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Nunn CO | I think the price of grain is irrelevant. The real question is what is the land worth? Personally I think anything under 4% interest is a boarder line poor investment. So from the landowners point of view they should be making 4% dividend on their money. If your paying $250 an acre that means the land should be worth $6,250/acre. That's not even including land taxes and expenses.
Carrying that calculation a little further if the land is worth $8,300 an acre that's 3% interest and it should probably be sold in reinvested....
If it's worth $5,000 or less I would say it's a really good investment at 5%. Again this is not including land costs which I have no idea about in Iowa. Just food for thought.
It's unfortunate but land doesn't cash flow everywhere from a farming standpoint...... sure doesn't around here. | |
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Are landlords willing to renegotiate prices?
