Dairy Farm Investment – Tips for Getting Started

A dairy farm investment can be a greatly rewarding practice. There exists the potential for sizeable gains and the opportunity to build an impressive portfolio that will secure your financial future. However, like any investment the returns depend upon the investor, and how savvy a strategy they choose to employ.

Just as they offer their own set of rewards, dairy farms also present certain challenges that must be met before any novice investor can hope to make any significant capital. If you are looking to get started, there are a few central tips that tend to be of great help to budding investors looking to make their mark on the dairy farming industry.

Think Long Term

More so than in many other areas, it is generally important to think long term when preparing to invest in a dairy farm. This is not the sort of investment that will see sharp returns, booms and busts; rather you will need to build the value of your investment over time. This may seem a point of deterrence for investors looking for high returns, but fear not. What dairy farms tend to lack in fast gains, they often make up for in profitability over the long run. While this is not guaranteed, and depends on a number of other inputs, the opportunity is certainly there provided you are willing to view it as a long term investment.

Develop a Strategy to Match

Now that your mindset is hopefully geared towards the future, you’ll need to incorporate this into your investment strategy. Evaluate each dairy farm on its long term future, potential for sustainability and room to grow as an investment. Scour the market for farms that may be currently undervalued, with options for expansion and further development. What is a successful farm now may not make for the most lucrative investment, so look at the bigger picture when evaluating your options. One thing that is universal across all dairy farm investments is a solid base of good farming practices. If your potential investment already has this then great, but if there is something lacking on the management side of things you may need to seek outside assistance.

Speak to an Equity Manager

An equity manager will essentially do just that; take care of your investment on your behalf. They will ensure that performance standards are at or above market standards, making for the best chance to see an increased return on your investment. Having an expert who is well versed in dairy farm management will endow your investment with a degree of stability that will be invaluable in pursuing growth.

Farm Investment in New Zealand

New Zealand is unique among developed countries as being reliant on the majority of its export earnings coming from agriculture, horticulture, forestry and fishing. While some countries have a significant mining and manufacturing base, New Zealand’s wealth comes from grass, trees, soil and water. With such elements at hand, it’s easy to see why farm investment is so popular.

New Zealand’s farming industry is diverse, most of which fall into one of three categories – grain, produce and livestock. When the word ‘farm’ is mentioned most people think sheep and cows, however this isn’t the only form of farming in NZ.

There are a number of other industries that also fall under the ‘farming’ category. Orchards and vineyards are another good farm investment option, especially in the sub-tropical regions of New Zealand like Nelson, Hawkes Bay and the Bay of Plenty. Kiwifruit, Avocado and wine are major export products that contribute to the NZ economy.

Investing in a dairy farm is hugely popular and generally financially rewarding. The dairy industry accounts for around a quarter of the export industry. Unlike sheep which are mainly grown for their lamb and wool, dairy cows are the real bread winners of the farming industry. They produce milk, a lot of which is used to produce consumer products like butter and cheese as well as a variety of food ingredients and nutritional products.

Farms can range in size from a few acres to several thousand hectares. Generally, the bigger the farm, the more livestock or crop you’ll have. Farms in NZ are either owned by an individual, community, family, company or corporation.

A farm is considered a popular investment choice in New Zealand. They appeal to people for a number of reasons. You might have an interest in sustainable farming, rearing a specific breed of stock, growing a niche agricultural product or you may just want to get away from the noise and pollution and into a more peaceful and simpler surrounding.

A farm investment can be quite attractive in areas that are close to town or the city, or if your investment is managed for you location is not so important. It’s a great environment to bring up kids and own animals such as pigs, sheep and chickens. You also benefit from greater privacy and more relaxation, yet you still have accessibility to urban society. Many New Zealanders consider this way of living as the ultimate lifestyle.

Farms and Land for Sale – KY

When you want to find farms and land for sale in KY (Kentucky), there are many different considerations to take into account. Every farm and every piece of land will have different features and varying conditions. In order to purchase the best parcels of farm and land for sale in KY, first learn to shop efficiently. There are several ways to find farms and land available for purchase.

1. Newspaper classified advertisements

2. Real Estate companies

3. Bulleting Board postings at farm coops

4. Online listings

5. Word of Mouth

When you live in a rural area, word of mouth may sound archaic, but it is an effective means of communication.

Purchasing farms and land for sale in KY is a good investment. Kentucky is a thriving state with a bright future. You can purchase farms and lands you expect to eventually be located in the path of development. Hobby farmers especially want to combine the joy of farm life with proximity to a city. But with rapid population growth, many farms appear to have moved closer to city limits as cities expand outward into suburbs. There is still plenty of rural farms and land for sale in KY, but having an eye towards the purchase as an investment can pay off in the long run.

Investing in farms and land for sale in KY requires capital. When purchasing either, be aware that you will have to have a steady supply of cash for the payment of property taxes, insurance and land maintenance. A farm can be purchased that is financially stable and earning income. Land can be leased to hunters or simply developed as an investment. But before purchasing, it is important to take into consideration these kinds of issues.

If you decide to purchase one of the farms and land for sale in KY, it might be necessary to incur a mortgage if unable to pay cash. If so, there are many real estate professionals who are qualified to assist you with locating financing. Be aware that interest rates and fee on land purchases sometimes are higher than conventional mortgages because the purchase of farms and land for sale in KY, or any other state for that matter, is seen as more speculative or risky. Also, there are no depreciation write-offs for land.

Both farms and land for sale in KY can be used as income property. This will make related expenses deductible. But even if you simply want to buy farmland or hunting land for pure recreational use, the same rules apply. You should understand what you are buying and its potential use in the future. Circumstances frequently change.

When deciding to purchase farms and land for sale in KY, be a savvy investor. Do your homework and don’t hesitate to get professional advice. Check all the sources to locate potential property that will fulfill your needs. Compare prices of similar land or farms to determine what is a fair price. Don’t buy the first land parcels that get your attention. Just like with anything else, it always pays to shop around. This is especially true with farms and land. Many people selling farms and land are anxious to dispose of the property. This makes a great buying opportunity!