Ok so you are looking at the reports your accountant prepared and you are trying to figure out your carrying costs vs production costs. Dirt vs Trees. If you lease for $7.50 then you take out $1.25 for property taxes you have $6.25 left before you start losing money and out of that you pay for insurance as well as someone to handle the leases. Then the deal breaker is how it is financed. It may not have a mortgage a big company may have financed via some type of debt offering or credit facility, etc. They hopefully own a lot of land outright with no interest and your accountant takes all that and put is on paper to show you how much money you lost just carrying the land. Any loss that is cash flow has to be made up on the production side or you are going out of business.