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)