Recently our neighbor has decided to sell a little over 40 acres of tillable ground. CSR averages 88 and is relatively flat with just a few water ways. Being 18 and not knowing where I'll end up in life other than Iowa Agriculture, I have the ability to buy the land through a 40 year loan through the FSA (Government) I don't know if I should or not. Price per acre he's asking is 5,000. You do the math and its a big chunk of change. Just seeking some advice on what to do and if it has potential....
Dan, I agree - and one other point I wanted to make (but didn't because I got kicked off mid-way through the post, and forgot to re-add it) was that I also have a good job in town, because I went to college, and worked my tail off......
So the advice I meant for 18 year old Ross was buy it if you have the opportunity - because you never will have that opportunity again, but also go to school and get a good education. It has definitely helped me.
Yes, that good job in town is very important for starting out. Let's say you work in town full time and net $40,000/yr, farm part time and have a land payment of $40,000/year. Your full time job in town is a guaranteed income and can/should be put toward the land payment. The income you generate from the farm can be used to pay more on the land payment or put it back into the farm. By having a job in town it acts like insurance on making the land payment until you get your farm to be self sufficient. When times are good, get that land paid off!
I completely agree. I am going to go ahead and complete the paperwork this weekend and get it sent in. I should be able to get approved. it sounds like there is enough to at least break even every year if not make a couple thousands. I am going to a community college now and about have my first year completed in Ag Studies. The only worry I have is not making enough to pay the loan each year obviously.
Take full advantage of the young farmer program. I am just getting rolling with the program as I just bought a farm this last fall. Yes the paper work is an aggrivation but for 1.5% interest it is well worth it. If you have a good loan officer at your local FSA office they should be more than willing to help with the paperwork. I was also leary about jumping into being a landowner also as I just graduated college and returned to the farm and was skeptical of the high land prices. As I thought about it I had heard more old farmers complain about what they had the chance to buy and never did than what they wished they hadnt. Hope this helps and best of luck
Being from Indiana i don't know much about prices in Iowa other than what i read, but it sounds like a good deal. Being land next to you even makes it that much better. Like the others have said, land beside of you is rare to come up for sale and is more of a premium to you. It might be the only chance you get to buy it in your life time. If you can run the numbers and make it work for you then go for it.