Is Farmland The Best Investment

[jazz]

My kids are quite young too, all under 10. I could take this on for them and by the time they are in early adulthood they could have a significant asset under their belt. Time is always a huge factor in getting ahead.

Wished I would have started buying younger than I did. I have owned in a couple different places and land has always treated me good. We could be toppy now and I guess thats a risk, but it would be no different if I bought them apartments or stocks, those can go down too.

[Horse]

I have seen quite a few lose there land all the while waiting for inflation to pay for it,some that had good off farm income did ok,some planed there bankrupsy before they even started only to buy back at 30 to 50 cents on the dollar,thanks to AFSC. I think they pluged that loophole now but there is probably a new scam in the works.

[fjlip]

Accountant says only use up your CG deductions selling stuff, after that best to sell/rent to kids, they can own as asset or sell and use their CG deduction, that is of course assuming F*CKING Liberals/NDP/GREENS don't change the rules. I am hearing CG going to 75% taxable from 50%. Last few years cash rent equals about 3% return. Some crop share landlords made a killing, 1/4 of $500/acre malt or canola.

Old joke...guy sells farm, later asks an investment banker where to invest funds, banker says.... buy LAND!

[rumrocks]

I have seen quite a few lose there land all the while waiting for inflation to pay for it,some that had good off farm income did ok,some planed there bankrupsy before they even started only to buy back at 30 to 50 cents on the dollar,thanks to AFSC. I think they pluged that loophole now but there is probably a new scam in the works.

Good point, buying land is similar to tuning engines and a successful honey moon, timing is everything.

[AlbertaFarmer5]

I likely have Jazz mixed up with some other poster(s). He may never have said anything about investors and farmland, but it seems to be a common complaint on here, so I brought it up to stir the pot.

The great part about capitalism, is that we are all free to work as hard as we want, and do what we want with the wealth we created, such as passing it on to the next generation. But, by passing it on to the next generation, we may be denying the opportunity for someone else who might have been willing to work even harder.

[AlbertaFarmer5]

But back to your original question. We are almost certainly closer to a long term cyclical top, than a bottom right now. But currencies and politics will likely override that in the medium to long term, as the CAD drops, and separation becomes reality. Could be a lot of other investors trying to divest of their CAD into something with tangible value, and get a foothold in the west before it is too late.

[farmaholic]

So I too will stir the pot.

I have zero sympathy for land investors who are only looking for somewhere to park their money or ride the parabolic appreciation of Sask land, which in my opinion is over. So if a tennant of land owned by this type of owner is looking to reduce their inputs.....i don't care if the rent on this land is the first place they do it.

I also have very little sympathy for people who inherit the asset but chose not to farm in the first place, pay them less, I dont care.

The guy I do have some sympathy for is the guy who slogged through a career of farming and is using his land rental as retirement income....that may be his only "pension".

Here is another one I can't wrap my head around. 7 quarters sell beside me for about 2.1 million. Investor puts down a million and mortgages the rest.....1.1 million mortgage(1.1 million @ 5% for 20 years annual payments)....some quick loan calculator number crunching and this guy only needs about $80/acre rent from the tennant to effectively be making his mortgage payment!!!! How stupid. Farmers are tripping over each other AND themelves to farm this stuff! WHY?

[SASKFARMER]

The investor it is all fine till the Tennant says **** you and quits paying the high rent. But it is also the time other idiots don't move in and try to farm.

We have land beside me that maybe I should have bought years ago. It was high and the begining of the land climb.

The first renter paid really good compared to others around. The guy from China was happy. Yea he has a home in Vancouver but phone him and he is back in China all the time.

Got greedy and this summer the first guy was done and rent went up 20 an acre and the new guy will farm next year.

Funny the new guy might be the last hurrah for the Chinese guy. I don't think he'll make it. The first renter had deep pockets the second HAHAHAAHHA no.

Now if Errol is correct and Cash is king. So will be paid for the land. Even if it does like the 80s and drop from 182,000 to 65000. Yes, it did do that. So 308000 down to 110000 is still better than a stock thats worth a 1000 down to a penny stock.

Cash is king but Canadian is not going to be worth anything more than toilet paper.

[Sheepwheat]

So I too will stir the pot.

I have zero sympathy for land investors who are only looking for somewhere to park their money or ride the parabolic appreciation of Sask land, which in my opinion is over. So if a tennant of land owned by this type of owner is looking to reduce their inputs.....i don't care if the rent on this land is the first place they do it.

I also have very little sympathy for people who inherit the asset but chose not to farm in the first place, pay them less, I dont care.

The guy I do have some sympathy for is the guy who slogged through a career of farming and is using his land rental as retirement income....that may be his only "pension".

Here is another one I can't wrap my head around. 7 quarters sell beside me for about 2.1 million. Investor puts down a million and mortgages the rest.....1.1 million mortgage(1.1 million @ 5% for 20 years annual payments)....some quick loan calculator number crunching and this guy only needs about $80/acre rent from the tennant to effectively be making his mortgage payment!!!! How stupid. Farmers are tripping over each other AND themelves to farm this stuff! WHY?

Friend of mine was over last night. Made an assessment on 400 acres that sold across the road from him. Came up with payments of 118 an acre. He shakes his head. I shudder.

Farmers are our own worst enemy.

[burnt]

Plagued by a troubling question for the last year or so. I've asked numerous farmers from various age groups, younger chaps to those retired:

"Do you think we will see a time when land will be a liability rather than an asset?"

Usually a moment of silence.

Then, the younger guys laugh and regard the Q as if it's a joke.

Middle age chaps shrug and get back to work.

The oldest guys look off into the distance for a bit and then look back with a look that says more than their words. They understand.

Then I read Garth Turner -

https://www.greaterfool.ca/2019/12/11/the-big-proboscis/#comments https://www.greaterfool.ca/2019/12/11/the-big-proboscis/#comments

When the Marxists take over, they don't care if they take your cash, your cow or your land.

It's all the same to them.

The wealthy will be "punished" before too long, I'm quite certain.

And we farmers/ranchers are the wealthy.