# heres what im thinking



## tw30 (Apr 4, 2010)

start with 50 acres. hya farm 47 of it .barn and other stuff on the other 3 .

50 acre farm shoulde produce 19k net . yeah it aint much but it's a headstart .i realized 200 acres it to much to run 2000$ a month is to much . 50 acres would be 500$ a month little but more reasonable .one question though would you buy hay equipment first or tractor or just build my credit and buy it all land included and gett a low intrest payments back to the bank ?but if im was to do that i would buy the 200 acre and farm 50 of it and more so down the road .500k would get it going i think but the term would be 50 yrs









any finniacil advice ?


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## swmnhay (Jun 13, 2008)

First I would see what kind of financing you can get from the bank.

They will probably ask for 3 yrs of financial statments.

3 yrs of tax statements.

They will do a cash flow program to see if it will work.On paper:rolleyes:

A bank will not borrow 100% of your needs.You need some of your own money,or equity to borrow against.You need atleast 33% and preferably 50% to keep the banker happy.









There maybe some begining farmer loans to help get started threw FSA.

Or maybe you will win the lottery.


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## Mike120 (May 4, 2009)

I suggest you develop a business plan first. Here's a template:

Writing an Agricultural Business Plan

It isn't for the hay business but it is what a banker will want to see. Here are other resources:

WikiAnswers - Where can you find free examples of a farm business plan

The banker won't care about how many acres, the color of your equipment, or the amount of hay you might get. He will only want to see proof that you can pay back the money he lends you. Good luck!


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## tw30 (Apr 4, 2010)

reading from their website

FSA loans are often provided to beginning farmers who cannot qualify for conventional loans because they have insufficient financial resources. FSA also helps established farmers who have suffered financial setbacks from natural disasters, or whose resources are too limited to maintain profitable farming operations.

.gonna be reading for the next few hours


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## NCSteveH (Jun 30, 2009)

Just remember if you take money from FSA they are more than likely going to require you to carry crop insurance. another line to add to your cost when crunching numbers.


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## swmnhay (Jun 13, 2008)

But

You will have to show you can pay it back.









And jump threw all there hoops.


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## panhandle9400 (Jan 17, 2010)

On hay where I am at they only have a NAP for noninsurable crops , it is 200.00 per year . grains are differnt for requirements, then you will have to carry Multi-Peral . It can get expensive on grains.


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## downtownjr (Apr 8, 2008)

Hey TW,

Not sure, but if I recall your about 19 years old. Another alternative to spending a lot of money out of the chute is to hook up with a haymaker and work with him for a few years, learn the ropes and get some experience before going and borrowing the money. You may be able to lease a small number of acres and build some experience and books to show the bank/FSA when you are ready to buy. The FSA wants to see three years worth. I do some custom work and some on shares and lease my ground at this point. It allows me to build up and I am lots older than you are. I own all my equipment, which is nice, but then again it all has some age one, but I do not mind turning a wrench as long as the machinery does not get to expensive to keep. Unless you have a good chunk of change saved up, I would get experience, get that school done you were talking about earlier and have a solid plan, setting a nice pace so you do not get over your head, but make steady progress toward your dream. The planning sites the guys brought up are good, and as a few folks mentioned, you have to show you can pay this back, You sound like you have the ambition, but don't let the emotion of it all get ahead of a good plan. You have time to get the experience and education as you position yourself to make this happen. Just a thought on an alternative option. Good Luck, always like to see a young man get into farming...fewer doing it every day.


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## tw30 (Apr 4, 2010)

thanks for the advice .YEah i want to pace my self . probably buy a tractor this year though , i could use it for other stuff in the meantime .theres a hay farmer up the road from here i might ask him when i go by there next week .


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## chief-fan (Aug 27, 2009)

With the economy such as it is, this is not the time to be jumping on any big buck loans or buying ground, If you can get the loan to do it. Everything starts small and grows if they are successful. Why not start with some used equipment, older stuff you can afford. Like Downtownjr said, nothing wrong with older equipment as long as it stays profitable and functional. I run a 400 Farmall on a Super 69 baler and can usually make $ doing hay on shares. I get all the hay and do all the handling, expense of putting it up, selling, etc. When it sells I pay him a nominal fee for his share. Before you can sell any hay you need an outlet for the kind of hay your making. The best hay in the world isn't worth near as much if you have to haul it 1K miles to sell it. Hard to pay back loans and live too on that arrangement.


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## tw30 (Apr 4, 2010)

oh but i am talking about used equipment


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