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Land price updates

25K views 67 replies 29 participants last post by  K-MAN 
#1 ·
I'm wondering if anyone is starting to see land prices leveling off or even dropping with these crop prices. I think guys are a little less aggressive but there always seems to be one guy out there that will pay whatever!
 
#2 ·
Not leveling in MT. They are still going up. Watching a few farms that sold this winter, didn't matter if a few guys had lower bids to fit budget, the Hutterite colonies stepped in and paid premium prices for what is marginal land in my area.
 
#6 ·
The only people you hear talking land prices down in Central AB are the ones who would like to buy if it goes lower. You never hear people who have land talking about if they should sell at these high prices. To me that tells you the direction that land will be going. $1mln qtrs do not even rate coffee shop talk as there have been that many that move at that level. However, there is a group of qtrs that do think need to be sold that asking $1.2mln and will be intg to see where that shakes out.
 
#10 ·
Grass land (grazing lease) going up (what ya expect cattle at record highs) Rest is still going up, not many locals lots of guys from highway 2 area or investers
 
#11 ·
2 tracts sold yesterday, wasn't at the sale, dad was. Tract 1: 155 acres, 92 CSR, using per acre price with 160 acres as the multiplier sold for 11,000/acre; equates to 11,350/ crop acre and $123/ CSR point. Tract 2: 115 acres, 90 CSR, using per acre price with 120 acre as the multiplier sold for 10,800; equates to 11,270/ crop acre and $125/ CSR point. These are dad's numbers so may be a tick off one way or the other, but are close.

This area has seen a 10-15% reduction in price late last year. This sale represents a 3-5% increase over the lows.
 
#17 ·
what be the price you think is fair right now?

where do you draw the line? some guys can offer more because they have more assets or fewer loans its hard to say where do you draw the line and say no to rent. because with a poor crop you already lose money especially with high inputs.
 
#18 ·
I see on another site that a guy bought some land in Indiana for 7500/ acre. Aph on the land was 180 corn and 60 bushel soybeans. He said most land is selling between 6500-7500 in the area. Those prices aren't too far off Carmen, winkler area where yields would average 35-40 beans and 130-140 corn at best. Prices are outragous for the productivity of the land/climate here.
 
#20 ·
What drives the buyers of a million dollar quarter? It is not for the production, so it must be assumed the value will go up even more, or???

More amazingly, is if you have land in a million buck a quarter area, what kind of drugs are you on to NOT sell? I would be a FAST seller if someone offered me even 2000 an acre, let alone 6000 or so.

Why on earth would you buy, and not sell? I just don't understand???
 
#30 ·
wouldn't you though? have seen some turn the land into trusts lately that the farming child(ren) will rent from instead of forcing them to buy out the sibling(s). Tough for a young/small guy to have the means to buy them out regardless of land prices. Personally I would rather end up renting it. reason being, that land is there for you and shouldn't have to worry about it going to someone else. Gives you the opportunity to spend the capital on other land to grow your base.
 
#25 ·
They pay the long dollar because they have the money. What else are you going to do with it? The banks give you what, 2 1/4 % on a 5 year cd, from a bank nobody's ever heard of? In spite of the large gains in land prices, I'd have made more money if I had put my money in the stock market in 2008.

I believe in dancing with the one who brought me to the ball. Agronomy brought me to this ball, I'll continue to dance with her.
 
#33 ·
Land here is under 1000 an acre and dropping. This is a very productive area, excepting the last decade of too wet. Even with the wet years, my average canola yield for CI is 39.8, for example. So there are still areas of cheaper, productive land in Western Canada.

I enjoy farming, I love my home, but if I were offered a wild amount of money, I would sell!

We have to remember, we all have had a different start and fortune. The luck and fortune tends to rub off on how one looks at the land and farming in general. If I had had better luck and fortune, I would for sure think differently than I do now. I get that side of it. If my dad was still here, I would have had his backing and his labor, and his expertise, and would have made a great team!

Several Albertans have moved here, selling their land for a fortune, and then buying here for a pittance relative to their former drought prone areas. Even in these wet years, this land is twice as productive as their land they left, which was worth 4 or 5 times more than it is here.

I guess if you have land that is worth a mill a quarter, and you buy another one, it is no different than buying and worth 120 000. EXCEPT THE PAYMENTS! lol
 
#35 ·
Land here is under 1000 an acre and dropping. This is a very productive area, excepting the last decade of too wet. Even with the wet years, my average canola yield for CI is 39.8, for example. So there are still areas of cheaper, productive land in Western Canada.
Any idea how your area compares to around North Battleford? I saw on Kramer Auctions some land around there just sold in the range of 1400 - 1700 / cult ac.
 
#45 ·
Aaah thanks for that explanation. Guys are not paying 377/acre per year for the million dollar quarter. They are paying 0 cause they had the cash.(very foreign concept for me i admit).

I knew it wasnt farmer borrowing that money and hoping wheat would pay for it. I also knew farmers are unlikely to leverage a paid for quarter to buy something that doesnt pencil out cause you cant do that for very long.
 
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