Just subscribed. You told us about this channel a long time ago and I didn't sub then. I just dumbed across this vid and got latched on. Thanks for posting these. I DID learn some and your explanations help keep thoughts straight when applying some of your knowledge to my operation. Thanks!!
Looks like my comment from yesterday disappeared??? You were at 999 subs when I watched your video so I subbed for your 1000!! Congrats! And I agree about having to have another income to farm....sad since we depend on farmers so much. I was raised on a farm in Virginia and bought 20 acres here in Florida a few years ago. I think the only way it can ever be profitable is if our social media efforts pay off. Can't make a living selling hay at $45 a bale! take care.
Thank you very much for subbing ... I didn't see your comment - youtubes been really bad about flagging and removing them ... I'm going to have another video following this explaining other business aspects (from my years as a former excavation contractor)... it is sad that a farmer needs additional income to make it .....
Buying farm ground pretty much never pencils out on its own. Most farmers buying have money saved up for a good down payment and using other rented/paid off ground profits to help make the payment. And then it snowballs from there. That's why you see those large farms going out and paying huge rent to get in the door and then they back it down and then they're able to go out and start buying their own ground. With government subsidies it's almost impossible for them to fail if bad year comes along.
I’m so much more comfortable renting more ground at this point, rather than buying. I just made a big buy and I’m kind of crapping my pants. Getting new acreage certified organic is 3 years, the 1st measurable results of your efforts hits at 5 years, and another at 10. So it seems like your better off owning it, but it’s harder to shed ground if the markets get cold for product, or we get a long drought. Basically, I rent from FPI and an old doctors widow whose life’s fortune went in to farmland investments. I’m about 70% leveraged on 2500 acres that is good, we’ll taken care of ground, not organic yet, own 1500 acres outright that is enjoying the results of 22 years of regenerative practices, off the charts productivity and farm ability, and 1400 that’s farms surprisingly well despite being moonscape when I bought it. It’s paid for, no one would loan money on it a few years back. I deep ripped that with one dozer pulling another and a shank from here to China. Having people with deep pockets to get you large numbers of acres is the way to go. We were able to get back to the 50/50 ratio we like quickly that way. I’m at the final acreage I’ll see in my lifetime. They kids might want to grow a bit for their kids to have more. I’ll be dead, so won’t have a lot of say so by that time.
I bought my first farm when I was in my mid 20's. At that time you could get a 30 year loan for land and at that time did not have to have much documentation showing income. At that time I had a job but not worth much as far as assets. After the housing bubble they got a lot stricter on loans. I have bought a few farms since then. I have plenty of paid for assets now and make more money but the loans require a lot more paperwork to make sure you are good for the money. It was way easier to borrow money when I did not have much money back then. Now at FC for a basic farm ground loan they do not want to go over a 25 year loan unless you are building a house on it. Also, a lot of guys are having to pay down 35% or more. If you have good credit with lots of assets you can get a loan for 25% down and in some cases don't hardly need anything down. You are right it is tough these days. The problem that is also driving a lot of this is other than the stock market their is not much options where a person can put their money to get a descent return. The banks don't pay nothing for interest on your money. The stock market is a ticking time bomb ready to blow. Housing is way over inflated and now land is getting sky high. I know a lot of these guys are buying land as an investment but in most cases 2.5% to maybe 4.5% is about as good as they are going to get for renting farm ground out. I don't think land will tank like it did back in the 80's but I can see a correction coming. I read an article a while back and it claimed the majority of farmers today are in good financial shape which in turn means they do not need to sell any assets such as land. Its a double edged sword with land. A farmer is worth a lot on paper, but good luck with being able to go out and buy more land without having to take out a huge loan. Makes a guy wonder why at times we want to be involved with farming.
I agree 100% .... and good to hear from you! ..... the long range future for ag looks a bit sketchy in my opinion - sure a lot of things showing, less need instead of more ...... we bought land in early 2000s - it was 1200 an acre still - we could farm it, pay for it, and make money after the payment .... your right about getting a loan ... these banks are crooks - they don't want to lend - they want you to keep cash with them - all part of fractional lending ...the rich are getting richer rapidly..... I'll try to make a video on this - which I can explain it better.....
Great video! My son just turned 20 farms with me, well the neighbor wanted sell his farm across the road 640 acres nice setup house etc, I don't see anyway to pay for it. Well another neighbor directly across my yard sold 40 for 428k with a small house just last month. I think it's completely insane and well take a market correction none of us want to go thru to get true values, urban America is eating up rural America..
I agree.. and it stinks ... I don't know what to do about it either. We're just screwed I'm afraid.... and your right, there's no banks on board or really no way to make it work either ... pretty sad deal really
Everything you say is true, but there are other points of view. Their are deals, and their is a such thing as taking cheaper poor ground and improving it. Their are specialty crops, organic-regenerative systems, as you stated, windmills, cell phone towers. The main thing for me, is I charge every acre a set amount for equipment and infrastructure investments, and future land acquisition, and I treat it like a bill that must be paid. I'm OK with using debt to grow, but I package it in to 10 year repayment plans. It's kind of like compound interest. If you buy more land, no matter how much you over paid, it's going to be that many more acres being charged, and you will build up more reserves for growth. We'll farm 7500 acres that we own 2900 of, but 1000 of that is in pasture / rest / reformation for one more year, a lot of the rental ground is in transition to organic, but I can still produce a product with a specialty label on it. Such as ancient grain, or chemical free, all natural edible bean products for export to countries that will let me use the term organic as long as it tests negative for synthetic chemicals 8 out of 10 samplings. Non GMO corn with 15% protein, or with normal protein levels. We're structured with a revenue stream hitting us from every possible direction, and operate complimentary enterprises that are set up with their own financial plan and financing. Their is the cash flow from one to the other, lines of credit, I could panic buy land touching mine if hit the market, by saddling other enterprises with debt. It would put those entities had to mouth for awhile, and as much as I'd hate to do it, I could throw a couple of them into bankruptcy if the sh t ever hit the fan. The key is don't do what everyone else is doing, and expect better results. The basic corn and soybean farmer won't be around in 30 years, they won't exist.
Good write up and interesting... also always great to hear from you .... There are definitely opportunities- but thats if you have a market for it .. or have an area where growth is occurring... In our area - we just don't have any nitch markets ... Even hay markets have died .... we have tried dual crops (such as wheat or rye) ... and we have tried special crops ... each time, we loose, or don't make anymore than just staying corn and soybeans.... I will share more in an upcoming video ... our area is very limited ...
Land doesn't pay for itself in many , maybe most , places in the US. That just means there is more demand than supply. That demand would include non farm investors. At this point the land will probably increase in value over time. That makes it a separate stand alone investment. The real income side of ledger should have included the appreciated value "investment return" added to the crop sales. Land buyers are paying with crop sales AND land appreciation. That is true whether land buyer grows the crop or rents out the land. Income is rent (crop sales) AND land appreciation.
That's very true ... and well said ... but the bottom line is when commodity markets are manipulated and politicized only the rich will end up owing it ...
@@thefedupfarmer8482 a real mix of ground types, but average csr is in the 70's. Ground near me sold for 19,900 with a csr2 of 89.7 and another at 13,250 with csr2 of 50.3
I learn a lot from watching your channels. Thanks. My family rents our couple hundred acres to our farmer neighbor for the property taxes. Other neighbors are turning their land to solar panels.
Thank you very much for following along - I sincerely do appreciateit .... I always enjoy talking with you ... thats good on the rent - just got to do what works for both parties and works for you.... there has been a lot of land lately selling to investors around our area - kind of sad really
this is why a lot of farmers wives work off farm and even crop farmers have off farm jobs . Its so they can have some money to live on .Farmers are land rich cash poor.
If they were really serious about carbine emissions, they would get rid of Bunker Fuel. The 15 biggest ships generate as much Sulfur Oxides as all the cars in the world. They also emit Nitrogen Oxides, which accounts for 15% of the global NOx emissions. According to IPCC those emissions are not subject to limitations and reductions. Go Figure. All depends on who they want to pick on.
Yeah exactly... and whoever is lining the politicians pockets the most ... airline is same way. They were suppose to go ethonal (clean burn) but were exempted at the last minute ....... and California is going after weekenders and lawnmowers now ....
Your area has cheap ground compared to here. 25-35,000 an acre and are paying 300-400 for rent…really makes you consider renting out your ground and starting an alternative business. That said we basically never have a bad growing year and lots of feed mills to get good cash prices for grain. Buying ground is simply not an option for many guys though unless very diversified and high equity in other ground to pay for it.
Very true ... kind of hopeless feeling - but there's likely more to it - which I'll share in an upcoming video ...renting it out and pursuing other things was something we discussed heavily, but instead I went farming, and we took on more rental acres .. not sure if it was a good idea or not ....
we just had a local farm sell for 1.8 million how many acres i don't know for sure-thinking 2 farms is what he had. roughly 160 acres to 200. its just nuts here what land is selling for here now. even tracts of woods is going for over 7 grand a acre, with the timber cut off it. crazy i say. this past several months i have seen more land transfered in the paper for over a million bucks. only 3 outfits here farming all the little farms, and the farmer only getting enough to pay the taxes, same as having it in soil bank.
Call me when they wanna pay 250 a acre … I might think about it… btw I want payed for the no tilling I’ve done for the last 20 years … follow the science right … tillable is a joke
There are people that do that ... but its a tough gig .... but I wish you luck! .... we need to invent a phone ap - one that goes viral- charge 1 dollar for it ... make millions! And have nothing in it
invest in cryptocurrency one of the top ones is xrp its .70 now and should be going in to the 1000 this year the you will have all kinds of fuck you money for the haters
Just subscribed. You told us about this channel a long time ago and I didn't sub then. I just dumbed across this vid and got latched on. Thanks for posting these. I DID learn some and your explanations help keep thoughts straight when applying some of your knowledge to my operation. Thanks!!
Thank you for watching! ... this is my second channel where I can be a little more "open" ....
Looks like my comment from yesterday disappeared??? You were at 999 subs when I watched your video so I subbed for your 1000!! Congrats! And I agree about having to have another income to farm....sad since we depend on farmers so much. I was raised on a farm in Virginia and bought 20 acres here in Florida a few years ago. I think the only way it can ever be profitable is if our social media efforts pay off. Can't make a living selling hay at $45 a bale! take care.
Thank you very much for subbing ... I didn't see your comment - youtubes been really bad about flagging and removing them ... I'm going to have another video following this explaining other business aspects (from my years as a former excavation contractor)... it is sad that a farmer needs additional income to make it .....
Was the equipment input costs required to farm the new quarter factored in?
We figure equipment after profit.... a 3rd video on the series will be coming shortly
Buying farm ground pretty much never pencils out on its own. Most farmers buying have money saved up for a good down payment and using other rented/paid off ground profits to help make the payment. And then it snowballs from there. That's why you see those large farms going out and paying huge rent to get in the door and then they back it down and then they're able to go out and start buying their own ground. With government subsidies it's almost impossible for them to fail if bad year comes along.
I’m so much more comfortable renting more ground at this point, rather than buying. I just made a big buy and I’m kind of crapping my pants. Getting new acreage certified organic is 3 years, the 1st measurable results of your efforts hits at 5 years, and another at 10. So it seems like your better off owning it, but it’s harder to shed ground if the markets get cold for product, or we get a long drought. Basically, I rent from FPI and an old doctors widow whose life’s fortune went in to farmland investments.
I’m about 70% leveraged on 2500 acres that is good, we’ll taken care of ground, not organic yet, own 1500 acres outright that is enjoying the results of 22 years of regenerative practices, off the charts productivity and farm ability, and 1400 that’s farms surprisingly well despite being moonscape when I bought it. It’s paid for, no one would loan money on it a few years back. I deep ripped that with one dozer pulling another and a shank from here to China.
Having people with deep pockets to get you large numbers of acres is the way to go. We were able to get back to the 50/50 ratio we like quickly that way. I’m at the final acreage I’ll see in my lifetime. They kids might want to grow a bit for their kids to have more. I’ll be dead, so won’t have a lot of say so by that time.
I learned a ton. Thank you!
I appreciate the viewership! ... thank you for following along...
Thanks for the info, ive been looking to buy one in my area and prices are similar
Thanks for watching
More times then not the market is NOT there. Thank you for the video
Exactly ... thank you for watching
I bought my first farm when I was in my mid 20's. At that time you could get a 30 year loan for land and at that time did not have to have much documentation showing income. At that time I had a job but not worth much as far as assets. After the housing bubble they got a lot stricter on loans. I have bought a few farms since then. I have plenty of paid for assets now and make more money but the loans require a lot more paperwork to make sure you are good for the money. It was way easier to borrow money when I did not have much money back then. Now at FC for a basic farm ground loan they do not want to go over a 25 year loan unless you are building a house on it. Also, a lot of guys are having to pay down 35% or more. If you have good credit with lots of assets you can get a loan for 25% down and in some cases don't hardly need anything down. You are right it is tough these days. The problem that is also driving a lot of this is other than the stock market their is not much options where a person can put their money to get a descent return. The banks don't pay nothing for interest on your money. The stock market is a ticking time bomb ready to blow. Housing is way over inflated and now land is getting sky high. I know a lot of these guys are buying land as an investment but in most cases 2.5% to maybe 4.5% is about as good as they are going to get for renting farm ground out. I don't think land will tank like it did back in the 80's but I can see a correction coming. I read an article a while back and it claimed the majority of farmers today are in good financial shape which in turn means they do not need to sell any assets such as land. Its a double edged sword with land. A farmer is worth a lot on paper, but good luck with being able to go out and buy more land without having to take out a huge loan. Makes a guy wonder why at times we want to be involved with farming.
I agree 100% .... and good to hear from you! ..... the long range future for ag looks a bit sketchy in my opinion - sure a lot of things showing, less need instead of more ...... we bought land in early 2000s - it was 1200 an acre still - we could farm it, pay for it, and make money after the payment .... your right about getting a loan ... these banks are crooks - they don't want to lend - they want you to keep cash with them - all part of fractional lending ...the rich are getting richer rapidly..... I'll try to make a video on this - which I can explain it better.....
Great video! My son just turned 20 farms with me, well the neighbor wanted sell his farm across the road 640 acres nice setup house etc, I don't see anyway to pay for it. Well another neighbor directly across my yard sold 40 for 428k with a small house just last month. I think it's completely insane and well take a market correction none of us want to go thru to get true values, urban America is eating up rural America..
I agree.. and it stinks ... I don't know what to do about it either. We're just screwed I'm afraid.... and your right, there's no banks on board or really no way to make it work either ... pretty sad deal really
You are 100% correct about not needing a middle man. Amen!
All they do is drive up costs ... and most of the time, they barely help ...
I messaged you a vid to check out
Everything you say is true, but there are other points of view. Their are deals, and their is a such thing as taking cheaper poor ground and improving it. Their are specialty crops, organic-regenerative systems, as you stated, windmills, cell phone towers. The main thing for me, is I charge every acre a set amount for equipment and infrastructure investments, and future land acquisition, and I treat it like a bill that must be paid. I'm OK with using debt to grow, but I package it in to 10 year repayment plans.
It's kind of like compound interest. If you buy more land, no matter how much you over paid, it's going to be that many more acres being charged, and you will build up more reserves for growth. We'll farm 7500 acres that we own 2900 of, but 1000 of that is in pasture / rest / reformation for one more year, a lot of the rental ground is in transition to organic, but I can still produce a product with a specialty label on it. Such as ancient grain, or chemical free, all natural edible bean products for export to countries that will let me use the term organic as long as it tests negative for synthetic chemicals 8 out of 10 samplings. Non GMO corn with 15% protein, or with normal protein levels.
We're structured with a revenue stream hitting us from every possible direction, and operate complimentary enterprises that are set up with their own financial plan and financing. Their is the cash flow from one to the other, lines of credit, I could panic buy land touching mine if hit the market, by saddling other enterprises with debt. It would put those entities had to mouth for awhile, and as much as I'd hate to do it, I could throw a couple of them into bankruptcy if the sh t ever hit the fan.
The key is don't do what everyone else is doing, and expect better results. The basic corn and soybean farmer won't be around in 30 years, they won't exist.
Good write up and interesting... also always great to hear from you ....
There are definitely opportunities- but thats if you have a market for it .. or have an area where growth is occurring...
In our area - we just don't have any nitch markets ... Even hay markets have died .... we have tried dual crops (such as wheat or rye) ... and we have tried special crops ... each time, we loose, or don't make anymore than just staying corn and soybeans....
I will share more in an upcoming video ... our area is very limited ...
Land doesn't pay for itself in many , maybe most , places in the US. That just means there is more demand than supply. That demand would include non farm investors. At this point the land will probably increase in value over time. That makes it a separate stand alone investment. The real income side of ledger should have included the appreciated value "investment return" added to the crop sales. Land buyers are paying with crop sales AND land appreciation. That is true whether land buyer grows the crop or rents out the land. Income is rent (crop sales) AND land appreciation.
That's very true ... and well said ... but the bottom line is when commodity markets are manipulated and politicized only the rich will end up owing it ...
180 bushel corn ground is bringing way over $7500 an acre in eastern Iowa.
Hit and miss here .. some at 4 and some at 12k an acre - just depends on the field .... what is your CSR ?
@@thefedupfarmer8482 a real mix of ground types, but average csr is in the 70's. Ground near me sold for 19,900 with a csr2 of 89.7 and another at 13,250 with csr2 of 50.3
I learn a lot from watching your channels. Thanks. My family rents our couple hundred acres to our farmer neighbor for the property taxes. Other neighbors are turning their land to solar panels.
Thank you very much for following along - I sincerely do appreciateit .... I always enjoy talking with you ... thats good on the rent - just got to do what works for both parties and works for you.... there has been a lot of land lately selling to investors around our area - kind of sad really
this is why a lot of farmers wives work off farm and even crop farmers have off farm jobs . Its so they can have some money to live on .Farmers are land rich cash poor.
Exactly..
That's the sad truth
If they were really serious about carbine emissions, they would get rid of Bunker Fuel. The 15 biggest ships generate as much Sulfur Oxides as all the cars in the world. They also emit Nitrogen Oxides, which accounts for 15% of the global NOx emissions. According to IPCC those emissions are not subject to limitations and reductions. Go Figure. All depends on who they want to pick on.
Yeah exactly... and whoever is lining the politicians pockets the most ... airline is same way. They were suppose to go ethonal (clean burn) but were exempted at the last minute ....... and California is going after weekenders and lawnmowers now ....
This is why young Americans are working to become tik tok starts instead of farmers! LOL
Sad when there is more money in social media about farming then actual farming....
I am in Vermont the land is not like your land but land owners that is city folks just let you use for free .
That would be good! ... definitely saves on cost!
good video ground out here is scarce we grow vegetables plus corn we found our own niche
I'll bet .. and valuable too ...
Your area has cheap ground compared to here. 25-35,000 an acre and are paying 300-400 for rent…really makes you consider renting out your ground and starting an alternative business. That said we basically never have a bad growing year and lots of feed mills to get good cash prices for grain. Buying ground is simply not an option for many guys though unless very diversified and high equity in other ground to pay for it.
Very true ... kind of hopeless feeling - but there's likely more to it - which I'll share in an upcoming video ...renting it out and pursuing other things was something we discussed heavily, but instead I went farming, and we took on more rental acres .. not sure if it was a good idea or not ....
I found it very interesting👍👍
Thank you! ....kind of a hopeless feeling trying to expand - which really stinks ...
I learnt that it is sad the bullshit the hoops you have to jump through
Running a small business .. especially ag, is just about as tough as it gets ...
Fertilizer is going to double
It trippled ... but now it's cooling back off
we just had a local farm sell for 1.8 million how many acres i don't know for sure-thinking 2 farms is what he had. roughly 160 acres to 200. its just nuts here what land is selling for here now. even tracts of woods is going for over 7 grand a acre, with the timber cut off it. crazy i say. this past several months i have seen more land transfered in the paper for over a million bucks.
only 3 outfits here farming all the little farms, and the farmer only getting enough to pay the taxes, same as having it in soil bank.
It's sad .... I fear the rich are soon going to own all the land, and the farmer is just the peasant that works the ground ....
Call me when they wanna pay 250 a acre … I might think about it… btw I want payed for the no tilling I’ve done for the last 20 years … follow the science right … tillable is a joke
No kidding ... at 10 bucks an acre, I don't think anyone is signing up... your right tillable is a joke - scumbag outfit really
Farmers National’s main objective is to manage a peace of land and then get land owners on board to sale the land and make a nice some of money!’
Exactly..... I should share a farmers national story on here ... they are about 1 step above bottom feeders ....
I’m hoping to start excavating and use excavating to make money to pay for land along with farming it.
There are people that do that ... but its a tough gig .... but I wish you luck! .... we need to invent a phone ap - one that goes viral- charge 1 dollar for it ... make millions! And have nothing in it
invest in cryptocurrency one of the top ones is xrp its .70 now and should be going in to the 1000 this year the you will have all kinds of fuck you money for the haters
Oh no kidding .. I should have bought bitcoin when it was super cheap
There is still time to get in and it don’t take a lot of money to make a lot it’s about to rocket when the dollar Collapses
@@thefedupfarmer8482 crypto and silver will be the biggest transfer of wealth in history
I definitely need to be doing that!