Farmland Investors

[Zach Egesdal]

Hello,

I am a young farmer in Iowa looking to make a living in Agriculture. The problem is being fresh out of college I can't afford to buy land at this time and no one wants to rent to young farmers they are looking for top dollar rent of well established farmers. I went to Iowa State University and studied Agronomy so I know how to take care of land and build its value. I am hoping to find someone looking to buy prime Iowa farmland and rent to someone like me who is trying to make a start in farming. If anyone is interested in an investment like this or can point me in the right direction please feel free to respond.

[Chris Newman]

As a Viet Nam era vet myself, I understand that military vets come in all shapes and sizes, just like the rest of us. They're not all the same and some vets make superb farmers. The biggest difference is if they have help and support or not. If not, the success rate is pretty low. If your young share-cropper(?) had had some local support and knowledgeable guidance from other combat vets, the results for both of you might have been much different. 

But, you're right that entry-level farming is very difficult to get into, which is why local ag is in a death spiral all over the country, at the same time that the city folks are begging for local organic food and willing to pay top dollar for it. 

I invest in close-in farmland near Seattle and am planning to do some entry-level share-cropping as the landowner. If it's set up right, I think that this can deliver some eye-popping passive returns. And, if the delivery trucks ever stop running, I'll still have the means to feed my family.

When looking for farmers to work the land, I'm going to give preference to vets. But, it will be vets who are recommended by the local "Growing Veterans" non-profit organization. It turns out that learning how to farm within the company of comrades who have shared your experiences is some pretty good "dirt therapy" for returning combat warriors who have some serious PTSD/shellshock. They call it "dirt therapy," too. And it works.

It seems to me that there can be some pretty good ROI's with cheap, but convenient, farmland, with a farm-to-table direct-retail component (ideally, an on-farm stand, which is why location is so critical), and hard working sharecroppers who just need a chance to build up their nest egg. By the time they're ready, I'll try to have a farm for them to buy on seller financing, and already know just how dependable the buyer is.

A well-worked acre with direct marketing can often produce $60,000 worth of produce per year and some folks have hit $90,000. Since one acre isn't all that big, there's some decent margin to split. (I plan to seek 40%, give 50% to the growing veteran and 10% to a carefully-selected farm mentor/leader.) That's what I'll be doing, at least, and since the land will have already paid for itself through the sale of newly-minted Transferable Development Rights credits, it will all be gravy, anyway.

Anyway, I hope that folks will consider supporting these "swords into plowshares" healing vet organizations when they need help either with farming or anything else. A lot of these guys are happy with just a day or two of work, while they're working hard on the farm and not making much steady money until the crops sell.

You can find out if there's an Farmer Veteran organization near you in the US at http://www.farmvetco.org/

I notice that there isn't one in Utah. Perhaps you might want to help launch one, or else help an existing organization to grow. A good place to start would be the public information officer at the military installation nearest you. Or, contact the local VFW, whose members are always looking for a chance to help. Or, contact any of the organizations through the farmvetco site. Then, start shopping for some good peri-urban farmland.