Has it begun?, or is this all its worth?

[sk_wheatking]

I see you liked that post sf3. That's ok, but I dont see the advantages of 85,0000 dollar a quarter land. Is that going to be ok for you when or if you sell out. Farm land prices are the only hope for alot of people to get anything out of their life long investment and hard work now. Equipment gets you no return in the end. New diesel 1 ton over a hundred grand, just as an example, but no one complains they just buy it. Farmers eating their own again. A quarter of land should be worth less than a used diesel truck? Look, I wouldnt buy land for 400,000 or more a quarter either but there has to be some middle ground. In your area sf3 land is listed for 600,000 plus a quarter, there's no way that pencils out no matter what your situation is, but if some Chinese investor wants to pay someone that for their life's work then good for them. What needs to happen in agriculture is for the input and grain buying companies to stop working together for their own profit. Everyone buys grain for the same price, and sells inputs for roughly the same price. It's like gas station COLLUSION. How you fix it, I dont know. At least you can buy equipment used, at auction, privately and set your own prices that way but selling grain, buying fuel, fertilizer and chemical, you are at the mercy of the powers that be who make up the prices. So in a nutshell your only way out of a tough situation or a retirement or other personal reasons is what you have built up into your land.

[Guest]

well a little 100 hp case FWA with a loader , 12 yrs old sold for $25k less than the lowest quarter
4 yr old chev 1 ton flat deck , diesel, same

[jazz]

Ask the question who? Who is the buyer? Foreign ivestment is gone. Any young pups looking to get big? Not around here and the young pups are age 40-50. I think they will take over their parents place and do without an expansion that will just be hard to handle. Some are working on the side and arent ready for a full time show yet.

So it might be crickets for a while.

[bucket]

I doubt you could buy Farma out for less than 5 hun a quarter !

Maybe not but you could buy bucket out for 450k a quarter...sorry farmaholic....

[Goodtime]

I talked to someone in the area that is friends with the seller.....the bottom isn't falling out.....every quarter sold doesn't need to be sold for $450,000 a quarter to be considered a success. This land is sandy and on the rough side.....the seller is very happy with the way things sold....there is no conspiracy. Wow it is funny how everything has to be doom and gloom.

[Guest]

I talked to someone in the area that is friends with the seller.....the bottom isn't falling out.....every quarter sold doesn't need to be sold for $450,000 a quarter to be considered a success. This land is sandy and on the rough side.....the seller is very happy with the way things sold....there is no conspiracy. Wow it is funny how everything has to be doom and gloom.

Exactly what i was wondering
Thats why i asked if thats all it was worth ???

[Guest]

The only thing i noticed is that RB took a long time to sell items
This is usually a sign things are not bringing what they had hoped

[farmaholic]

The right stuff in the right place doesn't have to be the right price.

Iron Is a stoopid investment. Been 15 years since I bought dirt, getting kinda itchy. Too bad I wasn't smarts enuff too by sum on da weigh up! ☝️👆, what a 🖕-up!

[bucket]

caseih

Is the first number on the bid that the auctioneer throws out what they want out of it....or 10% over the number they need????

They dump it down to half than get to 90% of the first ask and it sells pretty quick then....

Machinery is what I am talking not land....

[Bowerpower]

Personally I’m paying down debt with any extra cash. But if that quarter across the road is up for sale.....

[hobbyfrmr]

Personally I’m paying down debt with any extra cash. But if that quarter across the road is up for sale.....

4 years ago I had the opportunity to send in a tender for the property across the road. It was 130 broken acres at the most. I spend about 3 hours grinding a mortgage calculator. I would run the costs and payments, leave it for half a day then do it again. Finally I decided it only happens once in a career and its right across the road. I sent in a bid that would give me discomfort the first 3 years and then it would work out. I only missed the top bid by $115,000. 🙂
It is obvious that I don’t understand the mechanisms of buying land. I think I do not generate enough gross income from the existing farmland to be able to cash flow higher value properties.
I had one neighbor tell me “either you pay interest on land or you pay income tax”. Possibly true but I did not find comfort in that statement.

[ajl]

The answer to the OP's question would be yes it has begun the process where farmland takes on its productive value once again. Cultivated ground 15 miles from a city of 40000 for $600 per cultivated acres would be down from the peak value for sure. A section of fenced pasture with an older acreage on a paved highway around here east of Edmonton within commuting distance was listed for 960000 for about a year and recently sold. That would likely be a significant decline from the peak value for that as well.