Buying a farm in Canada

[canadianfarmboy]

Ok , so up til now ive been running stocker cattle and getting pay renting from my grandfather/ father for the small operation i run . Recently a farm came up for sale in my area with 300 acres of land ( 70 corn/potatoes/hay, 50 of woods ) and remainder of pasture . Would i need to go through farm creidt or somethingg along that line to buy this place as i dont have that much money or go another route . thanks

 

[Aaron]

FCC would probably be the most understanding and easiest to get along with, or a credit union. Stay away from the big banks.

What is the list price on the farm your looking at? I'm kind of keen to compare to the price that my neighbours are asking for their 320 acre farm which is 335k.

 

[canadianfarmboy]

thanks for the reply arron , their asking $210k for the farm , 3 barns and an old farm house with drilled well and septic !

 

[3waycross]

thanks for the reply arron , their asking $210k for the farm , 3 barns and an old farm house with drilled well and septic !

That a pretty good deal down here it would only be worth about 2.5 million.

 

[Aaron]

Sounds like a good deal, especially for the part of Canada.

 

[bigbull338]

man oh man $700 an ac is dirt cheap.i know of 2 farms here for sale 1 is 592ac set up real nice barns an corrals for $3200 an ac.farm 2 192ac for $3500 an ac.both farms owned by the same man.

 

[jcarkie]

depending on your age that would be the way to go. my sons bought 2 farms with real good interest one place through FSA(farm service agencies) and the other farm credit. they will help young farms get started but FSA paper work is really tedious. Farm credit paper work is simpilier interest is a little higher.

 

[canoetrpr]

I only wish I could pay 3 times that for a farm around here! 50 acres is close to 1 million dollars where I live.

 

[canadianfarmboy]

I know if i dont try and go fro this farm ill be kicking myself for a while to come . I work outside of the farm as a plumber also . Arron how does ffc work? CAn they tie a loan into farm along with the house and also livestok without losing my shirt ?

 

[Aaron]

I know if i dont try and go fro this farm ill be kicking myself for a while to come . I work outside of the farm as a plumber also . Arron how does ffc work? CAn they tie a loan into farm along with the house and also livestok without losing my shirt ?

I've never dealt with FCC but I know some that have. From what I understand, they will pretty much bend over backwards to give you a loan as agriculture is their focus. I wouldn't include livestock in the loan as prices could crash and your left with a severely depreciated asset that your paying prime interest on. Keep in mind that if the house is old, you don't want it to be overvalued as it will, at best, hold it's value. Pay a fair price for the land and negotiate the house price to be competitive if you have too.

If you need a loan to buy feeder cattle, I would advise you look into Ontario's Feeder Finance Program as it is about as good a deal as you can get loan-wise. Membership $25, 5% down of total loan, interest Prime -1/4% and a year to pay back. :cowboy:

 

[randiliana]

Unless FCC is different out there, they won't loan you money to buy the house, or home quarter/acreage. You're on your own for that, cause they can't seize the home quarter if worst comes to worst.

Check out the Breeder Finance program for cows. Only difference is 10% down and 5 years to pay it back. We're in it. Just make sure you don't buy over priced cows.

 

[bigbull338]

Unless FCC is different out there, they won't loan you money to buy the house, or home quarter/acreage. You're on your own for that, cause they can't seize the home quarter if worst comes to worst.

Check out the Breeder Finance program for cows. Only difference is 10% down and 5 years to pay it back. We're in it. Just make sure you don't buy over priced cows.

boy around here they can take your house along with the farm no matter what if the house is built on the farm.i know a guy that borrowed money to finish a freestall barn he was building.an the banker out slickered him putting the whole place up to get that added loan.an he was fixxing to loose his farm.he cussed with them an begged them to let him pay that note off so he could keep the farm.they finally agreed letting his sister write a check paying the farm off.so he got to keep his house an farm.

 

[TexasBred]

Sounds like he needs to read the papers before he signs if he ever does it again. Banks have to let you pay the note off rather than foreclose unless you wait til they sheriff is on the courthouse steps. You'll also have to pay their expenses they incurred trying to collect and going thru the foreclosure procedure.

 

[bigbull338]

he wont do it again,because that put him out completely.an it was a nice sized check that was written.i know the banker an he is slick.i wont do business with him at all.he got to nail 3 or 4 dairies that i knew.

 

[3waycross]

he wont do it again,because that put him out completely.an it was a nice sized check that was written.i know the banker an he is slick.i wont do business with him at all.he got to nail 3 or 4 dairies that i knew.

Gotta wonder why he isn't in a cast from time to time?

 

[TexasBred]

he wont do it again,because that put him out completely.an it was a nice sized check that was written.i know the banker an he is slick.i wont do business with him at all.he got to nail 3 or 4 dairies that i knew.

Gotta wonder why he isn't in a cast from time to time?

There are rules...I was in that business for years... I can't do anything you don't agree to...the banker probably did take all the collateral he could get...I would have too...but the guy knew what he was doing. Sounds like he just wanted the money at any cost. People do it everyday. IF he had made the payments it wouldn't have mattered anyway.

 

[3waycross]

Those pesky payments will getcha every time. I guess the fact that Bigbull despises bankers doesn't make them ALL crooks.

 

[TexasBred]

Those pesky payments will getcha every time. I guess the fact that Bigbull despises bankers doesn't make them ALL crooks.

A bankers 1st job is to make sure he is well secured IF he does make the loan. He operates within the parameters of many rules and regulations. The borrower is usually the one that says "do whatever it takes to get me the loan". In this case it seems the borrower forgot he had to make one scheduled payment per month....had he done that he would have never head a word from the banker. Having done this for a number of years i can tell you...bankers seldom know the GOOD customers by name....only those they have chased all over creation trying to collect payments from.

 

[TexasBred]

Those pesky payments will getcha every time. I guess the fact that Bigbull despises bankers doesn't make them ALL crooks.

Hey you old fart from the Rockies...just noticed you have 5000 posts..... congratulations. Hope you learned something. :lol2: :lol2: ( I certainly learned from you...many thanks ). :nod:

 

[bigbull338]

well theres good an bad bankers every1 knows that.an depending on who you are they rarely turn you down if you have a good banker.we was going to buy another 80 cow herd in the 80s,an went an talked to the bank.they said the cows wasnt good enough.an said no,that made my dad madd.so he told them he was paying his note off an pulling his accouunts.an when he went in to pay the note off they told him to go get the cows.we decided not to buy the cows anyway.