There is a lot to be considered when buying farmland, not only is there a major financial investment involved but farming is also a lot of work and requires a lot of time. It is important to do your research (reading this blog is a good start) and really put some thought into the implications of being a farmland owner.
Once you’ve established that owning a farm is something you really want, you should consider the financial responsibility. Forecasting your revenue is a good way of seeing what you can afford and getting an idea of how long it will take to see a return on your investment. Beefmagazine.com recommends researching sales trends and speaking with your banker or a financial advisor. In this way, you will be able to set a realistic budget and view different plots of land accordingly.
According to Betterfarm.org, you should be asking yourself how much land you need. It is important to think seriously about what exactly you intend to use the land for, from there you can figure out how much land you require in order to fulfill this purpose. It could also be very beneficial to map out a ‘floor plan’ and decide where you need everything to go and how much room it’ll take up. If you want a small family farm an average of 231 acres is needed, however, a vast family farm would require an average of 1,421 acres.
The next consideration is soil, good soil is a top priority for new farmers. Before buying any farmland you’ll need to know the history of the soil to determine if it’s a good match for your plans. What is the capability of the soil and how does it affect your revenue forecast? Understanding the past crop rotations, what crops were previously grown and their success is a good way to assess if the land is suited to you and your plans. Most sellers should be happy to provide you with the soil profile and information about past farming practices.
Further questions to ask yourself before buying farmland include: Are there environmental issues? Are there other buyers nearby? Where are the water sources? Is there information available about the gas, mineral and wind rights for the property?
By giving serious thought to all of these questions and carrying out the necessary research you should be well equipped to go ahead and make your decision. Don’t forget to enjoy the process!
If you have any questions or queries about ranch real estate in Northern California or any of our ranch property listings, do not hesitate to contact us at martinezranchre@gmail.com or by phone, on 530-949-4241.