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perennialfan273

Money making tips to help pay off land

15 years ago

I'm thinking buying a small parcel of farmland along the west coast of Michigan. It will be 50 acres. The soil is good sandy loam. I don't know the pH, but I know that they are not growing blueberries there right now, so I'm assuming blueberries wouldn't do well there. I plan on planting some apple and peach trees, but while I'm waiting for the trees to mature, I need something to provide me with a small supply of money to help make the monthly payments. I need something that can be harvested continually year after year and that will mature fairly quickly. If worse comes to worse, there is also a farmer who the current owner leases the property out to every year. This brings in a little over 5K annually. Any tips that you have to help pay this off would be most appreciated. Finally, I'd like to say that my goal is to have an organic farm, so I'd like to grow something that won't require a lot of spraying. I'm willing to do organic stuff, such as using bacillus thuringensis, but no chemicals.

Comments (22)

  • 15 years ago

    You could probably grow blueberries by adjusting the soil, but you need a plan for irrigating and marketing them. Soil quality (have it tested), depth, and drainage are critical; it might be fine for hay or pasture, but useless for fruit. The same is true for any other crop. If your area is well-suited for a you-pick operation, several kinds of berries might be suitable. Sweet corn sells well but is hard to impossible to raise without chemicals. You could make some cash growing veggies for restaurants and farm markets, but would need to invest in some equipment.

    Find out when the lease expires; you may be locked in to it for a while. Zone 5 is a little cold for peach trees. And it takes several years to obtain organic certification, perhaps longer depending on what the last farmer did, and entails a lot of paperwork and some costs.

  • 15 years ago

    The property is in Freesoil, Michigan. I'm not entirely sure, but I think that it's actually in zone 6. I've gotten mixed results about the zoning. Some sites say it's zone 5b, while others say it's zone 6. Either way, it's only about 15-20 miles from the west side of the lake.

    Also, if I'm reading the information from this site correctly, you don't need a license to sell fresh produce in Michigan. Am I correct on this, or am I reading the information wrong??

    http://www.michigan.gov/mda/0,1607,7-125-1569_16958_16974-11877--,00.html

    Anyways, I've though about growing strawberries, raspberries, and blackberries. I imagine it won't take long for them to mature. Any suggestions as to which varieties I should grow?? I'm also thinking about growing herbs to sell as well.

  • 15 years ago

    50 acres of fruits or veggies is a full time job, yet may not be enough to earn a living off of and make payments. Be sure that is considered in your calculations. You might want to consider a much smaller fruit/veg. planting and renting most of the land out to the existing renter or someone new.

    If you rent part or all of it out, the rent mentioned suggests to me that it may be a cash rent deal, which in my area is risk free, often paid at the start of the crop year, very easy for an absentee or disinterested landlord, but it is significantly lower income than renting on a share basis which requires that you pay a share of the fertilizer costs and maybe some others in exchange for a similar share of the crop proceeds (either way, the tax assessments are yours).

    If you go with a partial or full rental, visit with other landowners in the area to find the common types and terms of farm rental agreements and also check with the Ag. Extension Service locally or at Michigan State for any recent information and publications on farm rental rates and terms before agreeing to a new rental term.

  • 15 years ago

    I would suggest having enough off farm work to pay all bills. Then "farming" in your spare time until realizing how viable the farm will become.

  • 15 years ago

    fan:

    My thinking is that if you can't make the payments with 5K lease income you won't make it planting anything. Any crop is a drain on the bottom line until the crop comes in and even then you can loss money. The expenses on starting most fruit crops is thousands of dollars per acre. For apples the grower is often $10,000 per acre in debt after about year three before the crop starts yielding well.

    That distance from Lake Michigan may well not give you enough lake effect to help fruit crops. So there may not be a fruit crop that will ever make money. Organic may not be feasible. You may well never make money that way.

    If you have to ask these questions, I'm concerned that your plans may never work. You should know what will work and what is working in that very local area before you think that a fruit crop will make this viable.

    Planting a fruit crop when you don't have very concrete plans going in could be the reason you loss the land.

  • 15 years ago

    I grow fruit/veggies on a 1/4 lot in the city and at times I can't keep up. I have thought about buying land over the years. If I was to ever do it I would start very small. Less then 5 acres...and even then I'd only plant an acre of it until I had enough know how and help to work more of it. I'd use high tunnels and try to grab early season fruits/veggies and also protect my crop from all sorts of pests.

    Michigan has ALL the bugs. Going organic is going to require a lot of spraying. Plum Curculio, Rose chafers, Japanese Beetles, various flies... You could also have to deal with Cedar Apple Rust and other diseases.

    Folks got out of farming because its not easy work.

    RESEARCH RESEARCH RESEARCH...

    Just a thought, but a football field excluding the end zones, is roughly an acre of land.

  • 15 years ago

    I agree with everything they said. The problem with peaches in your zone is that late frost that kills the buds. The tree will grow fine but you may not get much fruit.

    Do you already have equipment? 50 acres is a lot of land to handle, I can barely manage 2 acres but I don't have a tractor or any other help. Good luck, don't give up, but research a little more.

  • 15 years ago

    It takes time to get certified organic, but you can sell your crops in the meantime. There is a forum here on garden web about selling at the farmers market. Look at the index and click on "Market".

    Just because nobody is growing blueberries does not mean they won't grow. Get your soil tested. If the soil isn't suited, then limit yourself to what your family wants. It's not worth growing a cash crop on soil that must have major ongoing adjustments.

    You should be able to grow raspberries. They fruit quick, take bad weather, and sell for a high price at the farmers market or to restaurants. They don't ship well.

    With 50 acres, I'd fence it and put some cattle on it while I worked with 1-2 acres to get fruit in and started.

    I get peaches in zone 5, but I work at it. The peaches aren't as good as the ones grown in California, but they are better than store bought. However, I can't see them as a cash crop. They take $ to get fruit on them.

    Think "value added" beside fresh fruit, you can sell dried fruit, baked goods (with proper license), dried flower arrangements, mixed salad greens, vegetable salads (with proper licensing), dried herb blends, candies, jam.....

  • 15 years ago

    pfan, I did exactly what you're thinking about--only on a much smaller scale: 5 acres. If you've got a paying farmer, keep him. It takes a lot of crops to equal $5000. Carve out a section of that property for yourself as a test. If you don't have equipment, you are going to need some: tractor, mower, sprayer, atv, trailer, carts, tillers,etc. Do you have a water supply? You're going to need buildings. Then there are mulches, fencing, stakes,baskets,etc. You're going to have a major investment in the plants, and you must also realize the investment of time. It takes years for fruits to mature to sell at a commercial level. Another consideration is travel. How far is this farm from where you reside? I'm 30 miles from mine, and that sometimes is too far. Do you have a supply of labor? Finally, you have to have know your market. I estimate I won't show a profit for several years yet. However, I have been able to purchase my equipment without too much debt. I'm not discouraging you--it is very rewarding: only go into this project with your eyes wide open.

    Brook

  • 15 years ago

    Before anyone attempts to farm in order to make a living, s/he should consult with local specialists who can advise on a number of things, among them
    -- suitability of the soil & region to grow salable plants;
    -- suitability of the soil & region to grow the crops you're interested in growing.
    -- perhaps a more profitable crop is one you're not interested in but which the locals are;
    -- a marketing study to determine what crops sell and for how much, then determine if it's worth it
    -- the startup costs (equipment, water, fertilizer, seed, workers and more) for whatever crop(s) you will farm.
    -- how you will grow the crop. e.g.: if veggies, will you start your own seedlings or buy then transplant? Also which is the more economical choice for your setup and crop choice?

    Start by contacting your county's Extension service office. In my state, we have Small Farms agents who service the surrounding coun ties. (Hereabouts, the agent serves 7 counties.)

    That person will help you determine what you need to determine and will be able to suggest appropriate advisers.

    After you have all the info at hand, perhaps you'll change to Plan B. Or not.

    Whatever the case, be thoroughly prepared with all the facts before you plunge into unknown waters!

  • 15 years ago

    The county Extension people can also advise about your actual zone.

    The USDA adjusted its zone chart some years back, and you will still see the old map sometimes, or simplified maps which don't subdivide the zones into A and B. Here's a site where you can enter your zip code and find your zone. (The Extension people may have more accurate info if you're on the edge of a zone, if the area code is large, or if there are significant elevation differences in the zip code.)
    http://www.garden.org/zipzone/index.php

  • 15 years ago

    OP-

    I know more about business than commercial farming, but many of the reasons mentioned here are why we have been observing the trend of large, corporate organizations taking over farming. These organizations can benefit from the economies of scale, or basically distribute their fixed costs (i.e. equipment, full time labor, etc.) over a greater volume and can offer a product for a lower price. The few acres I tend to (for recreation) are a handful in themselves yet I couldn't imagine 50 acres generating enough volume to support yourself.

    The livestock idea sounds like a good one. Good luck, I like the idea of organic just as much as the next guy but from the standpoint of practicality its difficult.

  • 15 years ago

    nygardener, why do you say sweet corn is impossible to grow without chemicals? Most of the farmers do it here without chemicals. There are loads of corn farmers. I'm in SW BC.

    To the OP, 50 acres is a lot. I'm on 5 acres and I have 150 blueberry bushes and I'm going to be doing about 50x90 feet of vegetables/other fruit for personal family use. We're going to clear a big section behind our old barn and do something with it.

    If I were you, I'd start raising cattle and sell those until you can make a living off of them. You could pull in 50k-100k per year with a big enough herd. Also, people would love organic beef especially free range beef!

  • 15 years ago

    Your county extension service can also assist you in making wise decisions about rearing livestock for economic purposes.

  • 15 years ago

    We have had a family property on the big lake in freesoil for 25 years. I would definitely not consider it zone 6. Folks a bit further north in grand travers are, they do lots of cherry and peach, but I don't think many are doing it in freesoil...at least not commercially.
    It's beautiful country, but pretty economically depressed. I don't spend as much time there as I used to, my folks live there 1/2 time. I don't think there is a strong organic market locally. I think Manistee has a couple small co-ops stocking organic...and i mean small.
    That far inland things probably change soil wise, but around us the top soil is thin thin thin....foot max and then nearly pure sand....
    I can say that deer pressure will be very high
    I would love to see more small scale organic production in the area, good luck with it if you decide to make a go.

  • 15 years ago

    Here is a crop and fruit survey of Free Soil's county. They do fruit trees......maybe closer to the lake?

    Here is a link that might be useful: Mason County, Mich.

  • 15 years ago

    Perennial,
    Here in OH I have corn, soybeans and hay....along with the fruit orchard. I recently attended a county-wide meeting to address increasing tax bills based upon theoretical income per acre. Sit down and do the math based upon current commodity prices and the cost of production. Right now, hay fields rank as the highest income per acre. Find someone who is a local hay producer--someone you can trust. You will want to work out a deal in which he maintains your soil fertility. The hay business model is very favorable right now, and you'll need to come to an agreement on how to split his revenue. That might be your best route. You'll be earning a nice income next summer, and a green hay field is a joy to behold.
    Good luck and let us know how you proceed.
    Marc

  • 15 years ago

    It wont bring a great amount of cash in probably, but consider raspberries and blackberries. They'll produce pretty quickly after planting.

  • 15 years ago

    Blue berries do well over there, apples and other produce such as tomatoes might be another idea. A better idea might be poplar. It grows fast, pays well and the scraps can be sold as firewood.

    A u-pick would work if your going near Holland or P.J. Hoffmaster, as the area has a lot of tourist.

  • 15 years ago

    The cost here for establishing a new vineyard(if you already own the land)is quoted at 20K per acre. In the last 10 years I have seen the market for wine grapes go from 3K per ton to $600 per ton. It takes three years to get any grapes from time of planting. What do you suppose the price of grapes will be when yours starts producing? The cost of vineyard management is almost the same, whether your grapes are producing or not. Anyone looking for a sure thing should stay away from farming. Al

  • 15 years ago

    if your looking for advice ;
    do what you love and know how to do and grow and just bc there wasnt any crops that you want to grow there doesnt mean that they cant be grown there
    a person with intuition will want try to grow and do every thing , doesnt mean you cant so try a little of every thing you would like to try one or two of this and that and still rent the pasture out the the rancher just tell him what you have in mind he will understand and if he dont let me tell you there is another person standing in line to rent the pasture
    hope this helps God bless

  • 15 years ago

    Ok, I'm just sayin'.. But here is an idea for a potential money making tip for the off season. I used to live in Michigan so I think this might work if you're open to it. You could lease your land to hunters in the winter. It would depend of course on if your land was suitable for hunting, if you were ok with having hunters there, and if you wanted to reduce deer pressure. Just a thought. But the season is long and there used to be extra tags you could get but only for private land. I'm not sure how that works now. Currently I live in an area that has a lot of farmers leasing land to hunters for a pretty penny. You could lease only for archery or only for firearm season or only for muzzleloader season. Primitive weapon season is usually later in the year and so there wouldn't be a conflict with harvesting.

    Good luck with whatever you decide to do or grow.

    ~Cindy