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MANAGEMENT MATTERS|

achieving 25 or 45 percent return on an investment year after year is probably unlikely, but certainly a positive return every year should be expected

Rents on agricultural land in the region range from about 2 percent to 8 percent of value. The risk of owning land is through taxes, pollution, natural disaster and payment issues The individual renting the land faces greater risks through the cost of planting and tending the crops. As a result of the added risk, the renter expects a much larger return on investment, and great returns over time generally are achieved by the renter-entrepreneur

Determining what is a fair return on an investment for a private enterprise is subject to a lot of factors, and business owners will want to decide for themselves what will meet their individual objectives PB

Matthew D. Mohr CEO, Dacotah Paper Co mmohr@dacotahpaper.com

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