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Expert
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Location: WI | Anyone have experience with this? I know it will vary based on location, but just want to get a general idea. Trying to buy a place and saw one that has 17acres of income producing tillable land. Any idea what kind of income? |
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Location: The best kept secret in TX | linds - 2017-08-22 2:14 PM Anyone have experience with this? I know it will vary based on location, but just want to get a general idea. Trying to buy a place and saw one that has 17acres of income producing tillable land. Any idea what kind of income? It's possibly a hay field.
You can ask the owner to produce last years record of income. Since it's stated that it's income producing the owner legally has to show proof of income to prospective buyers.
If he can't you may be able to get the house reappraised and the asking price lowered since it would be considered non-income producing. (some agencies jack up the price when they state it produces income.)
You can also ask the owner his method of tilling, planting, etc. 
Edited by IRunOnFaith 2017-08-22 2:33 PM
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| Yes, it depends on location. Also, depends on what kind of use the land is under.
If the land has produced row crops (soy beans, corn, wheat, barley, etc) chances are good there are FSA records for insurance, past production, and basic history.
If its hay ground, alfalfa is a crop you can insure and would have similar records.
If it is pasture, seller should be able to produce records of how many pairs were on it, what the going rate was, any leases that are current, etc.
Basically, if the seller is claiming income - there will be records available for buyers to reference. |
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Married to a Louie Lover
Posts: 3303
| You should be able to zoom over it on Google and get a pretty good idea of whether or not it is row crop or hay, etc.
Income will depend greatly on the ground and area. If it's tillable and in row crop ask for the CSR rating and contact a local crop insurance agent or ag banker to inquire about the going rate for land rent with that CSR. Could be $100/ac-$300/ac. If it is row crop ask if they have a current tenant and what their rental agreement is.
Could also be a specialty crop... |
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Location: Willows, CA | If you plan to farm the ground yourself you will need to have equipment to do so, or hire custom help. Unless it is intense output row crop ground, it would be hard to get someone to move equipment there to do custom work for such a small piece. In my area 17 acres is a hobby size, and not a going income size. Even having someone move equipment to put up hay during the busy time of year can be a challenge for acreage that small. I would sure ask to see what income it has generated for the last four years or so before I gave it credit for doing so.
Now, if it is just irrigated pasture, you might see rental income from other horse owners. If it is cross fenced with safe fencing all the better.
Edited by winwillows 2017-08-22 4:34 PM
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 A Somebody to Everybody
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Location: Under The Big Sky Of Texas | I would just call the owner and ask he/she what they have done/do with the land instead of trying to guess..  |
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Location: WI | Thanks everyone, it sold already! Sure is a sellers market right now!! |
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Location: Willows, CA | I have 200 acres of rice ground in CA that I will sell you.
That is a joke, by the way. It would not make a good horse property.
Edited by winwillows 2017-08-23 2:46 PM
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Location: NW. Florida | Southtxponygirl - 2017-08-22 4:44 PM I would just call the owner and ask he/she what they have done/do with the land instead of trying to guess..
Exactly, because the Farm Service Agency (FSA) office mentioned above can not legally release that information to you without the landowner's permission.
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