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| Coup is exactly right from a pure dollars and cents standpoint. No more, no less. And while I don’t claim to have a crystal ball into the future, current economics at play would certainly favor that a land sale yesterday will be higher than one tomorrow. I will bring up my very first post on AgTalk circa 2013, titled “land prices have stage 4 cancer, they just don’t know it yet”, or something close to that verbiage. I believe we’re at that juncture once again. If I were inclined to sell land today, I would look long and hard at an extended contract, with fixed interest for a predetermined period, with rates to be reset at a predetermined % tied to the then prevailing prime rate, for another set period of years. For example, a 21 year contract, with fixed periods of every 7 years interest lock. This will provide 3 primary benefits, locking in a favorable interest rate for both parties, spread the taxes out, and provide significantly higher cash flow vs cash rent or cash sale, and just living on the interest. Of course a plan would need be in place to protect unexpected extended longevity, so a person didn’t outlive the income stream. Gotta go for now, sure to be much knashing of the teeth over these comments.
Edited by Boone & Crockett 2/3/2024 10:30
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Quit bringing up high rents
