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S.W. Mn | Started farming in 1975 with rented 220 acres and a chicken barn I converted to an 80 cow dairy barn. Prices soon skyrocketed, milk goes from $8/cwt to $13. Built 2 blue tombstones, bought home farm for $1500 acre.New car for wife and 2 little kids. 80s hit and land loan jumped to 13% interest and operating to 18%, survived by finding lender who understood dairy and cash flow. Cash flow is always king, there will always be bumps like hail, interest rate hikes, engine rebuilds, doesn’t matter, MANAGE your cash flow! I’ve done terrible with stock market and ethanol and even local retail investments, but i will buy land all day if I can cash flow it with profits made on previously purchased land. Just me. There were some morning milkings in the 80s where the only thing that kept me going was Kenny Rogers song with the line - 4 hungry kids and a crop in the field. | |
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It's not all inflation
