Nebraska aka the boondocks | i don't know if the question really tells you anything. One guy farms 2000 acres of crop share is in a "different universe" than the same guy cash renting the ground with all rent up front. I am too lazy to run numbers, but a way smaller all cash rent operation could have multiples more cash needs than a way larger crop share operation, especially if they have a large family base. So one could could answer yes, and have less cash, the other guy would answer no and actually have more cash when the year started, but it is quickly depleted.
I agree with your low interest observation, If you farm 2000 acres and pay 40,000 in interest over the year, I wouldn't be too excited about that, you can manage your way out of the interest, interest at these levels will not break you. I'd rather pay interest than have a payment on a new combine and heads and several $300k tractors. I came to realize one year ago, I will probably never buy another new combine or tractor, which I always have, I am now a "tin can man." lol Someone the other day posted that they would rather make land payments and buy old equipment cheap, I have been thinking about that for a week now and wish I had given that a lot more thought years ago. buying new paint is a bottomless pit. |
Self financing poll below
