The value per acre of farmland in Canada has skyrocketed by 334% since 2001

[Sheepwheat]

To answer a few questions I think I seem to have missed. Albertafarmer. Could you make a decent living if you raised cattle and the calves were worth $4000 to $6000 bucks a head in fall? Would you need to run hundreds of animals?

Is the only way to expand by gaining acres, or are there other things to do?

A Few things.

If it weren’t for the stupid Turkey quota system, with the contacts we have, one of my kids could raise a thousand or two turkeys and make a reasonable living easily.

I have a guy who wants badly to buy a certain product off of me. No one raises it. No one would think of raising it. After meeting him through some lamb sales we made, and asking what he would like that he can’t get, he blurted out, ———-! After further research I am going to raise it on a trial basis this spring, to see if it could be done. The item in question would take up about 1000 square feet, and would in theory provide gross revenue of probably 30 000. I think I can produce it for pennies on the dollar after further study. Even people in the city have a thousand square feet! Although I doubt the neighbors would be excited. Sounds too good to be true to a commodity, cookie cutter grower. Not enough cool iron to park at the edge of the field at night! Haha.

There are literally dozens and dozens of things like this out there. You just need to take off the blinders and accept that this is so.

[Sheepwheat]

And this is for blackpowder. Sheep dung is not like cow dung. It doesn’t stick to your boots. Denali stays clean!

[AlbertaFarmer5]

An acquaintance of mine is direct marketing beef and according to the numbers he's shown me is achieving the values you are suggesting. Although, you still owes me money from last winter, so I'm not sure if things are as rosy in reality as they are on paper.

At those values I could certainly justify land costs where they are going cattle. But myself personally, I want nothing to do with traveling to farmers markets and interacting with customers. I'm quite happy to grow low value bulk commodities.

[Sheepwheat]

An acquaintance of mine is direct marketing beef and according to the numbers he's shown me is achieving the values you are suggesting. Although, you still owes me money from last winter, so I'm not sure if things are as rosy in reality as they are on paper.

At those values I could certainly justify land costs where they are going cattle. But myself personally, I want nothing to do with traveling to farmers markets and interacting with customers. I'm quite happy to grow low value bulk commodities.

He’s getting that much for a weaned fall calf? That’s impressive if so. The thing is, we scarcely have to see our customers. Couriers take our meat all over creation, sight unseen. And the best part? The buyer pays for the shipping, happily I may add. The toughest part was establishing a market, finding the right ppl. I rarely need to reach out anymore, they come to you after a while.

Of course it’s not for everyone. Like I said, if you’re happy what you’re doing it’s all great. But I am saying that if we truly want new entrants, we need to encourage them!

[Sheepwheat]

Thought of something on this miserably cold but beautiful looking morning as I fed the sheep.

Buying land is not that simple at the best of times. Sometimes I see guys say, I’d rather just buy another quarter. How, when, where? Around here, buying land is not like walking into a store. It’s pretty much impossible anymore. Always was a huge challenge, no matter the price, because typically the deal is made between relatives or tenants and landlords. No relatives with land, not a bunch of land rented, and you’re out of luck. Has always been that way. Put it out for “tender”, tell your buddy, your nephew, or your cousin the highest bid, and let him have at it. I look at my RM map, and there is seriously only one quarter left within a reasonable distance, that I think I may have a kick at the can in this lifetime.

So in reality, it’s not even an option. It would be nice, however to say, hmmm. I think I want to just buy another quarter of land to increase my earning potential. (Looking at a map), I choose, (points with finger), THAT QUARTER!

So taking away that option, what else is there really? Not much, but to do something differently.

[phoenix64]

Andjelic simply taking advantage of what’s available to him, not in support of his land grabbing tactics but if it wasn’t him it would be someone else. Land has always never penciled out, if it’s expensive it’s cause interest rates are generally low and commodities high. Sadly these days vs when I started in late eighties young people simply don’t want to bring in the off farm capital required to purchase land, inputs and equipment to make their farm viable. And it won’t happen overnight lol, takes patience, perseverance and risk taking to make it happen. If they are lucky by the time they are in mid fifties they have enuff equity and cash to plan a retirement and will have gained much wealth. Young fellas that are serious can pull in 300,000/yr working oilfield and compete against anyone including andjelic in the land market. Would much rather see farmers taking chances building equity even if it’s expensive than simply being tenants for andjelic.

[furrowtickler]

Latest I heard $ 175 / acre rent for Whitemans land and $ 125 / acre for native land Battlefords area !

That be exaggerated by 25% at least .
$125 and $85 would be max
Maybe west of the Battlefords

[Guest]

That be exaggerated by 25% at least .
$125 and $85 would be max
Maybe west of the Battlefords

there is a lot of that around here too
or one rent transaction of $115 makes the news when two farmers were trying to prove who has the biggest one but the 95 % of 65-80$ doesn't make the news

[blackpowder]

$1M+ per quarter here to buy. $140-160 on new rents. Fact not fiction.

[Sheepwheat]

$1M+ per quarter here to buy. $140-160 on new rents. Fact not fiction.

Farming pays!

[jazz]

Farming pays!

If Zeihan is right and the FFR goes to 6% and stays up in that range for a decade, that means the manipulation lid will be off commodities too.

Land should perform very well in that scenario. And if fiat has a stumble, and BRICs do get a commodity based currency off the ground, well watch out.

[blackpowder]

Farming pays!

Mmmmm, okay. Yes. To me it shows the economy of scale has jumped by a multiple again.

And. Succession/retirement planning gets more complex.