to buy or not to buy land?

[dnach]

Have a chance to buy land, 320ac assesed at 92000 and 97000 each, although in our area 75000 is the max it is worth agronomically. But land is still selling for a premium (90-100000 per 1/4) The land owner needs the cash before spring, but also needs to have his 450 ac custom combined next fall. Put this together and I think I could offer a max $150000 for the half and offer to custom harvest his 450 acres for the next five years no charge. Good, bad or otherwise, feed back would be appreciated.

[Smithy]

dnach
Sounds like an opportunity to me.
They aren't making land anymore, and the land base is a pretty essential part of most operations. Not having enough sure limits your growth.

[Muttley]

The decision to buy land and when is allways a tough one. The property must produce pretty good to be worth that. Where I am located in central Sk. land is probably only worth about 1/2 this. Of course there is allways the person who farms close to some land and has the money to pay more.

[dnach]

The land does not produce near what it valued. One reason why is first nations bands are buying land in the area and this has pushed price up because of the deep pockets. Overall the land is overvalued 15-20 g's given average production. But we do have 4 grain terminals and a pelleting plant within 10 miles.

[dnach]

Isn't that just typical of the Federal Government and their treatment of Western Canadian farmers? By throwing money to the 1st Nations money pit its driving up the price of land, and making it more expensive for any other young farmer to add a few acres to sustain his family farm. How many of these acres will actually be farmed by the new owners?

[lonewolf]

I hear you. Here gov has promised to give 14000 acres of crown land and a trust fund to purchase 46000 acres from private individuals willing to sell. how can a young farmer cope with these deep pockets. By taking the land out of the tax base will cause taxes to municipal taxes to rise placing an even higher burden on those brave few that persist on the farm. What is of greater consequence is that all this land will be under federal control!

[lonewolf]

Maybe the local governments, should invest in the farmland, rather than losing the land in the tax base. They could rewrite history as they did in the early last century by allowing a young farmer to rent the land (Max 640 acres) at a reasonable rate for 10 years. The YF could use the land as "collarteral" to expand, and build a suitable landbase OR a suitable livestock operation on "OWNED" land. IF he 1) gets married, 2) puts kids into the local school, 3) participates in local activites like RM council, voluteers at the rink, or community hall etc, 4) just helps better his community, then the RM would after 10 years transfer the legal title to the land to that YF. JUST an idea, but I know that for most young farmers (thinking of myself 10 years ago) that first piece of "ground" can be pretty tough to get.

[poorboy]

Can't help but see the price of land going up in Sask, now that outsiders can buy land. The price of land in Alberta is so inflated from the urban spawl of the big cities and the oil patch money that is just, makes my pencil look towards buying sask farmland. I can buy land and rent it back and in most cases expect a higher return than buying land close by and farming it myself.

I would seriously think about todays price and ask around how many real estate agents are fielding call from Albertans looking to expand. As soon as you increase demand, you will see an increase in asking prices. Saskatchewan has been in such a depressed state for so long, that most people will have trouble believing that the price will go up, and it will.

[poorboy]

If the land prices increase too much, you will see even fewer young fellows deciding to stay home, or come home to farm. Land purchases, and land rental costs is something that a person will look at first before deciding if its all worth the effort.