Has it always been your dream to run your own small farm? Thankfully, it's entirely possible for you to do so on a tight budget. You'll need to spend some time searching for the perfect farm property, and you may need to move further away from town, but fertile soil is well within your price point. To help you out, read on for three tips on buying farmland when you're on a tight budget.
1. Find Out How Much You Can Afford
When you're buying a farm property on a budget, the first step is to speak to several lenders and find out how much you'll be preapproved for. Make sure that you talk to lenders that specialize in farm properties—they're familiar with grant programs for new farmers that can significantly reduce the overall purchase price of farmland.
When you find out how much farmland you can afford, you'll be able to narrow your search into properties that are in your price range. During your search, you'll be touring several properties to find the most suitable one, so it's wise to pare down the list to ones that you can realistically purchase on your budget.
2. Look for Improved Land That's Ready to Farm
Improved farm properties with housing, outbuildings, fencing, irrigation systems, and drainage systems are much more expensive than ones with fewer improvements, so this may seem like counterintuitive advice when you're on a budget.
However, there are a few factors that make purchasing improved farmland the most budget-friendly choice in the long run. The first is that you need to consider the additional cost of improved property versus the cost of making all of the necessary improvements yourself.
The other factor is that fully improved farm properties require very little work before you begin to till the ground. If you spend several months building on the property, those are months that you're not making any income. Overall, it's best to purchase a farm property that requires very little work before you can begin growing and selling your crops.
3. Buy Farther Away From Town
When it comes to farm properties, you're paying a premium price for living close to a town. While it's much more convenient to live only twenty minutes away from the nearest grocery store, it also means that the prices for these plots of land are much higher. If you broaden your search to properties that are more remote, you'll be able to purchase more land at a lower price.
Overall, it's your choice if you want to move into an improved property far away from town. It's always a good idea to speak to a real estate agent who is familiar with farm properties—they'll help you find the property that best suits what you can afford and what you wish to do with the farmland.