Page 1 of 4

Buying a farm

Posted: Wed May 29, 2019 8:56 pm
by Cress27
I’m a young farmer I’m 24 years old and found a property that I would love to own and is already set up for cattle. It’s a 150 acres and probably has about 90 to 100 acres of pasture/hay. Just starting from scratch with having to buy equipment and the farm and cows to go on the farm. Is there any way possible to make any money. Farming would not be my only income I work a public job and would have a steady money flow. I just don’t want to jump in to far and get in over my head. Thanks

Re: Buying a farm

Posted: Wed May 29, 2019 9:14 pm
by kenny thomas
Where is the farm? How many cattle will it run. Unless its very productive it will be very hard.

Re: Buying a farm

Posted: Wed May 29, 2019 9:32 pm
by Cress27
kenny thomas wrote:
Wed May 29, 2019 9:14 pm
Where is the farm? How many cattle will it run. Unless its very productive it will be very hard.
The farm is In south central Kentucky. I’m not sure on the how many cow it will run. Typically in this area it’s a 1.5 acres per cow and calf. The farm has been leased out for the past 3 or 4 years I know it needs some improvements to it probably some lime and some reseeding. But other than that it’s got good fence good water 3 barns and a working facility. It’s something I really want to do just hard wrapping my head around the amount of money I would have to come up with every year to just make the payment on the farm.

Re: Buying a farm

Posted: Wed May 29, 2019 9:39 pm
by kenny thomas
Some years there is very little profit in cattle. Starting from scratch buying everything is going to be very very hard. You are in good cattle area and being young it's the time to do it if you can make the payments.

Re: Buying a farm

Posted: Wed May 29, 2019 9:51 pm
by True Grit Farms
I'd much prefer to live in a trailer on a 150 acres than in a nice house in town.

Re: Buying a farm

Posted: Wed May 29, 2019 9:53 pm
by kenny thomas
If there is 50 acres of woodland there could be a big payment on tbe land. Hardwood timber is selling high here.

Re: Buying a farm

Posted: Wed May 29, 2019 10:22 pm
by 5S Cattle
I’m 30 and recently bought in. I don’t see how you could make the cows pay for the land. If you bought the cows outright, you could make a run at it. But honestly you’d probably be money ahead to just put that money towards the loan on some years

Re: Buying a farm

Posted: Wed May 29, 2019 10:44 pm
by Cress27
5S Cattle wrote:
Wed May 29, 2019 10:22 pm
I’m 30 and recently bought in. I don’t see how you could make the cows pay for the land. If you bought the cows outright, you could make a run at it. But honestly you’d probably be money ahead to just put that money towards the loan on some years
I have about 15 head of cows I run in my dads property already. That is about the only leg up I have to get started. I had originally planned on cutting hay off this place citing the whole farm down and feeding what cows I would have from my dads property and I’m not sure on the rest of you guys but hay is a very scarce thing around here sold for almost 80 bucks a roll on the tail end of last winter. But sell hay off the place and use that money to help buy cows to put on the it. Sounded good anyway lol. Thanks for the advice.

Re: Buying a farm

Posted: Thu May 30, 2019 4:46 am
by WinterSpringsFarm
Having an outside job is about the only way you will be able to make it work. Not sure what land prices are there, but here I can't make any farm cash flow on its own.

There are some low interest loans available to you if you wanted to go down that route, but I've heard that there are tons of hoops to jump through to get them.

Re: Buying a farm

Posted: Thu May 30, 2019 5:56 am
by cowrancher75
yes you can make money.

depends how much you pay for the farm and what it will produce. your management style will greatly affect your profit potential.

Re: Buying a farm

Posted: Thu May 30, 2019 6:14 am
by True Grit Farms
Cress27 wrote:
Wed May 29, 2019 10:44 pm
5S Cattle wrote:
Wed May 29, 2019 10:22 pm
I’m 30 and recently bought in. I don’t see how you could make the cows pay for the land. If you bought the cows outright, you could make a run at it. But honestly you’d probably be money ahead to just put that money towards the loan on some years
I have about 15 head of cows I run in my dads property already. That is about the only leg up I have to get started. I had originally planned on cutting hay off this place citing the whole farm down and feeding what cows I would have from my dads property and I’m not sure on the rest of you guys but hay is a very scarce thing around here sold for almost 80 bucks a roll on the tail end of last winter. But sell hay off the place and use that money to help buy cows to put on the it. Sounded good anyway lol. Thanks for the advice.
There's definitely more money in selling hay than feeding it to your cows.

Re: Buying a farm

Posted: Thu May 30, 2019 7:03 am
by uhwcuw
don't do it you will have no time and no money!!!!

Re: Buying a farm

Posted: Thu May 30, 2019 8:29 am
by 5S Cattle
One thing I wish I would have done before I bought my cattle, is to work my pastures over so they produce better. I’m doing that now and it would have been much easier without cattle here yet.

Re: Buying a farm

Posted: Thu May 30, 2019 9:12 am
by Jeanne - Simme Valley
I would not buy any more cattle - stick with what you have. Starting out with 15 that you already own is awesome. Hay as much as you can and sell what you don't need. Start slow. Put every penny extra that you have onto your mortgage. I made my mortgage payment for many years when I lived in Kansas by selling walnut trees. Enjoy the struggle. Investing in land is setting up a future for you. You will make more money with your cattle if you sell the calves through a freezer trade. Meaning, finish out a few calves for freezer beef. Find a market and provide the product. Some people go the "grassfed" beef market, but be sure you figure out what you are doing first. It is the hardest way to make a QUALITY eating experience for your buyer. Not saying it can't, just takes a lot more management to do it correctly. I would wean at 7-8 months of age and put on whole shell corn until finished. An unhappy buyer will ruin your market.
Go for it!!! good luck.

Re: Buying a farm

Posted: Thu May 30, 2019 12:29 pm
by cow pollinater
There's a few variables that we don't know enough about to say whether or not you'd make money but if you put up a decent down payment and take on a cow loan you should be able to make it break even most years if you get it bought right. How much are they asking per acre? The main problem most people run into is buying ground at a price that cattle can pay for.