What is the payment structure for the land value by the farmer?

The payment structure for the land value by the farmer being divided into amortizations for 15 years, with a 6% equal interest per annum, reflects a common financing arrangement that allows the borrower to repay the loan over an extended period in manageable increments. This structure is advantageous for the farmer, as it spreads the cost of the land over a significant duration, reducing the financial burden of a large upfront payment.

In contrast, other payment options present various drawbacks. Paying in full within one year might overwhelm the farmer with a substantial financial obligation that could be difficult to meet, especially if cash flow is tight. Paying quarterly without interest may seem appealing, but it could result in larger payments that still demand consistent cash flow, which can be challenging for agricultural operations. Lastly, paying in two equal installments over 10 years offers less flexibility and may not address the farmer's immediate cash flow needs as effectively as a longer amortization plan with interest does. The 15-year structure with equal payments allows for a balance of affordability and security, making it a practical choice for the farmer.