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NW Iowa land auction, $20000 an acre!
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Oliver1
Posted 12/7/2011 13:23 (#2089681 - in reply to #2089663)
Subject: RE: NW Iowa land auction, $20000 an acre!



Alton, Ia		I think you are working the math backwards. $500 return to land, okay, 190-200 bpa and $5, I can see that return, for the next couple years anyway. $20,000 x 3% interest = $600/year, so you are -100 each year. Plus $20/acre prop tax. And I sure as heck can't get 3% land loans, but maybe if you have money on hand, plus borrow some, it's a decent average.

Anyway, you are now losing $100+ on each acre, and have yet to make a principal payment.

Nuts..........

But, if corn stays at 6.50+ and this is very likely 200+ bpa ground, then you have more dollars to start with. It all depends how optimistic you want to be on corn prices for the next 20 years.

Edited by Oliver1 12/7/2011 17:29
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