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Iowa | I'm not exactly sure what we're arguing about- Is it the following sentence from above? "I would guess they are like everyone else and use their cash rent income to help fund the next purchase"
If so-I'm not sure what else to tell you but here's rough/round numbers from my neighborhood. 1000 tillable acres rented for 400/acre = 400,0000
-35000 for real estate taxes
-120K for income taxes is my wild guess
-10k/year could be easily spent on 1,000 acres fixing tile/patching waterways/etc.
So were ending up w/ 235k left over assuming the owners aren't drawing living expenses which I'm sure some are and some aren't.
15K/acre tillable here. Most 80's have 75ish tillable here so best case scenario is an 80 every 5 years.
It's ridiculous it takes that many free and clear acres to purchase the next one compared to the past but that's how it is currently.
As far as the debt free landowners of that size- I'd say rare but not unheard of. The one's that are top of mind never did actually farm. Made money in some other line of work and have been accumulating land for that last 40 plus years.
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Land prices
