- Sep 26, 2004
- Reaction score
- Big Thicket East Texas
Brute 23":4kyefb5h said:JSCATTLE":4kyefb5h said:I payed 1200 an acre for my land .. I sold 60 k worth of timber off the place... I bought a 10k dollar dozer.. I have half in pasture now . Took me 3 years and I should have the other half cleared by this time next year... I agree that land is an expence however you are building equity so in a since that'd be makin profit. As would paying off a tractor or other equipment.. unless u were born into a family that handed down a large amount of land it would be hard to make a living at first.. but most things take time to get off the ground. I believe you can either cut your own hay or rotational graze to eliminate paying for feed...
Technically when you pay off you land and equipment that is not profit. You gained an asset, or added value, to your net worth. You would have to sell those items for more than you paid to make a profit.
Any time you talk about debt you have to factor risk in to the equation also.
Risk is high right now. Kinda like neighbor ask one time what did I think his bull was worth. I said what you can get at the auction barn today, might be higher or lower tomorrow. He replied it was a 3000 dollar bull I said it wasn't unless he could find someone to pay that price, he was only worth hamburger at the barn.
Net worth in land and equipment buy's no groceries. It is not what you make or spend it is what you save.
We are on the verge of world depression right now as in the 30's look at the housing market and that will take years to recover. Look at the global economies and the countries in collapse.The dollar is being devalued by the fed through que1 and 2 and have talked about 3. Ca. is broke Harrisburg Pa. filed for banckruptcy the list goes on.