From a cash flow perspective, buying rough farm ground isn’t always bad if it can be purchased right.

When I was looking at purchasing my first field, I had a few options.

1) Below average field no one wanted
2) 35% better performing field priced twice as much as option 1.

Option 1 I could pay cash for. Option 2 I’d have to take out a loan & make yearly payments across a long term note.

At $8.20 per bu for beans, break even yield for each would be;
Option 1 - 22 bu
Option 2 - 42 bu

Debt service hurts profit potential more than anything else does.