Turn Key or Fixer Upper

[midTN_Brangusman]

I am looking at purchasing some land in the next 2-3 years. Have debated on whether to go with a turn key cattle operation or a fixer upper and more acreage. In the area I have been looking, a turn key cattle farm is about $1,500 more per acre than one with about 40-50% timber that will need logging and pastures that will need redoing. This would be a pretty large track so talking about several hundred acres more for the fixer upper. My first thought was to go with the farms with more timber. Have it logged and cleared and rent the farm to a row cropper a couple years to get it lined out. However, with the cost of land clearing and bringing the soil up to good pasture standards, it would be nice to just back the trailer up and unload the cows. I'm sure there are some on here that have either contemplated this or have been there done that. Your thoughts and opinions would be appreciated.

 

[Dave]

I went somewhere in the middle. Certainly had been neglected and needed work. But nothing as extensive as clearing ground. They had too many horses which certainly beat things up. The people I bought from were long on theory and short on doing anything. Even after 6 months we regularly find things which they neglected or were lashed together. But to this point they are not expensive things to fix. A little seed, spray, and fertilizer goes a long ways. The guy told me that 9 years ago when he moved here he figured he needed to rebuild the corral. He never got around to it. Thank God that the wife likes to paint because this summer she will have plenty to do. But none of it is terrible just a lack of up keep. All of which helped to keep the price down.

 

[callmefence]

I think improving a place is about the most profitable things a man do with his extra time. The money you save on the purchase not only can buy you more acreage. But also the equipment to clear the place. Who don't like big toys. You can work at your own pace, with no deadlines and be adding 1500.00 per acre to your worth.

 

[MillennialRancher]

In the area I have been looking, a turn key cattle farm is about $1,500 more per acre than one with about 40-50% timber that will need logging

How much timber we talking? Age and variety? Planted or natural growth?

 

[Lucky]

I've done both and like fence said above think fixing up a place is both profitable and rewarding. I think allot depends on your age, budget, and abilities too. It takes a very long time to get land back in shape to run cattle, possibly many many years. I'm looking at 150 acres that connects to me right now that needs allot of fence work, some clearing, and some pasture maintenance. 5 yrs ago I woulda jumped on it, now I'm doing allot more figuring. When I look at turnkey ranches I see ranches that will never pay back with cattle. If you have the money to buy as an investment place though you could start living off the money cattle make really quick.

 

[JMJ Farms]

I think improving a place is about the most profitable things a man do with his extra time. The money you save on the purchase not only can buy you more acreage. But also the equipment to clear the place. Who don't like big toys. You can work at your own pace, with no deadlines and be adding 1500.00 per acre to your worth.

I have always enjoyed taking something and making it better. With land it takes a good bit of money. And that's always been the limiting factor on how much I could bite off at one time.

I've always took Callmefence's approach. If it was gonna cost $50k to clean up a piece of land, I'd buy a dozer or excavator, clean it up, and then still have the equipment. Then you have the option to keep it or sell it

 

[greybeard]

Mine was 100% timber in 2007 and I don't mean high dollar timber either. Not an acre of continuous grass on the place and damn few fences.
There's nothing wrong with looking out on a place, whether it be 5 acres or a bunch more that you took from nature and built fences on and started growing grass and cows on.
You can put a $ value on it I guess but the intangible value you place on your own work, sweat, tears, time and blood is something only you will ever really understand. Not fancy, won't ever make me much $, and has never been nothin but work, but it's mine.

 

[Nesikep]

I went somewhere in the middle. Certainly had been neglected and needed work. But nothing as extensive as clearing ground. They had too many horses which certainly beat things up. The people I bought from were long on theory and short on doing anything. Even after 6 months we regularly find things which they neglected or were lashed together. But to this point they are not expensive things to fix. A little seed, spray, and fertilizer goes a long ways. The guy told me that 9 years ago when he moved here he figured he needed to rebuild the corral. He never got around to it. Thank God that the wife likes to paint because this summer she will have plenty to do. But none of it is terrible just a lack of up keep. All of which helped to keep the price down.

Sounds like our place.. he had 30 Percheron horses here (I have a comfortable limit of about 25 cows).. the trampled EVERYTHING, and we're still dealing with hardpan issues that seme virtually unresolvable.. house was garbage, outbuildings were dilapidated, so were the fences and irrigation systems.. 28 years in we're still digging up bale twine too.

Recently in rocky fields when I plowed them up I took rippers through it wherever I felt a big rock and removed them.. I'll probably have to do it a couple more times to get them all, and I'm sure some will grow, but I gotta do it while my back still can.

 

[midTN_Brangusman]

Thanks everyone for your feed back. Very interesting point of views. Guess it boils down to what a man has time for.

 

[snoopdog]

Not only time, none of us knows how much we have of that. But , quality of life, is an issue. A dollar don't mean nothing in the end. I'm trying to renovate a place, and it'll never payoff, but it gives me satisfaction, to watch it change. I would plant the wheat on the irrigated field, leave the natural grass alone.

 

[BobbyLummus1]

I'd like to find a row cropper in my area thats wants that deal.

 

[ga.prime]

Several hundred acres @ $1500/acre savings would do a lot of fixing up.

 

[MtnCows93]

depends on the timber, id call up the local sawmills and see what its bringing. log it with your tractor yourself cut the stumps low and burn the brush as you go (ive logged with old tractors my whole life theres money in it if you wanna work) no reason to stump it cattle dont mind the stumps