Buying a farm

[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.

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.

 

[Cress27]

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.

 

[Cress27]

 

[snoopdog]

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.

 

[Cress27]

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

 

[snoopdog]

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.

 

[Cress27]

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.

 

[kenny thomas]

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.

 

[Cress27]

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.

 

[cowrancher75]

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

 

[Ebenezer]

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.

 

[Cress27]

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]

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.

 

[Jeanne - Simme Valley]

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?

 

[farmerjan]

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]

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

 

[greybeard]

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..

 

[JMER1533]

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]

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]

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.