Verified FBN Member (KS)


What are your general rules for land purchases in regards to down payments/ length of amortization?


Verified FBN Member (KS)

Thank you for your response !

Verified FBN Member (IA)


Enough down payment and enough amortization to make it cash flow on avg prices and avg yields. Or need to subsidize it some how. Off farm income or paid for land.

For me on my first farm a couple years ago... %5 down,

FSA beginning farmer loan 40 year amortization @2.5% on %45 principal

local bank on the other %50 principal 30 year amortization.

That’s the only way it would pencil even close ...