It’s not that crazy when you see the cost of farm equipment, you own a decent sized tractor and you’re a good way to $1,000,000 in assets already, add on a truck or two, general equipment around the farm, a few buildings and you could easily crest a million in assets. I would be surprised if there are that many private farmers with a million in liquid capital though, and realistically most farmers aren’t going to be rich.
Quite a few of the farmers I’ve met purchase outright and claim depreciation via their taxes and avoid the interest, but I would assume many finance as well.
It’s not that crazy when you see the cost of farm equipment, you own a decent sized tractor and you’re a good way to $1,000,000 in assets already, add on a truck or two, general equipment around the farm, a few buildings and you could easily crest a million in assets. I would be surprised if there are that many private farmers with a million in liquid capital though, and realistically most farmers aren’t going to be rich.
Where do you think they got the money to buy the assets? Loans have to be paid back
Quite a few of the farmers I’ve met purchase outright and claim depreciation via their taxes and avoid the interest, but I would assume many finance as well.