Calling the top in farmland right here

[grassfarmer]

Ah, the fun and games of the oilpatch - sure glad I moved away from it. Fracking every quarter with the pad on your neighbours property right at your fenceline. No compensation, no say in what happens and enough neighbours whose hands are tied because they work in the patch so won't deny access. It's a shitty scene.

[Guest]

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.

agreed , thank god we are far enough from that shit
but spent a lot of years out there , always felt sorry for the farmers
one at lloyd was especially bad . one 1/4 had about 30-40 well heads on it
didn't think it was possible ?
the oil co treated the farmer like an intruder
when we left that project , I told the oil. co. that no one would pump fuel tanks out for a long move (East coast )
felt good giving that farmer 5000 gals diesel for free

[iceman]

agreed , thank god we are far enough from that shit
but spent a lot of years out there , always felt sorry for the farmers
one at lloyd was especially bad . one 1/4 had about 30-40 well heads on it
didn't think it was possible ?
the oil co treated the farmer like an intruder
when we left that project , I told he oil. co. that no one would pump fuel tanks out for a long move (East coast )
felt good giving that farmer 5000 gals diesel for free

You are a good man. He will never forget you

[checking]

I am not against oil companies developing their minerals.

I am against the government giving away surface opportunities with sterilization legislation in the guise of safety. There is in this area a place for both, but it takes some communication and some negotiations for parties to settle on spots where limited buffer zones need to be applied on undeveloped land. If the government can tell pipeline companies, which is a closed system development, that there is no excuse for a system failure, it can bloody well tell an oil company there is no excuse for a satellite test facility failure. If they can't be failure free, then remove those things until they can, force them to mobile test with an operator on site that can shut it in if it vents, or run whatever multiple lines they need to do the government mandated tests at their super batteries that already have a 500 meter buffer. I can live with a single super battery buffer, and a 125 meter well buffer, but these test station facility buffers are horseshit.

It is not fair to wake up one morning, and discover, on your own, that you just lost a huge chunk of your quarter section, or quarter sections to multiple pads on neighboring lands. It is an outright theft of use, without consultation, and without compensation. It is multiple times worse in area to that of unpaid for buffers on either side of international pipelines.

[GDR]

This is why oil leases and farming land don't mix, and why the first detracts in this area from land value.

A quarter with four to five single surface leases comes on the market. The cumulative annual lease payments are $15,000/year. As a potential buyer of this land you will have to pony up five to six times the annual lease payments, around $90,000.00, plus what you consider a diminished quarter is worth to you as you will be farming little of a typical 3.5 acre surface lease which includes the lease road (subtract 10-12 acres on a good year).

Granted in eight to nine years, your principal outlay will be returned to you, less if you don't value its investment worth, and if you feel lucky. The lease could become orphaned before payback, or god forbid the oil company abandons the down hole, reclaims the surface, and your annual rent goes to zero, before pay back.

Factor in that these earlier taken leases were often chosen for their high ground position that could leave you with a lot of cut offs due to knob and kettle topography you may have purchased. There is also that dreaded weather that easily tops those stupid berms that oil companies have to construct around each lease. Now, they don't berm the whole surface lease, just enough to accommodate a service rig. The rest of the equipment is usually parked on their lease that you had the choice to farm, but not necessarily the right to harvest. You have already been lease paid. Those berms antagonize the lease mower, and often breach to flood out twice the crop as the size of the lease. Please, someone fill in the missing pieces. There are many, even some on the flip side that must exist in big wheel country.

Mostly ok oilfield experience here, still would prefer no exposure but surface leases have been decent money over the years.

Issues I've had definitely drainage issues, you cant build a clay pad and not expect to have runoff flood out on water exit but not their problem. Had a operator try to light their incinerator with a flare gun, fires 2 shots both started fires in my stubble, lucky i was already on the quarter with a cultivator. Biggest issue as mentioned is it just removes the possibility of other land uses on that area and surrounding.

I got a very pleasent letter about a gas well recently explaining that gas prices are low so would Mr farmer please let them reduce their surface lease payment by half until prices recover. (Trident energy) I sent them a note back saying due to lack of rainfall all summer and a delayed and difficult harvest and depressed grain prices would they consider paying double! Not holding my breath.

Does sound like our surface lease payments are higher here in central ab. 3800 to 4500 per single well, even have a half mile pipeline that pays 9500. All helps but does limit possibility.

[GDR]

Not sure on land prices, doesn't seem to be a shortage of money or willing buyers here. Having said that we are in the process of buying some land from an estate, been tied up for a year through the estate and we've now had 3 interest rate increases since we agreed to a price. Sure does impact those payments, would think some guys are gonna have to put the breaks on at some point.

[furrowtickler]

I know a lot of farmers with “oil” problems NW of here as well . Not fun to deal with , but ... try farming with any of that extra oil revenue at all .... zero ... then enter the conversation of land prices . Every thing comes with a price . But farming strictly with zero extra income from oil is a far different issue. I personally know many farmers out in the patch that have 2 years of grain in bins to avoid tax’s .... that is a far different ball game than most of us , I don’t care how you spin it .

[checking]

I wonder if Community Planning has ever listened to anyone in their entire existence. They are suppose to take direction from the departments with the experts in the parts that make up the CP subdivision approvals. Instead CP appears to make its own protective turf decisions that affect plans (present, past, and future) of multi use rural property.

Hey, Pharma.

Buzz Lightbeer will make you delusional. Try Duff.

[ajl]

Not sure on land prices, doesn't seem to be a shortage of money or willing buyers here. Having said that we are in the process of buying some land from an estate, been tied up for a year through the estate and we've now had 3 interest rate increases since we agreed to a price. Sure does impact those payments, would think some guys are gonna have to put the breaks on at some point.

Offered on some land in July 2017. Offer was rejected. For sale sign still on the parcel today. Since the for sale sign went up originally, there have been 5 interest rate increases. Yeah land always goes up.

[Guest]

Offered on some land in July 2017. Offer was rejected. For sale sign still on the parcel today. Since the for sale sign went up originally, there have been 5 interest rate increases. Yeah land always goes up.

I know you're being sarcastic lol
anyone that thinks land won't drop is delusional

[the big wheel]

I don't think there was one person on here that said or thinks land can't go down but there's sure are a few that are truly delusional possibly mentally challenged to think that the oil industry hasn't had an effect on land prices.
You'd have had to be smoking up 24/7 to not see that effect. So I guess truduea was right to make it legal for a few just so they don't get into trouble. Hahahahaha

[Rareearth]

Land prices don’t have to drop...

Interest rates don’t have to go up ...

There doesn’t have to be a government debt inspired collapse of the economy ...

Markets actually like stability, yet thrive on instability

Why can’t the can be kicked again?

[checking]

The big wheels on the bus go around and around...

You never catch up on lost farmland opportunities, in this area. caused by oil field development.

The shit that is buried in the ground for the past sixty years, much of it unknown, is astounding. No tracer wire used, grader depth here, vac truck costs that multiple times eat up what the landowner received initially for the whole line, just to get basic services to your new farmyard. Yeah, that oil premium surface lease money on farmland is a honey hole!

Where else on a land farm can a company go in identifying one active line, and one abandoned line, and find more by hitting one additional active line, and two additional non used lines?

Oops... delusional and mental.

[farmaholic]

Hey, Pharma.

Buzz Lightbeer will make you delusional. Try Duff.

The last time I checked the FLSB(Sask), in our RM there were no land transactions since about last December. I know of some signed offers to purchase but they are months or nearly a year old already so when they are registered they aren't even new transactions. Seems things are slowing down in and around the Ghetto.

But it CAN'T go down...

[newguy]

It gets sickening on here with the land is going to crash threads. No other business Hope's for a disaster on their biggest asset's. But hey I'll take a new 1 ton diesel for a hundred grand and a new sled for 16,000. What a great deal. Wake the **** up already.

Only reason farmers want land to go down is because they missed opportunities in the past to buy and they want to turn back the clock for personal gain.Every land price cycle is not the same.I said on here years ago watch trends in Alberta to predict trends in sask.I also said on here many years ago buy good land and land near population.Hope all the farmers waiting to scoop up the young guns for pennies on a dollar end up disappointed.