Salvisa, KY | buckshot - 10/8/2015 13:35
sorry but I do not understand your post?
I think what he meant regarding you saying of land values you only get 4%. I think he's saying the reason you figure it as 4% is land is over valued or over priced??
So what's land values where you're at?
Land per Acre - 4% Rent
$4000 $160
$5000 $200
$6000 $240
$7000 $280
$8000 $320
I farm one piece of land that is for sale at $10,000 per acre and appraised for that... 4% would be $400 Rent. I pay $125 for it and trust me its not great dirt.
You yourself only know what your break even is. I know what I can pay for rent and sometimes that doesn't get it. Others can pay more. Some spread out their cost over tons of acres. Compare McDonalds profit margin to a Mom and Pop burger joint... quite different. Don't think for a second the big boys don't have a few that they lease for nothing too. I've heard of some very creative leases in the fine print too based on market price and other things. Seems here locally the bigger guys are giving up non productive small tracts and focusing on their best ground. That's great for me I farm a lot of the "junk ground" already.
Edited by KY_Farmer 10/8/2015 13:06
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cash rent
