Owning your own ranch or farm can be one of the most rewarding ways to own property. A whopping 96.4% of farms in the U.S. that produce crops are family-owned, with equally high percentages of family-owned ranches and livestock farms.
Getting into the market for ranches and farms for sale can also be a great investment if you have a passion for the rural lifestyle. The total real estate value of farmland and ranches in the U.S. alone amounts to an astonishing 2 trillion dollars, and property values naturally rise over time. It’s no surprise that the farmland real estate market is thriving.
Before buying ranch or farm you’ve been eyeing, there are a few important facts you should know ? particularly if you’re a first-time property buyer. Read these three facts before making your down payment on any ranches and farms for sale:
Location, location, location
As a hopeful farm or ranch owner, you have an exciting decision to make: Where your new land will be located. Today’s hottest markets for farms and ranches for sale include Nebraska, which exports $23 billion in agriculture worldwide, and California, the No. 1 farming state in the nation. However, farmland is available in all 50 states ? so you can truly own farmland anywhere you want.
Be frugal with equipment and labor costs
It can be tempting to go get brand new farming equipment to go along with your new property, whether it’s a new trailer, tractor or piece crop production equipment. But opting for all-new equipment will cause your costs of production to skyrocket, which puts you at an immediate disadvantage. Consider renting equipment or seeking out used equipment first. Additionally, don’t forget to evaluate how your hired labor costs will affect your budget.
No farm owner can do it alone
Many people end up purchasing ranches and farms for sale, only to realize that they underestimated the difficulties of owning this type of land. Before making your purchase, reach out to professionals who can help you with marketing and business management, as well as growing forages and livestock management. By becoming educated with the help of experienced professionals and doing your research, you’ll be ready to run a successful farm as soon as you become an owner.