Calling the top in farmland right here

[ajl]

Well I m sorry I wouldn't even know where to start if you don't know oil companies have raised land prices directly and indirectly. You mean nobody there likes the royalties?? Sorry but????

do land prices go down where oil, other fuels are found? Or anticipated?????

do you not have farms that really are oil owned? We have several here that have retained the original farm names but the corp structure is oil owned. Some are good farmers some are beyond shitty crop is not the end game future speculation as in long long term is.

Very few land owners have mineral rights. Surface lease revenue is all you get. Don't know of oil companies that own significant farmland. Most Canadian oil companies are fighting for survival right at the moment.

[the big wheel]

Very few land owners have mineral rights. Surface lease revenue is all you get. Don't know of oil companies that own significant farmland. Most Canadian oil companies are fighting for survival right at the moment.

which ones are fighting for survival? I wish I was in that kind of trouble. Hahahaha
Have you been to the pumps lately? Have you bought a litre of oil to change in your vehicle?
Even selling at a discount to world price every company I know is expanding to
Raise production. They own our government pay next to nothing for raw material. We supply roads hospitals worker wage enhancements training subsidies. The only ones that go broke have the same calculators as our government. Hahahaha

[Taiga]

Well I m sorry I wouldn't even know where to start if you don't know oil companies have raised land prices directly and indirectly. You mean nobody there likes the royalties?? Sorry but????

do land prices go down where oil, other fuels are found? Or anticipated?????

do you not have farms that really are oil owned? We have several here that have retained the original farm names but the corp structure is oil owned. Some are good farmers some are beyond shitty crop is not the end game future speculation as in long long term is.

I started typing a response, but lost interest and deleted it because I couldn’t be bothered to finish it and educate you. You have no idea what you are talking about. Pretty funny actually.

[jazz]

Farma, the money is in the land, not the commodity. Any sort of correction in prices would be devastating.

[the big wheel]

I started typing a response, but lost interest and deleted it because I couldn’t be bothered to finish it and educate you. You have no idea what you are talking about. Pretty funny actually.

Not surprised you have no response!
Ya oil companies moving in sure does drop those land prices. I mean who wants 15,000. A quarter for nothing. Hahahaha
Have another puff.

[farmaholic]

Farma, the money is in the land, not the commodity. Any sort of correction in prices would be devastating.

With all due respect Jazz. Its the commodity produced that pays for the land, not appreciation. Appreciation doesn't make land payments.

Unless you borrow against that land you can't spend appreciation...without paying it back sometime....otherwise thats considered selling it.

But yes it is two fold...it is(hopefully) a money earning appreciating asset...best case scenario...both at the same time.

Land is capable of generating some incredible income if all the stars line up with yields and good prices...so much that a goods and services Industry was built around it. Look at canola seed price with fert and chem costs, machinery, etc. These don't exist because there is no money in farming...its just that we can't keep enough of it in the current system. It's the "getting by" years that suck...

What devastation are you talking about? Producers at economic risk from operating at artificially high land values? Balance Sheet and Net Worth destruction? Highly leveraged against parabolic appreciation?

[Ache4Acres]

I don’t think I am hoping land is going down. In fact up is real nice too. I guess I am thinking...should I sell some land now? At least I Decided that I ain’t buying more at these prices.

$5 wheat and 20 cent lentils don’t pay for $4000 land in our area. Add in rising inputs, carbon tax and rising interest rates and a 30-50% correction seems very possible.

Also whole local economy is on the ropes...oil companies struggling, potash overproduced, farm commodity prices low, residential real-estate on the ropes...tell me where is the growth going to come from.

I have had two calls in the last month on separate land for sale and i suspect that’s not the last calls I will get. When the investors start to realize the upside is limited and the downside risk is real...say goodbye to all the “fake/borrowed” money flowing into land.

[farmaholic]

You need some cheap Ghetto land....only 2K/acre and modern farming methods have narrowed the "light" land to "heavy" land gap.

[farmaholic]

If there is anyone I would like to see economically suffer(and I am generally not that kind of guy), its the investor types that pushed the value of it way beyond its productive capacity and robbed a generation of young domestic farmers the pride of owning what they farm....that is "devastation" of an Industry's culture...those young men and women have been reduced to serfdom because it is cheaper to rent than buy, and competing with deep pockets of non-Ag related money, if you can even afford it in the first place...the very circumstances their forefathers came here to escape from.

[bucket]

Land values will fall as interest rates rise because it's easier money. ...100000 at 2 percent will be the same money as 80000 at 2.5 percent .....if you are using it as an investment income...

If you are spending it on a depreciating new truck ....well then that's a different story....

First thing some guys bought after they sold the farm was a quarter section half ton.....now they have no land and a 5000 half ton and technically they sold the land for 5000 dollars at the end of the day....