For s and giggles.
$10 m in farmland
2000 acres x $5000
half corn and soybeans
Combine and headers alone will run almost 3/4 of a million right there.
Your looking at $2-3 million in machinery
Need some bins and sheds, another half a million to a million.
I pay sales tax on all that machinery. Health insurance another $20g.
You don't have much margin of error on a large decision. The engine alone on a combine or tractor will run north of $60k.
Lets say you have to come up with $4m just to enter the game, assuming inheriting $10 m in land. What's your motivation to build an operation? Inflation alone will push you out into major tax area when your ready to retire. That $200k net? Your not continuing to farm/ranch without a lot of extra capitol. Even if you were, you need to expand at least 5% every year to remain compe ive.