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Their net worth doesn't really reflect their income though. Most farms are running on sub 1% profit margins. You dump 5 million dollars on your fields and you w
by AngryData 4y ago
Their net worth doesn't really reflect their income though. Most farms are running on sub 1% profit margins. You dump 5 million dollars on your fields and you would consider $50,000 profit a successful year.
- JoeAltmaier 4y agoYes exactly my point. Net worth is because of the enormous up-front investment. Cash flow does not justify that investment. And yes, I'm from Iowa.
- bequanna 4y agoWhy wouldn't you finance the purchase of the land? You can get by with putting 0-10% down. Additionally, you're completely ignoring appreciation and paying down the loan. Farmland has went from ~2k /acre to 12k in about 20 years.