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| Its inevitable that a young farmer (renting land with none of his own) wants to buy land but how to do it is the question...In our area there are a few smaller farmers but they rarely get the option to bid on land cause the bigger farms pay top dollar (even if they go broke every few years they somehow seem to find bankers to keep loaning to them). Now we have a young farmer in the area whom has $200K saved up and cant even find a 40 to start on. There is an auction I directed him towards next week but there is a 6% percent buyers premium, 60 acres in 2-30 acre fields. There are NO BUILDING ENTITLEMENTS and the CSR is around 85. No tile maps are available for the property mysteriously. He can get financing up to 475K from the bank but wants to buy an adjacent old farm site to move in on so the whole 475 cant be used on the land. This auction requires complete cash payment within 3 weeks of the auction closing. Im telling him to go for it but I dont think he will have a chance...a few big guys looking into the land. Whats things going for in your area. This is in central MN. Rent ranges from 180-350 ac here. What do you know about beginning farmer loans..Any advice I could share I would appreciate as we are in similar shoes. | |
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New Farmer wanting to buy land...
