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Dec 15
2009
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Is it important to own the land you farm? This concept has been presented to "young adults" in agriculture a lot lately. Call me crazy but this concept just doesn't sit well with me. I have no problem seeing the potential of this concept working, I think that a lot of young or older people in agriculture are being very successful farming this way.
One of the most valuable investment you can make in your life time is in land. Like the old saying says they aren't making more of it. I guess these are my points of contention with this concept.
1. Are you a business owner or are you self employed? One is not better than the other but it is important to ask yourself which you want. Most of the people I know whom are farming by these means are very successful at being self employed. They can work in the business and it makes sense but take them out of it and it no longer works.
2. Using one investment to leverage another. It is important to treat the real estate and the business as a separate entity. Lots of time farmers use the equity gained in the land to support their failing farm business. Leveraging this asset as a means to making more money is awesome but if it starts to become a losing game stop. If you play it smart your real estate equity can be used as another means of gaining wealth.
I know there are a bazillion more pros and cons I guess to each his own but with my entrepreneurial spirit it would be a hard sell.
www.farmon.com




