USA | broketenant - 1/11/2026 20:19
So you probably get a minimum of a 2.5% inflation benefit (over a long period like 30 years) and the interest is tax deductible, so the effective rate is more like 5.5% and inflating some of the debt away every year??? I dont know I think im with you Reality, that looks pretty cheap and I would probably lock it in. Did you see the Japanese 30 year hit 3.4%? We had cheap money for a long long time. I'm not so sure that continues in the future.
Coup- I had asked for your take on the $540 rent on a thread from a few days back. I said if anyone could make that work it would be you. I said 250bu corn and 4.75 March 2027 corn doesn't make it sounds insane. Lets hear your thoughts!!
$4.75 Mar corn + $.25 basis = $5 cash x 220 bu = $1100 acre
Seed corn = $40
fert= $175
Chem=$40
Applied Fungicice= $22
Mach - Fuel= $100
Storage drying hauling =$90 acre
Total $467 acre
$1100- $540 - $467= $93 acre left to cover Ins , labor etc . Looks like too much rick for the reward. Now if can add $150 acre , ECO, Arc, PLC, Gov money per acre., makes the $540 rent look more doable. Would I rent it with $150 more in Gov money added, No.
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Land purchase interest rates
