1000 acres for $16,000,000 and produces $800,000 worth of corn sounds pretty good. 5% return to pay the interest.
Please expand your logic and where you find those figures
Iowa land according to hlg posting above goes for $16,000 an acre. Year in and year out about a 200 bushel average is to be expected. 200 bushels at $4 is $800 which is about average more or less a little. $800 on 1000 acres will gross $800,000. If you paid $16,000 per acre just add 3 zeros to that to get your price on 1000 acres. 16,000 x .05 = 800
Your off on your calculator
Average yield on the $16000 land is well north of 240 by if your any type of good farmer
The guy I help 5 yr average is 235
$4 corn,,, you will go broke
Cash corn right now for fall delivery is $4.50 had opportunities last dec/jan to sell fall corn for close to $5
Your also forgetting that these progressive farmers ( which anyone can do ) buy puts/calls to make money as well
The best farmers I know( my job is also in ag) spend more time behind the computer screen than in a tractor
