Posted by MarkB_MI on March 24, 2014 at 17:41:00 from (75.219.1.148):
In Reply to: Re: More on Cash Rents posted by Nathan (SD) on March 24, 2014 at 11:25:18:
Nathan, how are you calculating that 18-20 percent ROI? The ROI should be calculated against the PRESENT value of his investment. Let's say you had put $1000 into an account many years ago and it grew to to $2000. If that account is earning 2 percent interest annually, you wouldn't say you're getting a 4 percent ROI, would you? No, two percent is two percent.
With today's crazy farmland prices, Eldon's dryland is likely worth around $2000/acre. Let's say after paying real estate commissions and capital gains taxes, he would end up with $1500/acre. With a cash rent of $55/acre, the return on his investment is 55/1500 = 3.7 percent. That's better than bank interest (barely), but it sure ain't 18 percent.
We sell tractor parts! We have the parts you need to repair your tractor - the right parts. Our low prices and years of research make us your best choice when you need parts. Shop Online Today. [ About Us ]
Today's Featured Article - Earthmaster Project Progress Just a little update on my Earthmaster......it's back from the dead! I pulled the head, and soaked the stuck valves with mystery oil overnight, re-installed the head, and bingo, the compression returned. But alas, my carb foiled me again, it would fire a second then flood out. After numerous dead ends for a replacement carb, I went to work fixing mine.I soldered new floats on the float arm, they came from an old motorcycle carb, replaced the packing on the throttle shaft with o-rings, cut new ga
... [Read Article]
Latest Ad:
1964 I-H 140 tractor with cultivators and sidedresser. Starts and runs good. Asking 2650. CALL RON AT 502-319-1952
[More Ads]
All Rights Reserved. Reproduction of any part of this website, including design and content, without written permission is strictly prohibited. Trade Marks and Trade Names contained and used in this Website are those of others, and are used in this Website in a descriptive sense to refer to the products of others. Use of this Web site constitutes acceptance of our User Agreement and Privacy Policy
TRADEMARK DISCLAIMER: Tradenames and Trademarks referred to within Yesterday's Tractor Co. products and within the Yesterday's Tractor Co. websites are the property of their respective trademark holders. None of these trademark holders are affiliated with Yesterday's Tractor Co., our products, or our website nor are we sponsored by them. John Deere and its logos are the registered trademarks of the John Deere Corporation. Agco, Agco Allis, White, Massey Ferguson and their logos are the registered trademarks of AGCO Corporation. Case, Case-IH, Farmall, International Harvester, New Holland and their logos are registered trademarks of CNH Global N.V.
