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| “Dust88 - 1/18/2025 10:14
iadirt - 1/18/2025 09:09
Probably the first time in couple decades that I haven’t bought a farm in the past 2 years. As you get older it also forces you to think about how long it will take to pay for itself. Having said that, I have a couple farms within the footprint of a new solar project. If that goes forward I will probably look for replacement farms or other investments that qualify for a 1031.
Just curious - how do you buy in every 2 years? A pile of rented or owned outright acres? I had to buy out 15% of my land base in 2018, and I look like a genius since it was at the absolute low in the market. Didn't sleep for weeks at the time. I had a healthy down payment and own some other ground outright, but my payment is still near $600 an acre plus taxes.
I keep a close eye on my average land cost, that is all land payments, rental payments, and taxes averaged over all my acres. If this number creeps above "high" cash rent for the area I know my working capital is going to be in trouble especially on a down market year like this past one.
If I bought a 60 or an 80 every 2-3 years it wouldn't take long for my avg cost to eclipse that significantly. I suppose that tells me I need a bigger down payment or more acres, Problem is the more acres is impossible without paying so much it's not worth it, and I probably won't live long enough to get the money together to pay cash.
I fear I'm at the point in my operation where I don't understand the creative accounting and financing that some guys are able to use to justify these purchases.
regarding your statement “creative accounting and financing”, there is an 11th commandment and it reads “Though shalt not BS thyself”. Those guys you refer too must not adhere much too scripture…..”
Well the church I go to leads me to believe that only one perfect human walked on the face of this earth but I guess you think you’re the second. Maybe you should cure some lepers instead chasing antlers around. The world needs you to save it your highness. | |
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Land Value - Where is this beast headed?
