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| If you sit down and logically (what farmer does that?) look at the numbers, you are buying it for your children.
220 bu corn @ $4= $880
60 bu beans @ $12 =$720
6% interest on $14,000 =$840
So your average yield (or maybe the numbers you gave are top end) will not service the interest (6% being a guess).
All inputs would need to be subsidized from current operations, any principle payments also coming from elsewhere.
Look at it another way. $14,000/$880= 16 consecutive years just to gross the purchase price, all inputs, interest, and principal will have to come from existing operation. How old would you be in 16 years? Closing in on retirement age.
If it's location, quality etc is a great fit for your operation, I would certainly have in the back of
Your mind, which parcel that you have recently purchased is the least desirable, and mentally be ready to part with it if crop yield, price, general economy make several years of no progress. At some point anything can get over leveraged, and the snowball can be an enemy, as well as a friend.
Edited by indeeppigfarmer 8/19/2025 11:41
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Land purchase snowball rolling down hill
