Veterans assistance programs (long)

[Farmall43]

I am looking at buying, well trying to buy, 80 acres down the road from me. I have an idea of splitting it into 4 20 acre pastures that are about 85% grass on muck and 15% woods. I think the price is reasonable, $160,000. I believe it could be bought for less. I believe that this property would be an ideal location for a beef herd with a little work. I.E. dig a couple ditches to help it drain better and a stock pond in each pasture. I know that beef is not where it was a few month or a year ago, however, I believe that there is enough left to pay for itself over time and with hard work. I am a Veteran and disabled, according to the VA, multiple deployments. I am wondering if any of you out there know of any assistance programs are out there to help with buying the land, fencing, property improvements and buying a herd. I am in Michigan. About 25 miles south of Lansing in Ingham county.

I appreciate any insight and suggestions that you all may have. I know that there is a lot of knowledge and experience on this website. If you think it is not feasible to start up from scratch and make a go of it please say so and tell me why it is not practical. If you think it is feasible the same. I am in year 2 of getting back to farming. I am at about 80 acres of leased ground and will continue to grow as I can find land and upgrade equipment. I have always wanted to farm. I grew up working on farms and helping my grandfather before he retired and leased his ground out. All I have ever wanted is to work the land and to work with animals. I have, I think, the opportunity to start doing so. The Army is forcing me to retire. Some BS about not being deployable any longer due to chronic knee and shoulder issues along with a couple other things. So here I set, hoping, wondering if I may be able to make a go of following my childhood, teenage and adult dream of making an attempt at farming full time.

As always I appreciate any help and views that you all provide!

Matt

 

[JMS/.MN]

As a Veteran, you"re eligible to apply for a VA home ownership loan. Doesn"t say how big the lot can be, so that may be a possibility. Some States have a mentor program, lining up wannabe"s with soon-to-retire farmers that are willing to let someone work into their farming operation. USDA also has a "beginning farmer" loan program. NRCS may have issues with you wanting to ditch those pastures. Check with Ag Star (formerly Federal Land Bank) for their beginning farmer programs. Some States also have farm loan programs. Good luck in your search.

 

[Farmall43]

What does NRCS stand for? I have checked and the land is not a registered wetland. It is zoned Agricultural.

 

[tlock0331]

The VA does in fact have restrictions on home loans. the house on the property must be at least 60% of the loan value or appraised value, i dont remember which. keep in mind that a VA home loan is nothing more than gov backing a bank loan only looser credit restrictions and 0 money going in.

I think your best bet would be going to your local Farm Service Agency, FSA, they have beginner programs up to 300K. Like any govn agency you will jump through a few hoops and they will have yearly requirements of you, but its a way to get started with little or no money, one of their requirements is you have to show a background in farming/ranching. If you dont have a way to show income from farming in the last ten years, they will accept a letter from someone who does, but that letter has to show how you have been involved in farming/ranching, thats easy enough to write, your grandpa could probably write it. Be warned though, its a funded program, so if nobody has used their program they probably have money in it, if not, you have to wait for it to be funded again. the other option i can think of is finding your local Frontier Farm Credit branch and talking to them. You might have to have money going in but they are a self funded Co-op so their lending terms are set internally.

I thought the first farm was tough to get, what i found out was the second one is much harder - HAHA

Good luck, if you have any other questions your welcome to email me

 

[Billy Shafer]

Check with your state. Some states like Texas. Have a vet land loan program.

 

[led]

Most states have a "Veterans Affairs" or similar program at the state level. There various vet loans available. Your story reminds me of the old VNam's mantra "We fought your dirty stinking war, now you don't want us anymore"
Led

 

[Goose]

Check with your local Veteran's Service Officer. He should have the straight dope or know where to get it.

 

[oldtanker]

As far as a VA program like a home loan if it doesn't have a home on it that is livable to VA standards you can't use your GI Bill home loan. What is your disability rating? IIRC if over 40% you can apply for a VA grant toward a business. Your VA service officer should be able to fill you in on the details. You can try for a small business loan through the Small Business Administration. VA doesn't back loans like that but you do get a veterans preference through the SBA. You have to present a well thought out business plan to move forward with something like that. There are veterans who are willing to help you come up with a plan and are willing to help you write it. If available in your area again your Vet service officer should know about it and point you in the right direction. These guys that do this are volunteers who own successful businesses and are just helping out fellow vets.

Rick

 

[Spudm]

Natural Resource Conservation Service.

 

[Farmall43]

100% rating

 

[oldtanker]

(quoted from post at 19:48:00 07/04/16) 100% rating

Don't think they will help you at 100%. That's kinda when they tell you to go home and die.

Rick

 

[Greg1959]

oldtanker- I kinda picked up on that when he said..."I am wondering if any of you out there
know of any assistance programs are out there to help with buying the land, fencing,
property improvements and buying a herd."

 

[MarkB_MI]

The USDA offers loan programs for farmers. Preference is given to farmers who are just starting out, or members of a "socially disadvantaged group". Veterans do not fall under the socially advantaged category, but it sounds like you would meet the "beginning farmer" requirement. Loans are available for both farm ownership/improvement and for operating expenses (such as livestock purchases).

<a href="http://www.fsa.usda.gov/programs-and-services/farm-loan-programs/">http://www.fsa.usda.gov/programs-and-services/farm-loan-programs/</a>

Contact your local USDA Farm Service Agency to get started.

 

[ss55]

Have you considered going back to working for another farmer?

 

[oldtanker]

(quoted from post at 06:37:35 07/05/16) Have you considered going back to working for another farmer?

He has to be careful on that. Like with social security disability a veteran on 100% disability is considered unemployable. While they can work they are limited in how much they can make. My one BIL is 100%. He's allowed to make about 13K a year before they reduce his disability payments. Another BI (his brother) is on disability because of heart problems. He is limited to the same amount. The 13K is a rough figure. It may be a little higher or lower today.

Rick

 

[oldtanker]

(quoted from post at 19:58:16 07/04/16) oldtanker- I kinda picked up on that when he said..."I am wondering if any of you out there
know of any assistance programs are out there to help with buying the land, fencing,
property improvements and buying a herd."

That's why I ask. The people I know who ask questions like that have either a very low rating, 10-20% or they are at the 100% rating. I'm a disabled vet, 70%, now considered unemployable by VA. So I get a lot of questions regarding that.

Over 40 they will pay for rehab training. There was or still is a program that would give a grant to help a vet with a higher than 40% rate start a business. I do not know if that program is still active. But a person rated at 100% wasn't eligible the last I knew of it. My BIL tried. He was going to have his wife run his business for him. Now he just doesn't work. He doesn't really have to with his 100% rating.

Rick

 

[Farmall43]

I am 100% combined rating and also considered Individual Unemployable. IUE. I am not ready to do nothing. My current dba is in mine and the wifes name. I had thought about putting another one in my parents or brothers name and doing everything under it. I am only 41 years old. I may be broke but I can still do a lot. It just hurts a LOT more than it should. I want something that will allow me to work 4-6 hrs when I hurt bad and when I can do more then do more. I can buy the property on my own but then would still need $40,000-$60,000 for property improvements and a herd. I can start smaller and work my way up. I had just hoped to be able to have this endeavor paying for itself in 2-3 years instead of 5-7. I appreciate the insight an will continue to look for alternative routes.


Thanks Matt

 

[oldtanker]

(quoted from post at 10:39:08 07/05/16) I am 100% combined rating and also considered Individual Unemployable. IUE. I am not ready to do nothing. My current dba is in mine and the wifes name. I had thought about putting another one in my parents or brothers name and doing everything under it. I am only 41 years old. I may be broke but I can still do a lot. It just hurts a LOT more than it should. I want something that will allow me to work 4-6 hrs when I hurt bad and when I can do more then do more. I can buy the property on my own but then would still need $40,000-$60,000 for property improvements and a herd. I can start smaller and work my way up. I had just hoped to be able to have this endeavor paying for itself in 2-3 years instead of 5-7. I appreciate the insight an will continue to look for alternative routes.


Thanks Matt

Yea I'm in the same boat. But I make enough that I don't have to work between VA and Army retirement. Sucks to hurt all the time but it is what it is.

There are with a simple Google search organizations that help vets do what you want to do that are not under government management. You could look into that.

Rick