Downsizing to Clear Debt - The Combine Forum

 96Likes
Reply
 
LinkBack Thread Tools
post #1 of 130 (permalink) Old 07-03-2015, 04:29 PM Thread Starter
Senior Member
 
jazz's Avatar
 
Join Date: Feb 2013
Location: Regina Plains
Posts: 648
Mentioned: 0 Post(s)
Quoted: 295 Post(s)
Downsizing to Clear Debt

Hope to hear some opinions.

Running 8 quarters just outside of regina. I bought it all using debt because I couldn't rent anything. The farm is just big enough to make my bank payment and live off. There is usually no extra for paying down the debt. I'm 46 and by my estimation, I will have this debt until I am 70.

Two of the last quarters I bought are further out and not together. They are a pain to farm as it means moving and crossing the busy highway but they have tripled in price since I bought them. I don't see them going a lot higher. If I sold these they would pretty much clear the debt on the rest, but then I would be farming 6 quarters debt free for the next so many years. I am loathe to give up land but the idea of getting out of debt and getting the bank off my back is appealing.

graham99 likes this.
jazz is offline  
Sponsored Links
Advertisement
 
post #2 of 130 (permalink) Old 07-03-2015, 05:01 PM
Senior Member
 
Join Date: Dec 2010
Location: Northeast edge of agriculture, SK
Posts: 1,625
Mentioned: 0 Post(s)
Quoted: 168 Post(s)
If the debt is manageable, don't sell. The area around Regina is very valuable, and I think will not go down for sure, depending on your distance. Debt free, you could probably make it work with the 6 left, but if it were me, and payments were not a stress, I would hang on to the land. Some of the sales in that area are immense in value. How far out is the land from the city edge?

uthinkyourwet? is offline  
post #3 of 130 (permalink) Old 07-03-2015, 05:39 PM
Member
 
Join Date: Mar 2015
Location: central mn
Posts: 70
Mentioned: 0 Post(s)
Quoted: 19 Post(s)
I think you have to figure out how long you are going to be farming for. Do you have any younger generation that may someday want to farm? I know a few people who did what you are talking about a number of years back and now their kids are farming and they regret selling off. Sometimes it's necessary to sell to keep going but it sounds like you are getting by just fine.
Nairb is offline  
Sponsored Links
Advertisement
 
post #4 of 130 (permalink) Old 07-03-2015, 05:40 PM
Senior Member
 
Join Date: Dec 2014
Location: north west nsw australia
Posts: 179
Mentioned: 0 Post(s)
Quoted: 24 Post(s)
it might sound like a stupid aussie question , but how many acres in a qaurter ?
bear is offline  
post #5 of 130 (permalink) Old 07-03-2015, 05:46 PM
Senior Member
 
Join Date: Oct 2012
Location: Grande Prairie area, Alberta, Canada
Posts: 2,338
Mentioned: 0 Post(s)
Quoted: 245 Post(s)
Its not a stupid question at all bear, the maximum amount of acres in a quarter is 160 ( 64.75 ha ) but typically its rare to have that as so often there are road allowances or road ditches and barriers/grass strips between fields so a lot of time the actual farmable acres is around 155 give or take but officially its that 160 the way Canada is surveyed and a quarter being a half mile by half mile square tract of land

Last edited by Northern Farmer; 07-03-2015 at 05:48 PM.
Northern Farmer is offline  
post #6 of 130 (permalink) Old 07-03-2015, 06:08 PM
Senior Member
 
Join Date: Dec 2014
Location: north west nsw australia
Posts: 179
Mentioned: 0 Post(s)
Quoted: 24 Post(s)
Quote:
Originally Posted by Northern Farmer View Post
Its not a stupid question at all bear, the maximum amount of acres in a quarter is 160 ( 64.75 ha ) but typically its rare to have that as so often there are road allowances or road ditches and barriers/grass strips between fields so a lot of time the actual farmable acres is around 155 give or take but officially its that 160 the way Canada is surveyed and a quarter being a half mile by half mile square tract of land
ok that tells me alot thanks , its all different aussie land , where i farm with my dad we have what they call "soldier settlers " blocks & they are typically between 500 & 600 acres
bear is offline  
post #7 of 130 (permalink) Old 07-03-2015, 06:13 PM Thread Starter
Senior Member
 
jazz's Avatar
 
Join Date: Feb 2013
Location: Regina Plains
Posts: 648
Mentioned: 0 Post(s)
Quoted: 295 Post(s)
Well these two quarters are about 20 minutes out of the city in the middle of no where. Right now there is no infrastructure around them so they don't have a lot of value for acreages unless something changes. Their value is really just bare farmland. Nobody else in my family is coming up to farm behind me, no sons and daughters likely into something else. I will be the last generation of my family.

There is a lot of equity tied up in my small farm, more than $2 million and I really have no way to put it to work other than selling, then it could be used to clear debt or even diversifying income.

Last edited by jazz; 07-03-2015 at 06:17 PM.
jazz is offline  
post #8 of 130 (permalink) Old 07-03-2015, 06:28 PM
Senior Member
 
Join Date: Dec 2010
Location: Northeast edge of agriculture, SK
Posts: 1,625
Mentioned: 0 Post(s)
Quoted: 168 Post(s)
Yeah, 20 miles is out of the investment and big bucks region, huh? I dunno then. If I were you in that case, I may well sell. Being debt free would be very nice, and when you think of the savings from no payments, it is probably beyond a very good living in itself. I know if we had no payments, we would immediately double our income, and free up a lot of stress causing economic issues.
graham99 likes this.
uthinkyourwet? is offline  
post #9 of 130 (permalink) Old 07-03-2015, 06:37 PM
Senior Member
 
madcow's Avatar
 
Join Date: Dec 2010
Posts: 849
Mentioned: 0 Post(s)
Quoted: 54 Post(s)
I would sell in a heart beat if it could make me debt free.
then instead of making payments you could be building savings. save up enough to pay cash for upgrades.
graham99 likes this.
madcow is offline  
post #10 of 130 (permalink) Old 07-03-2015, 06:49 PM
Senior Member
 
Join Date: Nov 2013
Posts: 831
Mentioned: 0 Post(s)
Quoted: 110 Post(s)
Quote:
Originally Posted by madcow View Post
I would sell in a heart beat if it could make me debt free.
then instead of making payments you could be building savings. save up enough to pay cash for upgrades.
pay cash for upgrades if your downsizing, doesn't sounds logic or maybe i'm misunderstanding.

Its a tough questions if you have nobody taking over i'd sell it there's such demand for land right now, and do the acres you have and enjoy it till your retirement.
why bust your ass off and when you die giving it to government.

w-mFarms is offline  
Sponsored Links
Advertisement
 
Reply

Quick Reply
Message:
Options

Register Now



In order to be able to post messages on the The Combine Forum forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.

User Name:
Password
Please enter a password for your user account. Note that passwords are case-sensitive.

Password:


Confirm Password:
Email Address
Please enter a valid email address for yourself.

Email Address:
OR

Log-in









Human Verification

In order to verify that you are a human and not a spam bot, please enter the answer into the following box below based on the instructions contained in the graphic.



Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page



Posting Rules  
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On

 
For the best viewing experience please update your browser to Google Chrome