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

[Sheepwheat]

Here’s an example. A neighbor kid of mine wants to farm. The parents though swear there is not enough acres to sustain both. The options? Get more land that is impossible to come by, or rent it out or sell out.

Kid wants to farm, but is told I guess buddy you can’t. Because we don’t have enough land. Poppycock!

How many parents encourage the kid to try another route of farming? Until you are out of commodity agriculture and into direct marketing, you don’t see the potential. I was there. I came from there. I had no idea how many things there are buyers for at livable prices. The old argument always goes, “Well if everyone does that, you flood the market!”. Ummm, no. I can make a living off of an eighth to a quarter of the sheep a commodity ranch would need. There is LOTS OF ROOM to do lots of things. I know guys who ship meat to Calgary , Edmonton, Winnipeg. At prices that would blow your minds. I know guys who mill their kamut and spelt and sell it for obscene prices, in specialty stores, but mainly online, all across North America. It’s unbelievable what can be done. But it always gets bashed, denied, and discouraged.

The farm kid I mentioned? Well, he won’t farm because he has no idea the sky is the limit with fewer acres. It is so frustrating to me to see.

This mindset needs changing imho if we want an actual farm community to stay on the land. Otherwise we will have four farms per RM, and we will wonder where our neighbors went in the mad scramble to get bigger and buy it all up, because that is the only agriculture that counts.

[jazz]

Sheep a farm with some built in resiliency (not too much debt, some flexibility in storage so you arent a beholden price taker, and some tight management) this business can deliver double digit returns, even 10 yrs ago.

Land didnt go up 331% on its own.

US has been planting corn soy rotation for 30 yrs.

[AlbertaFarmer5]

First of all. I really admire your business model. And respect the message you are trying to spread.
If I had to guess, this area has more quarter section farms than every other size of farm put together. A few of them are even making a living that way.
Lots of ways to think outside the box on a small scale. The best example I know of is an organic goat milk dairy on less than a quarter section of land making very good profit. In my immediate circle, we have people making a living with honey and a fish farm and countless horse operations and growing native grass seed and you pick berries and vegetables and direct marketing beef or vegetables, a guest ranch. Quite a few people have started from scratch without even a farm background.
Countless possibilities to do it different and on a different scale. In fact I would argue that much of Western Canada's climate and topography and labor market does not lend itself well to large scale intensive agriculture.

I do have a question about your operation.
Obviously it is now working well economically and fits well with your family ideals. I would agree that it's probably also the most environmentally sustainable model possible.
But my question is, would it be economically sustainable if you had to factor in the true land costs? If you were being current land values, could you also afford to be environmentally sustainable to the degree that you are aspiring to?
I know I have struggled with this concept. I know there are better ways to do it, and I know in the long run they could be more financially sustainable. But because I also have to pay for the land at at increasingly inflated values, there is no economic case in the short run where I wouldn't go bankrupt trying to do the right thing.
In fact I would take that one step further suggest that almost any operation couldn't show a profit if we acknowledge the true value of our land. At least not while simultaneously owning the latest and greatest equipment and infrastructure etc.

[Sheepwheat]

Sheep a farm with some built in resiliency (not too much debt, some flexibility in storage so you arent a beholden price taker, and some tight management) this business can deliver double digit returns, even 10 yrs ago.

Land didnt go up 331% on its own.

Believe me I know. All I’m saying, is that based on my modest land base, I shouldn’t be feasible, (I mean, eight or so repeated weather years didn’t help me out much!), so I found another way. Others can too. I mean to encourage others that there are other ways to farm. I recognize most guys on here seem to be quite wealthy and understand they simply won’t get it.

But if all my four kids wanted to farm, and our land base doesn’t grow, I and they will find ways to make it feasible for them.

[blackpowder]

More like 5 or 6 times here, and most of that in the last six years probably.

How many farmers these days ever say they have enough land? That is the biggest problem, thinking ever more size in acres, will somehow fix all that ails commodity agriculture.

In haste I took your comment as a call for the end of greed.
You are but one of 8B on this rock. Of a specie that is unchanged since emergence.

Businesses don't grow because they want to but because they must. It's an inevitable cycle.
If something is monetized it is commoditized sooner or later.
Generalizing a niche makes it no longer a niche.
Would it benefit society if more people saw the dignity in a Farm to Fork lifestyle, absolutely.
Are there opportunities, definitely.
But you can't sidestep the rules of money or the laws of human nature.
20% will produce 80% and will want that house in Palm Springs. No sheep dung in a Denali.

[jazz]

But if all my four kids wanted to farm, and our land base doesn’t grow, I and they will find ways to make it feasible for them.

Farmers are kind of loners. There are lots of farmers who could buy out restaurant chains and even a grocery or two and move themselves up the value chain, but they dont.

It takes a strong stomach to be up face to face with the consumer. Why take on that hassle when I can just buy another quarter.

Instead of buying land, I buy stocks now.

[Sheepwheat]

Hey I need to add.

Regarding economical feasibility with today’s land valuations? I dunno? I never bought any obscene priced land. I get the opportunity costs sure. Name me a farming venture that actually pays for the land on its own. Meaning if you bought a single quarter, and used it’s own production only to pay its way. I’m not certain many forms of agriculture would be able to do it right now. Our model on a per acre basis is better than grain. As we grow our flock, our markets will hopefully follow. So far so good that way.

I am NOT condoning every farm switch what they are doing and doing well! Not at all or even close. I am talking about giving new entrants a chance. Someone still needs to grow the wheat, the canola, the beef commodities.

This is about giving new entrants a fighting chance to succeed. Maybe renting them a pita corner of a quarter across the creek where they can work on growing something non traditional. Letting them fence a chunk of bush rather than just push it down. Being actually open to having someone graze your grain land, rather than panic about it.

I think it the only hope for the future, unless all we want is a few guys on the land. What farmer wants fewer neighbors? What farmer hopes for fewer yard lights out there? I would argue none. We need more farmers not fewer. What other options are there to do this? I would argue the only feasible option is to give newcomers a chance to farm differently.

[blackpowder]

That's the problem with ideals. They can be naive.

I do occasionally see an elder give a younger a chance. My one neighbor has been more than kind to me. Others get their check flipped in the casket.
Myself, I'm giving an outside younger an excellent opportunity. He will however, always keep his day job.
All part of that human factor. We all change our minds when we change from tenant to landlord.

[checking]

Have you been to a grocery store lately checking. The last time we went the people ahead of us had the bottom part of the cart filled with cans of coke and the top with doritos.

Wont be hard to slip some cricket powder in for the masses. Just turn on the football game and pour a pint and they will accept anything.

Meanwhile we are riding the land and input escalator. Land has held up with a yr of 6 pct interest rates. Iowa land values would say we have a ways to go here yet.

Then perhaps you could explain why you are not out of the farming business now, and instead writing best selling and essential cricket powder recipes?

[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.