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NW MN | Let say I want 5% rate of return on an investment. Max I would pay for $100 cash rent land is $2,000 an acre. So a 1/4 would cost $320,000. * .05 = $16,000 of rent I would want. รท by 160 and I get $100 per acre. Of course 1/4's around here are not 100% tillable. Then again hunting land (swamp and woods) used to go for more than tillable. If you farm you better look at it in a similar manner.
Also if I think market is going up I might pay more now. If I think market is going down I would pay less.
Edited by outdoorswede 4/16/2014 07:53
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What is ground worth?
