How Much Can You Afford to Pay for Land?

One day or less

Available upon request.

 

Entire course is 3 - 4 hours in length so can be provided at various times during the day.

Hour 1: Participants will study land value changes over time, what the experts say is driving recent price increases and the evidence behind this rationale.

Next participants will explore six different considerations in assessing the value of land; carrying cost, leverage vs. cash, weighted average cash outflow for capital, net operating profit, return on investment and additional costs of expansion. Students will understand how these considerations are having an effect on land values in their local area and their own ability to purchase land.  

 

Hour 2: Using the provided workbook, participants will put what they have just learned into practice through a case study exercise including what-if? scenarios on variable factors such as interest rate and net operating profit. Students will be given opportunity to discuss how to make decisions based on the information presented in the case study.   

The second part of Hour 2 switches gears to examine considerations specific to each individual farm’s financial position that dictate How Much Can You Afford to Pay for Land?; Working capital, Leverage and Debt Servicing.

 

Hour 3+: Using the provided workbook, participants will put what they have learned into practice through a full realistic case study exercise. Most importantly, students will have an opportunity to learn and discuss with each other how to use the information to make decisions on their farm.  

$500

Cost of $500 includes workshop and accompanying workbook. Does not include meals, travel or accomodation.

Those actively farming/ranching and looking to expand their land base.

Certificate

Classroom
Workshops

Best presented in classroom format to groups of 20 - 60 participants

Daytime
Year-round

Cattle
Crops
Field Fruit and Vegetables
General
Poultry and Egg
Swine
Tree Fruit and Vine

Business Planning, Strategy and Structure
Financial Management (includes production economics)

 

In this session we will examine who is purchasing land for "ridiculous" prices across your province and how they are doing it. The land purchase decision involves considerations at both the farm and market level. We will not only explore key valuation factors in determining what should be considered a fair price for land but also the financial indicators specific to your farm that dictate whether a potential land purchase is your best investment. We will put all these calculations to work through practical and realistic case study examples. Participants will come away from the session with a tool set to evaluate market land price and their own farm’s ability to pay for land. 

English

(204) 868-5658
Jacqueline Gerrard, Consultant Associate