Machinery and land prices....down?

[AlbertaFarmer5]

Monnette still buying everything they can regardless that 2/3 rds of their crop is basically toast again

Is this going to once again prove the adage that something that cannot go on forever will stop?
It's not profitable on its own, then at some point investors will run out of patience. I doubt there are any bigger fish willing or able to swallow that when it comes back on the market. Might be opportunities for smaller players to get a foot in the door.
Can land inflation alone keep it afloat? I might work on paper, but it doesn't pay the bills.

[furrowtickler]

They must have told their Chinese backers a good story to keep them sucked in

Not sure , but definitely seems to be endless money involved from somewhere
Funny how the ex CWB worshippers like chuck cry about their family farm neighbours “big trucks, machinery and boats” and yet say nothing about these mega farms swallowing up everything in sight .
Being so petty must be a tiresome job .
Monnette way over 300,000 ac now , contributes zero to any local community economy they farm around , but any free market family farm is the problem in their eyes …. and the fed governments agenda .
Yet that who is and has been responsible for the vast majority of wealth creation to most rural communities in western canada outside of oil for over 50 years .
It’s hard to understand the constant attacks on the family farms from so many angles when one sees what’s actually going on

[furrowtickler]

Is this going to once again prove the adage that something that cannot go on forever will stop?
It's not profitable on its own, then at some point investors will run out of patience. I don't there are any bigger fish willing or able to swallow that when it comes back on the market.
Can land inflation alone keep it afloat? I might work on paper, but it doesn't pay the bills.

Good point , there must be an end game at some time ??
Monnette pushed up land values $1000 / ac when they rolled in last year . None of that is sustainable any any point now .

[blueversi]

Not sure , but definitely seems to be endless money involved from somewhere
Funny how the ex CWB worshippers like chuck cry about their family farm neighbours “big trucks, machinery and boats” and yet say nothing about these mega farms swallowing up everything in sight .
Being so petty must be a tiresome job .
Monnette way over 300,000 ac now , contributes zero to any local community economy they farm around , but any free market family farm is the problem in their eyes …. and the fed governments agenda .
Yet that who is and has been responsible for the vast majority of wealth creation to most rural communities in western canada outside of oil .
It’s hard to understand the constant attacks on the family farms from so many angles when one sees what’s actually going on

Maybe because one of their tightest buddies and cheerleaders is a former NDP leader. Then it’s ok.

[Herc]

Redhead dumped the X9s from the Monette Kamsack deal.

And yet they got $150k more than what the original buyer paid for them X9’s…..

[bucket]

Not sure , but definitely seems to be endless money involved from somewhere
Funny how the ex CWB worshippers like chuck cry about their family farm neighbours “big trucks, machinery and boats” and yet say nothing about these mega farms swallowing up everything in sight .
Being so petty must be a tiresome job .
Monnette way over 300,000 ac now , contributes zero to any local community economy they farm around , but any free market family farm is the problem in their eyes …. and the fed governments agenda .
Yet that who is and has been responsible for the vast majority of wealth creation to most rural communities in western canada outside of oil for over 50 years .
It’s hard to understand the constant attacks on the family farms from so many angles when one sees what’s actually going on

If you are less than 5000 acres , you are considered a dinosaur , by almost everyone.

Except your neighbour that enjoys having a coffee and farms the same amount . Knows that each other can count on help with a phone call. And know where you are.

You will see an accelerated consolidation far greater than the 70 and 80s in the next 5 years.

[furrowtickler]

If you are less than 5000 acres , you are considered a dinosaur , by almost everyone.

Except your neighbour that enjoys having a coffee and farms the same amount . Knows that each other can count on help with a phone call. And know where you are.

You will see an accelerated consolidation far greater than the 70 and 80s in the next 5 years.

Unfortunately and fortunately you are very right
Actually in my area now if you are under 10,000 ac you’re literally a no body in the “ag scene” , but that’s ok for most of us .
The trick going forward will be to hang on to what we have now .

[seldomseen]

None of this makes sense to me.
I was shopping for a combine last winter at the local Redhead dealership.
One year old 9250’s were out of my budget at 725,000. They did have a 2018 9240 on tracks for 525,000 so I looked at it but decided it did not suit my needs. Sales man left my house and said on the way out he would find me a combine in my price range and left. Never heard from him since that day.
Auction day comes and Redhead has some combines in it.
The one year old 9250’s bring about 480.000 and the very same 9240 on tracks they tried to sell me they get 285,000.

[furrowtickler]

None of this makes sense to me.
I was shopping for a combine last winter at the local Redhead dealership.
One year old 9250’s were out of my budget at 725,000. They did have a 2018 9240 on tracks for 525,000 so I looked at it but decided it did not suit my needs. Sales man left my house and said on the way out he would find me a combine in my price range and left. Never heard from him since that day.
Auction day comes and Redhead has some combines in it.
The one year old 9250’s bring about 480.000 and the very same 9240 on tracks they tried to sell me they get 285,000.

Yup , dealers refuse to give the farmer looking at one piece of equipment any remote kinda of deal … they are all the same now .
They could care less , only about multiple deals now .
Yet they will take a bath at auctions, your right it makes zero sense what’s going on the past 3 years at least

[Crestliner]

None of this makes sense to me.
I was shopping for a combine last winter at the local Redhead dealership.
One year old 9250’s were out of my budget at 725,000. They did have a 2018 9240 on tracks for 525,000 so I looked at it but decided it did not suit my needs. Sales man left my house and said on the way out he would find me a combine in my price range and left. Never heard from him since that day.
Auction day comes and Redhead has some combines in it.
The one year old 9250’s bring about 480.000 and the very same 9240 on tracks they tried to sell me they get 285,000.

It's very simple to make sense of it, the term is "whatever the market will bear". When the free Covid money came timed with a grain price run up hit, a lot of "found money" showed up, people wanted to buy that which had been deferred for years and were willing to pay crazy amounts to get it. For some they spent way more than the windfall and piled on the debt. Human nature.

I have seen the cheapest guys build their dream bin yard and grain dryer system and pay way more than they would have 10 years ago.

For some the big drought, the big debt build up, and net grain receipts won't carry the new cost structure and there will be a reset.

I'd say a $525K combine carried for a year and dumped for $285K....the reset is well underway.

Cash is King as it always is and has been.