The attraction of rural living is still strong, although the demand has reduced from the peak activity we saw in 2022. However, with a growing number of people embracing remote work, the dream of owning a farm or maybe a lifestyle farm property has become a reality for many and we’re seeing healthy prices again.

Rural properties do spend more DOM (days on the market) than city properties but that doesn’t always mean the prices drop; in fact, many regional areas are approaching the peak prices we saw during the pandemic. You should be aware, though, buying a farm is a significant investment, and it’s essential you approach it as what it is; a major transaction. Read on for how to ensure you cover all your bases.

How to buy a farm: what you need to know

If you’re a first-timer buying acreage or a working farm, run through this check list first.

1. Define your farm goals
Before you start browsing property listings, it’s vital to define what you want to achieve with your farm. Are you seeking a lifestyle change, a profitable business venture or a combination of both?

If you plan to run a commercial farm to generate income from crops or livestock, you’ll need to conduct thorough research. A deep understanding of the land is essential. Factors such as soil quality, water availability, and market demand will influence your farm’s profitability. Consulting with local agricultural experts can help you determine the optimal acreage for your chosen crops or number of animals.

For those pursuing a lifestyle property or hobby farm, the land requirements are less stringent. A few acres can be sufficient for a small vegetable garden, raising a few livestock for commercial use or stocking ‘ornamentals’ like alpacas, donkeys or a Highland cow or two. However, you’ll still need to consider the space required to cultivate feed for your animals. You’ll also need to consider the cost of supplementing their feed and where you’ll store that feed.

2. Make location a priority
If you plan to sell your farm produce, location is paramount. You’ll need easy access to major highways for efficient transportation. If you’re new to the area, get a knowledgeable real estate agent/stock and station agent to help you research local markets and distribution channels to determine the best location for your farm.

3. Assess the infrastructure
A farm’s infrastructure is as crucial as the land itself. You’ll want to inspect sheds, stock yards, water tanks, fences, power supply, water troughs, solar panels, boreholes, windmills, dams and irrigation systems thoroughly. These are big-ticket items and their condition will have a huge impact on your initial investment and ongoing expenses.

4. Understand your legal obligations
Understanding the legal aspects of farm ownership is essential. Investigate property rights, including easements and access rights. Don’t forget to look at water licences, and check if building permits are required for additional structures like dams or dwellings. Be aware of local regulations regarding genetically modified seeds, pest control and invasive species management.

Financing your farm purchase

Securing financing for a farm can be challenging due to its unique nature. Banks often have stricter lending criteria, including property size, for rural properties. However, government grants and programs designed specifically to support agriculture may be available. It’s worth exploring grants offered by the Department of Agriculture, Fisheries, and Forestry, as well as loans offered through the Regional Investment Corporation. You might find the grants available offset the tougher lending conditions.

Doing your due diligence

You really need to conduct thorough research before making an offer. If you have a qualified rural property agent on side, they can help you. You might also consider engaging an agronomist to report on soil quality and pasture improvements. A pre-purchase inspection can uncover potential issues and help you negotiate a fair price.

Engaging the right real estate agent or stock and station agent

When it comes to rural land parcels and farms, you need the advice of an agent who’s in the know, who’s done what you’re doing and understands the challenges and rewards of buying a farm.

The bottom line

Buying a farm is a significant undertaking, but with careful planning and preparation, it can be a rewarding experience. By understanding your goals, conducting thorough research and seeking expert advice, you can increase your chances of finding the perfect farm to suit your needs and aspirations.

Need advice on selling your Gloucester region property?

As a proud local, I’m here to guide you through the process of selling your home. I specialise in lifestyle, rural and residential properties. I’ve done it myself and helped many families over my career. So give me a call; I’m here to help.