Ontario farmland values continue upward trend

© AgMedia Inc.

Description (Tag): 

Comments

I have to take issue with most of Mr. Bryan's comments in the above article, for the sake of younger readers especially, because they are somewhat misleading. To state that interest rates are likely to rise in the next 6 months and then also claim that land is a safe investment could cause financial hardship for someone who buys into that.

1) If/when rates rise-land value falls.
2) Land value rises-when interest rates fall, or are kept artificially low.

Raube Beuerman

Why would you care if high prices might cause a financial hardship for someone? The farmer selling is getting his retirement plan also. So you don't believe farmers selling should get the highest price? Are you the kind of person that would sell to the lowest bidder not to cause a finanial hardship to the buyer?

Because he is the type of person concerned for the future of the industry. He may even be the type promoting a career in the industry to his kids or young relatives as an amazing way of life/income. And at the same time he realizes the economic flags thast the guy cashing doesn't give a hoot about. Sounds like a good mentor and a real farmer.

The article above coupled with the data from Valco (well done study) reinforces what myself and a couple of my clients have observed which is land prices are not dropping so far .
Some buyers have been thinking(hoping) that prices will drop based on lower commodity prices,which is not an illogical thought .Just not occurring at present .
Jim Straughan
Broker of Record
Aros Realty Ltd

The excellent data base states very clearly that SM and livestock are both still bidding up the price of Ont. Land.

Livestock couldn’t possibly be one of the main sources of inflating land prices. Mr. Thompson please tell us it isn’t so!

Anonymous comment deleted by editor in accordance with our guidelines.

Seems Livestock and SM are both named as the primary contributors to the dreaded 50/1 Land price/earnings ratio. Oh my how can thispossible be true?

Farmers stampeding into an asset class in hopes of future returns and capital appreciation is just wrong in an environment where central banks are punishing savers with low rates, and has resulted in asset price distortions where some potential buyers will find themselves accepting more risk than they can handle or understand.

Raube Beuerman

Post new comment

To prevent automated spam submissions leave this field empty.
Image CAPTCHA
We welcome thoughtful comments and ideas. Comments must be on topic. Cheap shots, unsubstantiated allegations, anonymous attacks or negativity directed against people and organizations will not be published. Comments are modified or deleted at the discretion of the editors. If you wish to be identified by name, which will give your opinion far more weight and provide a far greater chance of being published, leave a telephone number so that identity can be confirmed. The number will not be published.