Every other page in this business case assumes leased land — that is why the equity at risk is in the low hundreds of thousands and why "keep the capital free" is the recommendation. A bank offering 75% against a property changes the question. This page models the other version: what ownership costs each year, what equity it needs, what the operation can actually service, and which risks it removes and adds.
So the land cannot pay for itself out of farming. Owning is a balance-sheet decision — you are buying an appreciating asset and paying for it out of the operating business. That is a perfectly reasonable thing to do, and it is what most Swedish farms are. But it means the beef operation has to service a debt the beef operation did not create, and the bank will test exactly that.
Set the property and the loan; the operating profit default is the steady-state figure from the ROI dashboard before any land cost. Everything recalculates, including the price the business could actually support.
What leaves the bank account each year under each option. Amortisation is shown separately because, unlike interest and rent, it is not a cost — it buys you equity.
Debt-service cover as the property price rises: operating surplus divided by interest plus amortisation. Banks typically want comfortably above 1.0 — the line marks your chosen target, and where it crosses is the most the business can carry on its own.
But be precise about what it is: top-up financing is debt, not equity. Using it to cover part of the 25% raises total borrowing, raises annual debt service, and lowers debt-service cover — it does not reduce risk, it relocates it. Model it as a second loan at a higher rate, which the calculator above lets you do, and check the cover ratio again afterwards.
It also has a consequence this business case cares about: the operating company would then be paying rent to you, which means the leased-land model on every other page is not wasted — it becomes the internal arrangement. Get the structure advice before signing anything; it is much harder to reorganise afterwards, and it interacts with subsidy eligibility, which follows the party farming the land.
What this page could not settle, why each answer changes a decision, and where it has to come from. Blocking means do not commit capital until it is answered.
| Question | Why it matters | Where the answer comes from |
|---|---|---|
| What is the bank's own valuation of the property, as against the asking price?Blocking | The 75% is of their valuation, not the price. If they value below the asking price, the equity you must find rises by the whole difference — and that gap is the most common reason farm purchases fail late. | The bank, in writing, before an offer. They said their valuation is often close to specialists such as Areal. |
| How much of the price is the dwelling, and how is it financed?Blocking | The residential part is typically financed like a mortgage and the agricultural part as business lending, with different rates, amortisation and tax treatment. It also decides how much of the debt the beef operation must actually service. | The bank and a tax adviser; the property's taxeringsvärde split is the starting point. |
| What rate and amortisation schedule would they actually offer?Blocking | Debt service is the number the whole plan must cover. Landshypotek states farm loans carry no statutory amortisation requirement and that amortisation-free periods of up to five years are possible — which changes early cash flow enormously. | A written indicative offer, with the rate, the fixing period and the amortisation plan. |
| Personal ownership plus an operating company — what does an adviser recommend?Important | It affects tax, liability, succession and possibly which entity may claim the subsidies that are a third of net profit. It is expensive to change later. | Ludvig & Co or an equivalent agricultural adviser, as the bank itself suggested. |
| What would Tillväxtbolaget lend, at what rate, and against what?Important | If part of the 25% is a top-up loan, total leverage and debt service both rise — and the cover ratio the bank is testing gets worse, not better. | Tillväxtbolaget directly, and ask the bank how they treat it in their own cover calculation. |
| Does the property's land actually suit this herd?Blocking | Hectares on a listing are not grazing capacity. The land page's stocking questions apply in full — and once bought, a poor match cannot be re-leased away. | Walk it with an adviser; check the block registrations; ask the seller what it actually carried. |
Prepared August 2026 as a planning aid. Land price statistics are Jordbruksverket's official 2024 figures and Ludvig & Co's brokered-sale series for 2024–2025; a specific property's price depends on buildings, dwelling, forest, location and condition far more than on regional averages, so use them as context and not as a valuation. Interest and amortisation are user inputs — Swedish agricultural lenders price individually and publish no standard rate. Operating profit defaults to this plan's steady-state figure before land cost, which itself rests on assumptions still to be verified. This is not tax, legal or financial advice; the ownership structure in particular needs a qualified adviser.