Financing a Farm - How We Bought 70 Acres In The Blue Ridge Mountains
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- เผยแพร่เมื่อ 6 ต.ค. 2021
- Financing a Farm - How We Bought 70 Acres In The Blue Ridge Mountains
Today we are going to talk about how we financed a 70 acre farm in the foothills of the Blue Ridge Mountains.
There are a number of creative financing options that will help you make your farm possible, this is just one of those options.
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Thank you so much for talking about the financial side of farming. From my experience, most of the time people posting TH-cam videos about farming don’t get into the financials and typically only talk about how to breed/raise/process animals. I have a little under three years before I can retire from the military and permaculture farming is what I plan on doing for my second career. Financing my future farm is something that I think about regularly.
That sounds like a perfect retirement!
I’ve thought about doing this too when I separate from the military. 👍
Congratulations, So nice to watch a channel that is still about farming and showing your operation. I got so many ideas watching yalls channel. So many of the other channels have gotten away from there farming and are just trying to make a living on Your Tube, all they are interested in is selling merchandise like t-shirts and hats and what ever else they are promoting at the time. So keep up the good work I really enjoy your videos. Farm is looking great !
On the topic of boar taint, for public sale I totally agree.
To add to that though, processed an Intact boar myself on farm for our consumption just a couple weeks ago and had zero taint (he was a year old chasing girls at the time of dispatch).
Totally agree on the castration, wife actually made a table with a safety cone in it for castrating that makes it a one person operation and MUCH easier.
Ask 5 farmers about boar taint and you'll get 6 answers. What I've dug up is more heritage breeds, keeping them in clean and uncramped pens, and slaughtering the males a bit early is generally enough to avoid taint. For older boars like Hamlet, I'd separate and keep him on clean land with a high fiber diet for a few days, then if the meat smells a bit off, I'd treat it like wild meat - 24 hours in buttermilk and send it to the smoker.
Wow, what a wife. She works side by side and step by step as hard as you. Hope you really appreciate Sondra🚜🐓🐝🥾👩🏼🌾
Congratulations! We are under contract for a 20 acre spread. Our main issue is water, water water.
Thanks for the info
Great video, congrats!!
Congrats on the new Farm!
Congrats to you both on the new farm
Thanks for sharing your experience!
My wife and I are starting an organic farm and a TH-cam channel. Your channel offers really incredible content for beginning farmers, thank you for doing what you do. This content is invaluable.
What a nice feeling!
Great Video!
Great video, thanks so much for the wisdom!
Congratulations!!!!
Happy to see you guys starting to get settled. Thanks for the tour and the explanations on financing options. Honestly had no clue.
Excellent 👍👍👍 . Thanks for sharing
good to see you again from louisiana
Awesome 👏 Glad all worked out in your farm process. Now with the new dawn starts lots of adventures. Congratulations!
Thank you so much for sharing your purchasing experience, so very helpful!! We continue to try and find a place to expand to and this gives us hope!
Place looks great. Nice shop too.
May I suggest that instead of dividing by twelve, maybe (if you can swing it) divide by ten. Then if you have a bad month, especially close to October, you're not so likely to face stress. And if things go wonderful all year you can still spend the extra two months on whatever else the farm needs.
Beautiful area.
Hi.... Thank you 🎥👍👍👍
You have a beautiful farm!
Thanks for the info...may you continue to thrive in prosperity and blessings
Great information. We appreciate your videos. Wishing you all the best
Boar taint is real for sure. We castrated a pig and only found one testicle. When we ate him I learned 2 things: 1 - There was a second testicle inside of him, 2 - I can taste the taint. It's horrible! You're doing the right thing!
Congratulations and all good wishes on your new spread. I'm impressed by your creative financing strategy.
From a business standpoint, debt can be really good, in that if it fails, it fails, you can walk away as it all burns down behind you. You didn’t lose as much of your own money.
I shot out of the gate debt free, being a young speculator id made a small fortune and had the capitol. My whole reason for going in to farming was a way to get the land and lifestyle, and getting it to financially support itself. It was a no brainer vs paying $1-$2 million for a spread in a luxurious suburb, and being a tax slave on top of not being able to use your property to pay for itself etc…
My neighbor wanted to sell me his farm, but it would have required a loan, and I’d solidly fallen in to the organic space. They did not lend money for organic farming back then. He wanted me to do on his land, what I was doing on my own, so he did owner financing, and included all his equipment.
It was such a matter of shooting fish in a barrel back then, that I’d taken on a lot of rental ground from a big investment group of doctors and attorney’s. I approached them with an idea. I wanted to buy out a 1400 acre operation. I formed my own financing company, and arranged for them to buy that land with nothing up front. I’d managed to get the land valued as much better farmland than it was, the banks that were bankrolling the finance company took a look at the equity, and the credit and reputation of the buyers, and it seemed solid to them.
I did the same thing 3 years later, with a 2500 acre operation. But it actually was prime farmland, and the price reflected such, but their was sufficient equity across all the ground to keep my books looking decent. All in all,for 14 years, I made all the land payments for the investors, and paid them the same rent I was paying on the other acres I was renting conventionally. I had a buy out at the end of the 10 year leases for $1/acre. Believe me, those investors would do it again if given the chance. But it would be harder to do now since all the fake corporate organic product has hit the market. Pricing is not as good as it was…
Fast forwarding to now, two years ago, I leveraged the entire farm out to 50%. I’m liquid in the bond market, treasuries can be bought and sold instantly, but I’m getting more back on my money than the rate I borrowed at, and when a land comes up in the 3 zones I farm, I can snag it. With rates being high like they are, their are deals on farmland again. I’m not sure how far I’d be willing to go with it. I like being modular, being able to simply stop farming 1/2 of my ground by letting my leases go.
You don’t take organic crops to market and walk away. You have to sell them. So far so good, but how much is this price pressure going to build? Will the better products win, or will the high tillage, environmentally destructive organic in name only be the champion? It’s still farming, lots of uncertainty.
I really appreciate your channel! I have learned so so much from yall since I found it a couple months ago. Do you ever do farm tours? I’m pretty close by in Asheville.
Thanks for all the good info in the financial end. Very good video👍
Congratulations! God give you straight and health to be able to carry on! Blessings!
Enjoyed
Thank you guys for sharing. Farming is not easy. Many people have bought farms, and got in way over their heads in debt, and not being able to the work it takes. You guys have planned well in a lot of areas, and it shows. Good luck, and I will continue to pray for you guys. Blessings🙏🏻
Congratulations! Happy farming. You are going to have lots of piglets soon
Absolutely love the property!! Good to see y'all settled and getting ready for farrowing! Breeding just started (goats) on our farm.. Congrats on the 20k+ Subs! Were plugging along over here at 2300 😁
God bless everyone and may you prosper in your endeavors
Thanks for sharing like it Been trying to figure out how to get my own farm going financially I grew up on a dairy farm
Thanks for the sharing your info so often most of these government agencies just don't really put much out I sometimes think they do it on purpose so you have to work hard to figure it out I think it's their way to keep the applications down
CONGRATS CHUCK AND SAUNDRA
Thanks for sharing that great information. We are looking to move somewhere east where the rain is a little more plentiful and regular. Currently have a 300 acre farm to sell before we can move.
New farm is looks nice. Can't wait to see all you achieve with it. Wish you the best.
Thanks! Good to see you back from that brutal schedule. Don’t know how you did it.
Thanks for sharing your story. Prayers for success. I will never be able to have a farm but I truly love farm animals ❤..God bless you all always 💖
Thanks. Appreciate y’all watching
Awsome! So happy you guys are getting settled in and that you for telling about the buying experience
Thanks. Hope it helps someone. Appreciate y’all watching
@@SheratonParkFarms how much?
Very interesting video. Both the pigs and the honest facts and even headaches of purchasing a farm and dealing with financing. Keep up the youtube and u will have a little extra to put in your pocket from that yearly payment. It ain't much but its something more.
Also its a shame that ham ain't doing his job. He seems like and certainly looks like a good boar. I personally think u can sell him intact, especially due to his disposition, just be honest and see if anyone bites. If not, off the nads come, and so on.
New subscriber here!!!❤😁 And fellow Homesteading TH-camr!!!! 👩🌾📽Can't wait to catch up on your content!!!🤓😁✌🌞❤
I would recommend to young farmers that you don’t leverage your farm beyond a normal mortgage. Normally I recommend you buy land with cash and maybe your home with a mortgage or leverage, like a normal home loan. I’m sure this project will end well, but debt is the worst enemy of a small farmer.
So glad y’all got moved to the new farm 😀
Us too! Thanks so much for watching
20k subscribers🤯 I remember early days! Congratulations on the new farm and milestone! 200k before you know it!
🤣 I can’t believe it myself.
Your channel quality is deserving of a MUCH LARGER subscriber network. We’re “rooting” for you!!! Tim
Just wanted to say, you have been extremely helpful in my pursuit to start my own small family farm
Thanks Josh! Good luck your adventure.
Congratulations on your beautiful farm. As a fellow farmer I must warn everyone, not just farmers but all land and property owners as well that are carrying a sizeable debt….be very careful, when you see most people borrowing money and getting into huge debt, it’s an indication that this economy is not sustainable and our economy along with a weakening USA fiat dollar are about to get flushed down the drain. Pay down your debt, pay off your credit cards, your mortgage, buy gold and silver, and prepare for the economic horrors that have already started. If you borrow against your land, it’s like betting at the horse races and the bank will eventually beat u and take it all. Our old farm house is a work in progress, but we only spend when we have the cash and we don’t owe a dime to a mortgage or a loan. If our tractor needs repair, or we need to finish a barn or whatever, it can wait until we are financially able to afford and pay today. Just my two cents worth. If you’re killing it and borrowing money against your farm and it’s working for you, I’m happy for u, but my advice is to still pay off your mortgage as quick as possible and have peace of mind.
Congrats! And thanks for the info. We’ve been looking into this and the government is “vague” to say the least on descriptions of anything.
Yes! Very vague & what they do share is confusing, to say the least!
What someone doesn't have experience and wants to start out from scratch
Thanks for sharing. As others have said, there's always a focus on the animals or crops, but very little info on finances, programs, etc. We're starting a farm in the next few months and have the cash to fund it, but when it comes time to expand... I'd never turn down a 1.5% loan! Looks like I'll have to wait 3 years, but that'll fly by as I learn and grow.
Why do you need to wait for three years ? thanks
@@nellim9239 tax receipts
I used fsa never had that trouble they where alsome to deal with paper work was a bit much but they walked us throw it to the end
If Hamlet can’t reach the females when trying to breed maybe make a unit where the boar would be elevated a bit so he can reach them.
Another suggestion.. maybe contact a veterinarian and see what they would charge to collect the boar. Then AI the sows when in standing heat.
So glad you got moved and that is done. Not easy and tiring moving a farm operation. I’m looking at moving mine across country 2500+ miles, selling equipment, tractor and such that would be expensive to move and just replace after moving.. ughhh.. get exhausted just thinking about it.
Thank you!!
What credit are they looking for?
Is the intrest rare fixed at that rate or does it vary? Good luck and may God bless you and your farm.
Vet bill for a breeding soundness exam is a must. No boar in my pen before he has been passed by a vet for being a great breeding boar. Months of feeding all those sows adds up to a big loss .
It's good to castrate him awhile before processing. When I was a child, I remember one time my father processed an uncut boar. You just couldn't stand to eat the meat because when you were cooking it, it smelled just like hog manure. It would stink up the whole house. We wound up having to just throw it away.
Don't be to down on Hamlet, we raise show pigs, and my mentor has been doing it for 60 years, he said he hasn't seen a boar successfully cover a gilt or sow in the past 30 years. The way they are being bred the vulva is so much higher now than it used to be.
Is 70 acres the total land area you’ll be farming? I don’t mean to be nosy, but I’ve been kicking around the idea of trying to farm a 120 acre parcel in KS, trying to figure logistics, etc. Love your videos!
Great info here.
Would this down payment assistance apply to raw land that is intended to be farmed on? In other words it would have to be developed first with no established buildings to already make it a “farm”.
He's so handsome. Wish someone could buy him reasonable for a pet. So sorry he can't make it 😢.
I remember jack mayoffer lol
Video starts at 9:00
Great money in land.... Maybe the farmwill pay rhe taxes? 😂...... Very kewl you got a lender figured out. Now, find your cloning machine?
have you tried feeding shredded beet pulp?
Sure wish I would have found you sooner. We ended up financing like a traditional house because nobody would tell us how farm financing worked. Oh well...Live and learn.
Congratulations 👏👏.
Have a question , Do you know any way for people like me wanna buy a land for first time, and I don't have 3 years tax.
Did I miss it or did y’all sell the old house
He’s an excellent looking boar!! To bad he can’t breed those sows!!
I can say boar taint is real we got a boar last month and we knew there was a possibility of him tasting bad and he tasted bad
What if you want to just buy some vacant land to build on later?
So I have heard about these type of loans. If this city slicker wants to move into a rural area it is my understanding that a USDA loan may be available. Now I don't think it has to be a farm but in a rural area. Am I understanding this correctly? My wife and I have hopes of moving from Baltimore to Pennsylvania in the York Carlisle area.
Chuck Can i ask what you do for work for the state?
Question: What if I am looking to purchase 40 acres of new land in order to plant new almonds or grapes.
How do these loans work? Are they the same as 30-year fixed mortgage loans for regular residential real estate?
Does the farmer only begin payments once the 1st crop comes in a couple years down the road OR do payments begin right away?
You could use him as a heat detecting boar and AI if you would want to go that route
Chuck, i am from Georgia. i just start my pig farm operation this year. I can see your feed is bought in big bulk. Can you talk about pig feed? Where to find good hog feed in reasonable price? Do you have any tips about how to feed them?
If you are in North GA. Check out Resaca Sun feed. I've had good experiences with them on my pig feed.
💯
Anytime you work with an agency of the federal government you’re going to have all kinds of problems and it’s going to take forever. It appears the people working for the government are there for a paycheck and not to do any actual work. They also do not think on their own and whether that is due to restrictions by higher ups or the fact that they cannot think on their own, is debatable.
I'm sure they hire the non thinkers on purpose, every agency is the same.
Keep him, get a second boar and put him in with Hamlet. New boar will learn to compete. Next season, get rid of Hamlet, get a new boar. Your boars will always have competition, you will usually be passing down the more 'active' boar's genetics, you will be able raise your own boar.
Just talked to FSA owner purchase is 5% interest now :(
Any wild boar hunters on here? Curious as to why we can take a wild one for meat, but a domestic will have boar taint?
Congratulations on the new farm! I expect unresponsiveness from a typical federal worker, though. They can be unresponsive and incompetent, and still keep their job. I don’t think they ever fire a federal worker, unless maybe he/she kills somebody. I have a hard time getting somebody at the IRS on the phone!
One place to put park money until you have to pay your annual loan payment, is in an online savings account. The one I use, Marcus, by Goldman Sachs, pays 50 times more than you can make at a regular bank checking account. My checking account pays .01%. The Marcus online savings account pays .5%.
I’d like to see the math on raising and selling pigs, sometime.
I edited the above comment to make it a little more understandable. The voice recognition system kind of let me down.
So is the FSA portion the ~1.5% (I’m sure higher now) and then the 50% commercial portion is a different higher market rate?
Yes. That’s correct.
Do you have restaurants or grocery stores supplying you with left over goods? I know in my area that’s what they do
We have a local guy who gives us produce he can't sell. The stores around us lock up their garbage. We did find a bakery store that sells us bread they can't sell. The bread is past the expiration date. It costs us $40/pickup load. The pigs love all of it. We feed grain every other day and bread every other day. Diametatious Earth for internal parasites. The produce is an extra treat.
That’s really sad businesses should be all in on the waste going to pig farmers and not charging you. It would help global warming so much
Is that bank loan only in your area or do they fund across the USA? thanks
Should be nationwide since the base of the program is through FSA.
Will that don't sound right because no-one castrate a wild boar and they eat them
I cut lots of big boars myself only way to get good meat.not hard if you do it right.
So.....why arent you ringing the hogs ? Allow them to destroy all the pastures ...seems strange to me ! At least three rings per hog will stop it totally !
Awful hard on a grown boar to cut him. My dad had a large operation down east when us kids were young and I recall him saying the old timers would put a non performing boar into 3 overaged sows for sausage to be able to eat it. He looks like a stump might come in handy to mount those sows/gilts but its hard to tell on the camera! You'll figure it out. Hogs look good.
Take him too the salebarn someone will buy him
i would pen gilts and boar seperate when gilt is in heat turn gilt in his pen may need to help him hit the spot mark her and watch 21 days see if she comes back in may want to use pre breeding vaccene have vet blood test hogs also dont butcher the boar its not worth the risk
Yes boar taint is real. And people wanting to raise and breed pigs I would say castrate at 2 days of age and give them their iron shot. Pigs are easier to handle that young and heal faster. Also if you want young out of that boar, collect from him and artificially inseminate. I forget what all is involved, we used to do it.
Thanks for sharing your farm video. Are you selling to hog buying station or just to individuals? What do you do with the market hogs that you are unable to sell to individual consumers Thanks Darrel
Why the pig do not cross the white line 😂
I find it difficult to believe that you had issues getting an agency run by the US Gov to do their job. Totally mind blowing...wink wink
What was the interest rate with the commercial bank loan? Good to ya.
4.5% if I remember correctly