Due to the drop in urban realty and the potential to gain long-term returns, many investors are now setting their sights on investing in agricultural land.
In this article, we take a closer look at some important things to consider before you invest in a farm in Colorado.
- The lifestyle
Getting started on a farm can be an uphill battle. You’ll be dealing with a significant overhead day to day like any other business, which is quite substantial especially in the early stages.
Make sure you’ve done research and are ready to handle the future expenses, so you don’t find yourself in a difficult financial situation down the line.
- The market
One important thing to consider is the market. You need to find out if there is a market that will be able to support your venture. For example, if you’re planning to grow organic crops at a retail scale, you need to make sure there’s a farmers’ market in your area that’s well-supported by the community.
Be sure to also consider your location, and whether it’ll take you half an hour or two hours or more on the road just to deliver your goods.
If you’re planning on building additional facilities like barns, crop storage, or other structures, you need to consider zoning guidelines, the costs required, and the structural engineering details of your plans. To prepare for additional structures on your farm, it’s a good idea to get blueprints drawn up that show the layout of your farmland.
- Applicable laws
Evaluate applicable laws related to ownership records and leases and transfer of rights to the land, if any. The plot of agricultural land might be leased or not transferrable. In case you encounter this type of situation, be sure the tenants do not possess any rights over the land. Only continue the transaction after all issues on this matter have been cleared.
When buying a farm in Colorado, perhaps one of the most important things is to know your strengths and weaknesses. To ensure the success of your farm, you need to have an understanding of what it takes to succeed in this type of lifestyle as well a willingness to deal with anything that might come your way.
For many people, the dream of owning a farm is due to the image of a relaxing and bucolic life surrounded by serene views, where days are spent harvesting crops and tending to farm animals.
This lifestyle does exist, but what is often overlooked is the busy 70 to 90-hour work week involving physical labor and plenty of unexpected challenges that come with running a farm. Are you ready to fully commit to this type of lifestyle? The good news is, the rewards are there, but only if you are willing to work harmoniously with your partner or crew towards the success of your farm.
Looking for agricultural homes and land for sale in Fort Collins, Loveland, Windsor, or other great communities in Northern Colorado? Call me at 970-316-5200 / 970-889-0307, or send an email to matt(at)welcometonoco(dotted)com.