Acreages/Land... Full Retard?

[grassfarmer]

Problem is , how the heck is it ever possible to make a dime with land values at that ??

Same as here, just at different values. Income as a return on investment would be woeful, income plus land price appreciation keeps us at it.

[Taiga]

That’s the problem around here, lots of quarters for sale but they all have a home on them, so the price is , 2x / 3x / 4x more expensive than you want to pay when you just want the land. I would say the rural land you buy and build your hobby home on is one of the worst investments, they often sell for less than replacement value (cost of the home and yard I mean). From my experience anyway.

[Klause]

Same as here, just at different values. Income as a return on investment would be woeful, income plus land price appreciation keeps us at it.

https://www.theguardian.com/business/2018/aug/29/uks-wealth-rises-as-land-values-soar-by-450bn-in-a-year https://www.theguardian.com/business/2018/aug/29/uks-wealth-rises-as-land-values-soar-by-450bn-in-a-year

[jazz]

is it possible to make enough profit from a farm there to make the payments on a farm like this ?

Probably someone who sold their shack in London and got out before it becomes a shit hole.

[Klause]

The thing is Europe is over populated and has high land prices.. but also infrastructure... Subsidies... You name it.


Why did you move here? To get more land? Freedom? Find a hunnybunchy?

[jazz]

Why did you move here? To get more land? Freedom? Find a hunnybunchy?

The first world isn't agrarian any more and has turned its back on that way of life. 150 yrs ago anybody that immigrated wanted land of any sort. That doesn't happen anymore even in Europe. Its all probably older families, kids gone to the big city, no need to expand and ride it out in place.

[Klause]

The first world isn't agrarian any more and has turned its back on that way of life. 150 yrs ago anybody that immigrated wanted land of any sort. That doesn't happen anymore even in Europe. Its all probably older families, kids gone to the big city, no need to expand and ride it out in place.

We don't always agree. But we do on this.


Post industrialism is the last step before collapse.

[grassfarmer]

The first world isn't agrarian any more and has turned its back on that way of life. 150 yrs ago anybody that immigrated wanted land of any sort. That doesn't happen anymore even in Europe. Its all probably older families, kids gone to the big city, no need to expand and ride it out in place.

There are a lot more farmer's sons continuing the family business in Scotland than there are here. Lots of young guys needing land - most find a way to do it even with high land values, some choose to emigrate. Not sure how the Brexit deal will settle out but I expect it will trigger more farm immigration - and those that do are likely to have Canada at the top of their list. Relatively cheap land, a British connection and similar values.

[biglentil]

They cant take the home quarter BL. That's enshrined in the Canada lands act and as rock solid as any native treaty.



There is no wave of Europeans moving here. They love their social programs over there and would never move here and farm with their dick hanging out like we do. At least until immigration destroys that place for good.

Yes the Saskatchewan Farm Security Act im very familiar. Its a good read, yes there is bankruptcy protection but no protection from expropriation for greater good. If interest rates and commodity prices keep on the same path I assure you land prices will fall. In 1929 land prices fell 80% nearly overnight.

[grassfarmer]

I know a family that bought a similar size, similar type farm to that one I posted back in 1960. They paid the equiv. of $86,000 for it at today's exchange rate and everyone said they were crazy that it would never be paid for. Same family farming for generations before and generations since - life goes on. $86,000 to $5.39 million is quite the climb - and we never had a big reversal in values in the 1980s like you apparently had in Canada.

[farmaholic]

Yes the Saskatchewan Farm Security Act im very familiar. Its a good read, yes there is bankruptcy protection but no protection from expropriation for greater good. If interest rates and commodity prices keep on the same path I assure you land prices will fall. In 1929 land prices fell 80% nearly overnight.

It can't happen and never will because some people said so.

Dripping with sarcasm.

What's different this time than the other times when land prices fell substantially? What factor exists this time that would prevent land prices from collapsing?

Buying in a falling market....
If you want more land and prices have topped out...if what you want comes up for sale do you buy it? Do you wait for it to soften? If it starts collapsing do you wait it out(don't try to catch the falling knife) or wait for it to bottom. No one really knows when the bottom is in until land prices start trending up and that could take years to establish....

No one really wants to buy at or near a peak but if its the right stuff and if you can swing it and are in it for the long haul does it matter?

[farmaholic]

I'm pretty sure everyone has seen this at one time or another. But a more up to date one would be interesting, 101 you got anything?

Is FCC still bullish?

Edit in...that parabolic line looks precarious

[ajl]

I know a family that bought a similar size, similar type farm to that one I posted back in 1960. They paid the equiv. of $86,000 for it at today's exchange rate and everyone said they were crazy that it would never be paid for. Same family farming for generations before and generations since - life goes on. $86,000 to $5.39 million is quite the climb - and we never had a big reversal in values in the 1980s like you apparently had in Canada.

EU subsidies were really getting going in the 80's which prevented the blood letting there that occurred here in the 1980's. This is one reason why Sk was hit harder than AB. More subsidies in AB in those days like the tripartite program for livestock. One thing different this time is that in the mid eighties and later, there was a lot of good off farm jobs available especially in central Canada, which resulted in there being no interest in farm ground. Today off farm opportunities do not exist so here won't be the exodus from the farm by milllenials this crisis but a hanging on to the bitter end.

[farming101]

+7.5% in 2016
+10.2% in 2017

Mistake: it was 7.5% not 9.4% in 2016 Corrected...

[farmaholic]

+9.4% in 2016
+10.2% in 2017

Those numbers must pretty much mean an extension of the line on the same trajectory!

I've been wrong ALL THE WAY up!