50 year farm mortgage would it be insane or logical for farm families?

[makar]

Longer the term the higher the payment due to interest, a 25 or 30 year mortgage payments aren't that much different.

[furrowtickler]

It would drive up land values. It’s like renting till you Die. but some day you will own it.

Don’t bet on it , there is always someone with more money around the corner . No matter how wealthy you think you are
Blackrock through certain farms would out bid any farm in n western Canada in a blink of of an eye, even the most lucky well of farm anywhere instantly

[dalek]

How do the 100 year farm mortgages in Holland work? Kinda seems to me that there isn’t much difference between that and renting from the central bank/government

[wrongway]

i remember doing the math on a house mortgage in early 80's when interest rates were %14 or higher. one extra payment a year in the early years of the amortization schedule took a whole year off the end. so every renewal we would make the extra payment...it sucked because it cost us a hot holiday when all our friends seemed to be going everywhere...thankfully interest rates came down and as the mortgage matured the principle got paid off way faster.
I cannot even fathom these insane amortizations...truly there is a reason they don't teach math basics anymore.

[the big wheel]

some good points but what s not being considered imo is rents are paid and gone they
give you no value other than an expense, owning dirt is balance sheet useful gives you options. Land values are not based solely on what the dirt grows or produces its many more things now. Other people other countries want other resources of the land ie potash minerals etc etc thats besides other countries wanting to ensure their food supply decades down the road. Land is not going to go down like it has in the past. Sask land is still undervalued compared to the rest of the country. And thats the biggest part of my question and whats being overlooked. When your land appreciates over 10 to 15% per year theres that value to add to the balance sheet as well which is more than what rent is. And I dont think its right that farmers arent the ones that have the access to that appreciation.

[Old Cowzilla]

Most farmers only have access to that appreciation on sale day and a fair bit of that is an estate sale. Does always feel different driving over owned land compared to rented but million dollar question is always how much dirt does a guy need (rented or owned ) to make a living ? I don't need to know but my son will have to figure it out.

[wrongway]

recent history does indeed show that ownership is far far better than renting.
having started farming in the 70's i can assure you that the 80's to 2010 or so it was a very different time. yes ownership was slightly better than renting but there was virtually no asset appreciation for these 30 years. the high interest rates and asset devaluation that occurred then brought down many farm families.

[Taiga]

Having that asset base is what gives you access to money to grow. Hard to buy much with little to borrow against, whether that be inputs, machinery, more land.

[ColevilleH2S]

...Land is not going to go down like it has in the past...

This time it's different, doesn't hold water with me. Cycles, cycle. Always have, always will.

[furrowtickler]

Is it more likely that land is overvalued in other areas than Sask ?
Or our dollar simply devalued and it enhances inflation ? It’s happen in many other countries where inflation is the cause of a devalued currency.
Not sure to be honest, but land values since 2000 have gone from about $100,000 a 1/4 to $600,000 plus now .
Long term crop production averages are up just marginally in that time frame .
But land values could definitely stay ever increasing , it is possible as well

[the big wheel]

This time it's different, doesn't hold water with me. Cycles, cycle. Always have, always will.

Well it may go down for a year or even 5 years but what asset whether it be land or stock market over 50 years has gone down? People build or buy houses in the city they depreciate the minute they re used yet how may people wish they owned many houses from 50 years ago now? And second foreign investment is way way understated there was a Producer article recently and it was quite obvious to me our govs have no clue how much foreign ownership there is now, many get citizenship then whats stopping a foreign gov to pump money through that person as an investor? And second who actually is checking on foreign ownership? the ones who have political friends that were part of the money land scams? To be honest I think if an independant look at land ownership were done it would shock people. Someone asked earlier if I was referring to area one farms or the other major one no I wasnt they arent immediately here but I know people have sold and there are people mainly from 3 different speaking languages at the end of the phone.

[Marusko]

How do the 100 year farm mortgages in Holland work? Kinda seems to me that there isn’t much difference between that and renting from the central bank/government

That cannot be real. Netherlands is in the process of buying out its farmers anyway.