This is both absolutely maddening and wonderfully exciting. Before reading further, please give this a watch to see what I mean.
What we learned today. (The 4 steps to buying an independent farm.)
Step 1: Put together a rock-solid business plan
Step 2: Wow your lender with the presentation of the plan
Step 3: Receive rejection due to business type, rather than business potential
Step 4: Accept loan to use the same asset non-productively (as a home) vs. productively (as a farm), then use it as you originally intended to.
Caveat: This plan requires having a spouse who is able to qualify for the loan on their own. Otherwise, “you ain’t getting no” farm.
Is it just me or does this seem a nice microcosm of our incredibly convoluted banking system? Sadly, this farm’s success will likely not do anything to improve liquidity for potential entrants.
It seems we could use direct government lending to infuse credit into the farm sector. Providing funds to loads of small, independent farms would help to lower the risks to our food supply as products are typically controlled by very few companies today. In doing so, we can continue the spread of independent farms, while providing ourselves healthier, less traveled fare.
Guy Kawasaki’s article on the same:
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