I'm $500,000 In Debt After Taking Other People's Advice!
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- เผยแพร่เมื่อ 24 พ.ค. 2023
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which banker let a 22 year old borrow 500k? I'm just asking for a friend.
A bank that wants free land once this guy inevitably defaults.
I guess they know they can take the land back
The USDA guarantees most of these loans for farmland.
@@travismcdonald148 If that is true in this case, I can for sure see why they did. Heck what bank wouldn't loan any amount to anyone if they knew it had a guarantee to get paid.
One who's snorting coke and not the soda kind
Jesus! Dude better start growing rice and beans!! 😂
!!!
* weed and poppies
Hate to hear this from a farmer. We need them.
they need basic intelligence...we need smart farmers that know what they are doing...this guy got SUCKERED.
Don't fret. The government takes very good care of them.
BILL GATES WILL BUY IT. HELL HE IS BUYING MOST OF THE FARM LAND IN AMERICA!
@@johannesswillery7855no they don't. They are under attack by the government. They want to end the profitability for small farms then let billionaires like Bill Gates buy up all the farm land. Control the food, control the people. Literally freemason/illuminati/thirteen families/Zionist scheming.
40 now, and everything is paid for. Fortunately, I had a college economics teacher who taught me a lesson when I was 18 years old. That lesson was: you can't buy something else for every purchase you make. Having multiple sources of income is prudent, as is living within your means. I have a 13-year-old vehicle because it is all I need, I like it, and I can do whatever I want with it. My net worth is $4 million, and I can pay my bills without stress, but I don't live like I have that. I have no complaints.
Vey accurate from your POV, It really isn’t about how much you save, it’s about how you manage your money. Whether you work to earn income or invest, it still boils down to income vs expenses, so yeah you may look into investment advisors for a strategy that suits your goals.
A million dollars in profit is a fantastic achievement; how can I contact this advisør of yours?
Do your due diligence and opt for one that has tactics to help your portfolio continue consistent and steady growth. “Della Morley Prather” is accountable for the success of my portfolio, and I believe she has the qualifications and expertise to accomplish your objectives.
thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon
@@KingDavid-jj7tk
Get lost scammer!!! 😡
I did the same thing…borrowed 486000 at 23…paid it off at age 38….land value tripled. Don’t sell it. Figure out different ways to establish cash flow, that dude is going to be happy he did it.
In a low interest rate environment with population growth rising quickly. We now are entering rising rates environment with stagnant population growth and economic growth stagnating too. Sell it asap
@@reformedchinesecommunist Things can change a lot in 10 yrs. Interest rates might not go down below to what it is now and as long as there are people around there will be a need for crops. Also land will always be a commodity that is wanted so I wouldn't be surprised if the value goes up in the future. Not to mention that we are at the dawn of AI, have you seen some of the new farming equipment? There are machines that will automatically weed crops now. So the human cost may actually be eliminated at some point which means he could have a larger price margin in the future. So I agree with OP this could be the best decision the caller ever made. Not to say there isn't risk but you need to be risky in order to become wealthy.
@@High5748 I suppose. Very large risk with a pretty limited reward in the immediate future. Plus a very high risk of total foreclosure possibly bankruptcy. The AI thing is neat but im guessing it will be very expensive subscription based fee structure that will only be slightly lower cost vs human labor.
AI for select weed control may work in certain parts of the country…in North Dakota they are using 7.5 inch to 10 inch row spacing and will be using chemical for selective herbicide and conventional sprayers for the foreseeable future, precision ag is improving but chemicals are here to stay especially in that part of the country. Other big piece is not being talked about is the fsa office…with the government being environmentally conscious, they are going to throw billions of ag subsidies for eqip, and other programs. In our operation in idaho…mid 90s under Clinton they had of course cpr but also the new cap program that pushed notill, and 2 pass farming systems and to fallow with chemicals only and it paid very well with improved yields and fsa payments.
@@reformedchinesecommunist We still have price support on agricultural products.
Kid: "my Dad told me to get in debt half a million to buy a farm"
Dave: "sell your farm and throw in your Dad as a freebie" 😂😂😂
Bless him. I can't believe at 22 they would give such an massive loan.
Banks mostly can't loose so they don't care
If you are old enough to join the military, go to war and risk your life then you are old enough to get a loan
Productive farmground can be highly collateralized. Not surprised at all, especially as an active, multiple-genetional farmer.
fake call ?
The land must be worth it. And he and his dad must be good farmers and there is a future in this and an inheritance coming.
I think Rachels frustration with her Dad on this call was fair. As Rachel tried to advise Nathan try sell the land asap. Dave made some similar mistakes.
Dave made some similar mistakes.........hopefully he will be a millionaire like dave within 5-10yrs like dave did
I'm starting to like Rachel more than Dave. She's a lot more empathetic and at least tries to help. Dave didn't offer Nathan any help, he just kept beating a dead horse.
That's how Dave knew the caller is an idiot. Because Dave was an idiot.
BILL GATES WILL BUY IT. HELL HE IS BUYING MOST OF THE FARM LAND IN AMERICA!
Dave goes on and on. Rachel never was able to get a response about selling the land. Dave needs to come up for air and take a breath sometimes
Alright Dave he gets it. It was a dumb decision. You’ve made that very clear. Can you help him now??
There isn't much help - he's gotta pay it off. Now he knows not to do it again. Or sell it. Maybe his "smart" dad will buy it.
It’s not good business to be this dumb lol 😂 Dave is right
Not much Dave can do for this guy lol
@@jimroscovius look thru the comments there’s some extremely helpful replies. He could of atleast given him more than 5 seconds of “help” at the end. Almost like it was an after thought. He didn’t even ask him questions about the loan. What bank was it? Was it a credit union? What was the interest rate. Is there an houses on the property? Can you rent pieces of the land out? What Dave did was not help
@Super Vexed None of that matters. He has to farm and pay it off, or sell it and be done. Those are his only choices.
Imagine calling in for help and instead all they do is call you stupid for 8 minutes straight. The man called in for advice - get over the dumb decision he made and offer some advice on how to dig out of it. People have called in worse situations and you've offered better advice. SMH.
That 22 year old deserves that. He’s clearly stupid when it comes with money.
RC CARD RIPPERS Dave suggested that the man sell the land...don't know what else you think Dave should have told him.
My guy.... If you're so critical then what do you think he should do? It's not fair to come at Dave when it's hard to hear such a tragedy. Sometimes the hole can be very deep sir.
@@gametrain5439 👍
To be fair, Dave enlarged his point to include all similar situations w/a flawed business model. So he was lecturing the audience, not just the caller.
As a farmers daughter growing up in the late 70s and early 80s, with seeing how my parents lived with farm debt, it required taking a second mortgage out on the family home which was a stressful lifestyle
Dave is an ARROGANT you know what. HELP people without berating them!!
I could tell he was worried from how he entered the call with the stress in his voice, god bless this man..
We need farmers. I am so sad many of them end up in this situation. They are feeding the country and have to face these hurdles. This issue is important and we need to be supportive of farmers!
I’m not a farmer but have multiple family members that are and what I have found is the ones that stopped farming and used the land for different business purposes did well , very well. That doesn’t mean no farming it just means some of there land would be leased out to bigger farming companies. Capitalism works extremely well if people can open there minds to all possible ideas and concepts.
As someone who has leased land from others... Lease money BARELY covers the taxes. It is impossible to buy land and cash flow over anything less than a 30 year time period and the ONLY reason it "cash" flows is because of land appreciation values going up. The only "deals" are from people who essentially GIVE the land to someone as they want to see it used properly and they know they are not getting market prices. Or someone has irrigation and the plot next to it does not as they cannot put in the $$$ to get irrigation to it. I'd say with near 90% certainty your extended family aren't telling you the actual #'s then as NO, your extended family is NOT making money if they are leasing their land. All they are doing is paying the taxes in 90% of the cases. Or it is in say a rare area where irrigated water rights are very constrained and actually worth something to say grow vegetables or sweet corn or 'x'. Any dry land? Forget it, you have to be a multipmillionaire to buy the minimum ~1000 acres necessary just to start and another ~1000 to rent just to graze cattle which is less $$$ upfront than wheat, soy, alfalfa etc.
Actually capitalism is the root of all these issues, but go off lmao. In essence, you think a system for profit is remotely efficient? More fool you. Open your eyes to a system where everybody's basic needs are met and the workers keep what they produce. Capitalism works for capitalists, not the average person. So it really depends where your priorities lie, and if you have a healthy worldview you won't support it. Ironic name you have there by the way, considering workers have precisely 0 freedom.
@@snowpz what a complete moron.
@@snowpzunfortunately your communist idea doesn't work anywhere.
@@jamisojo capitalism doesn't work. It works for the rich. The sooner you get that the sooner you'll stop being a drone and actually try for a better system lmao. You're uneducated.
If banks stop giving credit you really see how much money people have.
banks want people to stay in credit card debt so they can keep paying interests
That’s how banks get ya
It's why Americans live better than other countries. Credit. Without that we'd be another 3rd world country.
Well that’s one way to fix inflation lol.
BILL GATES WILL BUY IT. HELL HE IS BUYING MOST OF THE FARM LAND IN AMERICA!
As a person who grew up on a farm I can tell you that's how hard it is to start out. I'd like to know where and how many acres. Ramsey gave him good advice as farming is a business and you need to approach it as such. He needs to find other sources of income off that land. Grazing some cattle on untillable acreage or something. At $500K it's a small farm, maybe 100 acres. Now, add in machinery $$$ and seeds, and fertilizer and fuel and spray and, and +++.
I've worked with some farmers, although they worked full time jobs to make ends meet, several also had college degree's) and they have large families to help pitch in to get the work done, guys at work use to ask them why they farmed with all the challenge's and hard work required, response was because they truly love farming and it's a way of life rather than a regular 9 to 5 manufacturing job!
Secular job? Farming is also secular. Lol unless you work at a church
@@AlexPerazaTV Google search on (secular) makes everyone smarter, i meant traditional manufacturing job or the like , lol
BILL GATES WILL BUY IT. HELL HE IS BUYING MOST OF THE FARM LAND IN AMERICA!
I just finished paying off a farm loan. Land prices are at an all time high. My grandfather could pay $50 an acre and this kid probably paid over $10,000. Dad's advice was rock solid in 1950 and even in 2000. Now I'm not so sure. A lot of people went broke in 1981 doing this sort of thing. The idea is the land value makes it worthwhile even if you never get to hold the money.
If you can't actually use the money, do you actually have it?
“That’s just It’s duumb” 😂 I love Dave
He should have made this call BEFORE he got 500k in debt.
Only time I haven't heard Dave say "eat beans and rice." That's the farmer makin' the beans 🙄🙄
Maybe the father who gave him the "Advice" in the first place has 500k in cash he can gift his son?
I understand it is Dave’s show but really, the amount of interruptions he makes towards his guests is not only rude but really diminishes the effect of the message. C’mon enough is enough
Especially when Rachel was trying to help.
He has some form of ADD. I've noticed it's been getting worse, his own daughter had to tell him to let her finish a couple days ago. He doesn't even realize he's interrupting people constantly.
If the loan is for business income, then it's not so scary. You have to factor that in. Dave always makes all debt seem bad, but that's not fair. Consumption debt is terrible. But business debt is often ok, if you have a plan. I borrowed 300k to start a business 10 years ago, and now I make 300k/year, could sell the business for 750k, and have nearly paid back the entire loan (2 years left).
Don't let the cookie cutter advice get in the way.
25k profit per year on 500 000k loan is terrible. And that is a loan that requires active work. You can generate 35k - 50k per year with 500k passively.
I agree Dan. This isn't quite as scary as Dave makes out.
But, he may just be trying lecture the millions of viewers who might make mistakes.
@@lafrugalistefutee6221yes, it is not a great return but that figure was also admittedly referring to bad years.
The original commenter was just pointing out that this is a business loan. He didn't buy a Lamborghini to put in his garage.
Makes my $4500 of debt not seem so bad.
A tip for all farmers or want to be farmers these days. Land is no longer a thing you buy if you want to farm. Land has become an asset for the wealthy to maintain their wealth.
Your goal as a farmer is to control/use the land…. Not own it. These vast swaths of land need management, and that’s where you come in as a farmer. Sign leases with these landowners and manage their land for them.
If you run cattle and there is a property with no fence/water/etc. Find someone that is willing to do a 10 year lease, build the fence and put in the water and run cattle. You do a good job they renew the lease.
This saves the landowner the headache of bush hogging/haying/etc and you lower his property tax burden by having it in agriculture.
The reason your dad gave you bad advice was because he came from an era where farmers owned their land, that’s just not possible anymore unless you inherit it or come from wealth already.
Dave needs to let Rachel follow up on her good questions without interrupting and needs to stop stealing her thunder by butting in and elaborating on her good points. It’s not a competition.
Yeah, it feels like Dave is kind of playing "the guy who has the wisdom to give to farmers".
But, it is his show and hugely successful business. Maybe there is something we don't understand.
@@jamisojoNot saying he’s not successful- he makes good points. Was saying he should be less rude to his daughter live on air.
Farming is super tough, and we need them... there has to be a way to better support them to start business. ❤
Well... Many of them do very well.
If your family didn't do it before you, it may not be wise for you to try doing it.
One could also work at something else while they're young or work for someone while starting your own farm. There are a lot of people in the world who need more help than these guys will. They can always work a regular job like the rest of us.
Dave is there to help not beat him down more.
Grow ethanol grade corn and sell it to the ethanol plants. That's a pretty easy starting point in your area.
They hardly asked him any numbers. I do t think they know enough. Farm banks wouldn’t loan him the money if it wasn’t a good idea. I have a hard time with their hard criticisms on this one.
Keep up the good work!
You cannot cut your way out of recession you've got to invest your way out of recession, the Conservative party are in the dark ages on policy they've got to think again. My primary concern is how to maximize my savings/retirement fund of about £170k which has been sitting duck since forever with zero to no gains.
@Phil Stones The truth is that people are finally waking up to the fact that our systems are breaking down in thousands of different ways all around us. Personally, the financial market seems like the only way to go with my long-term horizon (accumulated about £557,000 in earnings since May 2021), but if you don't have that time luck, it's a tough market out there down almost nowhere feels safe!
@@corrySledd I've known I've wanted to start investing for a few months but just haven't been brave enough to start due to the market so far since mid last year. I have 60k i want to transfer into an s&s isa but its hard to bite the bullet and do it. £557k is a huge milestone , Please whats your strategy ? i will love to have an insight.
@@Aziz__0 Yes, a Fidelity financial advisor named "NICOLE DESIREE SIMON" put an end to my fears about investing, and after making more investments, I was able to reach the high six-figure mark in less than 3 years. A licensing advisor satisfies the necessary security criteria; hence, reimbursement is guaranteed if I'm dissatisfied with the service, so I'm much better off hiring one.
@@corrySledd I just copied and pasted her full name on my browser, super impressed with what I've seen so far. thanks for sharing!
Shame on his pops for giving his own son bad advice like this. And the sad thing is, he probably won't even offer a helping hand or advice for him to get out of this.
He likely gets to farm the land with Dad’s equipment for free and Dad found him land to rent at reasonable rates where he also gets to use dad’s equipment for free as long as he gives dad free labor in return. That’s how this stuff works
Well ... We didn't actually get that much information. We did not get the whole story.
Most of the farmers around here either lease large chunks of land, or a generational family operation.
I'm guessing that that is accurate. My father farmed, so I'm not an expert. But it would be very difficult to start from nothing.
SELL THE LAND. Parcel it out if you must. But sell the land. God bless you.
I am speaking as someone who is first generation off the farm, and as someone who would LOVED to be a farmer. Another area Dave has little experience with. Yes, $500k on a piece of land that won't break even is dumb; that's basic math. But farming is not a big profit endeavor unless you are a huge operation. A lot of farmers barely scrape by, so the advice given to this young man by family really wasn't that far off base.
A farmer's salary is above the median salary.
A lot of americans* barely scrape by, so this advice sucks because normal sucks.
Well well well…looks like student loans aren’t the only stupid choice.
atleast he has something to show for .. not some stupid social justice degree..
he can work this land to pay it off.. but you will never be able to say that with stupid sociology degree!
you can always sell land.. not the degree!
@@NaNa-lt1po It doesn't change the fact that it's extremely dumb idea putting yourself in this situation.
He was pressured by his daddy to do it, the same way college kids are pressured by their parents to take insane loans for useless degrees.
I hate when people put farmers and military on a pedestal, MATH always applies I don't care if you feed me or not.
@@NaNa-lt1po I think you're both right. I do agree that student loans are the WORST kind of debt, undischargable in bankruptcy. At least he can declare bankruptcy and walk away. BUtr hiemps is also right. . .we seem to put blue collar people on pedestals anymore and vilify education in this country, at least Red States do. (formal education).
I'm going to tell you. . .I have had managers who have been associate degreed who worked their way up and college level/master level leaders and the latter ARE better. The associate level degreed person just seems out of their league. I' know that's unpopular to say here, but they are more articulate, broader thinking and know what they don't know, a hallmark of professionalism.
If you want a comic play on this, rent the movie Back to School with Rodney Dangerfield. Even though the fictional character was successful, he knew somethign was missing and went "back to school" and then "hilarity ensues." I admire that kind of humility.
@@hiempsal5392 I also think the farm life has a seductive quality about it. . .workign the land everyday. IT's a dream for many people instead of a hard scrabble business.
If he wants to own land it will never make its own payment, you always need other land to pay for the new land
The thing is land near your farm is not available always so when it comes up for sell it’s buy now or maybe never. You don’t know if that farm is going to be tie up for generations or not. We don’t know how much land it is or what he growing but a little Joel Salatin could help this man more than anything. He the Ramsey of farming.
Unfortunately that's what a lot of farmers are facing. My parents and grandparents farmed, I'd have loved to have continued the tradition. But profit margins have gotten thinner and so farms have to be bigger to be profitable. The land that made a good income for my parents wouldn't have been enough going forward. And land around here is both expensive and comes up for sale once a generation or less (some of the land we have hasn't been up for sale since the 1880's, the last land around here, other than little bits and pieces, came up for sale about 10 years ago). So if you're a farmer you have the hard choice to get into a bidding war for scarce land, or get out of the business. Every time dad and I ran the numbers it came out the same. I'd be working for the bank for 20 years and two bad years in a row would wipe me out. And you can't go back in history around here and find a 20 year period without 2 bad years in a row. So I got out. Went into engineering. Good decision financially, but I still miss those days growing up on the farm, and I'm about retirement age.
Everybody in the middle is getting squeezed out. It’s a war on the middle class. You can either go broke and live on government aid or leave the middle class by earning a higher income. All the jobs in the middle will be outsourced to other countries and everything will be imported. We will have the ruling class and the peasant class. No more middle. That is the plan from the democrats and with schools grooming the children to be democrat everything is shifting towards communism. All that are left is the ruling class and the poor.
22 year old with almost half a million 😢😮. I'm scared for him. I'm in my 20s and scared of debt and even planning on working, saving then paying cash for college coz I just don't want to be in debt or owe anyone anything.
I really feel bad for him.
He should run crop totals and grazing totals and decide where the most revenue comes from. Figure out what’s the least costly and highest revenue crop
It sounds like he is very much a conventional farmer. He could make significantly more than 25,000 a year off a parcel of land if he investigated some more small scale sustainable ag practices. I grew up the son of a conventional farmer and the way things were done 30 years ago are not the way to profitability today.
This is true. I'm seeing much higher profits potential in market gardening, and more people are interested in buying that type of produce too.
@@estyria777 my neighbor is a farmer. He owns about 3 acres of land, and he uses greenhouses to grow produce. Way more profitable than traditional gardening.
Yeah he needs to watch Cole the cornstar to figure out how to grow farming and at least break even.
You have to be close to an urban center to make a go like green houses and the like.
Conventional farmer is the only way to go in the middle of nowhere are there aren't the logistics in place to do anything else.
In theory yes but in practice thats doesnt work. You need way too much labour for all of it
Dave just tore into this guy for 7 minutes lol thank you papa Dave
Thank you what? Dave offered no insight nor help for a first step. Just twisted the knife in this guys chest for 7 minutes. Give me a break.
@@shoopSAUCE yeah that’s what I’m pointing out
@@alangonzalez5198 Gotcha, just read differently. Dave was abysmal here and it's been a trend lately.
@@shoopSAUCE the kid needed to hear it. He needed to be made fun of for these 7 minutes to set him straight. I have a feeling he will get through this now after hearing from Dave.
@@costco_pizza lol
I started landscaping during pandemic. It's the same situation. Yard people claim to be able to make so much money but can't tell you or themselves how much actual profit they are making. Not all of course.
So many people fail to run their business like an actual business
When Sam Walton died in 1993 he was still driving a 1978 pickup truck.
There are a lot of things you can do with farmland. Create a playground out of it. Portion it off. Rent parts out. Save some for crops get ambitious!
Thanks Bill Gates for ruining farmers opportunity making prices sky rocket
Not only Bill Gates. Foreign buyers through investment companies.
Subdivide the land into individual lots and put a gravel road in. Sell every lot individually or to a residential developer.
@@michaelhinkley2598Great thinking
@@michaelhinkley2598 Sisseton ND is a tiny farming town in the middle of nowhere. There is no demand for residential development. If it were that easy, why wouldn't the original owner have done it?
You have to be joking that Bill Gates made the prices of farms go up.
He owns less than 1% of US farmland, which is still A LOT, but does not move land prices.
If people couldn't make a living on the land by farming, the value would stop increasing.
I have learned to be careful who you take advice from. Family members are not excluded.
Farmers do this all the time, BTW.
The reason it works is that land prices have continually gone up.
Farmers are assit rich but cash poor.
Don't sell the Farm. The coming inflation is going to cause that land to soar in price. Give it two or three years. That land is going to be double the price it is today.
Great advice
The bigger question is; how does a person start and make farming work today? I think [and Dave could have suggested] the answer was to begin by leasing and farming the required acreage, stockpiling cash for a few years, then buy farmland for cash [no debt] and continue farming? Tell the guy to sell the land - hopefully paying off the debt - and proceed as above. If he cannot make it by cash flowing the business, he certainly is doomed out of the gate, as is.
Farming is such a difficult industry, I have no idea how people do it. Thank God for our farmers, though. Without them, we would not have what we have -- and that doesn't just mean food. Most every farmer is in a constant state of debt. This young man needs to increase his revenue streams. If he can get into heavy equipment, or turn part of the land into a gravel pit/sand pit/quarry -- those would be other great sources of income. And I understand where Dave is coming from on this one, but he doesn't understand the commercial farming industry.
In the UK we would get planning for part of the land for change of use ie light industrial, then sell it to investors / developers. Increase the value of the land, repay debt and you have the rest of the land unencumbered
Kinda surprised Dave didn't suggest reworking the business model. Maybe farming 10 different organic fruits and vegetables and DTC sales instead of bulk sales.
Look at your parents and how successful they are before making money/life decisions.
It always baffles me how big these American loans are. In the UK there is so much regulation! You don't see loans being handed out like that here, unless you have a stellar income and faultless credit rating and credit history. It shocks me!
That's racist. How are minorities going to get loans? I think that's what Obama and his bank friends would say anyways.
His dads advice really wasn’t horrible. They aren’t making anymore land. As a farmer, you can deduct losses. I know a guy who hasn’t paid taxes is 30 years because of his land. This call really is missing a lot of information. If you break even for 30 years, this young man will more than likely be able to sell that land for 1.2 million. Guess what, that’s a nice gain
He bought the farm! And not in a good way. Bless his 22yo little heart ❤
To have a chance of keeping the land, he has to find a way to make generate MUCH more cash flow. Not necessarily by farming it. Depending upon location, it may have value for some other use. Simple economics.
When you go to Ag Business school they force you to make a Business plan with loans. They get angry if you tell them that you don't want to use loans. One of my professors was also a farmer. He's worth millions of dollars but still uses a quarter section of land as collateral for an operating loan. This is the standard for modern farming. It's pathetic. I've been there and done that with both crops and cattle. The cattle lost me money but growing corn was easy money, even at $2.85/bushel.
And how the heck is he not breaking even? Crop prices are sky high. I work at a grain elevator so I know it quite well.
He is making a profit on the crop. Just not enough to cover the mortgage
How are you not making money on cattle have you seen the prices
@@zackhall6146 Because I owned cattle 5-10 years ago.
@isaiahfronning5157 heck prices where high then too it all depends on how you're doing it and where your at
More like this from Ramsey… please
Oh my. Tons of debt, but he can get out of it!
For starting a farm it's nothing, cost millions to take over from parents/ others and do the new rules,
Also in farming/banking the tax avantages are the forward reasoning,
working for the bank, and when shtf the bank has it all
but you have a nice new tractor to play with
Put a housing development on it, plus some retail, commercial
No one realizes what farmers really go threw. It's a sacrifice in many ways. People don't realize most years farmers don't make money or barely make even. People have no clue.
BTW, if we didn't have people like this, taking financial risks like this, we'd all starve to death. Thank a farmer!
Lol wut?
Put the pipe down.
we wouldn't starve corn would just be twice as expensive
What the cocaine mushroom are you on?
@FatMenace it's actually spelled *what
I don’t agree. Land is not any other business , it’s partly a business and partly an investment, it’s not that the land will be worth 500k for next 30 years
If you break even, buy it. But you have to have fail safes in place. If you break even every year it’s worth it. Because at the end of the loan term you have that piece paid for and it will only make you money. Think of it as a retirement plan. If it’s not costing you money out of pocket it’s worth it. That’s why a lot of farmers have outside jobs. The farming becomes more of a retirement plan.
Starting adult life 500k behind. Way to go!
Although farming is a noble profession requiring the utmost patience. It's also a gambling profession because of what the debt to income ratio can become by all the uncontrollables like needing large equipment, right growing and harvest conditions.
Why is a 22 year buying land to farm anyway ?
My parents was" renting "a piece of land to farm .
They spent $ 15,000 for equipment to use on the farm.
They brought one used tractor and tools and wood supplies.
My dad did like his landscaping job. He was getting $ 6.50 a hour that in 1995.
for $500,000, he could have bought a small commercial business, that would likely cash flow much better than that.
True, but that doesn't fit under Daddy's expectations 🤷♂️
Its likely what his dad did: get a big loan to farm because thats all he knows. What his dad didn't realize is it isn't 1979 and that 10,000 acres isn't $30,000 anymore. But that lifestyle is normal for farmers; they have to buy that quarter million combine to make a $50k annual income.
I had a 30 year loan and when i got sick i sold. But now 30 years have passed....
Something's missing. How did Nathan get a $500K loan without proof that the income would pay the mortgage plus business expenses?
USDA loan and the fact he comes from a multi generational farm where he can trade his labor for equipment use from the older generations
what about a shooting range? setup a trailer park and lease sections of land. setup a drone rental area by the 15 minute half hour
Our educational system failed to teach common sense math whether its from school or home school or parenting. Practical education is so important.
Common sense hasn't existed in America for more than 50 years.
Does some of it butt up against a town where he could partition off or sell some of it for new housing development? Or just sell the whole thing?
"Does some of it butt up against a town where he could sell some of it for a new housing development?" DUDE! It's SOUTH DAKOTA! How many big McMansion suburbs ARE there in SD?
To the caller, I hope you read this. You can make twice as much money at farming by following the Joel Salatin, and Greg Judy model of sustainable farming. Look up White Oak Pastures and listen to the story of how they turned their farm around. Don't sell to the sale barn. Sell directly to the consumer whole beeves, halfs, and quarters. Don't farm according to USDA model. Follow a farm to table model direct to consumer. I hope you are raising meat instead of a crop. Pigs sell for $1000 each. Pastured meat chickens are ready to process in 9 weeks. You can make a really good income if you do it right and don't buy a bunch of equipment.
What can you farm in North Dakota? That place is freezing most months of the year. Seems to be the worst place to start your farming career
I didn't read all of the comments, so maybe someone already brought this up, but I hope that he owns both the surface rights AND the mineral rights. Farming is a tough business (God bless them), but collecting oil royalties is easy money until they run dry. Then, some companies will pay a little bit to refill the holes with the saltwater used in the horizontal drilling process.
"Then one day he was shootin at some food,
And up through the ground came a bubblin crude.
Oil that is, black gold, North Dakota tea."
The only thing Dave Ramsey did was criticize the young man...instead of trying to figure out a solution
My parents went hybrid farming and by my generation were are not farming anymore. The land is rented to cover the taxes. I understand the generational idea of it but your ancestors did it to provide for the family. They’d be happy you doing what works today to provide. This is coming from what would have been a 6th generation American farmer. Besides niche markets small farms are out competed these days.
Why wasn’t he aware of this before making the commitment? Either way, farming is a long game, over generations. It doesn’t necessarily take that long to pay off in a lot of cases but it does take a long time to grow and long time to establish your operation from the sounds of it, but once it’s humming it can be profitable.
As soon as I heard he was a farmer I knew where all the debt is. 500k is actually not the worst I’ve seen for a farmer. Some are well into 7 figures
Farming profit margins are pretty low once you average out the years, most successful ones either are able to own their land and business out right such as from inheriting it from previous generations or they found a niche with higher margins. Otherwise all your margins go straight to the interests.
Well, to be fair, he does not make no profit. In 30 years he will own land that's worth half a million.
Im just thankful that im not in this kind of situation. Im 33 yrs old earning 450k annually and no debts. Maybe its one of my fears not having money is my driving force why i work so hard and to retire with peace of mind.
Young man, your an amazing worker and have the heart of gold for listening to your dad. However, as a mom, I want you to sleep with peace of mind. Therefore, sell that deal because it’s a bad deal for you right now and just work a regular job and save your money so when the time is right, you can buy something that will be yours and you can profit from it. Great respect for you but as a mom, I like you to have a life without worries:)
excuse me, how do you know he's an amazing worker??? i get that's you're trying to be supportive but this is pathetic territory. not needed. the advice is ok though.
If he is cropping, rather than stock, he probably has enough free time to pick up other work. That could boost his income enough to service the debt.
Would love to know how he fared nearly a year later.
Many factors need to be considered, but he could welcome trustworthy hunters to hunt/protect the crops and make a killing. It’s done all the time down here in Tx. So many people don’t have land or access to hunt and many will pay to hunt the property. I’ve hunted w/ people from MI, OH, VA, etc., who travel to TX just to shoot a hog.
Investors have killed the little guy in farming.
It's too hard to get in without a ton of capital already.
The little guy was never alive to begin with in farming.
@@amireallythatgrumpy6508 umm.. never?
90% of the population was involved in farming in 1800.
@@melanieb2132 Back then everyone was the big guy. There were no little guys.
@@amireallythatgrumpy6508 that's interesting philosophy. Everyone could only manage 40-60 acres, so they were all the big guy.
@@melanieb2132 There was very little travel in those days.40-60 acres was the size of most people's world back then, because they never saw anything that happened outside their patch.
Pretty normal in the farm world. The loans people sign for/able to get is ridiculous.
Amazing podcast!
I'm wondering if his dad really, truly told him that, or he just heard what he wanted to hear.
Business loan 7% interest or more. What's the problem when student loan rate is 7% too. If you don't feel sympathy for struggling students with loans, you shouldn't feel sympathy for any business owner with 7% or more. You sign the dot line, pay it up.
He needs to plant Tomacco. That stuff is addictive and people will buy it like crazy!
In north Dakota 😂