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HIGH LAND RENT
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KenM
Posted 1/10/2019 19:44 (#7235870 - in reply to #7234702)
Subject: RE: HIGH LAND RENT


Pipe: Do the best you can and leave some "margin of error" in your numbers. "Capable of 200 BPA" looks and sounds about like 175 BPA on average. It's sounds like a house that is for sale that is described as "charming" by the listing agent. I don't doubt some can make the numbers work (god knows my inputs are in the top 1% in terms of prices paid by farmers on this forum), but modest headwinds in terms of weather and/or grain prices (both non controllable) quickly make it a farming for free (or worse) scenario. Cheap and easy money has distorted a lot of industries, not just farming. And don't value your time and worry and dealing the type of land owner that wants top rent (at least on a relative basis) as nothing. To me it looks like tying up a lot of money for a very modest return. It works good on the spread sheet but in practice there is some to be desired. Good luck
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