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re: OB Farmers
Posted on 2/26/19 at 9:21 pm to Decisions
Posted on 2/26/19 at 9:21 pm to Decisions
It changes what you’ll owe every year
Duh!
Reason why it isn’t profitable is bc your note is too high and the income produced on a yearly basis doesn’t meet it.
Owning land (valuable land) I should add is one best long term invests someone can make.
Wealthiest people I know are land owners.
My grandfather owns around 2k acres... it appraised for 3800$/acre 7yrs ago.
It’s not worth less than than that now.
Ftr he paid 600-800 for it when bought.
So yes, it’s a tremendous asset to own.
Landleveling? Meh,,, if you need it.
We don’t irritate first acre.
Equipment? That’s really dumb thing to buy.. lease is a much better option.
Grain bends make sense if you have enough acres to fill them.
Duh!
Reason why it isn’t profitable is bc your note is too high and the income produced on a yearly basis doesn’t meet it.
Owning land (valuable land) I should add is one best long term invests someone can make.
Wealthiest people I know are land owners.
My grandfather owns around 2k acres... it appraised for 3800$/acre 7yrs ago.
It’s not worth less than than that now.
Ftr he paid 600-800 for it when bought.
So yes, it’s a tremendous asset to own.
Landleveling? Meh,,, if you need it.
We don’t irritate first acre.
Equipment? That’s really dumb thing to buy.. lease is a much better option.
Grain bends make sense if you have enough acres to fill them.
This post was edited on 2/26/19 at 9:27 pm
Posted on 2/26/19 at 9:36 pm to p&g
What’s his gain beteeen purchase and now? What’s his annual return vs appraisal? Would bet the market is multiples better than what he has seen over the years of ownership. At his buy in price he had to have bought 30-40 years ago, amirite? Owning an asset returning <3% is a loser imo when you can double it in a conservative instrument easily.
There isn’t single person who would stick with his financial advisor if he was only returning 3% on a mill invested annually before taxes.
There isn’t single person who would stick with his financial advisor if he was only returning 3% on a mill invested annually before taxes.
Posted on 2/26/19 at 9:54 pm to p&g
quote:What's his basis when adjusted for inflation?
Ftr he paid 600-800 for it when bought.
Posted on 2/26/19 at 10:00 pm to p&g
quote:
It changes what you’ll owe every year
I don’t care how big the note is, I care about ROI.
quote:
Landleveling? Meh,,, if you need it.
If you farm in Louisiana you need it. We don’t use the irrigation every year. We use the improved drainage EVERY year.
quote:
We don’t irritate first acre.
And? I’ve got some choice ground that never missed making a good crop when it was dryland but most assuredly made even better yields with a bit of water.
quote:
Equipment? That’s really dumb thing to buy.. lease is a much better option.
I’m not going to get into the weeds of arguing lease vs. buy with you right now, but I will clarify my statement by saying that tasks you find yourself needing done often on the farm are best brought into the operation.
This post was edited on 2/26/19 at 10:02 pm
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