It is my intention to establish a fund to be used to purchase or finance properties which will be developed into natural growing farms.
This is a bold statement, and one for which Posterity demands a thorough explanation. The plan has several features which are mutually supportive, but each feature and the overall plan can still function independently. There is opportunity for anyone interested to earn money, from spare cash to residual income to a decent living to investment income. How fast this idea takes off and the scope that can be reached is a matter of people getting the word out and contributing time, effort, and ideas. How far the project goes is dependent on persistence.
I keep a quote on the margin of my website, www.farmwhisperer.com...
"The greatest fine art of the future will be the making of a comfortable living from a small piece of land."
There are people everywhere who have the dream of owning a small piece of land and earning a living from it by growing vegetables, raising livestock, and operating a small farm. There are variations, of course, as many as there are people. There are those who would gravitate towards bees or chickens or grass fed beef. Others with a desire for healing or culinary herbs. Vegetables show great promise, with a ready market found in the growing demand for local goods. Still others simply want a place to raise a family in a wholesome, natural setting with good food and clean air.
The biggest obstacle in getting started is often getting the land. Downpayment, closing costs, and deposits on utilities all slurp up cash like a sponge. Once the land is in place, there is the constant burden of the mortgage and finding a means of putting the farm on a paying basis. In addition, the propective new farmer must uproot his family, incur the costs of moving, and somehow scrape up the capital to invest in the farm operation. That's with banks, having taken a beating in the last housing bubble, demanding excessive documentation, a long and strict credit history, and are uninterested in financing farm operations when things are good. All the while, a weak economy combined with few employment options create difficulties in making the leap of faith required to give it a go. Nonetheless, the Dream persists.
For such a project to succeed it must be viable over the long term, highly detailed with contingencies to minimize failure, and set up from the start to be a stand alone enterprise, independent of outside influence. Encumbrances must be removed, and where that is not possible, identified and mitigated. Raising capital can be best served by openly presenting the facts of where it comes from and how it is used. The people involved will require screening, perhaps training, and continuous access to new ideas and methods. The property in question will need to be examined, with the plan for the operation highly scrutinized, with progress tracked. Incentives can be put in place to enhance results, provide opportunity, and duplicate successes.
There is no One Size Fits All formula. Properties are as diverse as people. End use of the funds, while contractualized, will be dependent on the situation presented. Properties can be leased, mortgaged, rent to own, owner financed, refinanced, or retained as a subsidiary enterprise and repurposed. Properties may be bare land to be used for farming, include structures to be used by the farm, include a home to be occupied by the owner(s), or a complex of land and structures to be put to several tasks which may or may not include housing. The project is not without risk. Non-performing projects will be examined for the best possible solution. Foreclosure and subsequent liquidation are viable options. Neither the fund nor the sponsored farms are immune to failure. Risk will be contained inasmuch as possible. Precarious situations brought to light, openly disclosed and discussed.
This is not a get rich quick scheme. It's not even a get rich slow scheme. Nobody gets involved in farming because of it's fast track to wealth. While I stand a chance of earning an honest living one day, I'm giving up neither my day job nor my own aspirations of building a business growing vegetables. I appreciate your patience while I assemble the details, to be published here as free time allows.
Adam Klaus wrote:IMHO, 7% simple interest is too high to be realistic for a farm enterprise in most situations.
Adam Klaus wrote:Is there any way to attract investment from a more philanthropic angle, rather than a returns approach? If we could offer financing to farmers for more like 2%, then I think we could really help to move more young people onto farms.
A guy is at the casino with a bucket of quarters plugging them one at a time into the slot machines. Cherry-Cherry-Lemon. He keeps at it. 7-7-Banana, Clover-Clover-Zap. His bucket gets lower and lower.
Finally he reaches in for his last quarter...Bust. He's got nothing left.
He's been playing so long he's gotta go to the bathroom but finds the bathroom stall doors in the casino are coin operated. This guy has to go BAD. Another patron sees this guy in his anxious state. Understand the urgency of the predicament he hands the player a quarter and walks off. Just as he is about to put in the quarter to open the door, the fellow in the next stall finishes his work and opens the door. 'What Luck' the guy says as he pockets the quarter and makes use of the facilities.
With his gift quarter he tries one last time on the slot machine...JACKPOT-JACKPOT-JACKPOT
As a matter of fact it's such a huge jackpot that sirens sound off, balloons and confetti tumble down, the casino manager offers him a suite, and the champagne flows all night. Being the largest jackpot in a long time a news reporter interviews the winner. The new gozillionaire tells his story about the bathroom, and the quarter and the lucky break with the next stall.
'You must be rally thankful for the guy giving you that quarter" says the reporter.
'No' says the winner, 'I'm thankful for the guy who opened the door.'