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USA | Going to use the $100,000 figure that that got brought up in another post. If you buy ground with it, going to be $70,000 after 30% tax for land @ 4% ROi = $2800. If the 100,000 was invested in an asset like tile , equip to install tile, fert storage, grain drying- storage, etc the whole $100,000 is available to be used.
Two highest ROI investments in this part of the country is equipment to install followed by tile.
This would be overkill for 1000 acres , but if a farmer invested $100,000 for dry fert storage and spreading equip that reduced cost by $15 acre vs putting the $70,000 after tax money towards a land purchase.
$70,000 x 4% = $2800
Putting dry fert storage on = Basis @ $70,000 @ $15,000 = 20% plus - upkeep fuel. Now if the farmer could handle and sread 1000 acres for a neighbor the ROI has a big improvement. | |
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Question for coup and others
