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Kettle Moraine, WI | Ask yourself this, can you consistently grow feed cheaper with a land payment than you can buy it? Manure is valuable to your cash flow of crop operation ofc.
If that 100ac doesn't have anything depreciable on it, the 12k an acre is paid for with 100% after tax money plus interest. The early years the payments are mostly interest thus mostly expensed with a little principal paid after taxes. Later on your cash flow required to cover payment including taxes due on principal make your true cost rise.
You can afford it until you can't. | |
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