Is Monette Farms like Bernie Madoff?

[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.

[AlbertaFarmer5]

Hutts here all outside investors for years.

I have been wrong before.
Is that coffee shop speculation or confirmed?

Wouldn't outside investors negate the tax benefits of the church?

[makar]

I have been wrong before.
Is that coffee shop speculation or confirmed?

Wouldn't outside investors negate the tax benefits of the church?

My afsc loans manager showed me land sales results in my area off fcc website 15 years ago. It was sold to A who was financing B who is a hutt company. Even said so in brackets. Friend of mine sold his farm to a local big business who were just fronting the money for the hutts. Tax benefits i believe are a thing of the past, hutt land around me are numbered companies. Was told hutts cant or wont finance through normal channels.

[makar]

My afsc loans manager showed me land sales results in my area off fcc website 15 years ago. It was sold to A who was financing B who is a hutt company. Friend of mine sold his farm to a local big business who were just fronting the money for the hutts. Tax benefits i believe are a thing of the past, hutt land around me are numbered companies. Was told hutts cant or wont finance through normal channels.

[url]https://www.producer.com/news/yes-hutterites-do-pay-taxes/[/url]

[LEP]

My afsc loans manager showed me land sales results in my area off fcc website 15 years ago. It was sold to A who was financing B who is a hutt company. Even said so in brackets. Friend of mine sold his farm to a local big business who were just fronting the money for the hutts. Tax benefits i believe are a thing of the past, hutt land around me are numbered companies. Was told hutts cant or wont finance through normal channels.

I did a loan for $11 million in 1990 for a Hutterite colony.

In the late '80s CIBC foreclosed on land owned by Lajord, Star City and Estuary colonies. Eventually colonies came together and pooled money so that they could help situations before they went that far. Now I think they lend alot amongst themselves.

[AlbertaFarmer5]

[url]https://www.producer.com/news/yes-hutterites-do-pay-taxes/[/url]

Thanks for posting.

So the misconception that they are taxed as a church is incorrect.

I assume principal payments on land still have to come out of after tax dollars?

[BighatPete]

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.

Are there enough Hutterite colonies to prop up the market. Maybe they can do 5/10% of the big properties, but only a small portion

[AlbertaFarmer5]

Are there enough Hutterite colonies to prop up the market. Maybe they can do 5/10% of the big properties, but only a small portion

That wasn't my point. My point was I believe they are buying land with the profits they made from farming the land they buy. I just used them as an example for the reasons listed above.

Based on our own finances, I assume there are many successful farmers doing the exact same thing.

In other words, maybe these prices are sustainable.

Maybe there's no need to invoke any Grand conspiracy theories about where the money is coming from and who and why.

[GDR]

I don't think anyone doubts a farm with an existing, potentially paid for land base can purchase more with profits from the entire farm. The argument is that the new land likely wouldn't cash flow itself until its paid for in 20 plus years and that is pretty specific to farming. No other industry operates that way. The other part of that equation is likely quite a hit to the personal lifestyle (take home income) of the expanding farmer to make it happen, while non farming peers spend disposable income on other things in life, not land payments.

[sumdumguy]

Its a pissing match using crazy bank and FCC dollars.