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Discussion Starter · #1 · (Edited)
Well, maybe my title doesnt ask the right question, but heres a little about me that may make this lean towards renting rather than buying.

Im 18 and attending college at mizzou. I plan on completeing major in ag systems management and plant sciences. I have started my cow herd and i am growing slowly but surely. I currently graze pasture along side my fathers cows, but pasture is maxed out and i need more pasture. Short term, i can rent or we are building quite a bit of fence right now to create more pasture.

Now that you have a little background,I have a neighbor that is basically selling all of his land. Dad has bought quite a bit of it, but there is still one piece left that may or may nt get sold in the next few years. Its roughly 30 acres tillable that really should be put into grass or forage production. The other 105 acres (i think) is mostly pasture with some timber, old house, and fairly large shed that is pretty old. Also has one short harvestore and a couple of unusable grain bins (Panels collapsing). Keep in mind that ill be looking for a place to live and its a huge lump of junk but it is livable. . Being that my neighbor ia also my uncle, i have an advantage and could likely get first chance. In any case, it would be after college if i bought it and would have to go through a financing/loan firm like FCS Financial which we have a standing at currently. Im workin hard to raise my cash net worth, but how much do i really need to buy property of this size? Good land around here goes between 7 and 8k per acre,but that is tillable. I dont know for sure what pasture prices are because it doesnt change hands much.

Dont be afraid to say its a bad idea though. I have options to rent and i will if thats what i need to do. I see land as a means of making profit, but also as a long term investment that i doubt will go down in price overall at the end of my farming days. :)

UPDATE: According to beef magazine, average price of pasture land for 2013 was $1950 for my state. Perhaps if they took hunting rights, and the appraiser factored in that a lot of the land is going to trees because of poor management, the price will be lower than average.
 

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Local FCS lender requires 30% of appraised valuation for down payment. Then you have to show how you will cash flow the payments.

At this stage in your life and this stage in farmland prices you should rent the pasture you need. If it comes up for sale get your dad to buy it and rent it from him.
 

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Discussion Starter · #3 ·
Local FCS lender requires 30% of appraised valuation for down payment. Then you have to show how you will cash flow the payments.

At this stage in your life and this stage in farmland prices you should rent the pasture you need. If it comes up for sale get your dad to buy it and rent it from him.
Hey bent. Sorry I didnt reply sooner. Thank you for the reply. That is kind of what I figured, but needed more than just a couple opinions. I didnt know about the FCS thing. I suppose if I do decide to buy land, I at least have a goal that I would need to meet first. Thanks!
 

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In my part of the world land isn't valued based on it's agricultural potential, and I say that in a part of the world where farm dirt trades for 2-3K/acre. I also need a place to live and see a great deal of value in the stability that comes from owning your residence.

At current land prices, I view land payments as savings, not working capital. My cows don't care what grass I rent and what grass I own, and it's a whole lot easier in the short term to cashflow the rent check than it is to make more land payments.

You can do anything you want in life, you just can't do it all at once, and you can't do everything. Make a solid plan, stick with it but flex with the current conditions and it will come.
 
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