If you’re buying farmland, there are certain basics you need to consider.
Will the property be self-supporting from an agricultural standpoint, or will you have to supplement it with your non-farming income? The answer to that question will affect the terms of any financing you want to obtain for the purchase. The greater the productive potential of the land, the less you will need to come up with as a down payment. And you have to be realistic about how much of your own money you can afford to invest on an ongoing basis.
If you do require purchase financing, make sure you choose a lender that has a clear understanding of both the ups and downs of the farming business and rural property in general. It probably won’t be any of the same ones that financed your home, car or boat or even your bu Continue reading