Posted by dhermesc on November 01, 2007 at 06:30:41 from (24.248.193.103):
In Reply to: buying farmland.... posted by need your advice on October 31, 2007 at 19:46:32:
It will never cash flow.
You are financing 3200 per acre at 7.5% (if you're lucky) thats $240 per acre in interest alone, before you even make a principal payment. You can pretty much count on that going up a point or two (to $304 an acre) or down as much as a point (to $208 an acre) at the most.
Your annual carrying cost ranges from $16,640 to $24,320 while your income can range from $0.00 (or less) to $14,000. I'm not saying its a bad investment, but you need be in a good enough position to tote the note.
The above numbers only take into account interest expense - I'm sure the bank will expect principal to be paid occassionally and the county will also want some property taxes.
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 - A Cautionary Tale - by Ian Minshull. In the early 1950s my father bought an Allis Chalmers B and I used it for all the row crop work with the mangolds and potatoes, rolling and the haymaking on our farm. The farm and the Allis were sold and I have spent a lifetime working on farms throughout the country. I promised myself that one day I would own an Allis. That time event
... [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.
