My good friend, Greg Judy, who actually has a Youtube channel to which you can subscribe for his interesting and informative videos about farming/ranching and a whole host of other topics related to profitable cattle and sheep farming, has offered up some key points for considering land purchases for your specific goals.
The check list really hasn’t changed in considerations for the purchase throughout history.
Cato’s list has more detail and although he uses the word ‘folly’ in what other people build (like barns for livestock), it can be used in your favor should you need a new or nice home or are considering a dairy operation or some such. Yet, the basic consideration is, does my operation actually require the use of a high maintenance, taxable building which sits empty most of the year.
Buying undeveloped land may seem less expensive, but bear in mind the high cost of making it livestock worthy (or whatever it is you will use your land for). Perimeter fencing is expensive made even more so if hiring a bulldozer to clear the fence rows first is necessary.
As we get older, land which may be more expensive yet closer to a hospital or at least a sealed road will likely become more important.
If you are so fortunate to find a reasonably price parcel in the location important you, with limited buildings, then don’t wait because someone else will buy it. Desirable parcels of property are snapped up very fast. My observations of looking for properties, indicates that poor properties are offered at ridiculous prices just hoping for someone to bite; quality, in-demand properties will sell immediately and land auctions are becoming more popular due to immediate sell and they are bringing a premium price.
If the neighbours aren’t interested in the property and it has been languishing on the market, that is a red flag that something is wrong – do in depth research. Oftentimes, it can be high taxes, poor production values, swampy land, no water, low rainfall, the lay of the land requires constant maintenance (i have a 160 like that, every little rain causes my deep watergaps to blow out, fighting encroaching brush is an annual and long days event)
My personal search requires:
- enough acreage in one block location with minimal perimeter (in other words more squarish, not nooks and crannies. one property online had 11 miles of perimeter to maintain yet enclosing only 1700 acres!)
- A nice home which has been built with finishes which stand the test of time. Too many homes from the 80s and 90s and so faddish inside, it needs to be completely gutted and redone. May be better to tear it down and start again. Not out of the range of possibility, just be sure you aren’t paying twice for a new home.
- Live water with no or little flood plain.
- Located on a sealed road with minimal traffic
- Near infrastructure to livestock auctions and other supportive ranch venues
- Warm winters, warm winters, warm winters – did i mention warm winters?!
- Minimal timber and very little brush.
- I would like to not be close enough to neighbors to hear or see them, but within 2 hours of a major airport.
- Price is critical – i’m not rich – the ranch i buy must find a way to pay for itself or at the least provide a good rate of return. This is nearly impossible in today’s environment where there is very little low risk good investment. Land is in too expensive for its productive value.