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.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.
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.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.
This is the knife that slides across the throat of every young person trying to start out....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.
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.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
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.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.
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.Is there actually any more money in owning more land?