10 Thoughts on Finding Land…The Dollars and Cents of Starting a Small Farm
So, in the back of our minds, I think all of us small-farm-minded folks have some kind of Old MacDonald, little patch o’heaven, green pastures and babbling brooks daydream going on when we first envision our place. Or maybe it’s wide open prairies with clear blue skies and rugged, snow-capped peaks in the background. Either way, it’s beautiful. It’s perfect.
And when push comes to shove, it’s really expensive. Farming begins and ends with land, and these days land is hard to come by. Even if someone was to walk up and hand you the deed, property taxes have run a lot of folks right off the old home place. Around here we call it land rich and cash poor. Real estate is only an “investment” if you can make money on it, or sell it. And most farm-minded people don’t want to sell. We want to find, buy, and keep.
Here are a few important things to keep in mind when you’re looking for land to farm…
Do you have any ideas? Finding your own place has to be one of the hardest parts of getting started. You don’t want to invest all your time and heartblood in building a place up, developing a customer base, and then having to move. But it’s so hard to find something affordable if you really want to farm for a living.
As a little farmer profile here…we both work full-time off the farm. Our farm is family land. Our home-place is traditionally mortgaged and we rent more than half of the area we’re farming from family. The farm pays its own operating expenses, but the start-up costs of fencing, growing grass, shelters, etc. all came out of our off-farm income. Our farm goal is to produce our own food and to have products to sell as a small commercial operation–not just homesteading.
Our series continues with links below–And be sure to sign up below for our newsletter and receive your FREE copy of our Finding Land Worksheet, to help you in your homestead planning!
I’d love to hear about and learn from your experience too! Did you have something you recommend or something that totally didn’t work for you that you’d like to share?
Starting a Small Farm: LAND
Starting a Small Farm: BUILDINGS and SHELTERS
Starting a Small Farm: FOOD and WATER
Starting a Small Farm: HEALTH and WELLNESS (with printable!)
Starting a Small Farm: CHOOSING LIVESTOCK (Part 1) and (Part 2) and (Part 3)
Starting a Small Farm: THE HOMESTEAD GARAGE
Starting a Small Farm: SMALL FARM TAX BINDER
Starting a Small Farm: USING GOOGLE CALENDAR FOR MAINTENANCE RECORDS

1. You Can Farm WITHOUT Owning Land
No one starts out thinking this way, but it’s true. You can farm on rental land–pretty much every modern commercial farm is more than 50% rental property. The schedule F tax forms have an entire category devoted to rents. And a lot of modern homesteaders get started on rental property, and hope to eventually move to their own piece of property. We rent adjacent property–and if you rent, you don’t have to pay taxes! It’s just best to break free of the “buying” mindset when you’re starting out. If you wait until you can afford the “perfect” piece of property, you’ll never get started.2. You Can Start SMALL
Mini-farming and Square Foot Gardening are all the rage. You can start gardening right on your apartment patio. Don’t get your mind locked on land when you could be investing in skills while saving up for land. Inexperience can cost you a lot more in the long run than land will. No matter what property you’re working with, you can still be growing your skills so you’re ready for your “perfect” farm.3. You WILL Change Your Mind
I talked about this when I talked about having an exit strategy on Monday. You think you need 20 acres because you’re going be a cattle farmer–then it turns out you hate cows. It’s not a crime. There are plenty of other ways to farm, other livestock to be enjoyed, and other meaningful work to be done. But if you bought your land thinking you know exactly what your future will hold, you might have made a mistake. Keep an open mind for all the possibilities of a piece of property. Who knows what you’ll be interested in 15 years down the line!4. There’s No Such Thing as a Blank Canvas
All land has a history. Whether it’s been used, abused, loved, or ignored…the soil has a history that you should probably look into. What’s been on that property for the last 50 years? Our worst miscalculation was thinking that starting from an empty field (our fields were soybeans and cotton the season before we took over) would make developing pasture easier. You just plant whatever you want to have. No weeds! Yeah! Ha! Ha, ha, ha! That’s one of those things that sounds fine in theory, but in real life it doesn’t work that way. That empty field was barren of almost all naturally occurring nutrients and organic matter. (Ok, maybe not completely barren, but definitely lacking any substantial value.) Row crop growers add exactly what each crop needs each year based on soil testing and crop science studies. Based on soil testing we needed just about everything to grow grass. Trust me, revitalizing a weedy old pasture is much preferable to starting pasture from scratch. If you’re thinking about raising livestock and envisioning having grass, read Quality Pasture by Allan Nation before you set your heart on anything…I wish we had! {smile}5. Something’s Better Than Nothing
We all have visions of magnificent barns, miles and miles of board fence, and a neat little tractor shed full of shiny implements. If we’re lucky enough to even find such a place, the price tag is enough to make a small farmer cry. When we do find something we can afford, it usually includes a ramshackle pile of half-rotten wood and rusted tin that they call a barn; a rusted-out mower held together with baling twine and duct tape; and miles of broken barb-wire fence on spindly cedar posts. {smile} The truth is that, just like the pasture, starting with something is better than starting from scratch. Even if it just ends ups a heap of scrap wood for future projects, you’ll find a use for it. To be a thrifty small farmer you have to find ways to use everything.
6. Know What You’re Looking For
Make a wish list. Get it all out. Then sit down and decide what is on the list is and is not negotiable. Think in terms of quality of life issues, not farm products (remember, you might change your mind!). Do you want beautiful sunsets? Do you want peace and quiet? Do you care if you’re by the road? Do you want running water? Timber? Wildlife? You can change what kind of shed you have or how much is pasture and how much is timber or where the garden is…but you can’t change having a creek or being next to a road. Also, keep in mind that you’re going to need a lot of water. Whether it’s watering your garden or your cows, if you’re on public water it’s going to be expensive!7. Know What You’re Looking At
Understand the area you’re moving into. Are you moving into an area that is currently rural? Will you have access to feed stores, a veterinarian, and understanding neighbors? Is your area growing? Are you going to be next to an industrial park in 10 years, or a subdivision? Is your area flat like ours? Around here 20 acres doesn’t mean privacy–we can hear the neighbors arguing 400 acres away. {smile} Here we have sand–literally sand!–and marshy lowlands. One is bad for growing grass, the other is bad for growing sheep (hoof scald and liver fluke, anyone?). Do you have customers around? An active farmers market? The internet.8. Look for Community
We’re in a rural area, but it’s mostly row crops, commercial cattle herds, and horses. Almost no sheep and very few goats. Plus, as a commercial agriculture area, the use of herbicides, pesticides, antibiotics, chemical wormers, etc. is the norm. Someone with experience with sheep or alternative treatments is rare. We’ve had to hunt and search and scrape together a “community” to work with. Having experienced folks around to consult will save you a lot of time and money. Having access to supplies for the type of farming you want to do will make a huge difference. We still have to get a lot of our supplies by mail, although we’ve managed to get some of our local farm supply stores to carry a few things we use regularly. We’ve found that the older generations tend to have a lot of old homesteading lore stored up, they just don’t think anyone needs it anymore. The more like-minded folks in your area, the more support you’ll have as you get started.9. Check Land Uses
I run into so many people on Facebook that are upset because they have to get rid of their chickens, goats, horses, you-name-it because it turns out they’re not allowed to have it in their neighborhood. Take an hour out and go up to your local Planning and Zoning or Community Development office and ask the Planners about any property you’re interested in. They have plans up there spanning the next 10-30 years! They can tell you if your zoning allows livestock right now, but they can also tell you if that area’s planned for residential in the next 20 years, if a new road is coming through or if someone wants to build a Walmart nearby.10. Think Long-Term
Everything about farming is a practice of patience. When you’re thinking about investing in land, remember, you’re going to be working here for years to make it what you want. Did you see some of our before and after pictures? There was nothing here! Every year the grass is better…there’s more fencing…the trees are taller…just keep the big picture in mind!
So what are some ideas for reducing land costs, or bringing in off-farm income to help reduce costs?
- Rent somewhere while you build up your smaller supplies before moving to a permanent place. You can pick up water troughs, medical supplies, hoof trimmers, buckets and scoops, feed troughs, pens, cages, nesting boxes, small chicken coops, etc. while renting and taking it all with you. Maybe even tractors, mowers, trailers, etc.
- Rent to another farmer until you pay down the purchasing debt–row crops or livestock. Convert it over to your own use in small pieces as you’re ready. (We did this, converting a few acres a year at first.)
- Rent-to-own.
- Rent your land for hunting.
- Timber your property. The lumber brings in cash, and most states have replanting programs that will help defray the costs of re-establishing forests. You can do a selective-cut, clear-cut, or non-commercial process with specialty harvesters.
- Buy a small piece next to vacant land and rent the vacant land with an option to buy in the future.
- Consider cost-shares and tax rebates related to establishing a conservation easement.
- Make sure to investigate wells and septic systems thoroughly before purchasing–these can be huge costs later!
- Rent your property for special events. Farm and Country weddings are all the rage right now and one good view for pictures is all it takes!
- Collaborate with a local photographer to offer your property as a backdrop for their photo sessions.
- Pasture-boarding for horses. If your farm can contain sheep or cows, it can contain horses. If you have decent grass, you could probably find a few horse folks with animals that would fit in just fine.
- Work off-farm so the farm doesn’t have to support the mortgage payment when you start up.

You’ll also find an updated version of this worksheet in our Starting Your Homestead Printable Pack!

Thinking long term has definitely been the biggest thing for me. We’ve had good years and bad years on our hobby farm, but as long as every year progresses to the next (even if that progress is only knowledge about what NOT to do), I try to keep my chin up about it. A terrible infestation of worms in my cabbages this year means I have lots of chicken feed and compost, and time to work on my storage cellar! haha
A good, long-term outlook is so important! You’ve got to either see it as a victory, or as a learning opportunity. Anything else is totally self-defeating! 🙂
We’ve used 3/4 of our retirement savings since purchasing our tiny farm 2 years ago. We’ve installed septic, repaired the well, bought a cantankerous old tractor, built a foundation and moved a double wide mobile home onto the property, started a 90 x 40 garden and repaired the very steep driveway. When there, we are still living in the 1950’s trailer with cold running water, little heat or air and an outhouse. Oh, and I’m still cooking on a camp stove.
We have started the process of gutting the house and replacing nearly everything. As with most home rehabs, everything is worse than it initially looked. We still have another home that we need to sell before we can be on the farm full time. We have enough projects to last us for at least 20 years. Our goal is to both be retired and be living at the farm by this time next year.
My biggest piece of advice is to plan on nearly everything taking twice as long as you thought it would. One repair or project leads to at least one other that must be done. We’ve totally rewritten our 5 year plan to be much more realistic. But it is already “home” and is causing our friends who’ve visited to rethink their retirement strategies.
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I have been looking for rented land and have yet to find any. I have looked on the IRS website and only found how to fill out the schedule f tax forms. Is there any way you can let me know where to find these rented lands.
I think it depends on your area and expectations. Around here, most rental land is open crop land, and doesn’t include a house. To find something like that, go to your County and look at aerial maps (usually digital in these days!) with parcel lines on them. Look for parcels with no house and then see if the owner of record also owns other land. You can only live on one piece at a time, so they’re probably renting some of it. If you don’t need a house, another idea would be to look for large residential parcels with mowed open space. They might be willing to rent it to you with temporary fencing for livestock instead of mowing it. Another way would be to look for 3-6 lot subdivisions in rural areas where all the lots are not built on. The property owner of the vacant parcel might be willing to rent it to you while he’s trying to sell or just not using it. We have all 3 of these situations within our neighborhood right now.