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| If you have purchased 720 acres of Iowa dirt in the last 8 years, improved it all, and are in a reasonable position to add another 80 today, I think you know business and are more qualified at evaluating this than most on this board including me. With that information your cash flow comment throws me off. We all know and it has been pointed out that land will basically never cash flow on standard financing.
Purchase price seems cheap for the rent (compared to my area) and you have the home base and manure benefit.
Purchase should probably be contingent on the upcoming generation, but not a lot of point in spending the rest of your working life paying for this ground if none of them want to farm.
As another post said the same money put into an SP500 index fund will almost certainly have a higher value 20 years from now with zero work required, property tax, improvements, or interest paid to the lender.
Your logic on inflation and owning real appreciating assets is sound but at some point the numbers don't make sense and that was awhile ago for row crop farmers.
I would not and am not a buyer for these reasons. If I could put enough down to cash flow or sell a far off piece for this one I most likely would be. | |
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Land purchase snowball rolling down hill
