Comment by nonethewiser
1 day ago
You can lease 5 acres in Iowa for $1370? Per month I guess? In which case it will be $1370 * m. Not clear from here: https://proofofcorn.com/
1 day ago
You can lease 5 acres in Iowa for $1370? Per month I guess? In which case it will be $1370 * m. Not clear from here: https://proofofcorn.com/
A quick search of actual data shows that farmland suitable for row crops sells for ~$11k per acre so a 5 acre area would be around $55k. If the market rate for that type of land was $1,370 per month, that comes to a rate of return near 30% yearly (assuming leases are yearly, not seasonal)![0]
I dug a little deeper and found this study showing cash rental rates per acre per year ranging from $215 to $295.[1] So it actually looks like Claude got this one right.
Of course I know nothing about renting farmland, but if you ask to rent 5 acres the average farm size is in 300+ acre region, the land owners might tell you to get lost or pony up. A little bit like asking Amazon to give you enterprise rates for a single small EC2 instance.
[0] https://farmland.card.iastate.edu/overview [1] https://www.extension.iastate.edu/agdm/wholefarm/pdf/c2-10.p...