Net farm incomes drop by 45 percent in 2018

[pourfarmer]

Will this affect land prices?

https://www150.statcan.gc.ca/n1/daily-quotidien/190528/dq190528a-eng.htm?CMP=mstatcan

[helmsdale]

New records in all classes around here this winter/spring.

Deeded cultivated
Deeded native
deeded renovated pasture
leased native

All up by some 350-400% in last 10 years.

Don't pay attention to the noise.
1) commodity downturn is only temporary
2) dryness is only temporary
3) They aren't making any more land
4) no better time to sign your first born up as collateral!
5) you know the rest

[Guest]

no, the books will balance themselves
sunny days my friend, sunny days

[furrowtickler]

They will drop by 50% again in 2019
Just in time to pay the extra carbon tax.

[the big wheel]

They will drop by 50% again in 2019
Just in time to pay the extra carbon tax.

Yes and figure out what us farmers are paying on that *** provincial tax on everything.

[furrowtickler]

Yes and figure out what us farmers are paying on that *** provincial tax on everything.

Agree with you on that for sure

[ajl]

Here in AB the rumor mill is the only way to find out about land prices. Same goes for rents. When you actually find out what the competition is actually paying then you understand how he has new Deere and you don't. He pays less than you. More land has come for sale locally but is not selling since the seller will die before taking a lower offer. There is still interest in the better land but the mediocre stuff stays for sale for years. How long can land be owned by an estate?

[hobbyfrmr]

No. I went for repairs and the coffee crowd said “you cant go backwards”.
So high rent and land prices will remain until there is a major correction. Also keep in mind there are some very good , large farms with plenty of money and borrowing power. Not every BTO is failing. Some are increasing wealth exponentially.
Consolidation has been happening from the beginning of civilization.

[MBgrower]

land still going up here. lots of smart operators invested wisely for the last 12 years.

[Rareearth]

The government better be quick on this,
- tremendous extra costs are now in the system, next generation and newbees won’t and can’t afford to continue operation or take them over

- retirement nest egg was going to be land rental income from the newbees, it wouldn’t be from selling land or equipment assets

- what should the solutions be?
- sell to Huts, Chinese, treaty 6, etc
- increase capital gains?
- investment tax credits?
- etc


It will have to be some thing that doesn’t cost govt direct cash, which looks bad to taxpayers and electorate


It better happen Quick, or all of Canada will see a 80s style Sask recession- remember those protests( few would now)

[GALAXIE500]

Her where I farm (NW of Maple Creek) greed is fueling the land prices and has been for a number of years. Dryland is selling for +- $2000/acre and not sure about grass , but it isn't cheap either.Had a neighbor buy three 1/4s of land this spring and (reportedly) paid $325,000 / quarter for it so the local Hutt colony wouldn't get it. Now he's crying the blues because as he said " we are barely making enough to get buy on the prices we are getting"??!!!??

Greed ,greed and more greed. I feel like saying to him , be careful how much you spend or you won't be able to buy me out in a few years! Of course that would be a little bit rude , but sorry , I've got a few crocodile tears for some of these assholes right now. There are times when I think about how my Dad turned down a section of farmland for $150,000 for all four 1/4s and I just about cry , but I was 19 , not sure where I was going in life yet , and my Dad was 63. If he would have been 53 I am sure it would have been bought. When the land is a mile from your farm it is hard to look at what you could have had / vs what you have to settle for now .

[farmaholic]

Don't worry about net farm income falling.....if 20-30,000 acres don't make you viable buy or rent another 10,000. Or get extra dirt relative to your farm size....its nothing more land won't solve. Economies of scale!!!

Nothing in the Industry needs to change but you....the sooner you realize that the better off you'll be. Now go secure more acres.

[bucket]

Don't worry about net farm income falling.....if 20-30,000 acres don't make you viable buy or rent another 10,000. Or get extra dirt relative to your farm size....its nothing more land won't solve. Economies of scale!!!

Nothing in the Industry needs to change but you....the sooner you realize that the better off you'll be. Now go secure more acres.

Did you have a weekend with hobby with all this sarcasm?????

[farmaholic]

Did you have a weekend with hobby with all this sarcasm?????

Yup, we were drinking organic liquor. And smoking organic pot.

[blackpowder]

We've seen this before.
Fixed costs climb slowly and we ignore them until bang!!! Some other sudden change driver event occurs and viola, we have consolidation. Who will be left this time?