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ottertail co mn | Land is an anchor at todays interest rates and high price if you are a beginning farmer, but it is a requirement of farming. Either have to rent or buy.
Simple math $8000 per acre nothing down 7% interest, $560 payment before you pay any principle or taxes. $8000 paid off over 20 years is 400$ a year principle. This is not how mortgages work but it gives you a mental picture of what it takes to get it done. Just running a quick mortgage calculator shows about 800$ year per acre payment with nothing down. Plus taxes
Every one said I was crazy when I paid $1900 an acre 10 years ago. My interest and principle payment was about $160 an acre per year. Cash rent was around $50-75 an acre for land like I bought back then. My interest rate was 4.5%.
The number are staggering if you are just starting out. Better have a better plan than corn and soybeans.
Best wishes if you get a chance to buy some | |
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159.3 acres sold today
