying they are against investors wold change their tune when they are ready to sell their life's hard work.

[farmaholic]

Yup...depends what stage you're at.