There are about 273,000 small farms in the U.S. that have up to 9 acres. About 85,000 large farms of 2,000 acres or more make up 60% of the entire farmland in the country.
If you’re looking for a change in life or you want to grow your current farming business, buying a farm is a great opportunity.
You can become a farmer and live the life you dreamed about. Read on to find out how to buy a farm to get started.
1. Know Your Reasons to Buy a Farm
Do you have fantasies about working in the field all day? Maybe you want to contribute to society in a sustainable way.
Get clear about why you want to buy a farm. This will pull you through the challenges when you start a farm.
2. Plan Out the Farm
You don’t want to buy a farm and then figure out what you’re going to do with it. Farming isn’t a hobby.
You have to treat it like a business. Therefore, a business plan is appropriate for the farm. It prevents you from losing money in farming.
You’ll know the costs of farming per acre, the revenue per acre, and you know how to utilize the space.
This is the time to develop chicken coop plans and distribution plans for your goods.
3. Find Financing
The cost of a farm depends on the number of acres, location, and future farm revenue. Take your business plan and find financing for the farm.
There are lenders that specialize in farming. Build relationships with these vendors. They’ll help you finance the purchase of the farm and when you need a loan to purchase equipment or expand.
Get preapproved for a loan, which will help your offer get accepted. A preapproval letter is almost as good as shopping with a cash offer.
4. Shop for Farm Properties
By this point, you know what type of farming property you want and how much you can spend.
Work with a rural property real estate agent. They have the expertise in your geographic area to help you get the right farm.
5. Find a Farming Mentor
Farming isn’t an easy endeavor. If you do decide to start a farm, be sure to get guidance.
You can avoid the typical new farmer mistakes because you found someone to guide you along. For instance, your farm will have the best insurance policies because you had assistance.
Reach out to other farmers or people with expertise in the industry. Ask them to mentor you as you start a farm. You’ll find that most people are willing to help.
Get Ready to Buy a Farm
If you want to be a new farmer, the best thing to do is to buy a farm. Before you spend your life savings on a farm, you need to get realistic.
Understand why you want to become a farmer. Make a plan for the farm and determine how it will become profitable. You’ll be a new farmer, but you’ll know what you’re doing.
For more great tips, check out the blog to help you figure out the business side of the farm.