The idea of buying land and machinery and starting a farm is a dream for many. In years past, people made that dream a reality. From the homestead days and the settling of the West to sharecropping, it was often possible for the average Joe to buy land, start small and grow from there.
Relatively speaking, land was cheap. For homesteaders, it often cost more to break the sod than to buy the land.
And so, the first-generation farmer was born.
Fast-forward two to five generations later, and that first-generation farmer has become almost like a unicorn. I rarely encounter them. They’re out there, though. Many have healthy financial backing from former careers or wealthy family members. Others have been lucky enough to find landlords willing to give them a shot on rented land.
So, what changed? Has the cost of land made it virtually unattainable? Probably.
Take a farm in 1950s Iowa as an example:
- Land: $150 per acre
- Corn: $1.50 per bushel
- Yield: 50 bushels per acre
You’ve probably heard the stories of your grandfather or someone your grandfather knew buying a quarter section with profits from a good year on a half-section. That kind of leap just doesn’t pencil out today. Even in a hypothetical world with 500 bushels an acre, the math simply isn’t the same.
That said, there’s also a lot less risk in farming today. Not that it’s easy now, but back then? It was a grind. Crop failures were more common, and financial safety nets were almost nonexistent compared with what we have now. Not to mention machinery that was pint-sized compared with the equipment we have today.
Machinery is even harder to compare. Today’s equipment is light-years ahead in capability, and the price reflects that. It’s not even close.
And so, the modern first-generation farmer is almost extinct.
What can you do if you still want to buy land and haven’t yet? Maybe you’re an aspiring first-gener. Short of finding a rich uncle, there are a few paths forward. USDA has first-time farm loan programs. Some local banks do, too. You might know a landowner willing to offer favorable contract-for-deed terms. Where there’s a will, there’s a way.
But make no mistake. It’ll take a leap of faith, a big down payment and some stress in between.
Then again, that’s the story of America. Those who take the risk are often the ones who reap the rewards. And buying land? It’s more than a good investment. It lays the foundation for future generations.