It's looking real good.
Selling a farm business is more complicated than selling just a farm house and some acres. And believe me, banks like to complicate things. Even though our asking price includes house, land, acres, buildings, livestock, equipment, frozen meat on hand, shop tools etc...everything needed to start running the business the day of closing, the bank is requiring TWO loans.
The first will be for the real estate, house, land and empty buildings. It will be a traditional 15-30 year loan. The second loan will cover the business part, equipment, cows, pigs, vehicles all the way down to the number of eggs in our farm store refrigerator. That loan will only be for 7 years.
And then of course there is the matter of a down payment. No small potatoes since most banks want to see 10% of the asking price. Lenders also want to see lots of numbers, plans, projections and scenarios.
No wonder it has taken us nearly two years to get to this point. I believe it would be easier for someone to borrow money to open a nuclear power plant than it is to get funds for a small family farm.
But if anyone can get it done, I believe it is this couple we are working with. Soon we (and they) will be purchasing additional livestock so that by the time we reach our projected closing date of Nov. 1 this farm will be running at good capacity. We've hated having to turn down business the last few years because we simply could not keep up.
The potential new owners are going to reverse that trend. They plan to grow the farm in a healthy, honest, continued certified organic way. They talk of customer appreciation days, regular newsletters, meat CSA's, educational events taught here on the farm. And because they are bright enough to understand staff will need to be hired to reach these goals I can assume they will be successful. Not just financially but intrinsically.
Yes, We are getting excited.
But now, the real crunch time is beginning. November is just 8 months away. We will need something to live in on The Poor Farm., while we start to build our new earth covered home. We need to get a barn built for a limited number of livestock. We need to plan this years garden in order to feed us next winter. We need to buy a shipping container and get it located on the Poor Farm so we can start storing all our building materials out there now. We need to get electricity and water going out there so we can build the things we need to build. We need to totally go through all our things here and pitch, give away as they will not fit in the new tinier life. We need to keep running this farm well so when Prince Farming (and spouse) takes over it will be in most excellent shape.
We need, we need, we need.
We need to shut up and get to work!
P.S. Why is this all not happening until November you ask? Because the potential new owners have another very busy farm up north and customers are depending on them through the summer. Sure they could've walked away from all that and left their supporters high and dry but that's not the kind of people they are. They have this thing about meeting expectations and keeping their word. Just another reason we believe they will be the best fit here on South Pork Ranch.