3 Factors To Consider When Purchasing Property For A Hay Farm
If you want to grow, cut, and sell hay as a business, you are going to need to invest in a property where you can grow hay. When it comes to investing in property to grow hay, there are a few factors you need to consider in order to purchase the best possible land for your business.
Factor #1: Geographical Location
You can grow hay in all fifty states. However, your geographical location is going to impact how many customers you have to sell your hay to as well as how many cuttings you can get each year.
For example, if you decide to purchase a hay farm in a Southern state, such as Texas, you can count on getting at least three to four cuttings from your property each year. Getting more cuttings from your property can make it easier for you to turn a profit with your hay farm. You may have more flexibility with pricing when you are producing more hay to sell.
That said, having a hay farm in Montana is not a bad deal either, even though you may only be able to cut the hay twice a year. Most people buy their hay locally; a farm in Montana is more likely to purchase hay from another local farm; they are not going to want to pay to have hay shipped all the way from Texas.
Consider the geographical location, how many times you will be able to cut the hay each year, and the local demand for hay.
Factor #2: Acreage
Second, you need to consider how much acreage you want to purchase. Once again, how much acreage you purchase is dependent on the local market. Although you can typically get started with around ten acres of land.
It is best to test out the market and find out what type of demand there is for hay, to make sure you will be able to sustain that demand. Keep in mind that if you have a smaller farm, you may need to offer a superior or specialized product in order to raise the necessary money each year to keep your hay farm going.
Factor #3: Extras
When you purchase a hay farm, you are often buying more than just land. Does the land come with a barn for you to store the hay? Does the land come with a large garage for your equipment? Is there a house on the property so you can live on the land and farm it? Are they selling the land with any equipment?
Running a hay farm requires space to store the hay and equipment and will require either living quarters or office space. Make sure the hay farm you purchase has the extras you really need to support your business.
When it comes to purchasing a hay farm, you need to analyze the business potential for a hay farm in the area where you want to want to make your purchase. You need to consider how large of a farm you need to be profitable, based on demand and based on the number of cuts you can get from the land each year. Be sure the land also provides you with the extras you need, such as adequate storage space for you to store your product and run your business.
To get help looking for hay farm property for sale in your area, talk to a real estate agent.
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