Thinking of buying a farm? This is what you need to know

It is the dream of many to one day own their very own farm. There is something deeply romantic about the idea of looking out at all those rolling fields, livestock, and barns and knowing it is all yours.

Perhaps you want your children to grow up in a rural paradise, being able to run around and play to their heart’s content, or maybe you want to create your own little slice of heaven where you are able to live off what you grow or rear and shut yourself off from the rest of the world. Whichever way you look at it, farming is a fun idea.

What’s more, the idea of being able to drive around on your own tractor, without a care in the world and free from the stress and noise of city life, is incredibly seductive. This innate connection that many people have towards farm ownership is understandable for all the reasons listed above and for the more instinctive desire for all humans to be self-sufficient and independent.

However, while this is a wonderful fantasy to have, if you are serious about owning a farm, then you need to be realistic about the challenges it entails. For instance, there is the obvious fact that owning and running a farm is eye-wateringly expensive. This means that you need to have the budget to withstand the inevitable financial setbacks that will come along the way and accept that your income will fluctuate wildly.

If you are thinking of buying a farm, then this guide will tell you everything you need to take into consideration and be wary of before stumping up the money:

Make sure that you have budgeted for repair work

One of the most pertinent considerations you need to make when you are considering buying a farm is the fact that it will cost a vast amount of money to run. Although you might imagine that the farm essentially runs itself (thinking that once you grow and rear all your produce, you can sell it at a profit), this is far too simplistic a view.

In farming, there is never a guarantee that you will turn over any profit because you are beholden to the fickleness of the weather and changing economic and regulatory conditions. What’s more, there will always be a significant amount of upkeep that you need to attend to, including replacing roofs or laying concrete foundations for a new barn or warehouse. There are ways to cut back on this expense by going to the right professionals who understand the importance of saving money while still offering a great quality service. 

However, you still must make sure that you have enough cash to invest in the farm and keep you afloat in harder times.

Are you ready to run a farm?

The next question you need to ask yourself is whether you are ready to run a farm. This is not supposed to cause offense or be personal; few people are truly ready to run a farm themselves. It takes a huge amount of work, money, and time to make a success of the project, and unless you can dedicate yourself wholeheartedly to running the farm, think twice before diving headlong into a farm purchase.

Of course, if you are genuinely enthusiastic about running a farm for the first time and are willing to take the challenge on the chin, then nothing stops you from succeeding.

Have a team in place to help you operate it

Of course, just because you own a farm does not mean that you will necessarily have to run it entirely by yourself. You can instead delegate the day-to-day running of the farm to a team of professionals who have experience in operating a farm and ensuring that it continues to function properly.

This is a good way of bedding yourself in, even if you would prefer to run it entirely on your own in the longer term. You can learn from more experienced heads, watch what they do and how they overcome problems, then do the same for yourself further along the road.

By employing a management team, you can also enable yourself to attend to other commitments in your life which you cannot give up, such as children, extended family members, friends, or a job.

How much money can you make from the farm?

Of course, while it is commendable that you may be concentrating on the more romantic elements of running a farm, it is still a business at the end of the day, and rose-tinted visions of early morning tractor rides and cute lambs in spring are only a fraction of the story. You need to have a clear idea of how much money you are really going to make from the farm – both in its current state and in the future when you have had more time to invest in its facilities. 

If you do not know how to properly value a farm’s profitability, then hire an expert who can give you a rough working figure. Of course, if the farm is currently functional, then you can also find out how much money it is making at the moment to use as a general guide. 

Depending on your priorities, making a buck or two off your farm may or may not be your aim, but it is vital if you want to own the farm for the long term. No one can sit on a cash-burning business for very long before descending into financial ruin, so you need to buy a farm that can, at the very least, break even without too much effort.

Are there underlying issues you aren’t aware of?

Lastly, you need to find out whether any hidden issues with the farm could potentially be a ticking time bomb for your future hopes of running a profitable business. For example, if you do not have proper planning permission or land usage rights, if you have a disease outbreak in the area, or if the infrastructure needs immediate repair, you could be in a world of trouble.

Make sure to consider all this and find the professionals you need to help you succeed.

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