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How to buy ground?
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Alberta Farmer
Posted 7/11/2012 19:29 (#2479957 - in reply to #2478829)
Subject: Re: How to buy ground?



West Central Alberta Coldest, wettest edge

After re reading my post, it did come across somewhat arrogant, I  apologize for that, the tone was unneccessary.  I obviously know nothing about your area, operation, background, or strategy except what was posted here.  

I do however constantly hear people in this area complaining about how "unfair" the price of land is, and how it is impossible to ever pay for it.  Yet, they don't bat an eye at spending a small fortune on equipment far in excess of their operation.  Perhaps you have a much wider window of opportunity in your area for doing farm work.  Here, seeding has about a 2 week window, spraying about the same, haying, we only get a few good days, and harvest is a mad rush when/if the weather actually cooperates.  The farmers who try to do custom work, have to make a lot of compromises, either on their own crops, or their customers.

Looks like we are about the same age, and I listened to everyone telling me how land was unaffordable, and in a bubble, so I didn't buy enough, or soon enough.  As it turns out, it is a free market, it will never be affordable, even if it is half of the current value( if commodities are cheap, or rates are high), or twice, the  affordability will be equally poor in the present time.  Some day it will be a poor investment, but I don't know which day.

Here, I use regular banks for financing land, they have better rates, and will use other income or assets as collateral, as compared to the ag lenders, but that is completely different I'm sure.  With record low interest rates, perhaps you can convince the seller to finance all or a portion for a rate higher than what he will recieve at the bank?

I hope you can find a way to buy it, and if custom work is what it takes, then more power to you.  I have no envy of shiny paint, I spent enough time running it, and fixing it, ( but not paying for it) to lose all interest in it. 

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