FCC Farmland Report

[SASKFARMER3]

Bingo!

It was all bullshit then and it's the same now.

Farmers are the last sitting holding the reigns

And this time FCC and the FEds and Banks won't help out.

Banks have most tied up so bad they won't believe how bad they're tied up. Companies were designed to get farms shut down when the shit hit the fan. Not for tax planning. It was to shut them down.

FCC cant takes 525000 lands and says oh MR farmer rent it for 40 an acre and we will let you buy it back for 150000 in five years. Yea who is going to cover that the Gov of Canada. Hell Trudeau has us so broke.

The hand is on the Handle if this crop freezes the landscape will change dramatically.

Read history it happened before and it's going to happen again.

[farmaholic]

......speaking of FCC printing reports.....the only thing they've been printing is money and lending it out to support these artificially high land prices, prices that have risen above the land's ability to pay for itself based on its productive capacity.

A reality "check" might be in the mail in the near future.

[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.