Grain farm cash flow

[rook]

I'm looking for second opinions on cash flow on cash crop farms. Everyone's in debt to some degree, but hopefully most of it's productive debt that makes you money. What do you think of monthly mortgage payments on just a house? People tell me agriculture's different, it can't be done, the flow of money is too sporadic and you're taking too much working cash out of the operation. Is that true? Are you shooting you and your business in the foot by committing to long term monthly payments, especially on unproductive debt?

Having said all that, we all need a place to live, so what are some other options?

[countryguy]

What are we all working for if we can't even buy a house for ourselves to live in?It is a neccessity of life.I just bought one myself a year ago and couldn't be happier.

No matter what you will always have living expenses.Why pay rent to someone when you could be building equity in your own home?

Life is too short not to buy some of the things you want.Go for it!

[ALLFARMER]

I am not sure if you are talking about building a new house or having a house of your own. Paying monthly does has the advantage less interest charged over the length of the loan. If you buy a house & land AFSC will let you prepay your yearly payment (and give it back if you need it back) They give you interest on that prepaid equal to the loan interest. I really like having the once a year land payment and no monthly mortgage to take out of my operating capital.

[magpie]

I fought hard trying to come up with ideas not to build house, you know things like no return,I'll fix this on the old one etc.You know what! I lost and was wrong. We now enjoy it so much,happiness,comfort,convience,are better returns than money. Go for it,we have it monthly, not sorry at all.Do a cash flow statement on historical income and use a comfortable figure that will work for you.Interest rates are at lows.

[rook]

thanks for all your comments!