Verified FBN Member (ND)

General

How do you view land expenses on your break even analysis?

Do you view it as taxes, principal and interest per acre?


I bought some land last year. Decent land and the loan includes drain tile. Doesn't look good on the break even as I dont have yields to make it pay for itself yet(tile not installed).


I'm just curious if anyone views the principal payment as your personal payment into retirement? Or any other view points on it.

2


Verified FBN Member (IA)

(edited)

Buying land never looks good on paper or every single farmer would own not rent. It's a long term investment. As long as my interest payment is less or equal to what cash rent is I go for it.

1

Verified FBN Member (ND)

Thank you *****