Am I missing something?

[flatbroke]

I've been really looking for additional land in my area to rent or buy. I'm in east central alberta, typically poor rainfall area, not great soil, wheat yields would average 20-30 bushels with 40-50 bus. maybe one year out of ten.
All this being said, a poor to average quarter of land with 130 to 150 acres broke sells for $120,000 to $135,000, and cash rents are running in the neighborhood of $48.00/acre.
How the hell can these guys swing this??? Granted, I'm not the brightest bulb in the box, but no matter how creatively I crunch the numbers I'd be losing money 9 years out of 10! What gives????

[ALLFARMER]

Your not missing anything, the guys pay the $48/acre are. Land around here the North Peace rents for tops $30/ac. Only guys who have been farming 30 years can pay that and they won't be farming much longer. In my opinion only old money can pay 48 dollar rent.

[dnach]

The funny thing is, some of these farmers are selling there land in Alberta and buying land here in Sask for what they consider bargin prices. Well, come on over, you get what you pay for boy's.(a horrible ag economy and a gov't that can not afford to pay attention). BTW. Have these guys call me if they want to buy some 'cheap' sask dirt' I'll sell them everything.
Also Flatbroke brings up a good point, same thing here in Sask. I know the area he is talking about, average land at best, is there oil, gas?

[grassmarketeer]

I don't understand this high rental dollar either. In east central Ab rentals are way off the charts. I can only hold out hope that as some of these guys renting all this land run into financial trouble or die from the stress. With even one less rentor in my area there could be 10 000 more acres up for sale.

[flatbroke]

grass, I suspect we're in the same area... There's 2 guys in particular that are renting 10,000 acres for these ridiculous rates.
I thought I was nuts paying 55-75G per quarter several years ago, now similar or in some cases much poorer land routinely brings twice that price! Kinda makes me think perhaps I ought to sell while I can and move to an area with better,and cheaper land and start over... Or as was stated, just be patient while these clowns go broke and hope for prices to become more realistic... just very frustrating as I'm not getting any younger :-(

[cowman]

I actually know a lady who works for the province who recently bought some farm land in east central Alberta. She thinks it is a good long term investment!
Of course she is making in that $100K area, so she has some money to play with, although not enough to speculate in the more pricey areas...like around Edmonton/Calgary or the #2 corridor.
Rents in my area are in that $60-$80 range and there are no lack of takers! Also land is grossly overpriced in relation to what it can produce, but then once again there are no shortage of buyers! Lots of wealthy businessmen and Petro-chemical boys to buy up that land for their "own little piece of heaven"! Might not be right but that is just how it is. You can't stop progress.