Thinking about buying a farm next door- any advice?

http://www.google.com/maps?f=q&hl=en&q=499+Union+Ridge+Rd,+Wartrace,+TN+37183&ie=UTF8&t=k&om=1&z=17&ll=35.52456,-86.256999&spn=0.005946,0.016801

Its 65 acres and has two chicken barns with a tyson chicken contract. The average income per barn is around 30k per year (60k total) and there should be enough land when combined with mine to run 25-30 cows. Which would go to improvements and upkeep. The asking price is 500,000.00 and I am really thinking about purchasing it. Raw land is going for 3k to 10k an acre here
I did a rough crunch of the numbers and the barns would cover a 30 year mortgage/taxes/insurance.
It would be a huge leap for me financially and take nearly all I had available for the down payment. I would have to keep my day job for living expenses. It would involve extra work for me.
On the positive side I enjoy country living and have always wanted to own a farm. This place runs right alongside my property (15 acres). The only way to preserve the current peace and quiet I enjoy on my property is to own the neighboring property. The final reason to do it is that I have never seen land prices go down steadily.
I know there are ethical questions about raising animals for slaughter but that is the way the world works. People have to eat and some enjoy chicken, some enjoy beef. I would treat the animals as humanely as possible.
So what do you think, should I go for it? Should I run away from it ASAP? Am I nuts? It seems to me that 500k is a BIG roll of the dice for me.

:kick:

Sounds like quite an undertaking, Wcross.

:scared:

... is that net or gross?

"The only way to preserve the current peace and quiet I enjoy on my property is to own the neighboring property" = priceless!!!

The rest will take care of itself.

But, you should consider what if for some reason the birds got sick and you had to destroy them all?
What does the Tyson contract say?

Also, if the land prices are dropping, how far will they go?

Those are my 2 questions that seem the most important to me in the few seconds I thought before starting typing.

I wish you guidance and wisdom that is beyond me.

Good luck.

She has experience and advised against the deal, it turns out she looked at the farm before buying her place! I had been trying to contact her for a couple of days.
She said Tyson is phasing out older barns and to upgrade would cost 20-30k per barn. I am still going to make an offer but I am looking at it in a whole new light. It looks like the guy might be in a financial situation, I am going to wait a while. Either he gets his price from someone who didn't do their homework or the price becomes more realistic.
I really just want the property, not the barns. Thinking about an offer of 3k an acre for 50 acres and he can sell the barns and house to someone else.

This will make the chicken poop smell more endurable. :D

Hat's off to you for even thinking about it all. Huuuuuuge work, I expect. :toast:

yes, you have to raise the chickens tyson's way in accord w. the contract, be that as it may, a lot of these old boys have $$$ signs in their eyes, we were told an outrageous fee for a property on the sight of a former tyson chicken coop destroyed by a tornado, i really think they had the idea that people fleeing katrina and the coast would be willing to pay anything at all for farm/land/insta-job

we took one look and it was like, how did they think anybody would even take this property for free? before you can do anything you've got to remove these chicken houses that are bigger than entire airports!

good luck on the $3K per acre, sounds fair to me, indeed it was the price we were shooting for, but again there is a lot of greed out there right now

the acreage, and leave the house/outbuildings for someone else to buy. But, that could be a hassle for the current owner, who might have to do some detailed work with appraisers, etc., to partition the property, get new deeds, etc. Apparently in some counties it's a pain in the ass, in others it is relatively easy.

Who knows, though? Your current plan sounds good - wait and watch.

the $2500 per month.

Break it down to the annual expense and don't get caught up in the whole price.

If there are reliable, honest people running the business and you feel like it really IS a good investment, just do it.

You can always sell it if it doesn't work out. As you say, land prices don't go down.

and the profit on chickens is literally pennies for chicken -- a profit you split w. tyson

your attitude is GREAT for urban properties, for rural properties, you are so screwed if you think that way, it can take YEARS to sell a property

the poster should not buy unless he is very confident he will be able to succeed because rural property is NOT liquid -- esp. not where it's zoned agricultural for bad-smelling chickens!

once he buys it's his, he can't think of it like he would a house in a suburb where if he doesn't like, he can expect to sell it (if necessary at a small loss) and be out of the monthly payment in a few months

country real estate can be more like the hot potato, who gets stuck with it

and never buy in a chicken-raising area until you've been there at the heat of summer in the middle of the day to see how you handle the "aroma" -- this person lives next door so already knows, this is just more general FYI for any general reader

1. What's the property tax hit - this one can eat up all your profits

2. What's the condition of the buildings, including the out buildings, such as wiring, plumbing, roofs, etc. Also, the equipment and tools (I'm assuming those will be included in the purchase)

3. Water supply, does the place have its own well or is it piped in

4. Have you checked into all the rules, regulations and restrictions (fed, state, local) on a commercial livestock business. Can you live with them (some are bizarre/restrictive beyond belief)

5. Can you afford the insurance - flood, buildings, livestock, etc

6. Are you planning to stay just with the chickens as your money maker or would you consider some kind of crop production like pumpkins, corn, etc. On one hand, it's not a good idea to put all your eggs in one basket (pardon the pun) - livestock has a bad habit of dying/getting sick. On the other, this implies increasing expenses, equipment, labor, risk. One hail storm can wipe out a year's worth of work and profit.

7. Have you done indepth research into commercial egg production. There's more to it than just feeding and watering the girls.

8. Are you willing never to go on vacation again because unless you can hire someone trustworthy to take care of the place while you're away, you're nailed down. Also, have you considered what would happen if you're ill or injured. Can someone step in for you.

FWIW

put in a bid for 400k...and work from there:shrug:








:loveya:





















I am land poor BTW...but would NOT have it any other way

I'd end up keeping a few the chickens and the cows as pets and selling the rest. I'd also look for any storm shelter or bomb shelter that may be on the property for ideas. I've always had a thing for bomb/storm shelters.

I don't know if I would have enough time to "bond" with and name 50k birds in the two months they would live there.

I was just saying I'd probably keep a few and give the others away or sell them and bond with the few. I know what you mean. You'd want money in return if you sold the chickens to help pay for it. That makes sense. I'd have a few spoiled birds with huge barns all to themselves.

I'm confusing myself now. When I've talked myself into a corner, I've found it is best to just smile and wave. :hi: :blush:

A guy down the road from me has a LOT of different birds on his farm. Peacocks, guinea hens, doves, ducks and a very beautiful assortment of different chickens. Right now I have six dogs and I suspect they would have a ball killing any birds out in the yard. They have developed an attitude that ANYTHING of mine is actually "ours".

One thing that really pisses me of is I work on the family farm that's been in tha family for four generations. And , as it always happens, some shitheads from the city decide to move to the country. And what do these fuck tards do? They start complaining to the authorities about the bad smells coming from the farm.

If you don't want to smell a fucking farm then don't move next to one, you shit hoses!!

They just built a 10 home subdivision nearby that happens to be downwind from 8 barns (about 200 yards). The barns were visible the entire time of developing this property. People built their 2-300k homes on five acre lots knowing the barns were there. They are starting to whine to the local paper about the smell and wanting to have them shut down. They have NEVER forced a farmer to cease operations in this county. I guess if it is so annoying they can get together and buy the farmer out.
When I was a kid there was a dairy farmer who found himself being surrounded by subdivisions. The neighbors started complaining about the smell. He took a load of cow shit and spread it up and down the road, put up a sign saying how much worse it COULD be. The complaints stopped and the farm is still in operation today.

it helps to spread it around:rofl: