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| My wife an I are first generation farmers who love what we do. We both work off farm, but my wife works part time and farms the rest.
For the last 5 years we have done your typical "hobby farm" but are looking to expand and grow. With land prices as they are though we are hesitant/ terrified to jump into something.
Our Hobby farm began with just a few pigs in less than ideal pens, grew a bit to include a small cow calf herd, and added chickens and eggs to the mix. We started a market store, and sell our products online. We really want to make a go of it.
Our store started off like a rocket and we did very well, however lack of stock, caused a slump and it's been tough to bounce back. Our biggest hurdle is our facilities. We have 12 acres of homestead, and 120acres of rented forest pasture land. Our 12 acres has no real useable buildings and we are constantly in a state of flux trying to make things work that probably shouldn't. Trying to raise broilers in the winter is hard in -40... Coupled with the topography of our land which isn't ideal, we are hesitant to sink money into our current spot to try develop it into something that would allow our business to grow as Buildings ain't cheap either. Also we know that 12 acres is going to be quickly outgrown if we do become successful.
We have a chance to purchase a beautiful property that would give us the useable land base 155 acres, and buildings we need. But I am having a really hard time getting my head wrapped around how I can make 155 acres pay for an 850,000 CAD mortgage.
I know we can expand our operation there, that would be no issues, every single endeavor that we have done we could do well on this place, easily with next to no initial investment. The stuff is just there!
Thinking of land prices at roughly 3000/acre, were paying about 400k for the house.. which if it was in town, is right on point. So the property is not priced crazy high.
We would also save the $4000 a year we are currently paying in rent as the hay land and pasture is there and is ready for use.
How does everyone else justify / plan out a land purchase such as this? With inputs at an all time high, and commodity and market prices staying so stagnant, it seems impossible to make a large land purchase pencil out. | |
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Cost vs Return of Farmland, Opinions please
