The trouble is paying for the land while making a living off of it. We can clear around $100-150 an acre after all bills are paid. This is a ten year average profit. Land rents for $250-450 and acre. Right now our rents average $285. The cost to buy that same land is between $10,000 and 13,000 per acre. Not very many people will get an entire farm left to them to farm. The most common would be paying off their siblings. So even then your looking at big numbers per acre.
Local young man just did inherit a 400 acre farm. He is one of six kids. He is paying them 5/6 of $10,000 an acre for the land. That is $8334 per acre times 400, or $3.5 million. Think he can make that payment just farming that ground and his wife working in town???
So lets take the 300 acres some one talked about. So you could make $30-45K off that land. This is your total profit. You would have to pay family living expenses out of that which would need to have a housing cost in it. So if your buying some farm land with a house your land payment would be darn near as much as your total profit. So even IF your wife works off the farm your going to need to generate more income than 300 acres would do. Even then your more than likely be renting all you crop ground forever.
Here is another strange but true fact. The landlords around here are more likely to rent their ground to a larger operation with modern equipment over a fellow using older paid for equipment. Just a fact of life. I do not know if the landlords are equating the tenant's equipment making the landlord look more prosperous or what. Many of them also think that the larger the operation the less likely it is to fail. So they think they are more likely to get paid by the BTO over a smaller farmer. In low priced grain markets that is exactly opposite of the real world numbers but that is how most of them feel.
Up until about 5-6 years ago we ran all older paid for equipment. My sons had issues renting ground for any price. They started to update to modern equipment while growing a larger custom work business. Almost none of this equipment is right off a dealer's lot. We bought equipment that needed repair after fires, building collapsing damage, wrecks, and etc. So we put a lot of sweat equality in this modern equipment. Once they got "newer" equipment they started to get landlords interested in renting to them.
So your going to have to farm a lot of acres to just pay for that "home" farm that maybe only 50 acres, a house, grains bins and equipment sheds.
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