.........reasonable valuation.

[SASKFARMER3]

Wow wise you just seed canola canola your some genius. Club root here we come.

It’s a long term thing.

I’ll still wait and not really caring if land goes up some more. If it drops we go to plan A and buy if not it’s plan B steady as it goes half wheat half canola or just a little variation.

But land at 400 or 500 a quarter in areas thy if it gets dry won’t grow back shit makes no Sence.

If I farmed in these areas I would liquidate the whole farm and sit back three years and then triple my farm size.

Those that think it can’t happen or won’t hahaha I say I seen it twice in my farming life watch history does repeat.
And now with huge debt levels by farmers it will happen sooner than later.

[bucket]

Buy at these prices and worse case you might have to ask for a write down. ..

Some guys here bought land years ago at like 40K a quarter....had it written down to pennies on the dollar....barely made it....and are now back at it with the next generation to do it all over again...

Buy the land. If there are two guys bidding there will always be a sale.

[biglentil]

Lets see land was $30 an acre in the 50's now its $3000. Geeze can anybody see a trend?

[farmaholic]

Lets see land was $30 an acre in the 50's now its $3000. Geeze can anybody see a trend?

You better have the time(on your side) and resources to ride the roller coaster named "Trend". Most roller coasters I've seen don't only climb... This one is a looooong ****ing ride.

[SASKFARMER3]

Wow and my home was 240 new and now close to a million? Who cares we all need a home same with land you need some can’t rent it all even if some BTOs think they can.

Land was 200000 in our area in 1981 then 56000 and now 400000 and your point.

It can drop and it can go down watch if your I. A dry year for three in a row. The BTOs disappear when the big boys from Toronto (TD RBC BofM BofN) call the shots and cut them off.

To big to fail hahahahah ahh

[farmaholic]

Wow and my home was 240 new and now close to a million? Who cares we all need a home same with land you need some can’t rent it all even if some BTOs think they can.

Land was 200000 in our area in 1981 then 56000 and now 400000 and your point.

It can drop and it can go down watch if your I. A dry year for three in a row. The BTOs disappear when the big boys from Toronto (TD RBC BofM BofN) call the shots and cut them off.

To big to fail hahahahah ahh

Maybe people have to be long in the tooth and not wet behind the ears to recognize the peril!

[farming101]

Credit isn't a sure thing like the sun that comes up every day.
It's more like the light in your yard. One minute it's burning bright, the next minute all is dark. And we know who's hand is on the switch

[farmaholic]

150 acres @$90/ac=$13,500
ROI Land Cost
3.50% $385,714
5% $270,000
7% $192,857

150 acres @$75/ac=$11,250
ROI Land Cost
3.50% $321,428
5% $225,000
7% $160,714

150 acres @$50/ac=$7,500
ROI Land Cost
3.50% $214,285
5% $150,000
7% $107,142


Resurrected the info.

Ya, I know, where do you get 7% in the bank.

This might be a bit of backwards thinking but its based on knowing how much you can get for cash rent and what ROI you expect if you can buy land for cash.

One for wiseguy:

150 acres @$110/ac=$16,500
ROI Land Cost
3.50% $471,428
5% $330,000
7% $235,714

[farmaholic]

I can't edit in wider spaces in between the "ROI" and "Land Cost" values, sorry...

[hobbyfrmr]

At the end of the day it is a productive asset and it will all depend if you are thinking of leaving a generational asset or putting it into cash.

Nothing wrong with putting it into cash but cash is easily spent by heirs on nonproductive assets.

Iceman Out

Agreed. I recall oldtimers saying “you can’t spend land”, meaning it would require considerable thought, then the action of selling it for cash in order to use the money.
More than ever we have unlimited access to consumer goods and a spending/buying/getting attitude. Younger generation doesnt seem to care too much about assets but more about getting something really good to make their lives interesting for the short term.
I have friends who took a home equity loan to buy a $62,000 fifth wheel camper to sit at the lake for 3 months per year. Finance for 20 years to make affordable payments year round. I suspect that camper will be destroyed by weather before it is paid for no matter how well it is cared for.
I think (not exactly positive) I am jealous because they definitely enjoy lake time as a reward for their work. I like visiting them because they are usually drinking and in a relaxed, happy mood.
Buffet is all about buying stock that will create value for him. Its very interesting how he stays with simple principles and has accumulated so much wealth.