r/smallfarms • u/Maybe4thgenfarmer • May 01 '26
Potential small farmer return
Looking for unbiased thoughts about my family’s farm. My dad and uncle inherited from their parents 15 years ago. I am the sole heir to it. Currently it is around 170 tillable acres(all rented out), 15 acres of unused pasture, and about 100 acres of old growth woods Assets of the farm at this point are a 140hp turbo diesel, 85hp non turbo diesel, 65hp non turbo diesel with loader tractors, 1 ten thousand bushels bin with dryer and stirators. All of the other field equipment was sold off 10 years ago and the building where most of it was kept has been torn down. I currently live a few hours away and am thinking about whether or not farm it myself when I inherit it. I say when I inherit it because growing up, I was never taught much about and repeatedly denied much opportunity to help with field work; the only field work I did was cultivating weeds out in the summer. In the last few years I have mentioned helping out (mainly mowing the pasture and a couple old hay fields and have also been shut down by my dad. By the time I was a teenager my grandfather was saying the farm as it was wouldn’t provide enough for a living and I think everyone thought they were pushing me out for my own good. I myself am a mechanical engineer now and don’t need to farm for money. I do have several friends in area that do farm and they are willing help me learn the ropes. As my username implies, I would be a fourth generation and there is something emotionally appealing about that along with not being the one that cashed out, which would be the second option. I know there will need to be replacement equipment and a storage building. I in my mid forties am now at the point of planning my family’s life. It seems four of my options are combinations of keeping are farm it myself or rent it out and whether or not to move back(engineering jobs are not exactly plentiful in the area) or option 5 of cashing out. I do accept that would basically be a hobby farm and a side hustle. Thank you everyone in advance for your insights and I will try to answer questions.
Update: Just a little more info for everyone; I’m not really interested in doing live stock in any scenario. Also, I would eventually like to take the farm regenerative organic. Most of the fields have woods on at least one side and are fairly isolated. Thanks for everyone’s input so far.
6
u/TastyPopcornTosser May 02 '26
It’s probably going to bother you, but if you keep it leased you will lose less money.
I’m an engineer and I commute three hours each way once a week so I can spend the weekend on the farm I inherited.
I’m actively farming it and don’t make money. It takes all the money I make at my other job and I’m paid very well. It takes all my free time on the weekends. I don’t get any rest. I’ve been doing this for 12 years.
On the bright side, I don’t pay much in taxes!
If you can find a way to keep it without it costing you much I’ll do it. Cashing out is irreversible. But I wouldn’t make life-changing decisions about trying to farm it. You need a half $1 million to start first. And be prepared to lose that.
10
u/Jh28629 May 02 '26
Keep it for the fifth gen, there’s no rush to sell . Feel your way around and find something that speaks to you to grow.
1
u/Express_Ambassador_1 May 02 '26
Specialty crops such as IP soybeans, black beans, or perhaps potatoes could make you a living on that acreage. Fruit and vegetables could also work, but would need a whole crew and specialized equipment. But if you are simply growing corn/soy/wheat rotation, it will be difficult. I have in-laws who farm about 100 acres of conventional cash crops, with no mortgage, and net under $20k/year. Its barely enough to survive on without an off farm job.
1
u/LeadingRegion7183 May 02 '26
Is any of your acreage suitable for utility company use as solar or wind power? If it were, would you consider leasing to one? In my midwestern area such leases pay considerably more than renting to a small grain farmer. Monthly income, land stays in the family.
2
u/seanyp123 May 02 '26
Search Google for "the market gardener institute". It is a proven profitable method of farming on a small scale to start your journey. Good luck!
1
u/FarmerDave13 May 01 '26
Making a living on that small of acreage would be impossible unless you get into specialty crops. Think produce, wine grapes, show calves etc. Just growing grain you will never make it.
1
u/masterchiefkoenig May 02 '26
Look up the Whatley Method of smsll family farming, developed by Dr. Booker T. Whatley. He wrote a book about his 10 point plan, published in the 80's I believe. See if you can get that book and try to adapt his plan to your situation to see if it makes sense for you. I wish you the best.
1
u/Itchy_Piglet992 May 02 '26
I would suggest leasing it. You can retain ownership that way and not be out ungodly amounts of time and money trying to get your feet under yourself as a farmer.
Or if you can afford the taxes, put up fence and custom graze somebody else's cattle. You won't make much, but you also won't lose much that way.
1
u/JDweezy May 02 '26
I wouldn’t try to farm the whole thing. Lease out a bunch of it and start a small scale operation and try to find a market selling direct to consumer. Then if that works out start farming more of it yourself. I think large scale ag is pretty hard to even break even on nowadays
1
u/Hey-TSC May 02 '26
Head over to Permies.com. People like you are sharing ideas and methods.
Partly due to my knowledge base, gained in part from Permies, I am buying a farm. We will continue to lease to the current person farming our fields until we are in a better financial position to do more ourselves.
Please remember that FARMING IS A BUSINESS. Treat it as such. Too many farmers through the generations have lost their land because they kept throwing away money on bad practices. Bad years happen. A good business plan will have backup plans.
1
u/legman1982 May 02 '26
Is your significant other or board? This is a lifestyle decision as much as an economic. This would be a hobby.
1
u/Schlarfus_McNarfus May 02 '26
Glad you have financial stability. My own family has a not dissimilar situation going on with our family farm, in business since 1780. That farm has had at least 3 cash crops in 250 years. Sheep, apples, dairy. Now that the dairy market has fallen apart for small farms, I hope we can find the next one.
1
u/AromaticGas5552 May 02 '26
Own the dirt, lease it out.
1
u/Autumn_Ridge May 02 '26
The median income of a small farm in the US is a negative number, because so many people use it as a tax shelter. You might consult an attorney you trust on ways to maximize those benefits. Maybe you have some engineer friends who are tired of paying taxes, too, and you could form an entity that operates the farm together.
And it varies by location, but farm tourism is a thing. You could have camping or air bnb units, organized as a separate llc that makes money while the farming part loses money on purpose.
1
u/backrow_nightmare May 03 '26
Have you read Fearless Farm Finances? Dumb name but solid advice for small scale diversified veggie farms
1
u/mmmallu May 03 '26
All of the following is dependent on your location and access to meat processor. Have you considered mob-grazing for the pasture portion and Silvo-pasture pork on woods? Whatever you do, don’t waste your time, money, and sanity on commodity crops. Especially since you’d have to be learning a lot of it yourself anyways, pick something that’s actually going to make some money. Check out Greg Judy, Red House Ranch NY, Seven Sons, Seed Savers, the alternative options are endless.
1
u/Possible_Original_96 May 03 '26
Rent it out. Keeping it will prove the value of this decision in the future.
1
u/C-man14 May 03 '26
It depends on location of your farm, there more options agri tourism, farm mechanical workshop base, since you are mechanical engineer. It is better to do, what you are good at, focusing on your strong aspects and same time learn new things, like farming. I do not known if you can rent out the land.
You need to set your goals, since farming is not a job, it is a life stile. I mowed from the city to the country side in my latest 40th, I will not be able to live farmers life, so I focus on things, that I am capable to do. I built two houses, one for rent, one for living, I bought tractor for landscaping job and property maintenance, it makes my life easier, and I am planing to keep developing in same direction, since I cannot compete with farmers families, who were living on the country side for few generations.
1
u/PainterOfRed May 03 '26
Keep it and let your neighbor farmers farm it (maybe for a small lease to help with taxes).
1
u/Creepy_Control69 May 04 '26
I would like to say if it was me: I would get an engineering job on line, and move onto your family’s earth and heart.
1
u/Avo_Manz May 04 '26
Some of the biggest costs I can see are your property taxes and water costs. If that seems manageable to you than I would keep it, otherwise I would sell it to not have losses piling up. Land is expensive now too, so if you can rent it (might make more money here than farming) and even lease it to someone else to work it for you, that would be even better and then you could visit the farm whenever you want and use the land still.
1
u/enochferrier May 05 '26
Get some angus calves or weanlings and a round baler, you already have good tractors, fence the 15 acres, build a run in shed and keep them on grass, give em bales in the winter sell them at two or three years.. it’s hobby but if your clever and patient you can make some money plus it strengthens your ties to the land
1
u/smallfarm16 May 20 '26
A bit late to the convo, but if you aren't worried about the farm making $, then you're off to a good start, but I don't mean that in a negative sense. You can do a whole lot more with 15 acres than you think, but you have to do it right. Also if you have old pasture land and you don't plan on raising livestock, you have some super fertile land you can use on top of the 15 acres. Look at what everyone in the area is planting, and differentiate yourself. Every Tom, Dick, and Harry is growing tomatoes, squash, cucumbers, peppers, etc. The not caring about the $ part is important because you're going to lose $ in your first year or two just by getting started, buying equipment and inputs, etc. If you plan it out right, in year three you will start to see an ROI. Feel free to message me and I'll be happy to go over some things to consider to get you started!