For the last 2 years, I’ve been trying to buy a farm to plant a repository of fruits, nuts and fodder cultivars and I’m still looking. Because of the fact that I really need to find some land soon, I’m writing this blog post to put it out there. Why is this so hard? Here are my thoughts…
1.) Covid and Interest Rates: Many of the city and suburb people seem to be leaving for larger properties now that Covid has them working from home. Combined with low interest rates, these people are buying farms. Not only are they buying farms, but they are waiving inspections and bidding up the price- something I cannot do.
2.) FSA loans. I am completely self employed and though I have great credit and adequate demonstrable farm income to afford a decent mortgage, it’s not enough to get a conventional loan. They ultimately want someone with a W-2. Therefore, my only option is to get a loan through the Farm Service Agency (FSA), an agency within the USDA that exists to make loans to farmers because they know this is a problem. Though on paper this loan looks really sweet- up to 40 year mortgage, low interest, no down payment, it is proving to be a nightmare. Here’s why:
- No pre-approvals. The government doesn’t pre-approve, and you must submit your application over and over again for each farm you have a signed contract to buy. Each time, they go over your business plan, your existing finances, the appraisal of the property, etc. Only, no contracts to buy have manifested themselves because I can’t get pre-approved. I cannot find any organizations working on the legislation around this.
- 90 day minimum discover/financing period. In talking with FSA agents, this is the minimum time needed to process your loan application and give both you and the seller an answer.
- County FSA offices. The USDA’s Farm Service Agency is decentralized and broken down into county offices all over. Because my search for land spans several counties, I’ve spoken with FSA loan offices in all of them and they range from being extremely helpful and open minded to down right ignorant and dismissive of my abilities and business plan. It doesn’t help my optimism when articles are also published about how women and minority farmers and ranchers receive disproportionately less credit than their white male counterparts through the FSA.
- Business plans. I don’t grow corn and soy. I do, however, have a history of pigs and nursery products and growing/managing orchards. My last conversation with an agent revealed that I probably shouldn’t elaborate on the nursery or orchard part of my business plan because “we don’t understand those businesses” and, instead, should focus on hogs because those numbers are easier. This is incredibly frustrating. So, do I write a largely fake business plan?
- You might not get the loan. It takes 45 days to find out if you and your business plan have been approved for the farm. Another 45 days to finance the property.
Having to go through the FSA has turned into one heartbreak after another. After an offer was rejected yesterday, my realtor called to tell me that it’s looking like my only hope is in finding someone who wants to sell but hasn’t listed their property yet. He’s talking with some of his realtor friends to see if they might know of anyone or anything coming up… but that’s what this loan has become. I’ve also written loads of blind letters to landowners asking if they might be interested in selling and the answer, if I get one, is always no. One lady kindly called me back to tell me that a man grows corn and beans on her land and all the land around her and says he’s got a long-term lease. Which is a whole other issue that I won’t get into in this essay, but lease bullying of older women landowners is a real thing.
Other questions you might be asking in your head:
- Why not lease? I have a lease and it’s a good one. I trust my business partnership and feel confident in the lease’s longevity. It is, however, simply too small of a piece of land to hold all of the trees I am trying to save, evaluate and give jobs so they’ll stay around and be employed by others.
What about a good lease on more land? It’s a dangerous proposition for me to operate my life’s work on other people’s land. I was interviewed this week by an ag non-profit and they asked me: “On a scale from 1 to 10 (1 being strongest, 10 being least), how much do you identify as a farmer?” I had to answer that in my late 20s, I was a 1 (when I started this blog). That identity combined with non-ownership of my trees and lost access causes a deep and dark depression that I cannot describe and never want to face again. These days, I’m probably a 6 or a 7 simply because of a need for self-preservation. I have clarity and focus and more purpose than ever before and, yet, cannot take anymore risks with land tenure. The next steps have to happen on land that I own. And if that can’t be in the next 6 months, I am going to need to reevaluate everything that feels so solid, which is a crushing proposition.
What about on non-profit land? Putting my work’s canvas in the hands of a board is terrifying to me. I’ve seen boards overturn. I’ve seen them bend to the loudest, most emphatic member. I’ve seen board deals worked behind the back of others on the board, eliminating group conversation. Having my livelihood and passion be in the future of a board would pump me with a never-ending sense of foreboding.
You could put your trees on my property! I get this a lot and, respectfully, I am not interested. I know you are well-intentioned, but it’s spreading myself too thin. It’s not owning the trees. It’s the unknown.
How to move forward?
Well, it seems as if I need to find someone who wants to both sell me a farm and be sympathetic to the FSA loan process, or otherwise offer creative financing. I’m looking for the following:
- I’m looking for around 30 acres of land with at least 50% in fields of well drained ag soil in zone 7a, 7b or 8a . But I’d take smaller if I could be on it by this winter.
- Within a 150 mile radius of Southeastern VA (Hampton Roads, Middle Peninsula Northern Neck and inland) OR 20-ish minutes off any route between Northern VA and Southeastern VA.
- I prefer a house on the property, but it’s not necessary. If no house, on-site electricity and a well with some outbuildings is strongly preferred. Again, at least 13-15 acres needs to be in fields and not forested.
- I’m open to offering life estate if someone in advanced retirement wishes to remain in the house, but I need access to the land ASAP.
- Old orchards (older than 1980) or former orchard land (pre-1980s) are not preferred due to likely lead-arsenate toxicity in the soil and this is a problem for livestock.
- My budget honestly varies depending on the property. Just let me know what you’re willing to sell it for and I can crunch some numbers.
- The business plan surrounds producing orchards, nursery space and some livestock. I’m willing to share it with seriously interested parties. I am not interested in business partners for this business plan.
Know anyone who might be interested? I can’t post my personal contact information on here for security purposes, but please email firstname.lastname@example.org or submit a message through my website, www.fruitandfodder.com.
I’m open to other suggestions as well, just get in contact with me