This fabulous harvest season and exceptional growing season following the ideal spring seeding conditions make me think that what we really need is more land to farm...
Currently own most of what we farm, but the economics of buying right now aren't very favourable, even if anything worthwhile ever came up for sale. Most of what comes up for rent is either short term to get back into hay for the owner, or incapable of growing anything without investing a fortune. If something productive does get rented, I only find out much later.
So the first question is how do you keep in the loop to be considered when land comes up for rent? I am not in any social circles which probably doesn't help, no church, curling, bar, etc, rarely even make it to town at all. Do you make preemptive strikes and approach neighbours long before retirement to mention that you would be interested, or does it just go without saying?
I do see a few ads on Kijiji, and in the local free paper looking for land to rent, that casts a very wide net, I'd rather not be the guy who rents land a county away and upsets the locals, not to mention to hassle of being spread too thin and wide.
There are lots of part time or older cattle farmers, horse people etc around here with decades old hay or pasture growing virtually nothing. Most of it would take multiple years to get back into decent production, and these folks may not have the equipment, means, or desire to do so. I've considered offering to trade hay for rent. If I could offer more bales( or fractions of a bale per acre typically) than what they get currently, in exchange for long term rent, with an end goal of getting it back into hay for them eventually, after enough years to make the investment worthwhile. Insulate them from hay price spikes, get a little more production for no cost and end up with more productive hay land eventually.
Second question is why rent? Neighbour expanded recently by renting worn out land and making it into productive grain land, now one landlord is coming back to farm, one sold, probably lost close to half of the grain acres in two years. That makes long term investments in infrastructure and equipment more difficult. Other renters have no end of trouble with absurd conditions that must be met. On rented land, you still get to farm around all the oil facilities, but don't get compensated( at least not anyone I know of). Have to work around the trees and fences and obstacles that no one has any financial incentive to clean up. If areas flood or drought out often, or needs manure to grow at all, it is hard to justify spending the time and money on improvements on someone else's land, but still have to pay rent on those marginal acres every year. How does it work in areas where drainage tile is required, who pays and on what length of contract? I suppose in some areas, every acre is productive right off the bat, and these issues don't exist?
Around here for the past 20+ years, with oil revenue or potential oil revenue, cheap land taxes, potential development/subdvisions, cheap interest, and appreciation, buying land has been a better investment than rent, even if it means growing much slower. Not sure that is still the case though.
Currently own most of what we farm, but the economics of buying right now aren't very favourable, even if anything worthwhile ever came up for sale. Most of what comes up for rent is either short term to get back into hay for the owner, or incapable of growing anything without investing a fortune. If something productive does get rented, I only find out much later.
So the first question is how do you keep in the loop to be considered when land comes up for rent? I am not in any social circles which probably doesn't help, no church, curling, bar, etc, rarely even make it to town at all. Do you make preemptive strikes and approach neighbours long before retirement to mention that you would be interested, or does it just go without saying?
I do see a few ads on Kijiji, and in the local free paper looking for land to rent, that casts a very wide net, I'd rather not be the guy who rents land a county away and upsets the locals, not to mention to hassle of being spread too thin and wide.
There are lots of part time or older cattle farmers, horse people etc around here with decades old hay or pasture growing virtually nothing. Most of it would take multiple years to get back into decent production, and these folks may not have the equipment, means, or desire to do so. I've considered offering to trade hay for rent. If I could offer more bales( or fractions of a bale per acre typically) than what they get currently, in exchange for long term rent, with an end goal of getting it back into hay for them eventually, after enough years to make the investment worthwhile. Insulate them from hay price spikes, get a little more production for no cost and end up with more productive hay land eventually.
Second question is why rent? Neighbour expanded recently by renting worn out land and making it into productive grain land, now one landlord is coming back to farm, one sold, probably lost close to half of the grain acres in two years. That makes long term investments in infrastructure and equipment more difficult. Other renters have no end of trouble with absurd conditions that must be met. On rented land, you still get to farm around all the oil facilities, but don't get compensated( at least not anyone I know of). Have to work around the trees and fences and obstacles that no one has any financial incentive to clean up. If areas flood or drought out often, or needs manure to grow at all, it is hard to justify spending the time and money on improvements on someone else's land, but still have to pay rent on those marginal acres every year. How does it work in areas where drainage tile is required, who pays and on what length of contract? I suppose in some areas, every acre is productive right off the bat, and these issues don't exist?
Around here for the past 20+ years, with oil revenue or potential oil revenue, cheap land taxes, potential development/subdvisions, cheap interest, and appreciation, buying land has been a better investment than rent, even if it means growing much slower. Not sure that is still the case though.
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