Are you ready to take the next step in building your agriculture business? The key to success lies in finding the right land. But where do you start? This article will guide you through the process and provide valuable insights to help you make informed decisions.
Assess Your Readiness
Before you embark on your search for the perfect land, it's important to assess your readiness. Begin by clarifying your goals and evaluating your financial position. Your goals should be "SMART" - specific, measurable, attainable, results-focused, and timely.
Consider both your personal and business goals. Where do you see yourself in the future? What do you want your life to look like? Think about your family goals, household income goals, and work-life balance. When it comes to your business, what kind of farm or ranch do you envision? Do you want to expand or keep it small? Research the market for your products and determine the income you need.
Ensure that your personal and business goals align. Identify any inconsistencies and address them accordingly. To help you along the way, use the provided worksheets to assess where you currently stand and what resources you have available.
Think About Your Financial Position
Understanding your financial position is crucial from the start. It will influence whether you choose to rent or buy a farm or ranch, and impact your ability to secure a loan. Take into account your current financial position - what do you own and owe? What are your income and expenses? Additionally, consider your future earning potential. How much income will your business generate? Do you need off-farm income?
To gain a deeper understanding of your financial position, gather information such as bank statements, tax returns, credit card or loan statements, and credit reports. If you're just starting out and lack some of this information, don't worry. Begin by opening a bank account, filing your income taxes, and obtaining a credit card to establish a positive credit history. Moreover, consider contributing to a retirement account, even if it's a small amount.
Explore Land Access Options
Land tenure refers to how people hold their land. There are two main forms: leasing and owning. When it comes to land access, you have three paths to consider: buying, leasing, and inheriting or accepting gifts of land.
Leasing is a popular option for beginners, allowing you to use someone else's land through a written agreement. Cash leases and share agreements are common arrangements. On the other hand, if you have enough net worth, you may opt to buy land. This grants you full ownership and all the associated rights and responsibilities. Various ownership options exist, such as fee title purchase or purchasing land protected by a conservation easement. Finally, some beginners inherit or receive land as a gift, often alongside a farm or ranch operation.
It's not uncommon for beginners to utilize multiple options to sustain their operations. Once you've assessed your financial position, choose a path that aligns with your goals and aspirations. Weigh all your options, and use the Land Requirements Worksheet to guide your decision-making process.
Connect with Agricultural Service Providers
Finding the perfect land can be a challenging and time-consuming endeavor. Fortunately, there are various support networks that can assist you on your journey. If you have a specific location in mind, reach out to service providers in that area and discuss your land requirements. Word of mouth can often lead you to great opportunities.
If you haven't chosen a location yet, explore the provided resources to find regions abundant in agricultural support. The Farmland Information Center is also available to offer advice and guidance.
Remember, finding the perfect land takes time, but with the right resources and support, you can make your agriculture business dreams come true.
Image Source: UDSA Photo by Preston Keres
Image Source: UDSA Photo by Preston Keres
