I would rather have the first option.
Reason being. At that $200/acre your expenses are covered.
Sure you spun your wheels for nothing this year but none the less you DIDN'T go backwards.
Option 2. Take $100/acre and do nothing.
Every farm is different, but here are my numbers.
$45/acre land rent
$63/acre land payments
$11/acre land taxes on owned land.
$18/acre machinery payments.
$12/acre deprciation.
$8/acre living expenses(allows me a wage of $35000.00)
On our acres we would average $53/acre landrent/payments.
Land taxes work out to $4/acre as I rent more than I own.
53
4
18
12
8
=$95/acre
If your land and machinery is paid all the power to you.
If your under 35, and Dad isn't available.
This is your fate.
Reason being. At that $200/acre your expenses are covered.
Sure you spun your wheels for nothing this year but none the less you DIDN'T go backwards.
Option 2. Take $100/acre and do nothing.
Every farm is different, but here are my numbers.
$45/acre land rent
$63/acre land payments
$11/acre land taxes on owned land.
$18/acre machinery payments.
$12/acre deprciation.
$8/acre living expenses(allows me a wage of $35000.00)
On our acres we would average $53/acre landrent/payments.
Land taxes work out to $4/acre as I rent more than I own.
53
4
18
12
8
=$95/acre
If your land and machinery is paid all the power to you.
If your under 35, and Dad isn't available.
This is your fate.
Comment