If one day there's no food on your table...

frugalfarmwife · #1 (**permalink**) 10-18-2005, 04:23 PM

don't blame the farmers, blame the banks/corporate America!

This just amazes me and frustrates me NO END!

I'm working on refinancing the loan on our farm, our credit ratings are great (mine 754/ hubbies 744) The mortgage is just a bit over 1/5th of the value of the farm, we have no truck/car payments, etc. etc, etc.

But, no one wants to take us on, why? BECAUSE WE"RE A FARM!

Seriously, banks don't want to touch properties over five acres, and even if it's under five acres if you have income from farming it they don't want to work with you!

I can stick with my current bank (the only reason we were able to get a loan through them is that they WERE a small savings and loan and the VP was a farmer) they have since been bought by a HUGE bank and I am NOT happy with them.

The only other lender that would have worked with us at the time in the past was a farm credit service and they wanted an arm and a leg AND your first born!

Any wonder why no one wants to farm anymore?

KJ

mjrube94 · #2 (**permalink**) 10-18-2005, 04:30 PM

Given that the loan is only 20% of the value of the farm, could you get a home equity line or loan instead of a traditional mortgage?

locolorenzo24 · #3 (**permalink**) 10-18-2005, 04:39 PM

But the land is worth god knows what to private developers and real estate agents....

mom-from-missouri · #4 (**permalink**) 10-18-2005, 04:41 PM

Check with ING on line. That is who I am going thru on my refinance. They closing costs are less than 1/2 of what my local bank wanted, and the interest is a good 2% lower than the banks. That is the same ING that you see so much about on here with the savings account. I only had to fill in the blanks on 4 forms, and fax back to them, along with a copy of my homeowners insurance. Next week I should receive the final form to sign and its done. So so simple.

frugalfarmwife · #5 (**permalink**) 10-18-2005, 05:11 PM

Quote:

Originally Posted by locolorenzo24

But the land is worth god knows what to private developers and real estate agents....

And thats one of the reasons for the title of my thread, sure I could sell it for a FORTUNE to a developer but then thats one less farm putting food on the table for the consumer. Besides, I WANT to be a farmer

We fought hard to buy this land and plan to farm it until we can't farm any more, THEN sell it to a developer if they offer the highest price, but that will be at LEAST 30 years down the road.

And I called ING, they also can't help me due to our being a working farm.

As for the equity line, I'm looking into that next.

KJ

miclason · #6 (**permalink**) 10-18-2005, 05:19 PM

It's pretty much the same everywhere, I guess, because here in ES I have seen bumperstickers that say: "It's quite simple:no agriculture, no food"...I'd be mad, too!

mom-from-missouri · #7 (**permalink**) 10-18-2005, 05:19 PM

Good luck.

jodi · #8 (**permalink**) 10-18-2005, 06:26 PM

I am from a farming family - the farm has been passed down through several generations. I always wondered how people could afford to get into the business with the incredibly high start-up costs. I wish you the best of luck!

baselle · #9 (**permalink**) 10-18-2005, 08:12 PM

Hmm. What do your farming neighbors (not your Joneses'

) use?

Firefly · #10 (**permalink**) 10-18-2005, 08:21 PM

That is sad. I like to go get all our produce and vegetables from our local farmer's market.

frugalfarmwife · #11 (**permalink**) 10-19-2005, 01:52 AM

Quote:

Originally Posted by baselle

Hmm. What do your farming neighbors (not your Joneses'

) use?

In all honesty I only know of two farmers that have recently purchased "real" farms, one is an Amish family that went together and purchased a friend of ours mothers farm to start up a huge produce farm, they paid over 300,000 for the 80 acres and house that needed work. The second person is a good friend of ours that even though he inherited 1/3rd of his bosses farm couldn't afford to purchase it, the farmers "kids" that inhereted the other 2/3rds insisted in auctioning it to get the highest price for it, it went to a developer and that was the end of one of the most respected 3rd generation dairy farms in our area. Our friend took his part and purchased a much smaller farm, luckily he inherited the dairy cows. (Don't EVEN ask how much a good start up herd costs!)

All of the other local sales end up being developers that are cutting up the land and building trophy houses for "citiots" that want to live in the country but not see/smell/hear the reality of farming.

And our neighbors the Jones? LOL, we can't figure them out but they ARE a source of amusement to us when we're not KICKING THEM OFF OF OUR LAND!

KJ

debtfreeme · #12 (**permalink**) 10-21-2005, 04:00 PM

as i am research mortgage options and trying to educate myself about the best things to do and look for, i understand your frustration.

I hope it works out!