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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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Discussion Starter #5
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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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 don’t understand the end game but we’re currently watching it unfold.
 

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Discussion Starter #7
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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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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Lots of investment outfits buying land in my area. I don't see it stopping
 

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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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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.
This is the knife that slides across the throat of every young person trying to start out....

Ant...
 

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A good friend once told me people dont go broke because of the bad years, they make decisions in the good years that make them go bust in the bad.(hes also a poster on tcf)
All we hear all winter was new record high land prices. Grandpa always said, when something is expensive people want it, when its cheap they dont
The issue for young people or older 1st generation farmers is that sometimes you dont get to start on the good years..so you cant absorb the bad...you often work off farm...which means effenciency suffers and often so does timing.

Ant...
 

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Ant, nobody is starting out farming the way you think anymore, at least not here in canada.

Some of the youngest guys are responsible for the biggest increases in rent and land prices.
I think it’s always been that way jazz, it’s human nature. When your young, have no family to support and very little to lose you make big bets. Also there is a tendency towards feeling invincible when your young.

As you get older, family to support, gain some equity (now you do have something to lose and find that you don’t want to lose it) and realize there is more to life than work your tolerance for going all in diminishes.

I’m not saying older guys can’t be running up the price of land and there is an exception to every rule but as you get older most lose the tolerance to be leveraged to the max at all times because eventually that will probably bite you.
 

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Discussion Starter #17 (Edited)
If your family is not already established in farming - I am talking about a couple generations working together - you probably arent going to be breaking into it easily.

You would easily need $2MM to get rolling and nobody will lend to you without some backing.

The way into farming now is to take off a small bite from a much bigger family player and have them back you and then get aggressive buying and renting more land.

The older guys shouldn't be vilified for wanting a good price for land. They have been through a lot of ups and downs so why do they need to subsidize the next generation, especially when that generation is starting out with better equipment than they ever owned.
 

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Good morning to all. Out here in my neck of the woods ( 20 miles NW of Maple Creek , Sask.) Land prices currently are about $300-325,000/ 1/4 or around $ 1800-2000 per acre! Does it pay for itself? not in my mathematics , but for the greedy SOB's that farm around me ( hutterites , neighbors that can't ever get enough) it sure seems to. GREED , Greed and more greed. It isn't nice being the smallest farmer in the area, but I do have everything basically paid for , and I am not ashamed to say that my parents helped me a lot! I have paid dearly to be here ,but I have a couple of old Fords to play with when time permits , and a wife and a son who I love dearly and do my absolute best to provide for. I would trade my 70 cows for another section of land to farm though. That is my only real complaint. Tired of being married to a cow herd.
 

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Is there actually any more money in owning more land? I've been personally debating on what to do about getting extra acres. It feels like most of the extra money goes to paying for the equipment and manpower to farm said land.

I'm starting to think that just doing a better job and/or improving current land is money better spent.
 

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Discussion Starter #20 (Edited)
Is there actually any more money in owning more land?
Well last yrs FCC forecast said the big gains were over and you could only expect inflation type returns owning land for the foreseeable future. Clearly they were wrong, though the big gains might be behind us.

Not sure improving land will add value unless you reclaim wet acres with tile or drain some sloughs or something. The valuation is basically someone paying more than last years price. Nothing more. We have seen this playout in the housing market. Goes for a while but doesnt last.

Where I am at, investors are big at play. They are looking at city lots being near the same price as a quarter section and its often an easy decision. There are city lots that are selling for more than I paid for a 1/2 section a stones throw from the city limits.
 
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