Question for you ranchers and cowboys

[flyingS]

I think you have to evaluate your goals. Are you only wanting to buy a few cows or a lot of cows? If you want to try to get a Beginning Farmer Rancher loan through FSA, remember it is a one time deal. What I am getting at is that if you want to expand by a larger number some day put FSA in your pocket. The other problem with FSA is they tend to regulate what you do by telling you what kind of cattle you can buy and how much you can spend on them as well as how many you have to sell and replace each year. I have been around cattle my whole life, my wife and I just decided in the last couple of years to get serious about buying cows. I got a loan from my bank and started buying cows with out any stipulations or guidelines. We were able to build numbers by buying cattle that were of value, we have very little invested compared to the avg. I don't believe we have a below avg set of cows. Yet if I had to sell the works today with the cull market down and calf prices down from last spring I would still make money on every cow.

 

[eatbeef]

Let me know when you find a bank that will loan money for 1% to 3% interest with terms from 5 to 40 years, and come do a check once a year and not hear a word from them any other time, and change your payment date on loan without penalty to fit operation better, slide 30 to 60 days on payment date when your operating note is maxed w/out penalty, do i need to keep going.

Yes, the paper works a pain, and once you get your first loan you have 10 more years to borrow make new loans, but if your name has been in the FSA program for more than 10 years you are not eligible anyway so you might as well get it right away.

And with the beginning farmer/rancher program alot of the cost share for pipeline and tanks, etc. is 90%. And no they dont tell you what kind of cows to buy and yes there is a limit, $300,000. And on real estate a bank can match. I work with a local bank and the FSA and it seems to be working. I am on my 10th year and will be no longer eligible but it was well worth the paper work i went through 10 years ago on a couple of rainy days. Alot of govt programs are crap but there are ones that need taking advantage of.

 

[3 M L & C]

Let me know when you find a bank that will loan money for 1% to 3% interest with terms from 5 to 40 years, and come do a check once a year and not hear a word from them any other time, and change your payment date on loan without penalty to fit operation better, slide 30 to 60 days on payment date when your operating note is maxed w/out penalty, do i need to keep going.

Yes, the paper works a pain, and once you get your first loan you have 10 more years to borrow make new loans, but if your name has been in the FSA program for more than 10 years you are not eligible anyway so you might as well get it right away.

And with the beginning farmer/rancher program alot of the cost share for pipeline and tanks, etc. is 90%. And no they dont tell you what kind of cows to buy and yes there is a limit, $300,000. And on real estate a bank can match. I work with a local bank and the FSA and it seems to be working. I am on my 10th year and will be no longer eligible but it was well worth the paper work i went through 10 years ago on a couple of rainy days. Alot of govt programs are crap but there are ones that need taking advantage of.

As I said it works for some people. If you had to deal with the people here you might sing a different tune. I'm not going to argue about the intrest rate with anyone. If you qualify you can get a good rate anywhere. Not even FSA is going to loan you money if they don't think you can pay it back. All I know is when I looked into it I didn't like it.

 

[jodywy]

Let me know when you find a bank that will loan money for 1% to 3% interest with terms from 5 to 40 years, and come do a check once a year and not hear a word from them any other time, and change your payment date on loan without penalty to fit operation better, slide 30 to 60 days on payment date when your operating note is maxed w/out penalty, do i need to keep going.

Yes, the paper works a pain, and once you get your first loan you have 10 more years to borrow make new loans, but if your name has been in the FSA program for more than 10 years you are not eligible anyway so you might as well get it right away.

And with the beginning farmer/rancher program alot of the cost share for pipeline and tanks, etc. is 90%. And no they dont tell you what kind of cows to buy and yes there is a limit, $300,000. And on real estate a bank can match. I work with a local bank and the FSA and it seems to be working. I am on my 10th year and will be no longer eligible but it was well worth the paper work i went through 10 years ago on a couple of rainy days. Alot of govt programs are crap but there are ones that need taking advantage of.

As I said it works for some people. If you had to deal with the people here you might sing a different tune. I'm not going to argue about the intrest rate with anyone. If you qualify you can get a good rate anywhere. Not even FSA is going to loan you money if they don't think you can pay it back. All I know is when I looked into it I didn't like it.

here you need to be turned down by the bank before you can go to FSA unless you a kid or first time farmer. Then the way law suit have been going you cry discrimmination and get your loan forgiven. FSA is advertizing in the paper here on the last suit not enough people have came forward to collect on the judgment claim.

 

[lefty]

the thing about fsa is they are slow & they are not farmer or ranchers . They saw it in a book .I would like to see fsa run a farm or ranch for a while with their own people . You said you & a buddy . Whos name would the cattle be in ? Both are 1 of you married ? Cattle loans in 1 name are going to be a better bet than 2 .
Banks are paying .085 passbook savings & trying to get .08% on loans . Most local banks dont want to farm . Shop around banks will deal if they want you . They are like car dealers . they have a window price & then they have what they can do it for price . remember you are just renting money . Farm credit services .... Was federal land bank . Is an AG lender They rent you money & you do the ranchin ....Fsa & you will farm together . using someone elses money to build an operation can work great ..............Go slow & dont loose the house good luck

 

[Faster horses]

We wouldn't be where we are today with out the FSA (FmHA in our
day). We had leased a place on a share deal and they loaned us
100%. We were honest, made our payments and when we needed
to finally buy something of our own, it was through the FmHA
and the bank. We started in 1965 and paid them off in 1975;
in 1975 we bought a place and borrowed from them again and didn't
pay them off til 1993.

Their interest rate is better than the banks in our area. The young
family we leased to got a beginning farmer loan and it seems to be
working very well for them. The FSA office person is very knowledgeable
about ranching, as is our lessee.

The way to get along with FSA is be honest. Not saying anyone posting
here isn't...but that's is what works the best with FSA. They'll help
you out as long as you let them know what's happening.


I do think you have to have the land available for lease before you
can get very far borrowing from them. You have to have a plan that
cash flows.

FWIW

 

[4Diamond]

Don't do it

Care to expand???

Where I live is all agricultural, farm or ranch. If you look around you can find a bank to loan money close to what the fsa will loan it. I looked into it when I was younger. I started farming my own ground when I was 15. The paper work was a headache, and no matter what when you deal with the gov the people making rules and what not are someone behind a desk that dosn't know squat about farming or ranching. They have programs to help pay to put in undergound pipe and tanks, but they make you build it about three times bigger than you need, so end the end you spend the same money, and have to put up with them telling you how to basicly wipe your but. Some people do well with it like eatbeef, but I wouldn't mess with them. Like I said here is all ag banks so they are competitive and not worth the little savings. Maybe elswhere is different.

Lucky they make you build it 3 times bigger. It is 3 times smaller than needed in this part of the world...

 

[RobertFulton09]

Now I realize I'm new to the form and shouldn't be putting me 2 cents into the mix, especially considering that im running a bit low on experience. I come form a farming back ground and it's a good chuck of my life. Anyway my ant is on the local board that decides who does and who doesn't get young farmer loans, I am yet to even try to acquire one of them but she, and my uncle, have been farming for a long time and they really do know what they are doing, further more my dad and uncle have both taken out those loans and they claim that the loans saved their butts. In the same time why don't you look into leasing some momma cows? If you have the grass and the ability to do the work it would be simpler to lease some cows and build your cash flow and numbers. However take what I have to say with a grain of salt because threes NO perfect way to make money in the cow business, if there was either every one would be doing it or nobody would tell you how. Thanks!