Land Prices

[crusher]

With the negative news in agriculture reaching its highest level in years, what will the effect be on land prices, particularly in Alberta? Has there been any sales to suggest that prices will not continue to appreciate at 2-5% annually. If the threat of feedlot collapse comes to fruition in the summer with a closed border, will this trickle down to land values, and at what values? I would assume pasture land would be impacted the most, but what about more productive soils? I think that urban pressure will influence the highway 2 corridor values more than BSE. Any other thoughts? Would you be a buyer or seller?

[dfarms11]

I don't care what anyone says, urban pressure is what has been driving land prices in our area for years. Around here, if you paid $65000 per Quarter for prime land you might have it pay for itself, but this spring it was going for around $120000. Buying land at those prices will never pay for itself. Only on speculation it will.

[boone]

The buzz is some large cattlefarms are selling ground and have been since late summer. If this does not right itself oil may not save it. Alberta may just find out how bad it needs it's farmers. Some hold a lot of city property too. Without low interest it won't carry, and negative cashflow from cows won't bring down debt x's acres held = bankers peace of mind. You can buy feed cheaper from grain boys than you can grow it 8 out of ten years. Don't fight the will to take profits if it won't harm you long term. Few live forever anyway. And you can still buy 2.5 times as much over here in dogpatch, most days that end with Y.

[cowman]

I live in an urban area along the number 2 corridor. I doubt land prices will go down at all in this area and if they do then the lawyers, doctors, oil boys will be snapping it up. The price here is totally unrealistic and the junky land sells for more than good agricultural land. Land capable of 100 bu. barley is automatically seeded back into grass for horses/quads/lamas etc.! Bare land here would be in that $2000-$3000/acre range! Which is considered cheap when you consider that some of these gas plant workers are making over $100K a year. Or when you compare it to prices in Europe. My Dutch neighbor says $100,000/acre is pretty standard in Holland.