Is Monette Farms like Bernie Madoff?

[the big wheel]

The questions are is it good for communities, the province and the country for foreign owned farm land to increase at these levels? Is anyone monitoring who owns what? lots of numbered companies? Especially when at the current price of land 450,000 to million a quarter and these expenses it does not make sense for anyone to buy based on the return from the crops?

[AlbertaFarmer5]

The questions are is it good for communities, the province and the country for foreign owned farm land to increase at these levels? Is anyone monitoring who owns what? lots of numbered companies? Especially when at the current price of land 450,000 to million a quarter and these expenses it does not make sense for anyone to buy based on the return from the crops?

Either it is a Ponzi scheme house of cards based on the ever inflating real estate bubble, which will inevitably collapse and you can pick up the pieces for pennies on the dollar.

Or else it is a hedge against inflation by investors in it for the long term.

Current real estate prices do not look sustainable. Popping that bubble won't be popular.

Current public debt levels do not look sustainable, the only way they know how to get out of that is to inflate their way out.

[foragefarmer]

Thanks for the repost AB5 of what Errol has been saying for the past 15 years (while the longest bull market in history has taken place), or did he pass the torch onto you as he's be awfully guiet lately .

Only those on the outside looking in keep predicting the worst.

[AlbertaFarmer5]

Thanks for the repost AB5 of what Errol has been saying for the past 15 years (while the longest bull market in history has taken place), or did he pass the torch onto you as he's be awfully guiet lately .

Only those on the outside looking in keep predicting the worst.

Did you even read my post? There's a 100% chance that the powers did be will continue to try to inflate their way out of this.

The the other comments were in response to big wheel. I will let him wait to pick up the pieces. I will keep buying land as an inflation hedge.

And you can continue to tell us how brilliant your marketing is by claiming you buy every low and sell every high post factum.

[jamesb]

How much of a bubble is farm land in Western Canada? If it drops 25% I think that would be big. I do think that "some" investors are going to get a wake up call that rents will come down. Are the land investors there to make money or are they trying to park assets in a "safe" place and are not worried about returns but more about saving principal.

[AlbertaFarmer5]

How much of a bubble is farm land in Western Canada? If it drops 25% I think that would be big. I do think that "some" investors are going to get a wake up call that rents will come down. Are the land investors there to make money or are they trying to park assets in a "safe" place and are not worried about returns but more about saving principal.

My impression is that many are looking at farmland as a return of investment rather than a return on investment.

It's probably not going to zero, as virtually every other intangible asset eventually will.

[Old Cowzilla]

Another 1/2 point drop in int.rates means renewal on land notes maybe not as bad as most where thinking this was gonna end bad. Lots of dirt around here the last few years was paid by higher dirt sold somewhere else in Canada or even this province. Some folks have made so much money in the stock market they don't know where to put it all All the crap happening in the world yet the market is still hot hot hot...WHY?

[TASFarms]

States printed another Trillion dollars in a very short time. Vote buying ?

[Old Cowzilla]

Son rented a 1/4 this week from a guy who bought it last month. He told him he's not too sure why he even bought it Least he gave my son first chance we would be the small players in the area now except for the amish down the road.

[BighatPete]

Either it is a Ponzi scheme house of cards based on the ever inflating real estate bubble, which will inevitably collapse and you can pick up the pieces for pennies on the dollar.

Or else it is a hedge against inflation by investors in it for the long term.

Current real estate prices do not look sustainable. Popping that bubble won't be popular.

Current public debt levels do not look sustainable, the only way they know how to get out of that is to inflate their way out.

Haven't seemed sustainable for a long time, but nothing has changed. It's illiquid enough that if a big player like Monette wants to set prices in areas, maybe it will work indefinitely.

[AlbertaFarmer5]

Hutterites just bought a quarter for $8,700 per arable acre. On paper it looks like I nearly perfect quarter. Reality is much different.
I'm almost certain they aren't speculating in the land market.
I highly doubt they have outside investors.
They won't be developing or subdividing it. Quite the opposite anything with a house or buildings on it, they tear them down.

By all indications, they continue to be buying land with the profits they made from farming the land that they buy.
If it works for them, I don't see why we should believe it's not working for any other farmer who buys land.

[makar]

Hutts here all outside investors for years.