FCC Farmland Report

[farmaholic]

....oh, but that's ok, take some cash from the bank and BUY it down to the point it pays for itself. Or use "paid for" dirt to subsidize it.

Or better yet, buy it with investor money!

It happened right beside me, someone's money (an investor) sloshing around looking for a home. Some of the highest prices paid in the neighborhood, paid for with money where I bet not a cent of it was made in production agriculture. Then people fall over each other and themselves to farm it providing the investor with a rate of return better than any money in the bank can earn. The "BIG appreciation" play is over as far as I'm concerned. But that's ok, there's always tennent farmers who will farm it for them. I'm not making it worth their while owning it! Nope, too old and grumpy and lazy.

[hobbyfrmr]

Alberta money from oil on the west side. It's not about crops. Oil supposedly was floundering so speculation on oil development on the east central side declined so too speculation on that land.
All laughable as the oil industry is rollin on dough that we re supplying. Hahaha

FCC would they even print a lower land value considering who they've borrowed to? Never.

Good point Big Wheel. It would be detrimental for FCC to report lower famland values. Extremely detrmental if they reported negative growth. FCC (all lenders for that matter) needs to keep the party going. They lend money on debt/asset. If the land assets drop in value this would be the tipping point/Minsky moment some people are predicting.
Its ok to be part of a market correction but they certainly do not want to be the ones to initiate it.
I dont mean to be spiteful but I sure would like to get on with a correction. The longer this drags out, the worse the end result will be.

[fjlip]

Land will always be there what ever the cost. Iron value on the other hand EVAPORATES just sitting there, in the shed, worse outdoors. That is the biggest risk, half a million for a drill combo, worth half that in 2 years! The market changes and you are TOO SMALL or old TECH. Seems nobody that needs a 70-80' drill buys used. Think about resale when signing the papers....

In the 30's farmers ABANDONED W and S farms and moved up into this area, history could repeat that too. NO DROUGHT risk is less stress,

[farmaholic]

Fj, I wouldn't know how to farm up there, from the Slum of the Ghetto to Paradise in the Garden of Eden would be more than I could handle, too much (agri)CULTURE shock for me.

Good luck seeding.
Take care and work safe.

[grefer]

Good point Big Wheel. It would be detrimental for FCC to report lower famland values. Extremely detrmental if they reported negative growth. FCC (all lenders for that matter) needs to keep the party going. They lend money on debt/asset. If the land assets drop in value this would be the tipping point/Minsky moment some people are predicting.
Its ok to be part of a market correction but they certainly do not want to be the ones to initiate it.
I dont mean to be spiteful but I sure would like to get on with a correction. The longer this drags out, the worse the end result will be.

I for one will never wish for the good old days when FCC had a binder on the table in their waiting room with dozens and dozens of parcels of land for sale. Dont fool yourself in thinking that farmers back then couldnt see the forest for the trees. There was no money to be made. I dont think the same can be said now. Many if not most farmers and their families have a much better life style now than then. Machinery costs, etc are another matter. The games played with farmers in that regard will never be matched in land transactions. JMO.

[Oliver88]

FCC reports say land increased again in Saskatchewan by over 6% in 2019.

Low interest rates will continue this trend for another couple years in my opinion.

[helmsdale]

Quite a difference between west SK and east SK.
15% increase on west side of province and 0-1% in east half.

Topoffs come to mind... Monette be included in "western SK"? There's a few that are really driving the price.

[Partners]

All you need is a large farm that will pay any amount to get dirt.
We are in a good spot if and when the time comes..
Lock in a low interest and good to go.
Lowest interest rate for houses we heard is 1.7% locked for 5 yrs.
House selling like hot cakes in Humboldt as a result.

[furrowtickler]

Topoffs come to mind... Monette be included in "western SK"? There's a few that are really driving the price.

Hutterite colony’s buying the past year in western sask
Average family farm has zero chance bidding against them .

[GALAXIE500]

Would it be safe to say that a return to "normal" rainfall levels in each respective area would cause those prices to go the opposite directions? Is this a reflection of the west side now becoming a garden of eden with higher rainfall, and the east side becoming a lake?

Down here in the Maple Creek area where I farm is not a garden of eden the last few years! Our "average" yields down here would make some of you run home crying to Mommy. Too much wind and not enough moisture.

[Oliver88]

Down here in the Maple Creek area where I farm is not a garden of eden the last few years! Our "average" yields down here would make some of you run home crying to Mommy. Too much wind and not enough moisture.

Probably a lot of factors that are pushing up land prices in SW Sask?

[SWFarmer]

Green lentil prices approaching $0.40/lb should provide support in the short term.