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Ottawa, Ontario | I personally wouldn't work on paying it down just right now. If you can make some cash flow and expand your business you will be further ahead in the long run. In the future it will be easier to pay it down with more acreage making $. I'm a younger farmer and my theory is to get land or equipment into the business for the least amount of money up front as possible and then work on paying it down when the opportunity comes up. For example I bought a tractor and put it on an open, 10 year ammortization, that meant a smaller monthly payment (maybe more interest) but over time I was able to pay a couple lump sums on it and had it paid for in 5 years. In the meantime I had the machine to use and a payment that wasn't stressing. As for land I've been paying for it on a slow plan too but the increase in value has allowed me to use it as security for other parcels. In the end my net worth has shot up over the years and I've always had money to use... | |
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Paying down land
