Buying a farm

[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

 

[kenny thomas]

Where is the farm? How many cattle will it run. Unless its very productive it will be very hard.

 

[Cress27]

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.

 

[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.

 

[True Grit Farms]

I'd much prefer to live in a trailer on a 150 acres than in a nice house in town.

 

[kenny thomas]

If there is 50 acres of woodland there could be a big payment on tbe land. Hardwood timber is selling high here.

 

[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

 

[Cress27]

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.

 

[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.

 

[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.

 

[True Grit Farms]

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.

 

[uhwcuw]

don't do it you will have no time and no money!!!!

 

[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.

 

[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.

 

[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.

 

[Lbass]

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.

 

[Cress27]

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.

 

[Cress27]

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

 

[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.

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.

 

[Red Bull Breeder]

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