The results are shown below. And share renting was better than putting money in the bank. The results changed dramatically when 1980 was used as the starting point. In this instance, buying high priced land in 1980 added little during the next few years to the net worth. This is in contrast to buying land in 1975 when land values were relatively low, and future land appreciation contributed significantly to net worth.
Expansion clearly increases risk.
Adding more land will likely result in several years of negative cash flow given fluctuations in yield and price. Strategies for Southern Farmers Southern farmers get most of their income from crops other than corn and soybeans. More risk will be common. Those considering retirement must weigh the options of risking their farm assets against selling out. Studies have shown that if cash flow is the limiting factor, then don't buy land.