2019 Land ownership and profits are closely linked

In the past land prices and income have been always linked, if farmers make more money they can afford higher prices for land or rent.

Now economics of scale are shifting some investments in farmland for farmers that have low operating cost or better margins that are competing for rental land bringing in higher returns for Investors resulting in higher land prices and land becoming uneconomical for higher cost/lower margin farms and they may not be able to compete leaving them unable to compete to purchase land or rent land.

Larger farms & younger well educated farmers seem to take advantage of scale & margins in farming that gives them an edge in economics to create better operating margins and be very competitive in purchasing or renting land.

Farms with optimal marketing, higher yields, managed equipment cost, educated labor, specialized crops/ cattle markets /grain markets leading the industry with their insight, management and innovation /leadership that can compete with the best in the world.

Ben

 

About ben

Immigrated to Canada in 1980 and dairy farmed for 9 years, obtained real estate license in Alberta in 1989 and have been selling Farm Real Estate for 27 years. Specializing in Farm/land investment, farm relocation and farm families immigrating to Canada, organizing business and farm immigration seminars, sales of quota (milk, poultry), water rights, irrigated land, crop farms, farm corporations (shares) ranches, livestock (Cattle, hogs) and commercial farm investment.
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