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Country Discussion Topics
To add your comments to this topic, click on one of the 'Reply' links below.

Ways to buy a farm
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Mark H.    Posted 02-23-2002 at 19:35:20       [Reply]  [No Email]
I am a young farmer who has been renting a dairy
farm for a few years. I have been building up my
machinery and would be in excellent position to
buy a farm in the spring of 2004. My contract
with the farm I have been renting is up and I was
told the farmer has decided to sell this farm into
building lots and the buildings as a hobby farm
all for mega bucks and way out of my price range.
I am not ready to make a down payment yet and
would really hate to lose everything after farming
my entire life. I have been looking at a few
places but am not sure what to do to come up with
financing. I would be interested in hearing any
advice anyone may have for me. Thanks

Spence    Posted 02-25-2002 at 05:39:46       [Reply]  [No Email]
I purchased the 4 acre lot beside my property from a farmer. He couldn't sell it cause no one had the cash. (actually it was a little pricey, but it's a nice south facing sandy loam site and couldn't resist). I invited him for a coffee and told him the advantages of taking up a personal mortgage with me. I printed out a mortgage schedule and he was all happy about that.
I got a standard Offer To Purchase form and we signed the papers. It gave him a way of building up a retirement nest egg. March is the last payment I'm making on a four year loan.

A personal mortgage still has to be signed before a lawyer to make it legal and to protect both parties. When it's finished you'll have to get a mortgage discharge which is around 80-120$ if you want a lawyer to do it. It has an advantage too, personal mortgages hardly make the corporate echelons, they're just registered at the county house and that's as far as they get.
Your financial debt is always minus the mortgage you owe unless you mention it has an asset for a loan. A second advantage is
you usually fix a rate that is slightly below the going rate, or the average rate. You may need a couple of thou down to clinch the deal, but not always. You can insert the usual early payment
clauses in the contract too.

The people interested in a pers. mortgage are
older people who need steady retirement income.
It gives them a better handle over capital gains taxes too as what they get is in smaller chunks. Your in a good postion to pick up on news of any farmer going into retirement, I'd keep my ears open for a deal.

Mike Taylor    Posted 02-24-2002 at 18:04:27       [Reply]  [Send Email]
Wanna know who probably owns more land in the USA than anyone else? The Boy Scouts! Find their nearest regional office and ask if they might have any land that you can bid on. They never advertise or use realtors. You have to submit a bid and they will accept or reject it at their next board meeting. They will generally have a map showing locations of land tracts they own.

Okie-Dokie    Posted 02-23-2002 at 19:51:29       [Reply]  [Send Email]
Best of luck to you! Go over to the extentin office or the county agent's. Explain to him you would like to check into the first time farmer program. He may solve all your problems and those of a retiring farmer at the same time. Lots of other programs avail. too.

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