Author Topic: Rural Raw Land Financers?  (Read 683 times)

WranglerBowman

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Rural Raw Land Financers?
« on: June 26, 2018, 11:33:31 AM »
I've been working with Farm Credit over the last couple years but wanted to make sure I'm not missing out on another potential source of financing that could be better.  I'm looking to purchase roughly 175 acres in Maryland to farm.  The property I'm interested in financing has 2 barns, 13 acres of fields and the rest is all wooded.  The loan amount would be $400-$500k dependent on what I want/required to put down.  Has anyone financed raw land like this in the past or is currently working with a good company to do so?  Thanks.

WranglerBowman

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Re: Rural Raw Land Financers?
« Reply #1 on: July 03, 2018, 08:24:00 AM »
I guess I'm the only one who needs to finance land?

wbranch

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Re: Rural Raw Land Financers?
« Reply #2 on: July 03, 2018, 09:32:11 AM »
Farm credit is the main option I know of for deals like this, which sounds like a hobby farm for to me. In rural areas there are local banks and credit unions that deal with farm financing if you are an actual farmer. But they would be happy to give money to a high income person hobby farming as well. Look at lists of banks in surrounding towns visit their websites and call the ag lenders.

Fishindude

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Re: Rural Raw Land Financers?
« Reply #3 on: July 04, 2018, 05:46:51 PM »
Most any brick and mortar bank in a community that has much agriculture will have an AG lender familiar with these kind of deals.  I always just worked with my local bank when I needed to finance ground.  175 Acres with only 13 acres in farm fields is a pretty sketchy "farm investment" as you will get nowhere near enough return off the tillable ground to make investment sense, and cutting timber is a one and done for 15-20 years thing.  Sounds more like a recreational property.

Rural

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Re: Rural Raw Land Financers?
« Reply #4 on: July 04, 2018, 09:44:02 PM »
We took out a farm loan from the local bank when we bought our place. No fields, only timber, but it was the local comminity bank.

WranglerBowman

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Re: Rural Raw Land Financers?
« Reply #5 on: July 09, 2018, 07:47:34 AM »
Thanks guys.  There's aren't many small local banks left in our area.  Most people I know who have purchased land locally used Farm Credit, which is who I've been working with, just wanted to shop around and see what else is available.  I agree that 175 acres with only 13 acres currently tillable doesn't look like a good farm investment, as it will be more of a hobby farm.  I plan to open up another 12 acres since those are some of the original fields that were let go 15-20 years ago.

Mr. Green

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Re: Rural Raw Land Financers?
« Reply #6 on: July 11, 2018, 06:42:52 PM »
We bought about 20 acres in MD a few years back and when we were considering financing it Mid-Atlantic Farm Credit was the only option. No one else would touch it. Their rates and program were extremely reasonable though. I was very impressed.

tralfamadorian

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Re: Rural Raw Land Financers?
« Reply #7 on: July 12, 2018, 07:31:46 AM »
+1 to everyone else's comments. I've gone through the due diligence on purchasing acreage (but haven't pulled the trigger). Some community banks were willing to consider the loan but it didn't seem like something they did often.