Hey guys, I have an issue that I will be facing later this year. It has to do with my dads 100 acres of bottom ground. Right now he is leasing it out but the guys lease ends early this year and before he leases it back for another 3 years, I need to know what you guys think about my plan.
First, this is great bottom ground for alfalfa, its been out of alfalfa for about 10-13 years, mostly just wheat, the guy thats been leasing it was just running stockers on it, also there is 60 acres of good costal bermuda that I would have to use too. Anyways, the lease payment would be $5000 a year. I have all the equipment to put the alfalfa in but I dont have the Baler,rake,swather,etc...
I've got the money to make the first years lease payment but I'am still going to need 12-$14000 to get the alfalfa established.
If I borrowed the $12000 for 3 years and add the lease payment, then I would have an annual payment of around $9500. After three years the borrowed money would be paid back and I would just have the $5000 to pay for the lease.
But, if I were to get someone to cut,bale the hay on halves or something like that,could a guy make enough annually to pay $9500? Hopefully it will rain.
First, this is great bottom ground for alfalfa, its been out of alfalfa for about 10-13 years, mostly just wheat, the guy thats been leasing it was just running stockers on it, also there is 60 acres of good costal bermuda that I would have to use too. Anyways, the lease payment would be $5000 a year. I have all the equipment to put the alfalfa in but I dont have the Baler,rake,swather,etc...
I've got the money to make the first years lease payment but I'am still going to need 12-$14000 to get the alfalfa established.
If I borrowed the $12000 for 3 years and add the lease payment, then I would have an annual payment of around $9500. After three years the borrowed money would be paid back and I would just have the $5000 to pay for the lease.
But, if I were to get someone to cut,bale the hay on halves or something like that,could a guy make enough annually to pay $9500? Hopefully it will rain.