BobNESD - 12/27/2025 23:36
J.L. - 12/27/2025 19:32
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.
So I’m always curious about how that works when people talk about buying land with cash and no debt, how much income tax is paid that year? Since buying land with cash is something I can’t even comprehend at my stage of life, I have a nice amount of owned land and a sizable loan for that last piece of land we bought for way too much almost 3 years ago. If you paid a million or more dollars for a piece of land all at once, wouldn’t you also have to have a very large amount of $ to pay the income tax that year since the land you paid for isn’t tax deductible? Like I said, I can’t even comprehend how this is possible, someone please explain. How many acres do you have to get paid for before you have that kind of money to throw around?
How many debt free farmers?
