The standard around here is that rent is 5% of purchase price. So, when land was $5000 per acre the rent worked out to be $200 per acre, right now that is more than doable. Raise the price to the $10,000 that the better ground is bringing now and the cash rent is $500 per acre. Still doable IF input cost were to stabilize and commodity prices stay where they are. NO GUARANTEE on any of that happening.
If you are the investor you are getting a good deal if you have the money. If you have to borrow the money it will take a leap of faith and some good luck to make it cash flow over the long haul.
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Today's Featured Article - Pitfalls of Tractor Engine Rebuilds - by Chris Pratt. The first pop after you have put the machine together with your own hands is exciting and pleasing. The whole experience can be marred if one moves too fast and makes too many assumptions that they can just use "as is" some parts they should be closely scrutinizing and possibly attended to. In such cases, rework makes what could have been a fun project turn into an irritant or even a nightmare. Minor Irritants To give you an example of an minor but irritating proble
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