Area One Farms

[helmsdale]

Another clever way to bid your neighbors up on land values with someone else's money.

https://areaonefarms.ca

Producer article

https://www.producer.com/2016/09/mr-investor-meet-mr-farmer/

More details on a globe and mail article.

https://www.google.ca/amp/s/www.theglobeandmail.com/amp/report-on-business/small-business/sb-money/private-equity-firm-offers-new-way-to-get-agricultural-land-without-betting-the-farm/article29586908/

[helmsdale]

About 15,000-20,000 of those acres are on my doorstep. Could also include upwards of a township of grass... its contributed to driving prices into the stratosphere over the last 2 years.

Good God if thing craters it's going to make the 80s look like a minor road bump.

It drives me to see all these latest schemes marketed as nearly risk free solutions to all our ills. Anonymous private equity investors in farmland... what could possibly go wrong?

You thought IC was driving your new local BTO? With as little as 10% down(word on the street) you can send all your neighbors on permanent vacation.

Who honestly thinks that farm net returns are rosy enough to pay out the investor after as little as 10 years? Could your net return, after sharing the profits with your investor possibly keep up with the inflation in land values that are most certainly expected by the investor?

More likely that you'll just write another 10 year contract with the existing investor or you'll be paired with a new investor who buys out the old investor. I just don't see how this can honestly be thought of or marketed as a way for you the farmer to increase your asset base.

Rather than a helping hand this looks much more like a way to ensure serfdom. Many people made and or make long term commitments hoping that they'll be able to pay off land debts with inflated commodity prices down the road. The only thing you're fighting is the interest rate on the loan which we all know is about as low as it can go. If necessary you can leverage any land value inflation going forward thereby having inflation work for you. In this case land value inflation is fighting against you.

I shake my head. Perhaps I'm too cynical and can't see the benevolent "hand up" in this deal.

[furrowtickler]

Stripping family farms one by one across western Canada .
No one takes pride in ownership of land anymore ? Or is it just all about the big show and ego ?
That’s where i still have huge respect for strictly farm family run operations, larger or smaller .
It’s a tough gig to do it by yourselves and not use Monopoly money from “investors”.

[wmoebis]

Stripping family farms one by one across western Canada .
No one takes pride in ownership of land anymore ? Or is it just all about the big show and ego ?
That’s where i still have huge respect for strictly farm family run operations, larger or smaller .
It’s a tough gig to do it by yourselves and not use Monopoly money from “investors”.

How does one know if farm operating under a corp naame is backed by investor money? Silent partner.

[ajl]

I have heard of this outfit before. Do they have some sort of interesting angle that some of the others do not? Land across the road from our house is owned by Ceres Real estate holdings, which is a division of the US outfit by the same name. I believe they have the terminal at Northgate SK as well.

[sumdumguy]

Stripping family farms one by one across western Canada .
No one takes pride in ownership of land anymore ? Or is it just all about the big show and ego ?
That’s where i still have huge respect for strictly farm family run operations, larger or smaller .
It’s a tough gig to do it by yourselves and not use Monopoly money from “investors”.

An NDP government would fix that 😄

[furrowtickler]

How does one know if farm operating under a corp naame is backed by investor money? Silent partner.

There is lots of that to , there is obviously a lot of money in Ag , just for everyone else but the primary producer and risk taker ....

[biglentil]

Dollars are just a keystroke.

[farmaholic]

....both can be lost or taken from you!

[macdon02]

Land is King !

Nothing else matters !

Is not land but assets in general. Don't confuse the two... and if you're bearish cash the assets need to be in USD.

[Bowerpower]

Is not land but assets in general. Don't confuse the two... and if you're bearish cash the assets need to be in USD.

Once land is paid for farming makes cents!

[farmaholic]

Once land is paid for farming makes cents!

I hope that was an intended pun!

I often joked about others picking up loonies and toonies renting a bit of extra land while I was picking up nickels and dimes seeding potholes on our own land. But I think its well known I don't like renting land. Gotta be money in it because everyone is doing it....escpecially the guys paying big rent, they HAVE to be making the most! Right?

[farmaholic]

Wiseguy,

Last year's math :

27×12=Yikes!

[SASKFARMER3]

Wiseguy in our area landlords are waking up and not letting guys put Canola on Canola on Canola. It is a way to call Richies and end your farming game. No one will pay big dollars to rent on land that Canola on Canola when the BTOs leave the building.

Input Capital is probably their main bank and they are done.

[SASKFARMER3]

wise guy more like

43 x 10.85 = 466.55

120 - 466.55 = 346.00. Costs are up there for seed Fert. and spray and fancy machinery.

Ah they are broke within three years. Follow the money.