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market-farming - Re: [Market-farming] Cost of land as % of gross sales?

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  • From: Willie McKemie <mf AT austinfarm.org>
  • To: Market Farming <market-farming AT lists.ibiblio.org>
  • Subject: Re: [Market-farming] Cost of land as % of gross sales?
  • Date: Wed, 22 Dec 2010 03:55:25 -0600

On Tue, Dec 21, 2010 at 07:01:29PM -0800, Sundari Elizabeth Kraft wrote:
> For those of you that pay for land, can you give me an estimation of what
> you
> pay compared to what you reap in gross sales off of that land? (I'm not
> counting what you pay for water, etc -- just for the land.)

Here in Texas, land in commercial production is taxed on it's "ag
value", which is typically FAR below it's market value. Perhaps that
is the case in your area also? If so, you can check with your local
taxing authorities on valuations. I would guess that annual rents
should be 1/10-1/20 of ag value. You should be looking at ag values
for row crop commodities that are grown in your area for which
valuations are likely well established. Then, you can make a premium
offer for growing vegetables. If you're in an urban area, you might
have to go one or two counties out to get your values.

Your potential landlord might look into getting some tax relief from
having his land in ag production.

--
Willie, ONWARD! Through the fog!
http://counter.li.org Linux registered user #228836 since 1995
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