We want to help you understand a few of the considerations you may want to make before you buy a farm.
And as a quick aside --- we are here to help you purchase a new tractor when the time is right.
Let’s get to it.
Do you seriously want to buy a farm?
Have you really thought it through?
Do you know what you are signing on for?
Have you ever worked on a farm?
Do you know what goes into owning a farm?
The small farm market in the US has been growing. Buying a farm comes with positive aspects. Just keep in mind that it is typically a large investment.
Before you jump in and buy a farm --- you need to seriously think about a few things.
Do You Have the Money?
Farmland can be pricey,
It is in high demand.
Whether you pay cash or take a mortgage --- you will need to have plenty of money to buy good farmland.
And this is just for starters.
You’re also going to have a vast number of other financial responsibilities by owning a farm. Financial demands must be kept in check or you could find yourself drowning in debt.
Talk to other farmers for a dose of reality. You must know what you are signing on for.
Are There Alternatives?
Have you investigated any alternatives?
Are you better off just buying a rural home without buying a farm?
There are many different reasons for purchasing a farm.
If you're done with urban life, you may just want to purchase a rural property and live a simpler, quieter life.
Do you want wide open space? A rural home with lots of acreage could be enough.
If your dream life includes growing crops and raising cattle --- then you may do well with a farm.
You could also opt for an urban homestead, or even a community garden in an urban area.
The key is to consider all your options.
Can You Afford to Go Bust?
As we discussed, farms are pricey.
What happens to you and your family if you fail? What if you go bust? We do not wish that on you --- but it is a possibility you should consider.
To make money with a farm, you need to know what you are doing. Whether it is growing crops or raising livestock --- there’s an art to doing them correctly.
It is highly advisable that you be in a secure financial position before you buy a farm. You also need to keep a nest egg and financial safety net just in case you have to pack up your life and move elsewhere.
And speaking of income.
Will the Farm Provide Steady Cashflow?
Here we go again on income.
We need to ask the hard questions to really drive this point home.
Unless you're supporting your farm with a massive fortune or investments --- then you will likely need the farm to support itself.
The primary purpose of a farm is to earn money --- not drain it.
You may need to crunch some numbers and see if the farm has a chance to pay for itself.
Take its history into account for the clearest idea of its economic background.
Complete a business plan and work that plan.
What's the Purpose?
It is important to know your purpose for buying a farm.
This way you can start looking for the right kind of farmland. Depending on what you'd like to grow or what kind of livestock you want to raise, you'll have to make decisions about the particulars.
Also it is important to know what you're looking for in a farmhouse.
Have You Thought About It Long Enough?
Buying a farm should not be done on a whim.
It is a massive time, energy, and financial commitment.
You may even want to consider working on a farm before buying one to make sure you like it.
The main thing is to give the decision some deep and long thought.
Have You Considered the Farmer’s Lifestyle?
If the farm life doesn’t fit your lifestyle, then there’s a good chance that you will pack up and sell your farm in a year or two.
Do you like the idea of getting up super early and working into the night?
You also need to consider your family.
If you have kids --- being on a farm may get in the way of their social lives and education. You may even have to homeschool them.
Make a list of the pros and cons. Determine which of those cons are things you can work around or are otherwise outweighed by the pros.
Again --- consider working on a farm before buying one.
Which leads to our final consideration.
Are You Ready for a Ton of Hard Work and Responsibility?
Two of the biggest realities for new farmers are the hard work and level of responsibility a farm requires.
We cannot stress this enough.
You need be prepared to work a heck of a lot.
Responsibilities include building maintenance, staffing, equipment
purchasing/maintenance, livestock purchasing/maintenance, growing crops, security, local ordinances, dealing with the DOA (in some cases), electricity, gas, air conditioning, heat, pest control, water, hiring professionals, and sewage to name a few.
This list could go on and on.
Many of these are daily responsibilities. While others can be spread out a bit. Some will require help.
Again --- work on someone else’s farm for some time and all this will become apparent.
A year would be a good amount of time so you can experience the farm operations during all four seasons.
Hopefully, this brief article has helped you understand a few of the considerations you may want to make before buying a farm.
If you need any further help or have any questions about rural living, tractors, implements, or anything else equipment-related, please contact your dealer, local mechanic, or call us at 602-734-9944. Please ask about our current new and used tractor supply.
If you are looking for old, vintage, classic, or new tractor parts, send us a part request.
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