making a go at farming

[Dave645]

the only problem with buying a yard and renting ground is having the opportunities to expand

Which is true. I think it's been discuss that 60-70% capital over your deposit is the likely max, even if you put 100k in your max loan is 233k so your looking at a max total of 333k.
If your up for it start small a field with a shed is as small as you can go see what you can find then work out setup costs, then look to see if you can go bigger, the cost of renting land in is less than mortgage costs for the same land.
My choice would be go for bare land that has potential to have a farm started on it, don't borrow anything to get the land. the rules for planning permissions, are more relaxed around farms and farm houses, it may mean a good amount of time in a caravan but it's not impossible. If you go this way look for land where it's not going to break the bank to get water and power to site and you have asses that councils approve, this needs a good line of sight in both directions I think at least 25m in both directions, and its not on a bend.

Make sure the land isn't all sloping as this makes things more expensive.
The small route will require you have a job or income as the farm is unlikely to provide you one for a few years. If you get it up and running carvan on site basic water and electric, get your livestock business up and running apply for planning for a farm house. If they pass it which will take years, you have 2 options build the house and max out. Or sell it with planning at which point the added value increase your nest egg and you move on, if you max out and build if you can scrape the money together, you will max your return, if you sell up at this point you can restart somewhere else with a large increase in starting capital.
Either way this gives you an in, And a good start even if you just keep it.

Converting bare land into a small holding is the cheapest in with max return but will also see you living in a carvan while you fight for planning.
And having to have a job while building up your livestock business, getting planning for a house on an arable business is nearly imposable.

The risk in starting small with no borrowings will mean far less stress, you will enjoy it far more. If you have a job that's paying the bills you can roll profits for your livestock into expanding that side, the council will need to see its a business not a hobby.
The perfect plot of land would have land to rent next to it....or connecting to it. In truth you could start on as little as 5 acres. If you could rent 50 near it. Don't forget you will need to know if the council will allow you to build sheds on the land you are thinking of buying at the very least, a friendly chat with them should tell you what your chances are.
Good luck.

 

[Turra farmer]

A bank will only lend 40%. How can you borrow 800k/1 mill (you would need to buy the stock too) with a less than 100k deposit?
Also, there is a reason the banks will only lend 40%, they know from experience, that that is the maximum repayments that can be made

I'd think you would struggle to pay capital and interest on 40% you might pay the interest but that would be it

 

[southwestfarmer]

Which is true. I think it's been discuss that 60-70% capital over your deposit is the likely max, even if you put 100k in your max loan is 233k so your looking at a max total of 333k.
If your up for it start small a field with a shed is as small as you can go see what you can find then work out setup costs, then look to see if you can go bigger, the cost of renting land in is less than mortgage costs for the same land.
My choice would be go for bare land that has potential to have a farm started on it, don't borrow anything to get the land. the rules for planning permissions, are more relaxed around farms and farm houses, it may mean a good amount of time in a caravan but it's not impossible. If you go this way look for land where it's not going to break the bank to get water and power to site and you have asses that councils approve, this needs a good line of sight in both directions I think at least 25m in both directions, and its not on a bend.

Make sure the land isn't all sloping as this makes things more expensive.
The small route will require you have a job or income as the farm is unlikely to provide you one for a few years. If you get it up and running carvan on site basic water and electric, get your livestock business up and running apply for planning for a farm house. If they pass it which will take years, you have 2 options build the house and max out. Or sell it with planning at which point the added value increase your nest egg and you move on, if you max out and build if you can scrape the money together, you will max your return, if you sell up at this point you can restart somewhere else with a large increase in starting capital.
Either way this gives you an in, And a good start even if you just keep it.

Converting bare land into a small holding is the cheapest in with max return but will also see you living in a carvan while you fight for planning.
And having to have a job while building up your livestock business, getting planning for a house on an arable business is nearly imposable.

The risk in starting small with no borrowings will mean far less stress, you will enjoy it far more. If you have a job that's paying the bills you can roll profits for your livestock into expanding that side, the council will need to see its a business not a hobby.
The perfect plot of land would have land to rent next to it....or connecting to it. In truth you could start on as little as 5 acres. If you could rent 50 near it. Don't forget you will need to know if the council will allow you to build sheds on the land you are thinking of buying at the very least, a friendly chat with them should tell you what your chances are.
Good luck.

thanks for all you advice and that is noted and I think that Is a very good idea I think it is a problem of finding an area where there is many and often opportunities to rent ?

 

[southwestfarmer]

thanks for all your advice it has made me stand back and think about the idea

 

[Pieces_of_Eight]

If I found myself in such a position, I wouldn't commit myself to a life of being the bank's slave.

I would buy a smallholding or mini-farm to satisfy my agricultural tendencies and build a career/business alongside it to provide an unrelated income to fuel my lifestyle. Once upon a time I scraped an existence through being paid to do my hobby, which is many people's dream.

Why make life hard work if you can afford not to?

 

[southwestfarmer]

If I found myself in such a position, I wouldn't commit myself to a life of being the bank's slave.

I would buy a smallholding or mini-farm to satisfy my agricultural tendencies and build a career/business alongside it to provide an unrelated income to fuel my lifestyle. Once upon a time I scraped an existence through being paid to do my hobby, which is many people's dream.

Why make life hard work if you can afford not to?

because I don't really want to build a career I want to go farming its all ive wanted to do and all il expect il want to do I know the financial cant pay a loan but surely if you rent enough then you could service a wage

 

[Pieces_of_Eight]

because I don't really want to build a career I want to go farming

Farming is a great lifestyle, but you have an opportunity for it not to be tied to a life of hard work and debt. Why not "go farming" as a hobby?

If you are that desperate to pour your money away in rent and bank interest charges, do yourself a favour and wait 5 years till we know what Brexit looks like.

(As I've said before, my advice is free and worth every penny...)

 

[southwestfarmer]

Farming is a great lifestyle, but you have an opportunity for it not to be tied to a life of hard work and debt. Why not "go farming" as a hobby?

If you are that desperate to pour your money away in rent and bank interest charges, do yourself a favour and wait 5 years till we know what Brexit looks like.

(As I've said before, my advice is free and worth every penny...)

that's my point I don't want it to be a hobby every time I have tried to pull myself away from farming it pulls me back everytime and I love it

 

[waterbuffalofarmer]

I would seriously consider farming overseas, for example in France, than here in the UK if you a) have cash, b) have no ties, c) are willing to learn the language. Better climate. Cheaper land is also decent land ie not the storm-swept side of a Scottish hill. And their government / population actually support them.

Totally agree with you there. We were thinking of it quite a few years ago and may still. Land is certainly much, much cheaper over there and they are quite open minded to good produce if you're selling it

 

[wasted years]

that's my point I don't want it to be a hobby every time I have tried to pull myself away from farming it pulls me back everytime and I love it

Contrary to what some are saying on here a bank will lend 100% of land value but you will need a guarantor and good trading accounts.
You need a landed relative to back you or polish off some chat up lines and find a rich girl/boyfriend whichever way you swing.
The beauty of setting off at your age is that you have time , energy and youth to go through the pain barrier and still have plenty of life to enjoy your success.
Or if it goes wrong, time to do something else.

 

[Derrick Hughes]

If I found myself in such a position, I wouldn't commit myself to a life of being the bank's slave.

I would buy a smallholding or mini-farm to satisfy my agricultural tendencies and build a career/business alongside it to provide an unrelated income to fuel my lifestyle. Once upon a time I scraped an existence through being paid to do my hobby, which is many people's dream.

Why make life hard work if you can afford not to?

Post of the year and someone who thinks with his head

 

[southwestfarmer]

Contrary to what some are saying on here a bank will lend 100% of land value but you will need a guarantor and good trading accounts.
You need a landed relative to back you or polish off some chat up lines and find a rich girl/boyfriend whichever way you swing.
The beauty of setting off at your age is that you have time , energy and youth to go through the pain barrier and still have plenty of life to enjoy your success.
Or if it goes wrong, time to do something else.

thanks for the advice

 

[hindmaist]

Is your dream to
a) make a living farming your own livestock.
Or
b) buy a farm big enough to give you a living.
In my opinion it is highly unlikely you'll be able to do both.A meeting with your banks agri manager will confirm this.

If you want to buy a £700k farm you'll have to get a job that pays £70k a year.

 

[southwestfarmer]

Is your dream to
a) make a living farming your own livestock.
Or
b) buy a farm big enough to give you a living.
In my opinion it is highly unlikely you'll be able to do both.A meeting with your banks agri manager will confirm this.

If you want to buy a £700k farm you'll have to get a job that pays £70k a year.

my dream is to make a living farming my own livestock really although I would like the security of an owned farm I am open to many different ideas

 

[Dave645]

I think it is a problem of finding an area where there is many and often opportunities to rent ?

Your not wrong, but as your not fixed to one area, it's the type of thing to ask land agents, ring around see what's about in the areas you prefer.
See if there are any suitable plots of land to buy, close to a area up for rent.
Sometimes just talking to the seller may yield info on land for rent in the area.
I suppose the final option is become a tennant farmer and use your cash to get started and pay the first years rent. You could apply to councils.
Or just look out for farms to rent. It just comes with the down side you never own it. Mr Dyson may be looking for tenants .......

 

[GTB]

They will lend up to 70% on land for the right plan and people

Banks will lend 100% for land purchases provided you already own several farms. But they don't want to lend more than 40% of the TOTAL asset value in reality.

 

[hindmaist]

my dream is to make a living farming my own livestock really although I would like the security of an owned farm I am open to many different ideas

I wish you all the best.There will be opportunities for those who can work harder and smarter than most.Perhaps there will come a time when you can buy a farm of your own.

 

[Iron150]

Im afraid im closer to the 70% than the 40%, all banks will be different, 40% of assets value seems very low to me,

Banks will lend 100% for land purchases provided you already own several farms. But they don't want to lend more than 40% of the TOTAL asset value in reality.

 

[southwestfarmer]

Your not wrong, but as your not fixed to one area, it's the type of thing to ask land agents, ring around see what's about in the areas you prefer.
See if there are any suitable plots of land to buy, close to a area up for rent.
Sometimes just talking to the seller may yield info on land for rent in the area.
I suppose the final option is become a tennant farmer and use your cash to get started and pay the first years rent. You could apply to councils.
Or just look out for farms to rent. It just comes with the down side you never own it. Mr Dyson may be looking for tenants .......

thankyou Ive got a meeting with a land agent next week

 

[southwestfarmer]

I wish you all the best.There will be opportunities for those who can work harder and smarter than most.Perhaps there will come a time when you can buy a farm of your own.

fingers crossed