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Well the other option is farmers demand fair value for their products, consistent with all other industries. That profit range is 15-25% for sustainable businesses.
 

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Well the other option is farmers demand fair value for their products, consistent with all other industries. That profit range is 15-25% for sustainable businesses.
ohh do behave!!! i have met many who tell the local newspaper when they get good prices in 1 year that is actually a crap price in reality, things are good!!!

Low commodity prices are the root of all evil in this industry...The ag supply industry doesnt even have to put up with what the farmer does...

No one calculates community value on there balance sheet, or there kids future, or the future of the industry...hard to be polotically strong when poor.

Has Bayer or Monsanto got cheaper? most things that have gone down have 1 thing in common...CHINA.

Ant...
 

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Well the other option is farmers demand fair value for their products, consistent with all other industries. That profit range is 15-25% for sustainable businesses.
I would argue that the price of land, and amount of new equipment and infrastructure indicates that farmers are making adequate profit margins. If that profit margin goes up or down, the price of land will reflect that as we gravitate to the profit margin we are accustomed to.
 

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Every year it seems we have reached the top of what land prices can get to. Been going on as long as I can remember. I recall in the late 80's when irrigated land hit $1000 per acre, bunch of us guys thought a friend who bought a quarter at that price was nuts. Now it has increased 10 fold or more in some area's.

When dryland hit $1000 per acre I remember saying that would be the top, who could afford to pay more.

Wrong again....

Land has become ridiculously high though in the last few years and unaffordable at that. Where will it end up? Who knows.

As for the guys who have sold land in the past for whatever price, guessing they don't really like their decision to sell as they sold it way too cheap.
 

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I would argue that the price of land, and amount of new equipment and infrastructure indicates that farmers are making adequate profit margins. If that profit margin goes up or down, the price of land will reflect that as we gravitate to the profit margin we are accustomed to.
Maybe. I don’t know the answer, I wonder how much of that has been easily accessible credit though and financing. I am risk adverse on my hobby (farming), so negligible debt but I don’t know if that is true across the board. If nobody else has debt I am impressed and really am a poor farmer, will keep the day job. I look at RME’s used equipment inventory, and I know that is only possible because they are a public company and can hide it as assets on their balance sheet, Joe Public has no idea. Recent used tractor prices at auctions are fairly strong still. But that is an indication of replacement cost and Trudeau’s devalued dollar.
 

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Interest rates and dividends low = Real assets prices high.

When the governments (NWO) stops holding interest rates down, which they will have to eventually, real asset values will pencil out again.

When the governments (NWO) stops holding interest rates down, which they will have to eventually, all **** will break loose.

Make sure you have some real assets paid for, just in case.
 

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Wow

RB Auction today west of here not top land no buildings 75.6 acres $445000,105 acres $445000,52 acres $190000,112acres $250000 go figure.
 

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Don’t worry the govt tells us there’s hardly been inflation. Guess they haven’t bought any new farm equipment or land in the last 2 years and compared it to 10 years ago.

Too many good years since we’ve had a train wreck like 2002 or 2004 and a whole new generation of farmers that think it won’t happen again because of technology and breeding. I’m not so sure about that but I really don’t want to see a repeat of either of those years in my life or my kids
 

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I have been looking at land and in most cases I find that the investment would be better invested some where else. If a quarter is a half mil, it would take a good bit of time for it to actually pay for itself, not robbing the kitty to help pay for it.

Let me ask this. If you could go back in time knowing what you know now but not having any more money then you did back then. Would you buy more land at a cheaper price or would you invest in Apple.

I like to farm but I think that sometimes we think that more is better.
 

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I have been looking at land and in most cases I find that the investment would be better invested some where else. If a quarter is a half mil, it would take a good bit of time for it to actually pay for itself, not robbing the kitty to help pay for it.

Let me ask this. If you could go back in time knowing what you know now but not having any more money then you did back then. Would you buy more land at a cheaper price or would you invest in Apple.

I like to farm but I think that sometimes we think that more is better.
I would have bought land like crazy because you could leverage 3 dollars for every 1 in. The investors that started 20 years ago made a fortune and they leveraged huge sums of money from FCC. Just kept refinancing every 3 years and borrowing more and more. HCI, Topsoil and Assiniboine farmland ring a bell.
 

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I agree with the Apple guy. That stock up more than 9-fold in last 10years and there no issue leveraging money and buying stock as long as it going your direction - not much fertilizer required either. I am sure I do not know when the top of farm land price is in(my feeling and position is that it not yet). However, I do know that a FCC evaluation from previous year posted in Western Producer saying land moving lower likely will be a bit late.
 

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I have been looking at land and in most cases I find that the investment would be better invested some where else. If a quarter is a half mil, it would take a good bit of time for it to actually pay for itself, not robbing the kitty to help pay for it.

Let me ask this. If you could go back in time knowing what you know now but not having any more money then you did back then. Would you buy more land at a cheaper price or would you invest in Apple.

I like to farm but I think that sometimes we think that more is better.
I would buy land, I like investments I know and love.
 

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If I had known 10 or 15 years ago that land was going to increase by 3X and interest rates were going to stay near 0% I would have bought a lot more land.

I like real assets (land, equipment, gold, silver). Real assets that produce wealth (land and equipment), even better.
 

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Pretty sure when you convert the apple shares its real money...just sayin...not much gear appreciates with time these days.

Ive bought Cardarno cryypto as a long term hold...i will use some money in cattle stocks as its not great but better than bank interest and i have to utilise farm. Other money will reduce debt...another good investment.

Ant...
 

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Discussion Starter #57
Stocks vs RE is really a choice between leverage and compounding. Both can be powerful but both have risks.

If FCC will borrow you 3 quarters to every one you put up, thats a big boost. But there is debt and interest rate risk. A stock portfolio can grow rapidly, but has volatility. The bank wont borrow for you to buy stock though. They are more a RE lending business. And even if you do get too much land, cant make a buck farming it, I would think that crop insurance would at least make your payments for you until you sell it. Farmland probably wins out with those extra perks in there.
 

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The high price of land I can somewhat understand! It's the amount of equipment debt that some of these younger guys must be carrying that boggles my mind! Guys change equipment like changing shorts! Anytime your making huge capital investments on an asset that ultimately is scrap iron it's a really bad plan!
 

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Yes - you can borrow to buy shares in Canada. in fact, you could leverage yourself more than what FCC allows on farmland. The point being that everybody that looks backward at the could have, should have, would have account and thinks farm land the best missed opportunity really is not looking hard enough.
 
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