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USA |
Farmer owns 1000 acres that would sell for $15,000 , Re taxes are $30 acre. Investment Int rate is 5%.
$15,000 x 5% = $750 + $30 = $780 acre.
Farm operation is a C Corp and rents ground from himself @ $400 acre. Gross is $1000 acre and input Mach, etc cost is $500 acre.
$1000- $400- $500 = $100 x 1000 acres = $100,000 farm operation profit
$780 - $400 rent = -$ 380 acre x 1000 acres =-$380,000 land ownership ROI loss
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Farmland ownership ROI
