34 Quarters south of Grenfell.

[ajl]

A recent sale in the Shaunavan Sk area reportedly brought $4500+/ acre for multiple quarters. Bidding war between a Hutterite colony and the singing brothers I was told. Lots of cash buying land as it seems rising interest rates haven’t slowed anything down. Large farms just getting larger. Some unbelievable farm infrastructure being built as well would indicate an abundance of optimism in this industry and maybe a wee bit of disconnect. 😉

$4500/ac for land at Shaunavon? What were yields like around there the past two years? 10 bu/ac.? Gotta lay off the hard drugs. Where was the cash coming from for this? FCC. I rent marginal land and one field I rent produced 53 bu/ac of oats last year because it did not rain there after July 1 so a crop that looked good produced well under what the expected yield. It is solenetzic and normally oats do relatively well on that type of land and I would have expected 80-100 bu/ac on it. No way I would pay $2000/ac for land like that. My other field of oats (also rented) in the same area was 60 bu/ac for the same reason so there was a small crop insurance claim but still.

[BTO780]

On Telemiricle the saying is “where are we going .. higher”.

Everything is out of control and until the buying of all high priced land and equipment stops or slows the arrow will continue in an upward direction. Interest rates aren’t slowing this down so not sure what will?

Doesn’t matter to me, I’m done buying. I have everything I need. Maybe time to cash in.

[Robertbarlage]

Mother nature takes care of high prices eventually.

[Taiga]

Land looks like a bargain compared to equipment, no way these equipment prices make economic sense in a farm operation scenario where you are a price taker and can’t raise your selling prices to accommodate the increased operation cost.
Land, well you can always sell and buy in a lower priced area, but regions are valued different for a reason.

[newguy]

Mother nature takes care of high prices eventually.

mother nature taking care of farmers not buying land is what got the investors interested in the first place.Land prices no longer follow demands from local farmers wanting to expand.

[TSIPP]

If the high rent dries up so do the investors.

[makar]

Am I they only one here who lived through 1981 and survived with there memory intact ? History repeats itself.

[TASFarms]

Am I they only one here who lived through 1981 and survived with there memory intact ? History repeats itself.

I wasn’t very old then. It’s hard not to look at how things were in that era.

[SmallTimeOperator]

I think we are starting to turn the corner now to the downside. Grain prices are in a downtrend from the meteoric highs. Inputs are coming down. But equipment and land prices and land rents have never been higher. To me, this is a sign. It is a disconnect that can’t be ignored. We know land costs are “sticky” and are among the last to correct but eventually will. The greed of the equipment manufacturers will eventually lead to their demise. Many farms are locked in with high rents, high priced inputs, high priced iron payments. Hard times are straight ahead for many who have been thinking they are invincible.

[BreadWinner]

I remember lots of overextended guys loosing everything in the 80s only to buy it back cheap and way ahead of those that were prudent. Not sure who the smart ones were looking back.

[newguy]

Am I they only one here who lived through 1981 and survived with there memory intact ? History repeats itself.

Lived it unfortunately.Can not compare 80s fall in land prices to now.80s has limited buyers.Investing in agriculture was a joke.Even the RBC wanted to shed themselves of farmers.No longer the case as lots of money invested in hard assets like farmland.If farmers miss a few crops then grain prices will spike and catch attention of investors.The fact is there is a huge amount more prospective buyers of farmland than the 80s ever dreamed of.

[Oliver88]

I remember lots of overextended guys loosing everything in the 80s only to buy it back cheap and way ahead of those that were prudent. Not sure who the smart ones were looking back.

Maybe their son or grandson will do the same thing in 5 years?