Mandryk: Sask. agriculture minister's denials on foreign farmland ownership bizarre

[foragefarmer]

With all the turmoil in the major oil producing areas of the world right now, oil sits at $68.00/b.

Not hard to figure out why investment isn't flowing into O+G but rather into Real Estate.

[AlbertaFarmer5]

With all the turmoil in the major oil producing areas of the world right now, oil sits at $68.00/b.

Not hard to figure out why investment isn't flowing into O+G but rather into Real Estate.

Now apply that logic to agriculture. Last I checked, agriculture commodities were at historic lows compared to most other commodities. And if we consider land values to be a proxy for investment in agriculture, it is at all time highs.

Is this just because of investors/farmers betting on misguided government biofuels policies? Short oil and long agriculture?

[farmaholic]

What company in their right mind would invest any more than they had to in Western Canadian oil and gas with the current federal government and their agenda/policies since late 2015? And don't forget the impact Covid had on the economy. Oh yeah and that crushing "cumulative affect" carbon tax.

Picking winners and losers. In some cases the chosen winners will never stand in first place on the podium.

[foragefarmer]

Now apply that logic to agriculture. Last I checked, agriculture commodities were at historic lows compared to most other commodities. And if we consider land values to be a proxy for investment in agriculture, it is at all time highs.

Is this just because of investors/farmers betting on misguided government biofuels policies? Short oil and long agriculture?

I realize you'd like to erase this time period from your memory, but was it government policies regarding biofuels when commodities hit record prices in the winter and spring of 2022?

What effect did that hangover have on the land and rent prices of today?

Ab5, you run your business with far to much government involvement.

[AlbertaFarmer5]

Yes. A big part of the hype that drove oilseeds to record highs was based on government policies regarding renewable Diesel and sustainable aviation fuels. And the spillover effect to the other grains.
The supply and demand for grains in 2022 in no way justified the extreme valuations. Neither did the Ukraine war.

[chuckChuck]

Take away government mandates for biofuels and the grain industry will be in much bigger trouble.

Farmers love to extoll the virtue of "free markets" but biofuel mandates are an indirect subsidy on a massive scale.

[foragefarmer]

Yes. A big part of the hype that drove oilseeds to record highs was based on government policies regarding renewable Diesel and sustainable aviation fuels. And the spillover effect to the other grains.
The supply and demand for grains in 2022 in no way justified the extreme valuations. Neither did the Ukraine war.

There lies your problem, you were to busy looking at supply and demand numbers rather than focusing on the actual market during that time period, or you just got greedy one of the two.

Justify or believe what ever numbers you want Ab5, the market (record numbers) reaction to Putin's unjustified invasion of Ukraine was based on a supply/demand issue.

[AlbertaFarmer5]

Forage, it's as if you are having an argument with yourself. As if you don't even pay any attention to what the other party is saying.