Buying a farm

The place to start if you are new!
Ebenezer
GURU
GURU
Posts: 1804
Joined: Wed Nov 25, 2015 11:46 am
Location: Piedmont of SC
Has thanked: 188 times
Been thanked: 396 times

Re: Buying a farm

Post by Ebenezer » Fri May 31, 2019 6:42 am

Is the price low because it is a deal or because of low demand? If low demand and little chance of appreciation of value you ought to offer less in case you ever have to sell. There is low priced land within 50 miles of us. But there are reasons that it is priced that way and nobody has bought it. Go 50 or less miles the other way and it is sky high in price.

I would also go by NRCS or look on the web soil survey and see what soil types are on the farm. Wetlands are a big flag and thin rocky soils or poor soils are a cost or a limitation that will cost you money or never get fixed.

And if you buy and cut timber, leave shade areas of trees that are less merchantable.



User avatar
Cress27
Cowhand
Cowhand
Posts: 23
Joined: Tue May 28, 2019 8:36 pm
Has thanked: 3 times
Been thanked: 2 times

Re: Buying a farm

Post by Cress27 » Fri May 31, 2019 7:08 am

Ebenezer wrote:
Fri May 31, 2019 6:42 am
Is the price low because it is a deal or because of low demand? If low demand and little chance of appreciation of value you ought to offer less in case you ever have to sell. There is low priced land within 50 miles of us. But there are reasons that it is priced that way and nobody has bought it. Go 50 or less miles the other way and it is sky high in price.

I would also go by NRCS or look on the web soil survey and see what soil types are on the farm. Wetlands are a big flag and thin rocky soils or poor soils are a cost or a limitation that will cost you money or never get fixed.

And if you buy and cut timber, leave shade areas of trees that are less merchantable.
The farm is not a dream farm by any means is there better farm land in the area yes but like you said it could be 200,000 more. I know you can’t go by this but I’ve got a buddy I work with that has a farm and lives down the road he knows the farm I’m look at pretty well he says that it’s a good deal it just needs some lime and fertilizer and it should be good to go. I don’t guess it would be a bad idea to bring a soil sampler along with you when you went and looked at the place.

12251HD
Cowhand
Cowhand
Posts: 36
Joined: Tue Feb 01, 2011 10:34 am
Location: Ohio

Re: Buying a farm

Post by 12251HD » Fri May 31, 2019 7:24 am

I sold one of our family farms to a young neighbor who wanted his own farm a few years ago. Sold him everything: land, cows/calves/bull, an old tractor, cattle trailer, etc. It even had a mobile home on it. He worked on his large family farm and had a good income. He financed the purchase through the USDA 'New Farmer" program. Today, he has is doing well. His cow-calf operation pays the mortgage and restocks his herd. He even built a new house on the farm. Although he has many things going for him, he jumped in and made it work for him and his family. Good luck.

User avatar
Jeanne - Simme Valley
Mentor
Mentor
Posts: 11064
Joined: Thu Dec 09, 2004 5:46 am
Location: Central Upstate New York
Has thanked: 558 times
Been thanked: 814 times

Re: Buying a farm

Post by Jeanne - Simme Valley » Fri May 31, 2019 8:36 am

Do you have to buy your own hay equipment now. Is there anyone around that would do it on shares? Or you could trade your labor helping him for use of his equipment?
Simme Valley of New York - http://www.SimmeValley.com
"We make a living by what we get,
we make a life by what we give."

User avatar
farmerjan
GURU
GURU
Posts: 2711
Joined: Thu Sep 01, 2016 7:54 pm
Location: Shenandoah ValleyVirginia
Has thanked: 329 times
Been thanked: 209 times

Re: Buying a farm

Post by farmerjan » Fri May 31, 2019 9:01 am

If you want to farm, then this sounds like a good deal. No you won't be able to make the payments in full from the cows. If there is a problem with the "hay to feed the calves" that you keep on the other property, then utilize the hay from your property. I would definitely try to find someone to make the hay on shares and not put a fortune into equipment for at least the first year. If you are at all handy, start going to farm sales. Buy second hand, do a little work on it and get by as you improve the soil. You might find someone who can/will make the hay for a few years on shares. Here the landowner gets 1/3 the haymaker gets 2/3. Seems unbalanced but if you figure the money they have in the equipment it isn't so far out of line. It might even give you some to sell over and above what the calves eat at your grandpa's place.

They aren't making anymore land. If this is an area you want to be, and you can get the loan, it might be tight for awhile, but you will have something to show for the sacrifice down the road. As has been suggested, you can grow your herd slowly, keeping heifers or even buy a few breds at a sale here and there.
My son and I started out that way. We rented land, pastures, whatever. Have lots of equipment, but it came slowly. Old Farmall H that I rake with on small parcels. Bought and financed a good bit of equipment from a friends estate sale when he died from cancer. Rent his farm from his widow and pay a very steep price for it but it is central to where we do most of our farming. He now has bought a 75+ acre farm and the 25 cows and calves we can run there, make the payments. Not the fertilizer or anything, but the basic mortgage payment. The house was bought separately, 2 years later, and it is rented and that makes the house payment for now.
We are working hard to get to where he wants to be at retirement. If he had the opportunity you have, and it was where he wanted to be, we would have it paid off by now and be having it alot easier. Here land is 5-10,000 an acre and it is hard to find. Sales are often in the 1 mil for a 150 acre farm if it has anything decent on it. Put a place to live, like a trailer for awhile, on it and sell your house in the subdv. Less travel time will make it easier to do work there, when you are off your "real job".

MO-Ruminants
Cowhand
Cowhand
Posts: 56
Joined: Sat Dec 15, 2018 7:06 am
Location: North Central Missouri
Has thanked: 25 times
Been thanked: 8 times

Re: Buying a farm

Post by MO-Ruminants » Fri May 31, 2019 9:49 am

May I suggest that you may be able to run cows with no equipment? This would eliminate initial equipment investment, fuel, maintenance and depreciation.

User avatar
greybeard
Mentor
Mentor
Posts: 18834
Joined: Thu Jul 05, 2012 5:51 pm
Location: Cleveland Tx
Has thanked: 121 times
Been thanked: 550 times

Re: Buying a farm

Post by greybeard » Fri May 31, 2019 2:05 pm

MO-Ruminants wrote:
Fri May 31, 2019 9:49 am
May I suggest that you may be able to run cows with no equipment? This would eliminate initial equipment investment, fuel, maintenance and depreciation.
It can be done I suppose, but dang, it would get really old really quick.
I can't imagine anymore, NOT having at least one tractor, cow pen/handling facility and sprayer and mower..

The stickler is finding someone to do what you need done WHEN you need it done..
"For evil to flourish, all that is required is for good men to do nothing" Burke
Power corrupts. Absolute power corrupts absolutely.
It ain't easy being a used cow salesman.

JMER1533
Cowhand
Cowhand
Posts: 54
Joined: Fri Jan 11, 2019 11:28 am
Location: TN
Has thanked: 29 times
Been thanked: 20 times

Re: Buying a farm

Post by JMER1533 » Sat Jun 01, 2019 7:12 am

I concur with trying with no equipment when you’re ‘equipped’ With the management knowledge and style to do that. I’m not there yet but getting close. As others have suggested look to older reliable equip that you can resell without much loss. IH 856, 1066 etc are good tractors that can pull a large Bush hog or hay equip and don’t cost much. Definitely check with nrcs to determine details on the ground. I look at myself as a soil farmer. I do a good job at that and most of the rest falls into place.

uplandnut
Trail Boss
Trail Boss
Posts: 283
Joined: Sat Nov 21, 2015 4:43 pm
Has thanked: 65 times
Been thanked: 14 times

Re: Buying a farm

Post by uplandnut » Sat Jun 01, 2019 8:28 am

I say go for it, providing you can make the mortgage payment with your day job. If it has a house and the land isn't swamp ground I don't think you can go wrong on just over 2k an acre. I wouldn't bank on the cows making your mortgage payment but I think you could use the revenue off them to purchase your other things you want for the farm. I know hay is kind of high priced right now but I don't think I'd invest into hay equipment, you'll probably have about 70-80 dollars a bale into it making yourself if you have to buy all the equipment and do any amount of soil improvement. imho

gcreekrch
Rancher
Rancher
Posts: 991
Joined: Sun Apr 25, 2010 11:51 pm
Has thanked: 357 times
Been thanked: 378 times

Re: Buying a farm

Post by gcreekrch » Sat Jun 01, 2019 11:05 am

Those who have never failed or succeeded have never tried.

I never gave much thought about success, just went ahead and did things. Sometimes it will take a bit of time to heal from a mistake but that is part of the challenge. Be honest, make your handshake your bond, don't be a cheapskate and get away from family asap.
Vaccinations, cheaper than whiskey. ;-)

Dave
GURU
GURU
Posts: 7912
Joined: Mon Jul 12, 2004 1:35 pm
Location: Baker County, Oregon
Been thanked: 401 times

Re: Buying a farm

Post by Dave » Sat Jun 01, 2019 5:02 pm

Nearly 50 years ago when I was in college people were saying it couldn't be done. The ones who listened to that advise are still living in town. Those who ignored that advise all seem to have ranches now. Was it easy? No. Did they quit the day job? Yes, but not for 10 years or more.

cow pollinater
GURU
GURU
Posts: 5749
Joined: Wed Sep 22, 2010 5:33 pm
Location: Eastern OK
Has thanked: 29 times
Been thanked: 112 times

Re: Buying a farm

Post by cow pollinater » Sat Jun 01, 2019 5:21 pm

Another thing to consider... Are you married? I was at your age and started my ranch in opposition to constant complaints and then wound up losing just about all of it fifteen years later in divorce.
If you're single, jump! get your name on it before someone else does.

User avatar
snoopdog
GURU
GURU
Posts: 1451
Joined: Sat Mar 25, 2017 5:16 am
Location: ne oklahoma
Has thanked: 583 times
Been thanked: 240 times

Re: Buying a farm

Post by snoopdog » Sat Jun 01, 2019 8:55 pm

I'll also say this. Me and my dad didn't get along when I was your age, I lost him 6 short years later. He ran a mechanic shop, I left for the service and he had to pay someone to do what I did, and wasn't happy. When I got out he hired me back at a decent wage, but our working styles were different, and we just couldn"t get along. How I wish now I would've made an extra effort on my part. Treasure your folks, even if you don't see eye to eye.
Being poor is the most expensive thing there is

User avatar
Cress27
Cowhand
Cowhand
Posts: 23
Joined: Tue May 28, 2019 8:36 pm
Has thanked: 3 times
Been thanked: 2 times

Re: Buying a farm

Post by Cress27 » Sat Jun 01, 2019 10:03 pm

snoopdog wrote:
Sat Jun 01, 2019 8:55 pm
I'll also say this. Me and my dad didn't get along when I was your age, I lost him 6 short years later. He ran a mechanic shop, I left for the service and he had to pay someone to do what I did, and wasn't happy. When I got out he hired me back at a decent wage, but our working styles were different, and we just couldn"t get along. How I wish now I would've made an extra effort on my part. Treasure your folks, even if you don't see eye to eye.
I love farming with my dad wouldn’t trade it for the world helped him mow about 30 acres of hay today. I really want the farm. And got my dads opinion on buying the farm today he detoured from buying. I don’t wanna leave the family farm but then again there is not enough room for me and him both to do what we want he farms for a living and has no other income.

User avatar
kenny thomas
GURU
GURU
Posts: 8953
Joined: Sun Nov 16, 2008 6:16 pm
Location: SW tip of Virginia
Has thanked: 18 times
Been thanked: 254 times

Re: Buying a farm

Post by kenny thomas » Sat Jun 01, 2019 10:28 pm

When I was your age $500 an acre land was beyond my reach it seemed. I never took any chances. I could have had a lot more land payed for if I had taken a chance.
Go for it if you feel you can make it work.
My thoughts only, don't bet the farm on them. KT

Post Reply