| whistle pig - 4/21/2018 14:14
I'm with those that don't understand this logic.
I look around my neighborhood and in EVERY instance any significant wealth has come from land ownership. Farming is a way of paying for land but it very rarely makes you wealthy.
Selling land and renting back is most likely a desperation move more than anything.
I know a guy that sold some land for $3,700/acre in 2007 and rented it back since....was paying $275 rent and is now broke. Well, don't let his poor math skills determine if sale/leaseback makes sense or not. Anybody that pays 7 1/2% of a farms value in rent deserves to go broke. Doesnt mean it's a bad concept Just have to be smart about it. Edit too add; If he were to inform the buyers that he was going to pay $275 rent for a long term, he should have been able to get north of $5,500 acre all day long, and had them lined up to buy it.
Edited by Boone & Crockett 4/21/2018 17:08
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Farmland market observation
