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Purchasing Farmland as Investment When You Know Nothing about Farming

Farmland in Florida is a great addition to any investment portfolio as we mentioned in our previous blog post. The biggest draw to many is that, in general, active farmland has a proven track record in times of uncertainty. Consistent, income-generating property is music to the ears of most investors. However what if you know nothing about farm management? As you can imagine, there are many moving parts that make a farm successful. 

Details matter when it comes to farm operations. Several things need attention including leasing the land, planning the crop rotation, purchasing supplies, marketing the crops and livestock, and supervising land improvements and building repairs. That’s a lot for anyone, especially; someone unfamiliar with farm operations. 

The good news is that you don’t have to be involved in daily operations. You can be as hands-on or off as you’d like and still protect your investment. There are plenty of options. Here are a few. 

Hire a Farm Manager 

A common solution is to hire someone who has the direct experience needed for your farm operations to be a success. Depending on the size and type of your crop, this position may not require someone to be full time. Regardless, you will likely need advice when hiring for this position. HR and staffing companies with experience in working with agri-businesses are useful resources to help you find just the right person. 

Hire a Farm Management Company

There are companies that specifically handle farm operations for investors. A management company will address your concerns, your personal goals, and your investment aims. Many companies have an overall emphasis on soil stewardship, production, marketing, accounting, and communications. Management companies can vary based upon the crop grown.  

Do it Yourself

Of course, you always have the option to be as involved as you’d like when it comes to the daily operations of your farming business. If you decide to go it alone, we suggest starting small. Don’t bite off more than you can chew in terms of crop size. You can always increase production at a later time. 

Another option is to be more hands-on when you have the time. For example, some investors retire from their day jobs or businesses when eligible via retirement or earn enough income from the farm to manage their farming operation. They hire a manager until they have the time to “learn the ropes’ themselves. 

Crop Insurance

In addition to protecting your investment through sound management practice, you’ll need crop insurance. Of course, you’ll need other various insurance policies as they relate to protecting your business. Those policies usually do not cover crops which is the largest money-making asset you’ll have in your farm operation. Crop insurance will cover you in the case of unforeseen devastation. One of our Farm Credit Crop Insurance representatives would be happy to speak with you about the insurance products we offer to protect your investment. 

There is a lot to think about when it comes to managing operations on a farm, but with every step in this investment process, Farm Credit is here to help guide you through the process. We’ve helped countless folks like you successfully walk this road of farm investment, and it would be our honor to help you, too! 

Farm Credit of Central Florida provides financing for Farms, Homes, and Land. Call us today at 863-682-4117!

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