Best way to accumulate land for cattle.

[Rawhide_Horseman]

What are some ways that have worked for you to accumulate land for cattle and just land in general? I am a younger guy and I need to figure out how I'm gonna start getting land together for cattle. As I see it land is the key, gives you more flexibility if you can afford it.

 

[Ebenezer]

Be sure to buy land that has adequate road frontage. There are a lot of tracts that are a deal because there is no stated access or poorly defined access. If you are in an area where pine plantations are common, know that two cycles of pines remove most P and a lot of K from the soils so you are starting off with a basic fertility condition of zero. To make the most of the property look at soil maps, find out the status of groundwater availability or surface water quality. Know that some neighbors will be bad neighbors so do some homework by backdoor efforts.

 

[littletom]

If you want to buy it, go set down with a fsa loan officer. Some people talk about how much bs is involved but speaking first had it's a good deal for a young guy getting started. They can do land, and equitment and operating through the new farmer program. You are able to do it for seven years after you start (non land) . I'm on my last year, and have helped or pointed some young guys in that direction. Don't think you will beat there rates. Lease find some one older wanting out buy the herd leave them there.

 

[ddd75]

good luck getting any gov. loan on land.. hahahahahahhahahahahahhahahahahhaahhahahaahhahahaahahhahahahahhahahhahahahaha

1 month to decide if they'll even do it.

6 months to close..

survey must be done.

if its a POS tract of land that no one wants.. maybe the owner will wait while you see if you are approved. but if land is like anything here. you'll never find a seller willing to wait.

I just sold my farma nd EVERYONE wanted to do that stupoid FSA BS loan.. "oh its such a great program, 1.5% rate.. blah blah" we just need YOU do to a new survey.. and to wait about 5-8 months... I'm like.. Yea.. NO.

Same with Farm Credit.. I'm pretty much sure. unless daddy has worked with farm credit.. or you are buying daddys farm.. You will not get a loan through farm credit.

I had my farm sold to a young man trying to go through farm credit.. he had 20% down cash... I tried and tried to tell the realtor to send him to my local banker who would of easily got him the loan. The realtor was friends with the FC lender so he wouldn't tell him. So after 6 weeks.. yes.. 6 weeks of waiting.. they sayd.. NO.. with 20% cash down!!! hahaahah are you serious?

So in teh end he didn't get the farm b/c I couldn't wait any longer.. I took a cash offer 20k below the FC kids offer.





well anyway.. back to the post. best way to get land while being young? well you need to make some money. Try to buy a small tract of GOOD land that can actually yeild something. Just 10 acres of good land you should be able to raise 15 head of cattle on.. Get a job to be able to get the loan. Prove to these lenders you can make money farming and they'll give you the money to buy that 40 acres next.. etc.

Work with a local bank.


Most banks that deal with farm land will only do 60% loan to value. A lot of local banks will finance most or all of it depending on your financials. I have bought 3 farms 100 - 500 acres in sizes and have never put a penny down to buy them. All local banks.

Good luck.. It is very hard for a young man to start farming w/o daddy. Banks are against you. Everything is against you. They won't give you a loan to by that 150k farm but you'll have a loan the next day if you want to buy that new 300k subdivision house.. doesn't make much sense but thats how they are.

 

[TennesseeTuxedo]

Inheriting is probably the best way. It's not for everybody though.

On a serious note, I'm a lender by trade and I refer folks to Farm Credit in Tennessee all the time and in my state at least they are very aggressive and follow through and do what they say they'll do.

 

[TexasBred]

Inheriting is probably the best way. It's not for everybody though.

On a serious note, I'm a lender by trade and I refer folks to Farm Credit in Tennessee all the time and in my state at least they are very aggressive and follow through and do what they say they'll do.

Pretty much what I hear around here as well. Dounds like "ddd" was just in a hurry for his money. Maybe the wolf was at the door. Impatience cost him 20 grand anyway.

 

[TexasBred]

good luck getting any gov. loan on land.. hahahahahahhahahahahahhahahahahhaahhahahaahhahahaahahhahahahahhahahhahahahaha

1 month to decide if they'll even do it.

6 months to close..

survey must be done.

if its a POS tract of land that no one wants.. maybe the owner will wait while you see if you are approved. but if land is like anything here. you'll never find a seller willing to wait.

I just sold my farma nd EVERYONE wanted to do that stupoid FSA BS loan.. "oh its such a great program, 1.5% rate.. blah blah" we just need YOU do to a new survey.. and to wait about 5-8 months... I'm like.. Yea.. NO.

Same with Farm Credit.. I'm pretty much sure. unless daddy has worked with farm credit.. or you are buying daddys farm.. You will not get a loan through farm credit.

I had my farm sold to a young man trying to go through farm credit.. he had 20% down cash... I tried and tried to tell the realtor to send him to my local banker who would of easily got him the loan. The realtor was friends with the FC lender so he wouldn't tell him. So after 6 weeks.. yes.. 6 weeks of waiting.. they sayd.. NO.. with 20% cash down!!! hahaahah are you serious?

So in teh end he didn't get the farm b/c I couldn't wait any longer.. I took a cash offer 20k below the FC kids offer.





well anyway.. back to the post. best way to get land while being young? well you need to make some money. Try to buy a small tract of GOOD land that can actually yeild something. Just 10 acres of good land you should be able to raise 15 head of cattle on.. Get a job to be able to get the loan. Prove to these lenders you can make money farming and they'll give you the money to buy that 40 acres next.. etc.

Work with a local bank.


Most banks that deal with farm land will only do 60% loan to value. A lot of local banks will finance most or all of it depending on your financials. I have bought 3 farms 100 - 500 acres in sizes and have never put a penny down to buy them. All local banks.

Good luck.. It is very hard for a young man to start farming w/o daddy. Banks are against you. Everything is against you. They won't give you a loan to by that 150k farm but you'll have a loan the next day if you want to buy that new 300k subdivision house.. doesn't make much sense but thats how they are.

Glad he didn't get the loan. Cost your obnoxious a$$ twenty grand. :mrgreen: :mrgreen: :lol2: :lol2: :lol2:

 

[ddd75]

Wow. So your a lender but send people elsewhere for loans?


TEX... you've 'heard' huh??? lol.

Well I'm sure the poster thanks you guys for the... uh.. well nothing.

Btw.. yea the rush to sell actually cost me 40k but I made 350k in equity in my new deal so I'll take that anytime..

 

[TennesseeTuxedo]

Wow. So your a lender but send people elsewhere for loans?


TEX... you've 'heard' huh??? lol.

Well I'm sure the poster thanks you guys for the... uh.. well nothing.

Btw.. yea the rush to sell actually cost me 40k but I made 350k in equity in my new deal so I'll take that anytime..

I'm a residential mortgage banker, my company doesn't lend on agricultural properties so yes, I refer people to other lenders from time to time. I do the same on commercial loans.

 

[True Grit Farms]

Farm Credit in Georgia isn't the best. We tried to get a loan through them to buy our farm but couldn't qualify. Something about creative financing on our tax returns.

 

[TexasBred]

Wow. So your a lender but send people elsewhere for loans?


TEX... you've 'heard' huh??? lol.

Well I'm sure the poster thanks you guys for the... uh.. well nothing.

Btw.. yea the rush to sell actually cost me 40k but I made 350k in equity in my new deal so I'll take that anytime..

I knew you'd get around to telling us how much you made. They always do. :lol: :lol: :lol:

 

[littletom]

I guess I am real lucky, doubt it. I did not not have to wait 5-8 months, no new survey for the loan. Why would you put haha 16 times to prove your second hand information that is not accurate? If guy was trying to get started why would you not give him everychance if he had it together enough to get a loan? Maybe you really had to have money right now, I understand. Some great farmers have done a lot to help me get started. I plan to pay that forward every chance I get. . And land is not 1.5% first hand.

 

[joeu235]

I purchased 50 acres with 20% down payment financed by Texas Capital Farm Credit. The transaction could not have been easier. I also purchased heifers financed by Capital Farm Credit. They wrote me a check and drove out and looked at them a month later.

One day I was pissed off at work and wanted to figure out how many head I would need to earn my paycheck from only cows. Once I realized I would need about 200 head, I didn't quit my day job.

 

[GRTiger85]

find long term leases, that is what I had to do. Takes awhile, but it was the only way I could do it aside from having some family land to run cows on. Ask around, put ads on craigslist, facebook, etc. I think I had ads up for a year or two before I ever landed a lease from it, but once I did that opened up doors to several other places through the one person. Started with just running cows on about 250 acres of family land, now up to about 1,000 acres total with leases. No way I would of been able to afford that myself in college when I started looking.

 

[ddd75]

I guess I am real lucky, doubt it. I did not not have to wait 5-8 months, no new survey for the loan. Why would you put haha 16 times to prove your second hand information that is not accurate? If guy was trying to get started why would you not give him everychance if he had it together enough to get a loan? Maybe you really had to have money right now, I understand. Some great farmers have done a lot to help me get started. I plan to pay that forward every chance I get. . And land is not 1.5% first hand.

Can you give some more details about your FSA loan?

Current FSA rates are 1.5 last I heard. Edit. Looks like it's 2.375 now.

 

[hurleyjd]

Some states have programs to help young farmers get started. I just assume you are a young person wanting to get started. If borrowing money for land you need to get the financing lined up before land shopping. You are looking at having to have access to about 1/2 million dollars to get started if buying 100 acres and 40 so head of cattle not counting any equipment required for the operation. Most lenders want to know if you have the cash flow to service your loans. And also running cattle is not for the faint of heart. A lot of work is required.

 

[littletom]

I guess I am real lucky, doubt it. I did not not have to wait 5-8 months, no new survey for the loan. Why would you put haha 16 times to prove your second hand information that is not accurate? If guy was trying to get started why would you not give him everychance if he had it together enough to get a loan? Maybe you really had to have money right now, I understand. Some great farmers have done a lot to help me get started. I plan to pay that forward every chance I get. . And land is not 1.5% first hand.

Can you give some more details about your FSA loan?

Current FSA rates are 1.5 last I heard. Edit. Looks like it's 2.375 now.

To be honest if you have a really good loan officer it's not that bad. You have to have a appraisle by some one on there list. This can be a problem if selling price is more. Then you cough up the difference. Not sure how old survey can be, neither farm I bought had to be re surveyed. If in a situation like you were. If the young man had a good fsa officer and relationship with bank. They could of done a bridge loan bank payed you. Then when fsa does there deal they pay bank off and then finance the farm. Fsa land loans can be different lenghs upto 40 years with no pay off penlty.

In ky there is also Ky ag finance where you can get low rates on half of eqitment and I am pretty sure land too. They do half bank does half. Farm credit is not that bad I have my house with them. Was not a ordeal at all. When my new farmer program runs out next year at fsa I will move my operating loans there.
A local bank is a good deal to have. I built a 250' curing barn through them year before last. But the rates were not great, I had a really good year so I payed that off. If you look and take advantage of things with extra paper work you can save a load of money in the long run.

But if you have a jack leg person to work with at farm credit or fsa then you are exactly right you can forget it! The whole deal with fsa is to get you started from scratch. It helps you build up eqiutment land, cattle, credit, and money for seven years. Then you are on your own with assets and experience looking good, for a hard nosed sharp pencil banker. I have made the most of the experience.

 

[True Grit Farms]

Current FSA rates are 1.5 last I heard. Edit. Looks like it's 2.375 now.[/quote]
To be honest if you have a really good loan officer it's not that bad. You have to have a appraisle by some one on there list. This can be a problem if selling price is more. Then you cough up the difference. Not sure how old survey can be, neither farm I bought had to be re surveyed. If in a situation like you were. If the young man had a good fsa officer and relationship with bank. They could of done a bridge loan bank payed you. Then when fsa does there deal they pay bank off and then finance the farm. Fsa land loans can be different lenghs upto 40 years with no pay off penlty.

I can't believe the FSA can make a bridge loan with taxpayers dollars. Very risky to bridge a loan for someone that can't get financing through the banks. The way the FSA works here in Georgia is you must be turned down by a bank, before they'll even work on a loan for you. I'm willing to bet that Jody who is our FSA loan officer has had a lot less delinquent and foreclosure loans than your FSA loan officer. He looks after our tax dollars, like it should be.

 

[littletom]

For the general that's what fsa is for last chance for people. But they have a program for people getting started. They have programs for minortys, woman, even have youth loans. For high school kids trying to get a couple cows. It not as simple as just doing it. And the bridge loan would be pretty tuff to get done. I was just trying to give the guy some advice. Now I feel like I'm getting called out. Just trying to say you can start from scratch.

 

[True Grit Farms]

I didn't mean anything by it just curious. My daughter received the FSA loan for cows. And the farms are in my wife's name just in case.