Latimer, Iowa (north central) | I guess I would argue with your thought process. If you bought the 53 acres next to it in 2021 with a down payment, assuming you locked in an interest rate at the time on a 15 year mortgage, which would of been cash flowable in 2021, then that should be half paid for (Payments and profits) with a good locked in long term interest rate. I would try and buy the farm next door. Keep the snowball rolling downhill.... We only live so long and have so many working years, your first 40 years should be taking risks and buying, then work at paying it off the last 10 years with the returns from culmination of efforts. No reason to be debt free if you are earning an income and have a means of paying for it. Inefficient use of equity will leaving you siting on the sideline. I drive by the neighboring farm everyday and wonder why the heck I didn't take the risk 20 years ago and buy it for 3 grand an acre. Waiting till you pay off the first one will only leave you time to buy, say 2 or 3 farms total in your working career.
Would try and hold onto the woods buy leasing hunting rights, selling lumber/logs or something, but if had to, sell those off in a couple parcels. There are plenty of city guys that have money and desire to buy a small parcel to go sit on and get out of house.
We all complain about "investors". Farmers are investors too. We just tend to just look at the farm part though.
Edit: spelling
Edited by Green Acres Guy 3/23/2024 12:43
|
118 acre auction starts today in my neck of the woods
