I show some of the processes of taking out a farm loan through the Farm Service Agency. Subscribe to How Farms Work ► bit.ly/XYVvDd Facebook ► on. YpS8oH How Farms Work Store ► www.HowFarmsWork.com
Thanks so much Ryan for allowing us to see so much of the internal workings of your farming budget. I learned a lot watching your interaction with the agent and look forward to hearing how the payments whether in total or yearly go.
This video is good for younger people, (like me) to show what's involved. I've personally had experience already, because I bought my truck. It's good experience to have on something that isn't very expensive, just to know what you're getting into. I hate the interest rates on loans, but it's how banks make their money! Thanks for sharing!
You took some of the questions in the loan process with FSA and showed it. Good to see it in action. Liked how your guy knew stuff about you. The decision process in why you purchased the equipment was nice to know.
as a farmer and taxpayer I would like it to be known that you don't "choose" to borrow from the USDA. other than a grain bin loan, you almost always have to be first denied from a commercial bank.
A friend of mine used to say; "Use your credit while you can, your cash will always be green". I like the idea of the payments as a time/ safety buffer. We bought an excavator at 0.0% interest, and my wife wanted to pay the final year off with money from savings. I explained to her that losing that buffer would not be a beneficial step to take, if we ended up with some kind of emergency that actually required that money.
I was reading that FSA has a limit for each year & they have allotted most of it for this year already due to low commodity prices the last couple years.
Thanks for reminding me why I work with a local bank. Lot simpler with less paper work. I've also told that FsA and farm credit like to put a lean on everything.
Can you get a loan like this and not have to pay back/pay back very low monthly payments until you start making money from your farm or do you have to have a regular job to get this loan?
front end light back end heavy but like you say will pay loan down good ideal on cart and good luck no one comes in takes the cart before you can it paid off.
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I went in to inquire about first time and minority/disadvantaged farmers and was basically told not to bother and felt really discouraged. So I bought 5 bred cows and stared a herd, I lease a bull. I have a full time job just needed some capital for outbuildings and supplies but I made do without. If I had a million dollars I’d lose it all farming/ranching
Can you not put a deposit/earnest money down on the grain cart you are wanting to buy? Hold it for you? You are pretty much guaranteed the loan will be accepted by FSA, correct?
a semi needs fuel, maintenance items and a driver. for a truck to make money is to keep it rolling, as letting it sit around knackers oil seals and tyres deteriorate anyway by uv light. does the diesel bug is a big thing in the usa? we got algae growth at fuel pumps clogging up the filters till it drips out the nozzle. also know about the EU rules on diesels to compare it too, if you have a older truck, you are banned from city centres and a euro 5 model at age of 3 years get restrictions on emissions even with ad blue. a ship can run on crude oil in the port of Rotterdam but a truck needs a clean emission euro 6 class. a truck often runs 18 to 20 hours a day with two drivers in allowed driving time, 24 hours max as 10 driving hours is maximum and a work day cannot exceed 12 hours. so i am thinking in the heavy cost of fuel, drivers, tax on tax to use the roads and a 3 year life span of the truck to get in to emission zones and ridiculous fines for going over your drive time a minute as it gets monitored by the second on what you do.
Arjan Wilbie a grain cart still needs fuel from a tractor that is operating it, a grain cart takes a driver too, a semi if used for all that i can be used for shouldn't sit around long enough for algae to bulled up, and algae only grow from bio diesel, plus there are solutions that you can pour in your fuel tank to keep the algae down or keep it away, and here in the USA the only restrictions of being banned from city for an older truck is in California and in the USA we do not have a limit on how long your driving time can be. On my families farm we grow potatoes for potato chips we have them ship to chipping plants in semis with van trailers, and those truck drivers only get about 4 to 6 hours of sleep a day
we are forced to run on 10 to 15% bio fuel mixture in sulphur free diesel. the classic diesels and for the $4.20 a us gallon it is steep. the EU wants their fingers in all pies, rules rules and more stupid rules. the potato farms in the Netherlands use hauling companies at tight prices and the drivers come from Poland and other low wage companies, they drive for 24 hours without any rest and cause big accidents doing so. i believe Canada is looking for workers and i plan to move country again, if possible a house in Ohio would be nice.
***** with a semi and grain trailer they will be able to haul more grain at faster speeds than with gravity wagons and tractors plus once they get done in one field and want to move to the next a semi compared to a wide grain cart is easier to travel down the road plus a semi and hopper bottom or grain trailer can hold one thousand bushels more than what that 800 bushel grain cart
It's ten years on beginning farmers loan. Beginning farmers and Veterans go to the top of the list for FSA loans and NRCS programs I am a veteran and still qualify for the beginning farmers programs. I'm on the board of our local soil conservation bord and I try to get our local farmers that qualify to participate in these programs but here in the south east in appilationa people are a little backwards
Darryl Hopper I'm from Pickett County but I sold my farm and now live in Somerset KY. Email me if you need any further information or advice on navigating through the FSA or NRCS. john_rich3318@yahoo.com
Get one thing paid off so you can pay another piece of equipment just to stay in business yet not making anymore profits. You either have to be all in or all out in may things like farming. The small farmers are mostly a thing of the past.
You can get a loan when you have farm or land already but when you are a beginning farmer everyone give you the run around and worst when they see you have an accent they treat you like dirt...even if you honestly like doing farming they think you just got out of the tree and never seeing a vegetable or make a calculation of expenses . They tell you that you need a year of some kind of training to know the difference from tomato to potato...just saying
They give anyone the run around, and they told me I had to take management classes that they offer but since I have a degree in ag business, I didn’t have to take them.
Not bein tuff just drives me crazy. The other day I see this kid driving a one ton ford like Billy the badass and gets a flat tire. Guess what he did next? He called his daddy because he couldn't change a tire! Haha
+Murk Stalinski yep got them kind all over this area. daddy & grandpa work their whole life to have nice things and their rich bitch kid drives the new truck. I just asked y he didn't drive a truck I guess bcuz I just hate cars.
an 80 which is a smaller parcel here (west central MN) but huge compared to ryans fields sold for 280,000 this spring. 160-200 bushel corn, 35-50 bushel beans, 25 tons per acre sugar beet ground. and thats all tillable land. the biggest down fall was that it has a river splitting it so it can't be farmed in half mile length so that kept the big boys away
+89nissancrawler West Texas. Depending on how much water is available for irrigation on a particular piece of land determines price. Non irrigated land is significantly cheaper than irrigated land. A farm that I had leased sold a few years ago. It had 25 acres of marginal water for drip irrigation, 140 acres of non irrigated land and about 30 acres of low lying pasture that wasn't suitable for farming. It sold for less than $150,000. Prices vary all over the country.
I got a FSA (FmHA) in 1972. Be very, very careful. My FSA loan officer was corrupt to the core. I could not believe one word he said. Today I am 72 and I will never forget the harassment he put me through. He would intentionally leave out production from my farm plan, when I would say something, he immediately tell me if I did not stop talking he would deny my loan. He loved telling me about "his authority". I could easily write a book about FSA loans and farmers' problems. I highly recommend staying as far as possible from these programs. You are better off to own one chicken, free of FSA, than to own one million with FSA help.
@@HowFarmsWork that's good you did brother, where do y'all farm?, Obviously by your accent your from Wisconsin. Are you still using fsa for farm operations or have you been able to pull outa the banks?
Having worked up in story city and Omaha for the last few years i must say that loan officers attitude is pretty much what you are going to get. The guys up there have no sense of humour at all. Its that puritan up bringing i guess. Also my being a foreigner did not help. They let you know if you know what i mean. Yes it is some lovely countryside and some beautiful farms too.
Good grief, If I didnt know better I would say you were buying a house. Thats alot of paperwork. funny how people can take out a $50K car loan with a simple credit pull, but buying a $12k grain cart requires you to show tax info and proof of education or experience. Geez
Farming is a bit different because the actual income depends greatly on the farmers knowledge on farming. i do agree that it is a bit excessive for a simple 12k loan though.
Um, you really just compared a worthless college education to actually WORKING? saying that doing the actual WORK... with oh ya COLLATERAL... is um... different than asking for way more money... with no collateral... you must be college educated to be this stupid...
