Thursday, January 3, 2013

Refinancing the farm

Getting the land to farm-or holding onto it-is one of the hardest things for a farmer.  Land is so expensive and it seems like everything is against you.  Banks won't give you loans, or refinance your property, such as in our case.

We currently have a 100 acre piece of farm land in need of refinancing.  If any blog fans are in a financial position to do this, we'd seriously like to talk.

Even in the best of financial times, it is extremely difficult to purchase or refinance farm land.  Lenders like small pieces of property with a home on it.  It's easier to resell than a big hay farm.  There are lenders who specialize in agricultural land, but in this economy nobody is willing to help anyone but the biggest, most financially successful farmers and that excludes just about all the farmers out there.  Most farmers are small and struggling.  Now in our case, we aren't struggling because two of us have really good off the farm jobs.  A refinance would actually lower our monthly payment and the lenders still aren't willing to bite because it's too much of a risk.  Huh?  Seems like a lower monthly payment would lower the risk *scratching my head.*  Guess that's why I'm not a banker.

Anyhow, if you're looking for a sound investment and you want to help a farmer out then send us a note!

For a would-be farmer, the best course of action to get land is connecting with an older farmer.  Many farmer's children are not interested in farming the land after dad and mom retire and there's a good possibility that you, even though you're not family, can farm for them and eventually purchase it at dirt cheap (pun intended).  Sometimes farmers even will their land to their younger farm partner.  Farm Link, or in our state California Farm Link, helps to bring together the older farming generation with the younger farming generation in order to help young people get access to land.

If there's any young farmers out there interested in farming and in need of land, talk to us about this too!