Not Every Farmer Has A Bad Attitude ... JB

[farming101]

2016 Survey

http://publications.gov.sk.ca/documents/20/98009-Land%20Lease%20Report%202016.pdf http://publications.gov.sk.ca/documents/20/98009-Land%20Lease%20Report%202016.pdf

[bigzee]

2016 Survey

http://publications.gov.sk.ca/documents/20/98009-Land%20Lease%20Report%202016.pdf http://publications.gov.sk.ca/documents/20/98009-Land%20Lease%20Report%202016.pdf

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Basically farms in the south making huge 💵 growing the big “cash” crops, lentils, chicks and to some extent durum. They thought these crops would continue paying phenomenal prices, now they have hit the dumpster. Maybe they have banking up over the years to keep paying these amounts.

[bucket]

Don’t first right of refusal clauses deal with land for sale? This is a rental deal. If you have time left on your lease the ad by the BTO to pay above market won’t affect you.

I have big neighbors who are royally screwing their land owners. Hopefully these high rent ads get some land owners up to speed. I am getting tired of paying high rents while my neighbors with all the shiny new equipment pay 60% of the going rate.

Just to turn this around a bit from a previous post....what does it matter if others are paying less than the going rate....it doesn't affect you....

[sk_wheatking]

Just to turn this around a bit from a previous post....what does it matter if others are paying less than the going rate....it doesn't affect you....

In all sincerity, I hope you find happiness in your life in 2019.

[bucket]

In all sincerity, I hope you find happiness in your life in 2019.

I am just pointing out what others said.....not sure why it wouldn't work both ways....high or low...

High ...they are laughing at the renter...

Low ....they are laughing at the landlord....

But if any case both are happy ...your point is valid ...it doesn't affect others...

That was my point ...if it came across sarcastic...I do apologize...

It affects all of us when some guys take the write down process.... to FCC, the local coop, etc....

[blackpowder]

Farma. I said argue with the market.
We can disagree with it.

[jazz]

Basically farms in the south making huge 💵 growing the big “cash” crops, lentils, chicks and to some extent durum. They thought these crops would continue paying phenomenal prices, now they have hit the dumpster. Maybe they have banking up over the years to keep paying these amounts.

There is a thin band of land that cuts across the south that can profitably grow any crop that can be grown in this country and has a long enough season with enough moisture (or reserve) to ride out a lot of adverse situations. The rents and land values reflect that.

[sumdumguy]

Our first section of land cost us $125 an acre. Our dad said, “ you’ll never pay for that.” It only took one flax crop at$11.50 a bushel. Those were the days my friend. Might happen again for the young giys- you never can tell. Hope the stars line up.

[farmaholic]

Our first section of land cost us $125 an acre.

Now expenses/acre can be double that.

Oh well, $3000/acre isn't much when you say it fast and sounds cheap compared to $480,000/quarter.

Cheap Sask land "WAS" the best kept secret 10-15 years ago, I just wish someone would have let me in on the secret.

As always, it was always too expensive at the time...is it too expensive now?

[burnt]

... Might happen again for the young giys- you never can tell. Hope the stars line up.

With farmland here trading at about $15,000/workable acre, it would indeed take a very special alignment of the stars, LOL!

A few times in the distant past it has happened around here when some guys took of a good crop of white or navy beans and paid for a farm in one year. But land was 1000 or less back then.

Not sure what it would take to drive white beans to $500 per hundred weight. Would we want to see the conditions that would make that happen?

[jamesb]

In my area it was 20 years before land got back to the high prices of the 80's. I have rented land for taxes, and land has basically doubled in the past 10 years. In this area land "may " come up once a generation. When its close its kind of tough not to try to buy, even if it seems high. Funny thing, what's high for one are is ridiculously low for another area. Flooding in the southeast knock at lot of guys back and it shows in the prices. There is the odd $65 per acre cash rent but $35 - 45 is way more common. Land has been selling for around a $1000 per acre, some higher. There was some investors that bought 20 years ago when land was going for 75 a quarter but they sold and took their profit when prices doubled. Mostly all local guys now pushing prices. I hear its actually dropped this year a little. There is a lot of young kids out of high school around here that are looking to farm. The thing is now to try and build a business plan that works for them. On our farm the land has never been sold from generation to generation, but the ones retiring are able to draw on the farms production and have the young farmers focus on growth of new land and not have to tie up money paying for land the family already has. How much land one needs to buy on a regular basis to stay even and not slip is something that I watch. I have seen good farmers become too conservative and eventually not have a big enough land base to support 2 or 3 generations on the farm. A new 3320 and tank take a lot of acres to make doable.

[farmaholic]

Good post Jamesb

[highwayman]

As recent as 9 years ago good farmland here traded at 400/ acre. Today same land is trading at 2500 -3000/acre. More land listed in this area this winter than I've seen in 35 years. Real estate agents are running around suggesting even much higher values for packages of 5000 acres increments. Local buyers are more than willing to leverage their equity in owned land to a large degree in order to expand their base. Unfortunately, seems to be only the larger farms buying at these prices shutting out some smaller operators with less of an appetite for today's values.

[jazz]

If conditions were like they were in 1980 I would say run for the hills but a couple things give me pause.

First is the crops we grow have expanded greatly. In 1980 we grew wheat and summerfallow. Now we are into 3 or 4 different crops with others possible. That gives a lot more flexibility.

The second is the population. I know its been said for a long time that people are going to run short on food, but 2.5B more people in the next 20 yrs might make that hit home finally.

The last one is climate change. if they are right and that's a big if, production in a lot of places could stall and go backwards and northern climes could be beneficiaries. The other is if climate change does take hold and shaves a couple months off our winters, then cropping options could change. Soy and corn could become viable here. Imagine if early April becomes our seeding date. Some guys are taking off lentils end of July these days. That moves up to early July and there is a chance double cropping could be a possibility.

Maybe I am dreaming.

[AlbertaFarmer5]

If conditions were like they were in 1980 I would say run for the hills but a couple things give me pause.

First is the crops we grow have expanded greatly. In 1980 we grew wheat and summerfallow. Now we are into 3 or 4 different crops with others possible. That gives a lot more flexibility.

The second is the population. I know its been said for a long time that people are going to run short on food, but 2.5B more people in the next 20 yrs might make that hit home finally.

The last one is climate change. if they are right and that's a big if, production in a lot of places could stall and go backwards and northern climes could be beneficiaries. The other is if climate change does take hold and shaves a couple months off our winters, then cropping options could change. Soy and corn could become viable here. Imagine if early April becomes our seeding date. Some guys are taking off lentils end of July these days. That moves up to early July and there is a chance double cropping could be a possibility.

Maybe I am dreaming.

Climate change is probably going to be the one that helps the most, but not in the direction you are thinking.