USA | regularben - 1/11/2026 08:31
LOL. 85% of farmland in the crown jewel of the corn belt (Iowa) is debt free. No debt, none.
85% of paid for acres in a farm operation that would own 3000 acres doesn't = a pile of cash to buy the last 15% without borrowed money.
You can LOL all you want. While there is a lot equity in farm operations currently , there is not the kind of cash it takes to buy several hundred acres @ current prices in the majority of farm operations. Liquidity in a lot of farm operations was better 2- 3 years ago than what it is currently.
3000 acres x 85% = 2550 debt free acres Say.the last 450 acre bought cost $7 million. How many farm operations are setting on $7 million cash?
To get $7 million after tax $ , would require paying income tax on around $1 million per year for 14 years. How many farm operations have paid taxes on $1 million for 14 years? |
Buying land economics
