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Iowa | I don't know the percentage but I'm sure it's the minority.
I think it's a worthy goal but easier said than done for a lot of us. I grew up watching my parents buy a farm with borrowed money- then not even think about buying another until that one was payed for. Once that one was payed for they would buy another with borrowed money and repeat the process. Each additional payed for acre made the next purchase work a little easier since it usually worked out they were buying an 80 most of the time.
Their last 80 was purchased without any borrowed money in 22' at market value. It's slow steady growth- but it's solid growth. So while they are debt free now in their 60's and 70's it took 50 years of work and paying some interest along the way to get there.
As far as debt- I think knowing what one can handle is the big thing. Payments that are easily serviced in the good years can suddenly become too much in the poor years if a person isn't careful.
I'll say this too- It sure feels like it's taking an increasing number of payed for acres to float an additional purchased acre if debt is used. I have a lot of respect for first gen. farmers- it ain't easy. | |
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How many debt free farmers?
