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| why theres a desire to buy land is no mystery to me, my confusion is where all this cash came from in a business that has 3 years feast and 7 years famine (or breakeven) out of 10. like the turtle atop the fencepost, theres more to the story. saying `i raise and sell corn and beans better than everyone else so i can buy $20,000/a farms for cash` isnt telling the whole story, in my opinion. there has to be off fam income and windfalls from somewhere, cause look at a $20,000 acre, if you could borrow that money for 40 years with zero interest, you would have to make a $500/acre payment every year drought or flood for 40 years and thats the generous assumption that after variable expenses, there would be $500 leftover.
so, ive proved to myself at least that the sole selling of the raw commodities isnt affording this $15,000 to $30,000 land. 3% average of land comes on the market every year, so supply is governed out. i think there has been, inheritances, 1031 sales, farmers selling their family car dealership to concentrate on their farming business and i suppose theres husband and wife each earning $120,000 salary off farm and using the farm as a tax write-off. however, if someone doesnt do homework and jumps in buying a $25,000/a farm thinking corn & bean sales will cashflow it, they are in for a rude awakening. whole alotta elven magic out there and if you dont have the side hustles, it wont work. my 2ยข | |
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Has the game changed cont........
