Land prices still Rising? - The Combine Forum
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post #1 of 167 (permalink) Old 04-23-2018, 01:25 PM Thread Starter
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Land prices still Rising?

Farmland values rise in Canada

https://static.producer.com/wp-conte...933.1518316162



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post #2 of 167 (permalink) Old 04-23-2018, 01:49 PM
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I like how it says why the increases have been happening, and the best part is the 2% increase for inputs! Wish my inputs have only gone 2% in the last few years! I never know what to take on FCC's reviews like this, they really seem to like to push land loans even beyond what would be considered a safe level.

On another note, I might be all the nuts bars in my area driving up the Manitoba prices. I don't know where some of these guys can get the finances for this. Some just sold recently for almost double the assessment price. No bank I know of will do that. And am pretty sure these guys are borrowing the money.

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post #3 of 167 (permalink) Old 04-23-2018, 02:20 PM
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Besides that organic land last week through Ritchie Bros, everything I have heard sell this winter have been record prices.

Brent.
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post #4 of 167 (permalink) Old 04-23-2018, 02:29 PM
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Was expecting something else when I read the title, well I'm here now and this was the first thing that popped into my mind, guess with all the water running everywhere, I had something more like this in mind lol.


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post #5 of 167 (permalink) Old 04-23-2018, 03:25 PM Thread Starter
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Kevlar, I used to think the same thing about land prices until I found out the largest company in the world (Amazon) is largely a break even enterprise.

The land is probably rising for other reasons. Inflation and currency hedge sort of like gold.
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post #6 of 167 (permalink) Old 04-23-2018, 03:28 PM
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Kevlar, I used to think the same thing about land prices until I found out the largest company in the world (Amazon) is largely a break even enterprise.

The land is probably rising for other reasons. Inflation and currency hedge sort of like gold.
Correction- Amazon is largely a money losing enterprise. Along with Uber and all these other tech companies that are backed by massive VC money with the sole goal of gaining a crazy dominant market share. Still donít understand the end game but weíre currently watching it unfold.

Any inquiries-
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post #7 of 167 (permalink) Old 04-23-2018, 04:17 PM Thread Starter
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And consequently Jeff Bezos is one of the largest private owners of farmland in the US along with Bill Gates and many others. Makes you wonder when the tech gods who are apparently leading us to a new utopia still need and old school asset like land. Something they know that we dont?

I heard a financial type on BNN once say farming is mostly a water transport business.
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post #8 of 167 (permalink) Old 04-23-2018, 07:43 PM
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I like how it says why the increases have been happening, and the best part is the 2% increase for inputs! Wish my inputs have only gone 2% in the last few years! I never know what to take on FCC's reviews like this, they really seem to like to push land loans even beyond what would be considered a safe level.

On another note, I might be all the nuts bars in my area driving up the Manitoba prices. I don't know where some of these guys can get the finances for this. Some just sold recently for almost double the assessment price. No bank I know of will do that. And am pretty sure these guys are borrowing the money.
My inputs are lower this year than most of the last 5 years, probably 10 actually, looks like fuel will be up but fertilizer is lower. What I really notice costing more is all the parts and little things in the store but fertilizer savings should offset that.

The sales I have heard were all high and record by a large margin in some cases. Farming has been good to some lately. A lot of people who owns a lot of their land and has been in the game a while will have no trouble paying these prices. If you own 20 or 30 quarters free and clear you probably have a fair chunk of cash to put down and the rest cash flows easily spread across the rest.

Price of land rarely pencils out to pay for itself, that is not a new phenomenon.
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post #9 of 167 (permalink) Old 04-23-2018, 07:54 PM
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Lots of investment outfits buying land in my area. I don't see it stopping
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post #10 of 167 (permalink) Old 04-23-2018, 08:19 PM
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Land prices are just a reflection on what a dollar is really worth. We've been told there is little inflation, BS. It costs triple to heat or power any property I own compared to 10 years ago.


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