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Kettle Moraine, WI | I understand your question and ultimately I think to equalize the interest cost over a longer payback period, you would have to discount the interest expense by your tax rate because interest payments would be pretax dollars.
The business interest being tax deductible would just be a cost. To pay off the principal on non-depreciable farmland (some improvements may be depreciable so corresponding principal payments may have favorable tax treatment at the front end of the purchase)
So insert the "it depends" to sound smarter than I am. From a business standpoint it has depend on the interest rate relative to other investments whether it makes economic sense. From a peace of mind standpoint, paying off despite wisest business decision being deferred for other goals.
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with all the post ranting against the possibility of land values
