Are you considering buying a farm? Fewer people are going into farming, ranching and other agricultural areas. Between 2014 and 2024, experts expect employment to decline by about 2% for those industries. This may make looking for farm real estate for sale now is a good thing to do. Buying farm real estate is a bit different from buying residential property. Before you look at farm lands for sale, here are some things to consider.
How will you finance your farm land purchase?
If you need financing for your farm property, you should get advice from someone who is an expert in farms and ranches for sale. This is because you are not just buying a place to live but you are buying, most of the time, a home and a business. If you do not plan to make money on the farm or if you have the cash to buy the farm property, you will benefit from talking to an expert, If you own property and have a current or past mortgage, you should start with the financial institution that has already loaned you money to buy property. If you have not bought property already but have a bank account, talk to your bank or credit union. There are banks and other financial institutions that deal primarily with rural and other farm real estate for sale.
You can also contact the Farm Service Agency (FSA) to see what federal programs may be available to help you with your purchase. Lending institutions may be able to steer to you other funding programs and help you decide how big of a farm you want to buy and what your other options are. You should go through your personal finances and make some decision about financing before you start scoping out farm real estate for sale. Knowing what is of farm you can afford can narrow down your real estate search.
Do your research and make a plan that you will follow.
You may know a lot about farming or you may know only a little but either way, you can always learn more. Whether you grew up on a farm or in an urban area, do some research into that market for the land and the kind of farming you want to do. Are you looking to run a cattle farm? Do you want to grow certain crops? If you are looking into ranches, light grazing is considered to be any ranch where less than 35% if dedicated to grazing. Moderate grazing means 35-45% of the land is set aside for grazing.
You need to determine what size of farm you want to own. You will have to determine what kind of farm property you are going to look at and eventually buy. For example, not all of the land on your farm land may be devoted to farming. You may have a home and some recreational areas on the same land as your farm. This will have an impact on the amount you have to put down for a down payment and how much you will have to use your own funds. The less land is used for non-farming purposes, the less of your own money will be needed for the day to day running of the farm because the farm will bring in more money than a farm that has a large portion for non-farming purposes. Again, the FSA can help you make some of these decisions. They can also find programs that your farm will qualify for.
Find a good realtor.
Like most real estate transactions, your realtor will make a difference. These people can make a world of difference was you look at farm real estate for sale. They do work for the seller of the farm but they also know more about the properties than you do. Do some research into what kinds of properties they have sold and how long the people who bought from them stayed on the farms. If you can, talk to some former and current clients.
Do your research and you will find the farm real estate that is right for you and your family.