Why farms are hard to finance
Story Date: 10/1/2021

 

Source: SOUTHERN FARM NETWORK, 9/29/21

Over the long-haul people that buy farms can expect them to return between ten and eleven percent on their investment. Still, that probably will take a couple of decades. Farmers live poor and die rich. Most in agriculture have heard this old adage and understand it. It rings true because, as University of Illinois Extension Agricultural Economist Gary Schnitkey explains, the return from a farm comes in two forms and the liquid one doesn’t really cover the cost of ownership.

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