Here's hoping for an economic reset soon in ag

[cuban_assassin]

Who else looks forward to a down turn in the ag economy. Personally it can't happen soon enough. Land, labour and equipment costs have long past whats sustainable. These new young ag more than ever farmers who think farming is a breeze spending grandpa and daddys money bidding up land prices are in for a tough lesson! Its time for all the parasites who live off the farmer to find someone else to feed off of.

[the big wheel]

With all the oil under ground the oil industry will buy it all up and have farmer friends farm it even if for s loss just so they can control the land. These are different times. Other countries growing populations still need expanding food supply. And as much as there is developments other places we still don't get shot at while on the tractor which is somewhat of a plus for this area.

[15444]

In order for it to happen, you need the perfect trifecta. Collapse in all commodity prices, elimination of SM and skyrocketing 15%+ interest rates. That is the only way to slow down all the 'drunk' farmers.

But land prices can also be heavily affected by other resource industries, recreational enthusiasts and investment portfolios, both foreign and domestic.

What would open up a lot of land in this country to active farming is if we started taxing land held by foreign interests at 25% of assessed value. I have one quarter bordering me that hasn't be farmed in nearly 80 years. Purchased for taxes in 1962 for $260, is currently assessed at $15,000 and pays less than $50 a year in taxes. Tracked down 73 year-old owner who lives in Colorado to try and buy, but no way Jose. It's an investment and soon to go to the 3rd generation of owners who see it as an investment. There are quit a few quarters around here just like that. Ag groups have failed miserably to rectify this problem.

[Marusko]

I'm not sure what would be better for me. I'm one of these young guys "spending grandpa and daddys money" although can't seem to get a good shot at anything anyway. A downturn would give me opportunities. Then again, if there's no money in it due to the downturn, what's the point? Gamble and hope for better times. It's worked for some. Better keep my day job.

[Taiga]

I'm not sure what would be better for me. I'm one of these young guys "spending grandpa and daddys money" although can't seem to get a good shot at anything anyway. A downturn would give me opportunities. Then again, if there's no money in it due to the downturn, what's the point? Gamble and hope for better times. It's worked for some. Better keep my day job.

I keep a day job. Not enough money in farming to support a family, at current levels. The investment made to farm vs investment to start a many other types of businesses is huge. At one time it only cost $100,000 to buy a Tim Horton’s franchise, for example (just an example). Imagine what $100,000 buys you in the farming world - not much, it doesn’t go very far.

[Rareearth]

Cuban, carefull what you wish for and all the other unintended consequences.

“Misery likes company”

[fjlip]

I guess I had LOTS of help, but Dad and Grandpa willingly helped. So what? Young Gen, go for it, you have many years to pay for it and as it turns out, it has been a great run. Good luck!

[cuban_assassin]

Since the run up of commodity prices in 2008 land, seed, equipment have risen to unsustainable levels. But have the prices continued to rise...... no. We need a reset to reduce the risk factor. A large number of young people became interested in farming only after the rise in prices in 2008 and have aggressivley grown their farms and continue to pump old money into over valued land and equipment. We are now beginning to see on social media the ag more than ever generation starting to express how stressed they are and that they are having trouble with mental health. Its good they are talking about it and recognizing for what it is. BUT the reality is that's farming! Did you really think the good times would last forever! This is a very tough business to be in. We will see how committed to ag more than ever they are when the belt begins to tighten or when they gotta keep fixing old junk thats 25 plus years old cause they can't afford the new stuff. Its coming and the longer land and equipment continue their run up the harder its gonna be on every one!

[GDR]

I think it's needed too for the future of farming, guys have made poor decisions and gambled too much in recent years. Sooner things and people get smartened up the better, otherwise when it happens there will be major pain for everyone in the ag business. Curtail a few problems now or kill an industry.

Anyone that thinks profitability is bad now, boy you have no clue. We are making good money as an industry.

[Partners]

How much money do people think Dads and Grandpa's had?
Sweet tweet compared to the dollars it costs to run any size of farm today..