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Thread: How to finance becoming a farmer?

  1. #21
    Senior Member
    Join Date
    Sep 2002
    Location
    North Dakota, Florida
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    291

    Re: How to finance becoming a farmer?

    After reading this post several weeks ago. it was my opinion that there was a lot of wishful thinking going on apart from the realities of the real world.

    I grew up on a 320 acre farm, my folks raised seven kids. We never had any extra money, but we never went hungry and always had clean clothes. When my Mother passed away seven years ago, the seven of us ended up with the land and a house in town where my mother lived where she moved when she retired from farming after several years of running the farm after my Dad died.

    My whole point of this is that I am agreeing with the others that there is no money in farming, when you are done you are lucky to have what my folks had and that does not take into account the need of good health insurance so you do not lose the farm, no pun intended. Not much has changed in farming, since the sixties, when my family farmed, other than the operating expenses and the ability to produce more from a given area of land. The prices of raised goods have not gone up that much, which a trip to the grocery store will prove, the portion given to the farmer is quite small and most of the meat is not raised the way it used to be, but in like factory type settings.

    To answer the question of why do I farm. it is because I can afford to. My rental properties pay for our living expenses and my day trading pays for the farming. Someday when I truly retire, when the equipment and land are sold, there will be a profit on paper, but it will not take into account the countless hours of soil preparation, planting, weeding, picking and the seven days a week selling at the farmers market.

    My wife and I have been on the cruises, taken the trips with the motorhome and the Harley, but there was always something missing. Even though it is only 46 acres of which 40 is garden, it is highly intensive farming, which takes us both back to our roots. It is truly a labor of love, to produce something that people need and not just want.



  2. #22
    Senior Member
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    Sep 2002
    Location
    Nova Scotia,Canada
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    3,108

    Re: How to finance becoming a farmer?

    <font color="blue"> </font color> It is truly a labor of love, to produce something that people need and not just want.

    A comment worthy of note!

    Egon

  3. #23
    Senior Member
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    Sep 2002
    Location
    Nova Scotia,Canada
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    3,108

    Re: How to finance becoming a farmer?

    Be carefull Pat. Once that plantin starts it may become addictive!

    Many times I wonder about the assuredness of inexpensive food supplies we all seem to take for granted.

    Egon [img]/forums/images/icons/grin.gif[/img]

  4. #24
    Senior Member
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    Sep 2002
    Location
    SouthCentral Oklahoma
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    5,236

    Re: How to finance becoming a farmer?

    Egon, If there were a serious glitch anywhere in the chain of operations and processes required to produce food and get it to the consumer, chaos would result, anarchy would rapidly follow with a complete breakdown of the social order. Hoards of city folks with no meaningful food source beyond pets and canabalism would go to the countryside to forage and take by force if need be what they can find. It would not be a pretty picture.

    There are many urbanites who have the mistaken idea that in case of natural disaster, widespread terrorist acts, war, or whatever that they with a few friends and plenty of guns and ammo will go out in the countryside or mountains or wherever and somehow "magically" survive. This falacious belief is of epic proportion among many gen x types but certainly is not limited to them.

    These are the same people that you can't give food to like pears, vegies or whatever if it isn't made into a ready to serve dish, pie or whatever. They won't eat anything that doesn't come wrapped in plastic from a store.

    [img]/forums/images/icons/smile.gif[/img] Pat [img]/forums/images/icons/smile.gif[/img]
    "I'm not from your planet, monkey boy!"

  5. #25
    Senior Member
    Join Date
    Mar 2003
    Location
    Jackson County, Al
    Posts
    168

    Re: How to finance becoming a farmer?

    Just a note for later thought. "Land Use" and "Land Ownership" are two different things. You can often acquire land use for less than the interest costs of a loan to buy it. Raising cattle on rented land allows you to build an income producing business than can be liquidated fairly easily. You may wish to read Gordon Hazard's book "Thoughts and Advice from an Old Cattleman". Just be aware that he is focused on selling to the wholesale market. You could find a lot more margin in selling to the end customer via restaurants or a private client group.

  6. #26
    Junior Member
    Join Date
    Jun 2006
    Location
    Northeast Texas
    Posts
    10

    Re: How to finance becoming a farmer?

    Were you able to find more info on FSA Laons?
    From what I remember a few years ago when I looked into it...
    They have the following requirements.
    (Note: They don't actually make the loan, they only garentee the loan and insure low interest rates). (1) They wanted the applicant to have a solid education in farming, ranching, forrestry, etc. (2) You must have had one profittable year. (That's hard if you haven't started yet!) (3) You must have good credit, but not able to acquire a loan by traditional means. (?). Those are the big items I remember. I think I read in the USDA/FSA news letter I get from my county, that they just issued the first FSA new farmer loan in that county's history. So they must be very rare indeed.
    Good Luck, and never give up!

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