Cattle and Horse Ranch

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Anonymous

I am looking for a way to start a Cattle and Horse ranch in N.E. Oklahoma. I have been met with no luck!! The Government will not give loans to beginner farmers unless you have 3 years working a farm. How is one suppose to get a loan if they don’t have 3 years on a farm or one who has been working a farm? So I am asking you can any one help? I am open to even having an investor or partner in the business. I have found the place and everything I need. I just need the help. I really want my sons to have the same kind of life I had when I was a boy and to make one persons dream come true. thanks Cody



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Anonymous

Cody,

Please do not take this this wrong way but I want to offer you something to think about. If you have approached the private banks in the area and the government and no one will give you the money, there is probably a reason. As an investor in your operation they want to earn a safe return on their investment and by loaning money to a person who may not have the practical experience to make the operation cash flow positively they see this venture as a poor risk. I would be surprised if anyone on this website will step in and finance your venture at a reasonable rate if the previously mentioned sources have failed. I understand your frustration as I just went through it when we bought our land in Texas. We were able to get the money after putting 15% down but only because both my wife and I have stable off-farm jobs and I have an Ag Engineering degree. We got our loan through Wells Fargo as part of their part time farmer program. I know that it is not what you wanted to hear but I would suggest getting into the cattle business on a part-time basis (buying or leasing only as much land as you can currently afford as you will have to put down at least 15-40% of the total cost upfront)which will allow you to both gain both practical experience and also to build up a down payment for a larger piece of land. i would also suggest that you starting taking college classes on farm management and accounting or enroll in a program like the Ranching for Profit School. This education will prove to the bankers that you are serious and will make you a much better investment risk. Sorry that I cannot offer you a better answer but it is best to get it straight up front and hopefully someone else has some other options for you.

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Anonymous

Scott, Thanks for the info I have looked in my area for lease land and start off small but there is none unless I want to drive 22 miles from the house each way. I dont have a total of 3 current years farming Or work on a ranch last time I was on the farm I was young however I have keep up with the cattle but the local banks and Goverment want you to already have a farm or at least been working on one for 3 years for the beginner farmer program. Which I can't get since I don't have both. That is why I am asking for help here. I have even tryed the retiring farm program and there is none in my area. I will take your advise on the school many thanks Cody

> Cody,

> Please do not take this this wrong
> way but I want to offer you
> something to think about. If you
> have approached the private banks
> in the area and the government and
> no one will give you the money,
> there is probably a reason. As an
> investor in your operation they
> want to earn a safe return on
> their investment and by loaning
> money to a person who may not have
> the practical experience to make
> the operation cash flow positively
> they see this venture as a poor
> risk. I would be surprised if
> anyone on this website will step
> in and finance your venture at a
> reasonable rate if the previously
> mentioned sources have failed. I
> understand your frustration as I
> just went through it when we
> bought our land in Texas. We were
> able to get the money after
> putting 15% down but only because
> both my wife and I have stable
> off-farm jobs and I have an Ag
> Engineering degree. We got our
> loan through Wells Fargo as part
> of their part time farmer program.
> I know that it is not what you
> wanted to hear but I would suggest
> getting into the cattle business
> on a part-time basis (buying or
> leasing only as much land as you
> can currently afford as you will
> have to put down at least 15-40%
> of the total cost upfront)which
> will allow you to both gain both
> practical experience and also to
> build up a down payment for a
> larger piece of land. i would also
> suggest that you starting taking
> college classes on farm management
> and accounting or enroll in a
> program like the Ranching for
> Profit School. This education will
> prove to the bankers that you are
> serious and will make you a much
> better investment risk. Sorry that
> I cannot offer you a better answer
> but it is best to get it straight
> up front and hopefully someone
> else has some other options for
> you.

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Anonymous

Cody, Is the 22 mile drive the only thing holding you up from starting small? You might be surprised to find out that a number of ranchers have even longer commutes to get to their land. I drive 30 miles from our land/house to my job each day. Remember that 22 miles in the country is only about 18-20 minutes which is not that bad of a drive. If you are serious about looking into this further contact me directly by e-mail and I will help you to put together an example balance sheet for you operation so you can see if it is a viable business (i.e. will it turn a profit). You might be very surprised to learn how little money there is to be made in the cattle business. At the very least you will need to put this balance sheet together before you talk to the banks. Let me know if I can help.

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