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

[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.

[bucket]

And what happens if grain prices stay low or you get hit with a weather event that puts you under the cost of production...

more land = more work....

[Taiga]

There is farmland listed here that has not sold for two years. Just priced too high. Rare bigger chunks too (1000ac or more). The peak was 3 years ago. Now that the main industry has been dealt the death blow (oil and gas), where many people need the winter jobs to sustain their farms, there will be value deflation.
Anything with a house on it I don’t even look at (don’t want to pay for the house when I may only want the land).

[seldomseen]

I don't think land has peaked here yet unless the peak is here now. Looks like some of the highest prices were set last spring at around $2000.00 per acre. Haven't heard of any selling this fall and fall isn't the time to sell land anyway. After a damp cool fall and everyone dead tired and the dark days of Nov. nobody wants more land. Next March when the Sun is warm and the days long a whole different attitude will prevail.

At least around here i think demand is still quite strong.

[quadtrac]

Don’t see any bargains in this area as of yet. Have my doubts there will be any.
Lots of well established farms are just wanting an opportunity to buy a bit more land. Add to existing farm.
Land that sells “cheaper” is most often for a reason.

[ajl]

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.

I offered on a quarter 2.5 years ago and the for sale sign it still on it. Wonder if they ever thought that maybe they should have taken it. It was not the nicest quarter on the planet either.

[GDR]

I offered on a quarter 2.5 years ago and the for sale sign it still on it. Wonder if they ever thought that maybe they should have taken it.

How many times have you drove by and thought "glad they didn't take it"?