Land paying for itself

[tractorman1234]

I know this is knd of a loaded question with TONS of variables, but here goes. I am looking at buying some land - around 100-200 acres or so. I am wanting to have a quiet place to put a home with no close neighbors.

I have a full time job and do not need any net income from the land, but I am wondering what type of revenue one could expect from the land in order to help pay for it. I am open to all types of land pasture for cattle, farm land, etc. I just want a fairly large area and build in the middle of it so that I am not surrounded by a bunch of 5 acre neighbors.

Talking with my banker, and with the prices of land in my area I am going to be looking at around $800-$1000 per month in payments on the land. Lets use $1000 as an example. That is $12,000 a year. How difficult is it to make $12,000/yr off of 150 acres?

I realize that it is very difficult to make a living farming or ranching but lots of people do it. I am not trying to do that. I just want to offset the cost of the land. For example if I could even make $6000/yr off of 150 acres than that cuts my monthly payments in half.

I know there are a ton of variables, but this may help. Around here I think stocking rates are around one cow per 7 acres. That would be 20 cows on the 150 acres. The area around here is also farmed a lot. If I farmed 150 acres I would only need to make $80/acre to pay the entire land payment or $40/acre to pay half of it. Is this doable in dryland farming? If my numbers are way off base, what could I expect?

 

[EddieWalker]

Your math has a few holes in it.

Taxes and insurance will add to your monthly payments. Then if you want to work the land, you will need equipment. Tractors, impliments and tools to keep it running, not to mention working the land.

Them there is materials for what you decide to do. Livestock will require fencing, watering, feeding and storage for supplies and materials. If you want to grow crops, then you will need irrigation and the abilitiy to harvest and get your crops to market.

Sometimes the land is the cheap part, working it is where the real money disapears. There's an old saying on how to make a million dollars ranching. You start with two million.

I'm not saying you can't make money on your land, but those who do, usualy buy the land with something in mind and work towards that goal.

My personal goal with my land is in tourism and recreation. It's why I bought it and what I'm working towards. Are there cabin rentals in your area? Would people pay to stay at a cabin in the woods? Can you put in a fishing lake? Will people pay to fish it? Are there special bird species in your area? Eco tourism is a huge growing market and bird watchers will spend thousands of dollars to see rare birds, or to watch certain birds perform there mating rituals.

Find out what people are paying for or where there is a demand and fill it. Do it better than the compitition and you'll make money.

Good luck,
Eddie

 

[scesnick]

What about Hunting land? I have 76 acres that is surrounded by State forest. I have been kicking around the idea of a couple of small log cabins to rent out for hunting season.
I live about 2.5 hours from Baltimore and D.C. and they will pay a small fortune for a nice place to hunt.
Maybe something like that will partially supplement the cost of the land. You will need to look into the insurance aspects of a hunting property however.

I seem to recall a long thread about leasing out property to hunters a while back. Try doing a search for it.
Maybe if you give us some more info , Like where you are planning on buying land it would help with ideas.

 

[rox]

Tractorman,
Welcome to TBN
One thing I enjoy when reading topics is to see where the people who write in are from. You might get a better response if you took a moment and went to your profile and entered in what part of the world you are in. Again welcome to the community.

 

[Paddy]

Rox is going to tell you, "don't grow olives, it's to much work"
Just kidden

Joking aside. I have seen where some folks think "I'll cut the trees and pay for the land" They end up with little cash and a place that takes 25 years to start to look OK. Some clear it and plant X-mass trees and complain they have worked the holidays for 20 years. Farming, well that's been covered. I have 20 ac and can't see the houses around me. It is nice having a few friends near by where you can borrow a gl of gas for the chain saw, with out having to run in to town. Where I am in S. IN, you are out in the sticks to have 200 + ac. This just means a long drive to work, stores and no DSL.

If I was to buy 200ac, it would be forest..and no I would not sell those trees

 

[CurlyDave]

What about Hunting land? I have 76 acres that is surrounded by State forest. I have been kicking around the idea of a couple of small log cabins to rent out for hunting season.

For my money this is the easiest, lowest work way around to generate some income from the land. I have no idea about insurance.

I don't even think you need to build the cabins. A lot of people will use their own trailer or motorhome. At least that is a way to try it out for almost no investment.

 

[Farmwithjunk]

I know this is knd of a loaded question with TONS of variables, but here goes. I am looking at buying some land - around 100-200 acres or so. I am wanting to have a quiet place to put a home with no close neighbors.

I have a full time job and do not need any net income from the land, but I am wondering what type of revenue one could expect from the land in order to help pay for it. I am open to all types of land pasture for cattle, farm land, etc. I just want a fairly large area and build in the middle of it so that I am not surrounded by a bunch of 5 acre neighbors.

Talking with my banker, and with the prices of land in my area I am going to be looking at around $800-$1000 per month in payments on the land. Lets use $1000 as an example. That is $12,000 a year. How difficult is it to make $12,000/yr off of 150 acres?

I realize that it is very difficult to make a living farming or ranching but lots of people do it. I am not trying to do that. I just want to offset the cost of the land. For example if I could even make $6000/yr off of 150 acres than that cuts my monthly payments in half.

I know there are a ton of variables, but this may help. Around here I think stocking rates are around one cow per 7 acres. That would be 20 cows on the 150 acres. The area around here is also farmed a lot. If I farmed 150 acres I would only need to make $80/acre to pay the entire land payment or $40/acre to pay half of it. Is this doable in dryland farming? If my numbers are way off base, what could I expect?

It's impossible to tell you "across the board", how much income you can expect from an AG lease. Here in mid-Kentucky, we can expect anywhere from $75 to as much as $115 an acre/per year for PRIME tillable crop land, in a long-term lease agreement. You pay the taxes, mortgage, and any improvements (drainage work, fencing, ect) Pasture is determined by number of head (be it cattle/horses/ect) the ground will support, combined with any barns/fences/ect) Again, you pay taxes and improvements. I'm not up to date on pasture leasing worth. In past years, it usually netted (for good-to-better pastures) less than 1/2 of the same acreage in crop land income.

All that considered, I know of several people who bought prime land, in anticipation of future developement, and are currently making mortgage payments and covering taxes, with a SLIGHT margin of "profit". That DOESN'T cover their downpayment. (Make down payment "out of pocket", break even or slight positive cash flow, hope land appreciates in value) In all the cases I know of PERSONALLY, they're leasing out as crop land.

 

[Sigarms]

I live about 2.5 hours from Baltimore and D.C. and they will pay a small fortune for a nice place to hunt.
.

Thats it, bring in more tourists! The rafting and ski business do enough of that already!

 

[scesnick]

Sig,
You're right , but I don't have a river or ski slope on my property !!

 

[bones1]

I would gladly pay$1200.00 per month for 200 ac of land.Where do I find it?.
Where are you?