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USA | Rent cost vs int cost is not the same today as it was back then. Int cost today for the most part is less than rent, just the opposite of the early 80s.
Don't see much 40 to one ratio dirt in this part of the world if real world market rent values are used., if you are basing the ratio off rent income.
10- $15000 dirt @ 500 cash rent, is 20- 30 to one.
10- $15,000 dirt @ 2.75% = $275 - $412.50 acre int cost.
@ $800- $1000 gross- $400 input cost- int cost = still in the breakeven to positive category. That was not the case in the early 80s.
Now for the person that owes $2000 acre or less @ 2.75% int =let the good times roll.
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