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Conger, MN | Can't calculate a buy-out price without knowing the terms of the lease.
Hypothetically though, if you can make $50 more (net) per acre farming 100 tillable acres than being a landlord on those same 100 acres, you could justify paying the tenant $5,000 to buy him out of the lease for one year. The issue is more complicated than that when you factor in interest on loans, value of your time, etc., but that is a simplified version of the math. | |
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buying a piece of land with existing lease
