Foreign Land Ownership

[phoenix64]

Mb local maybe buying but the price is being dictated by foreigners and Chinese on the doorstep, sellers and buyers both know this. Farms are risking too much equity and security to expand with a new generation stepping up to the plate. Western Canada used to be a competive ag producer, but we are quickly losing that edge on the world stage. Our high land cost is putting us at a disadvantage, Black Sea region can put a bushel of wheat into export position for three dollars less than us. That gives them a great competive advantage. As commodity prices continue on that downward trend they will destroy us.

[sumdumguy]

Black Sea land for sale?

[farmaholic]

Black Sea land for sale?

The instability of the area would keep me out! Send in the Investors.

[fjlip]

The instability of the area would keep me out! Send in the Investors.

Yup, politics ruined the BEST location to grow crops, Ukraine. Climate for every crop, close to ports, 6' of level stone free black soil, close to market of millions!
But shit for politics, for hundreds of years, that is why most of our ancestors left for this location on earth.

[grassfarmer]

I agree. should be a big issue for western canada. dont hear much about it.

Maybe you have the wrong people representing you? One farm organisation has studied and commented on this many times - the NFU.
This 2015 update to their earlier 2010 paper on the same topic is well worth the read:

[URL="http://www.nfu.ca/issues/losing-our-grip-2015-update"]http://http://www.nfu.ca/issues/losing-our-grip-2015-update[/URL]

Of course it is in our best interests to have Canadian land farmed by Canadian but to do that it needs to be profitable enough to attract and retain young farmers. Which leads back to the central policy of the NFU which is always to ensure sustainable, profitable family farms. It seems like too many have been led down the path leading to the false holy grail - the "global marketplace". Some of you seem surprised when you get there to discover that there is no guarantee of sustainability or profitability merely a race to the bottom with every level beyond the farm gate extracting a good margin but not the farmer.
Oh well, can't say you weren't warned!

[bucket]

But now Trudeau wants to tax intergenerational transfers .....it's a no win situation if you saddle a young farmer that is getting some help with a tax burden on a paid for farm.....

[MBgrower]

Mb local maybe buying but the price is being dictated by foreigners and Chinese on the doorstep, sellers and buyers both know this. Farms are risking too much equity and security to expand with a new generation stepping up to the plate. Western Canada used to be a competive ag producer, but we are quickly losing that edge on the world stage. Our high land cost is putting us at a disadvantage, Black Sea region can put a bushel of wheat into export position for three dollars less than us. That gives them a great competive advantage. As commodity prices continue on that downward trend they will destroy us.

foreigners or investors don't overpay, they pay market price. just like at a Ritchie auction, no one pays 50k over bid price, they pay what the market at the time is dictating the value of the asset. the current land values in w.can is due to farmers willingness to pay these prices, investors or a small part.

[phoenix64]

Your full of it mb, both investors, Chinese overpay for land so that they can block large parcels to attract large entities to rent, and down the road flip as a package. This is why there is concentrations in various rm's up to 30-50% of land owned by investment fund/Chinese/Robert andjelic/Brett Wilson and the like.
No need in sticking your head in the sand and pretend it isn't happening?

[phoenix64]

I guess if govt rules allow it why not, they are simply following the will of the people, but I think the "people" have to know what is going on in their back yard, good or bad.

[farmaholic]

In a lot of cases the only reason farmers are paying the "going rate for land" is because "if you want to play you have to pay". Or that they want that missing piece of the puzzle. But one thing I can assure you of is in this area farmers are definitely NOT the "pace setters"! I would have grudgingly paid the current going rate for a half beside me....even though I thought it wouldn't have made a lick of sense!

[SASKFARMER3]

Ok ill throw this in here. Its a example of what happened in RM north.

What would you have done as a farmer.

You have lets say a couple quarters and are surrounded by a Bigger farmer.

you have struggled most of your farm life. Your kids left and now its time to sellout. you decide to sell a few at a time.

Your first offer comes in from a New Canadian who left his country where the Farmers are Killed on a Weekly basis. His offer is 165 a quarter as a example. Your next offer is at 170 per quarter from a long term neighbour. Your third is a offer from a Younger farmer from miles away at 115 a quarter but really its his relative who is buying as a investment.

Who did the guy sell to, Want to guess. No Chinese involved nothing.

Some times farmers are their own worst enemy.

He left 100 grand on the table that even if he didn't need his kids could of used in the future. Because once its gone the investor out of province now would want the 200 for it or more.

Farming is a Business and people know a good deal when they see it and once its gone their is no redo. Its sold. Same with the Foreign buyers its sold and gone.
So yes MB in your neck of the woods locals are buying because Foreigners would in a heart beat so locals have to bid.


Even the banks throw this out as a arms length comparative land sale in that RM.

[westernvicki]

Land ownership policy varies per country and objectives: some nations have no rules, it is open to all, but often where preserving the industry is primary objective land ownership is restricted to foreigners. Indeed being able to own land is not always a right in many countries unless you are a citizen. It is interesting to note how farmland is protected in countries from what may be potentially the highest bidder, the foreigner, as part of an overall food security plan. Farmers have various objectives and most are not going to object to the highest bidder so indeed the policy comes down to national policy on the ownership of assets for the production of food.