Buying a farm

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Lbass
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Re: Buying a farm

Post by Lbass » Thu May 30, 2019 12:41 pm

My general rule around here is. "Cattle can pay for themselves or Cattle can pay for the land, but they won't do both." Easiest way to break into cattle farming for me was to rent the land, take out a cattle loan, and work in town. I always kind of thought stockers would be the way to go so I didn't have to deal with them in the winter, but I don't think my nerves could have handled owing money on them knowing if the market fell my day job might have to cover the difference.

It's also hard to work in town and find ground to rent. You just don't have the ties to the farming community to find the farms or the reputation for someone to take a chance on you... but money is persuasive.



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Cress27
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Re: Buying a farm

Post by Cress27 » Thu May 30, 2019 2:38 pm

cow pollinater wrote:
Thu May 30, 2019 12:29 pm
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.
There is right at 150 acres they are asking 330,000. I previously had a loan that I’ve payed off now from the local fsa office. Really liked they way they operated love the fact that the whole first year you didn’t have to pay anything except the interest on the loan. I ask them about the farm loans today and they said that the interest is I think 3.5 percent and can set it up for 40 years to make the payments more comfortable. Hopefully a man could pay it before then lol.

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Cress27
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Re: Buying a farm

Post by Cress27 » Thu May 30, 2019 2:45 pm

Jeanne - Simme Valley wrote:
Thu May 30, 2019 9:12 am
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.
Thanks for the great advice if I knew 100% I could do it I’d jump in head first but nothing 100% in farming I’ve been around it my whole life I remember lots of presents under the Christmas tree when I was a kid and I remember not so much under it too lol but it’s made a life for my dad and my grandpa. Just wonder if my grandpa new what he was getting into when he first started but farm land

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Re: Buying a farm

Post by cow pollinater » Thu May 30, 2019 3:49 pm

Cress27 wrote:
Thu May 30, 2019 2:38 pm
cow pollinater wrote:
Thu May 30, 2019 12:29 pm
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.
There is right at 150 acres they are asking 330,000. I previously had a loan that I’ve payed off now from the local fsa office. Really liked they way they operated love the fact that the whole first year you didn’t have to pay anything except the interest on the loan. I ask them about the farm loans today and they said that the interest is I think 3.5 percent and can set it up for 40 years to make the payments more comfortable. Hopefully a man could pay it before then lol.
That's not bad if it will run two acres to the pair.

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Re: Buying a farm

Post by Red Bull Breeder » Thu May 30, 2019 4:12 pm

Get some one who knows timber to look at that part of the farm.

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Re: Buying a farm

Post by Cress27 » Thu May 30, 2019 5:14 pm

cow pollinater wrote:
Thu May 30, 2019 3:49 pm
Cress27 wrote:
Thu May 30, 2019 2:38 pm
cow pollinater wrote:
Thu May 30, 2019 12:29 pm
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.
There is right at 150 acres they are asking 330,000. I previously had a loan that I’ve payed off now from the local fsa office. Really liked they way they operated love the fact that the whole first year you didn’t have to pay anything except the interest on the loan. I ask them about the farm loans today and they said that the interest is I think 3.5 percent and can set it up for 40 years to make the payments more comfortable. Hopefully a man could pay it before then lol.
That's not bad if it will run two acres to the pair.
No it’s not bad I’ll have to have hay from this farm to feed the cows also. It would be nice to have enough hay ground to put cow on the whole place. I’ll have to buy equipment for this place as well don’t forget that varible ether.

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Re: Buying a farm

Post by Cress27 » Thu May 30, 2019 5:17 pm

Red Bull Breeder wrote:
Thu May 30, 2019 4:12 pm
Get some one who knows timber to look at that part of the farm.
I will try and find a over view of the farm to give you guys a better look at it. I don’t believe there is very much timber on the place unless there is a bunch of walnuts. I would say most of the timber would be elem,hackberry, locusts, and ash.

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Re: Buying a farm

Post by Cress27 » Thu May 30, 2019 5:24 pm

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Re: Buying a farm

Post by snoopdog » Thu May 30, 2019 7:42 pm

Buy it, and buy it now. Don't look back. 2k an acre is a steal, anywhere nowadays. You can make it at that price.
Being poor is the most expensive thing there is

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Re: Buying a farm

Post by Cress27 » Thu May 30, 2019 8:02 pm

snoopdog wrote:
Thu May 30, 2019 7:42 pm
Buy it, and buy it now. Don't look back. 2k an acre is a steal, anywhere nowadays. You can make it at that price.
Even with having to buy equipment tractor hay cutter Tedder rake baler and the farm and just putting what cows I have on it and haying the rest. Selling calfs from 15 cows and selling hay you think will make the payments

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Re: Buying a farm

Post by snoopdog » Thu May 30, 2019 8:16 pm

Cress27 wrote:
Thu May 30, 2019 8:02 pm
snoopdog wrote:
Thu May 30, 2019 7:42 pm
Buy it, and buy it now. Don't look back. 2k an acre is a steal, anywhere nowadays. You can make it at that price.
Even with having to buy equipment tractor hay cutter Tedder rake baler and the farm and just putting what cows I have on it and haying the rest. Selling calfs from 15 cows and selling hay you think will make the payments
No, but if you're not overextended now, you could definitely make ends meet, with some wise choices. And when I say that, I mean, you can still use your dads place to raise the cows right? Add a few head, whether they are your heifers or some ss, use the new place to wean and put weight on the calves. Buy used equipment and learn how to work on it, grease is cheaper than parts. Shop auctions and craigslist. Cut firewood to clear more pasture, it aint gonna be easy, you won't have a spare minute. If you decide not to buy it though, I'd appreciate it if you would send me the mls or details.
Being poor is the most expensive thing there is

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Re: Buying a farm

Post by Cress27 » Thu May 30, 2019 9:05 pm

snoopdog wrote:
Thu May 30, 2019 8:16 pm
Cress27 wrote:
Thu May 30, 2019 8:02 pm
snoopdog wrote:
Thu May 30, 2019 7:42 pm
Buy it, and buy it now. Don't look back. 2k an acre is a steal, anywhere nowadays. You can make it at that price.
Even with having to buy equipment tractor hay cutter Tedder rake baler and the farm and just putting what cows I have on it and haying the rest. Selling calfs from 15 cows and selling hay you think will make the payments
No, but if you're not overextended now, you could definitely make ends meet, with some wise choices. And when I say that, I mean, you can still use your dads place to raise the cows right? Add a few head, whether they are your heifers or some ss, use the new place to wean and put weight on the calves. Buy used equipment and learn how to work on it, grease is cheaper than parts. Shop auctions and craigslist. Cut firewood to clear more pasture, it aint gonna be easy, you won't have a spare minute. If you decide not to buy it though, I'd appreciate it if you would send me the mls or details.
So what your saying is that I need to utilize my dads and slowly move the operation to the new farm while haying and selling what hay I don’t use to feed the heifers and new cows. Hate to say it but me and my dad don’t get along to well when it comes to farming worked like a dog cutting raking and rolling for him last summer took off work to help. I use my grandpa from my moms side of the family to wean my calfs he’s got about 15 acres. But come winter time my dad decided to make me pay for the hay that I would feed my calfs (still got hay for my cows) that I worked all summer helping get up so this is kinda the reason I’ve decided to branch out from that situation and try it on my own or just sell what I’ve got and just be content with my house in the subdivision.

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Re: Buying a farm

Post by kenny thomas » Thu May 30, 2019 9:16 pm

Cress27 wrote:
Thu May 30, 2019 5:17 pm
Red Bull Breeder wrote:
Thu May 30, 2019 4:12 pm
Get some one who knows timber to look at that part of the farm.
I will try and find a over view of the farm to give you guys a better look at it. I don’t believe there is very much timber on the place unless there is a bunch of walnuts. I would say most of the timber would be elem,hackberry, locusts, and ash.
Red Bull gave you good advice. Call KY Division of Forestry. I sold some junk timber last winter for $1,500 an acre. Good timber is high, Walnut real high.
My thoughts only, don't bet the farm on them. KT

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Re: Buying a farm

Post by Cress27 » Thu May 30, 2019 9:31 pm

kenny thomas wrote:
Thu May 30, 2019 9:16 pm
Cress27 wrote:
Thu May 30, 2019 5:17 pm
Red Bull Breeder wrote:
Thu May 30, 2019 4:12 pm
Get some one who knows timber to look at that part of the farm.
I will try and find a over view of the farm to give you guys a better look at it. I don’t believe there is very much timber on the place unless there is a bunch of walnuts. I would say most of the timber would be elem,hackberry, locusts, and ash.
Red Bull gave you good advice. Call KY Division of Forestry. I sold some junk timber last winter for $1,500 an acre. Good timber is high, Walnut real high.
I really appreciate all the advice y’all are giving out. I’ve grown up farming my whole life and love every second of it and I want to be able to have something to pass down one day in hopes of keeping farming alive. Keep the advice coming feel free to ask me anything about the farm I’ll try an answer it thanks.

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Re: Buying a farm

Post by cowrancher75 » Fri May 31, 2019 5:34 am

i'd buy the farm just to get away from the subdivision.. if i made 0.. it would still be worth it.

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