Those who hope to buy a ranch or farm have some significant planning ahead. That process starts with understanding the difference between a ranch and farm, though. What’s a farm? What’s a ranch? What sector of the rural lifestyle is right for you? Aspiring landowners must ask and answer these questions before pulling the trigger on a land purchase. Here’s to finding the land that fits your dreams.
Farms vs. Ranches
Making the decision between buying a farm, and buying a ranch, starts with property intent. What are you planning to do with the land? What are your aspirations and expectations? Better yet, what does your business plan outline? These are all important questions to address before deciding between a farm or ranch.
Drilling down further, do you plan to harvest crops or raise livestock? Oftentimes, crops are associated with farms and livestock with ranches, but there is some crossover.
From a livestock perspective, the scale of the operation is what’s most important. Typically, larger operations are better described as “ranching” and smaller operations as “farming.”
Lifestyle matters, too. Do you rope and ride, go everywhere with your cowboy hat, and want a trailer full of quarter horses? Do you want thousands of acres to roam, ride, and hunt on? Perhaps a ranch is for you.
Maybe you want a smaller acreage to raise a small to medium-sized herd of cattle, row crop corn and soybeans, or just dabble in numerous areas of the rural lifestyle. That sounds more like a farm.
Additionally, it’s important to weigh your skills. Gauge your knowledge of the intended agricultural practice. Do you have the skills, knowledge, or equipment needed to bring hopes to fruition? If not, can you acquire these? It’s good to dream big, but also be realistic, during this important planning phase.
Overall, when deciding between a farm and ranch, consider your intent, abilities, equipment, lifestyle, and more. Determine what boxes you’ve checked and unchecked boxes you still can mark off. Then, move forward accordingly.
Property Size
You’ve studied the primary differences in farms and ranches. Based on intent, goals, abilities, and more, you’ve decided which avenue is realistic and best for you. Now, it’s about finding the right ranch or farm.
Oftentimes, this process starts with assessing property size. Based on your plans, how much land do you need? Various agricultural practices require different acreages. Gauge the size of the anticipated crop or livestock operation, and plan for the needed farm or ranch size.
Furthermore, how much land can you afford? That too is an important consideration. Oftentimes, this is a limiting factor. Finances depending, it might require starting with a smaller operation and scaling up over time.
Soil Quality and Yield Potentials
Soil type, soil composition, and yield potentials are significant factors in deciding what land to buy. The soil quality matters and is directly linked to the value of the land. It also impacts what can and can’t be done with any given property.
Thus, when looking for the right farm, it’s vital to study soil ratings. Soil health and drainage scores must be analyzed to determine if the land is compatible with the intended use, or not. If it is, great. If not, keep looking for the right piece of ground.
Land Topography
Topography is another factor. The lay of the land can determine if the property is suitable or not for an agricultural practice. It might be good for one thing, but not another. A tract might support livestock but not crops. Or, the land might be pristine and perfect for row crops, making it impractical (and too expensive) for buying it for livestock and hay fields. Each piece of land should be viewed through the lens of its potential and best application and then matched to the buyer with compatible plans.
Property Attributes
Topography aside, properties have various other attributes to think about. First, analyze the timber-to-field ratio. Is it acceptable for your goals? Most ag practices require open ground, and a tract with expansive standing timber might not align with that.
Does the property have water sources? Most agricultural disciplines require access to H2O. Livestock need water to drink. Crops need irrigation to grow.
Drainage is another important element, especially for row croppers. Today, many ag professionals are installing drain tile, especially in areas that receive heavy rainfall and/or hold too much water. This is a valuable property attribute, and if present, influences land price and practical uses for tiled areas.
Of course, other property attributes abound, but it’s vital to study each one. Ensure these work for the type of farming or ranching you plan to move forward with.
Mineral, Water, and Other Rights
Buying the land’s surface rights doesn’t guarantee other rights come with it. Potential buyers should look into the conveyance of mineral, water, and other relevant rights.
Of course, mineral rights might not directly impact agricultural practices, but it can. At the very least, it might interrupt or otherwise influence fencing, plantings, etc. Still, in many states, it’s not uncommon to encounter previously severed mineral and surface rights. Most of the time, agricultural operations go on largely unhindered.
However, water rights are much more important for agriculture, though. While most lands still have attached water and surface rights, it’s important to verify this. In Western states, it’s becoming increasingly more common to sever water rights from landscapes. That can pose issues for anyone looking to buy land for agricultural reasons that no longer has attached water rights.
Property Infrastructure
Vacant land likely doesn’t have existing infrastructure. Some lands might offer it, though. Barns, sheds, warehousing, and other structures might already be in place. Fencing, lot designs, and other ag construction types might already exist.
Does the current property infrastructure work with your intended agricultural profession? Are these located where you need them to be? Or will you have to pay for these structures only to tear down or move them? Determine if existing layouts are viable, or if you should continue the land search.
Area Infrastructure
The area infrastructure matters, too. This is all about proximity. For example, you’re planning to plant corn and soybeans. Is there a nearby grain terminal to store and/or sell the harvest? Or, you’re hoping to start an angus beef operation. Are you close to a stockyard, meat market, or other locals who might buy your product?
Either way, closer proximities to other important puzzle pieces within your business plan translate to lower fuel costs and higher profit margins. Properties that are farther away mean more time devoted to driving and less time focused on more important tasks.
Nearby Scalability
The above concept of nearby infrastructure also applies to buying additional land and the expansion of existing operations. If buying additional ground, under most circumstances, it’s better to acquire new properties as close as possible to your home base.
Naturally, this only applies in terms of scalability. Those who hope to grow their operation over time, or if it’s to become a family business and scalability is paramount to supporting multiple households, the first land buy should be close to additional acreage that might be purchased at a later date. This requires analyzing the quality and type of adjacent or nearby land. It also requires contemplating the willingness of those landowners to sell in the future.
All things considered, if anticipating the desire or need to grow, buy land with nearby scalability.
Available Budget
Lastly, study your budget. How much ranch or farm can you afford? Consider the necessary down payment, monthly mortgages, and operating costs. Consider the monthly upkeep, maintenance, and annual taxes. With projected farm income, can you make it work? Don’t take unintelligent risks. Make smart business decisions. Then, make your move.
Find the Right Land
The aforementioned variables aside, buyers must think about other relevant factors. Think about your vision for the farm or ranch. Consider the practicalities of your goals and what the land has to offer. Determine existing and needed resources. Study the current and projected zoning laws. And look into other land-use regulations, such as hunting and fishing laws. Then, find the right piece of land for you.
To find the right land for you, contact a Whitetail Properties Land Specialist today.
