Part-time "hobby farming" on 3-5 acres?

[Mini Horses]

In VA raw milk can be sold "FOR PETS" only. But, authorities have no restrictions on "herd shares" and generally do not get involved much with those situations. Rather tolerant as it is not a huge industry but, is definitely out there. Most operations are a few head of goats or cows and actually pretty well managed.

 

[baymule]

In Texas, raw milk sales are allowed on the farm. We were buying raw milk from the only certified Guernsey dairy in Texas, but they went to $12 a gallon. There is a Jersey raw milk dairy 2 counties north for $6 a gallon, but is too far, so I now buy that white stuff from the grocery store.

 

[sumi]

@McCulloch610 how did the viewing go? Was the property what you were looking/hoping for?

 

[MoonShadows]

@McCulloch610 how did the viewing go? Was the property what you were looking/hoping for?

Yup. I've been waiting to hear back from you, too.

 

[McCulloch610]

Hi all...sorry to not get back all week-it was a crazy one at work. In any event, it's a property that's got a ton of potential-the house is everything we need and more, it just needs some paint and cosmetic repairs. The property itself is great-very private, 24 x 24 framed outbuilding that was once used a barn (dirt floor, electric and water) that just needs a new roof and siding. Plenty of room to hunt in the back 2.5 acres of woods and plenty of room for a 1.5 acre pasture in the front, leaving plenty of of backyard space for kids and a big garden. Now for the concerns:

• The septic system is original to the home and is 40 years old. It will likely need to be replaced. In NJ septics are highly regulated and if it fails the stringent testing procedures which are required by law the home can't be sold without it being remediated. Being a bank owned property, they are unlikely to replace it, and we'd be counting on them to lower the price so that we could afford to fix it, but a fix could be as much as $40K. I know that seems excessive to those in other parts of the country, but here in NJ that is pretty average for a mound system, which is about all that is put in these days. Gone are the days of gravity, below grade systems in all but a few areas with exceptionally well drained loamy soils.

• The property is just shy (5.6 acres) of what we would need for farmland assessment (6 acres). Farmland assessment, first and foremost, gives you a break on property taxes by separating out the acre that your house sits on from the other 5 (or more) acres of your property and taxing it as farmland, instead of residential land. In this particular area it would result in a savings of nearly $1000 a year. Another important aspect of farmland assessment is that once you are farm assessed, you meet the legal definition of a farm in NJ, and thus are protected by the "Right to Farm Act." Right now, since the property cannot be farm assessed, if I was to keep a family milk cow, the cow would be considered a "pet," not livestock. Any complaints about noise, smell, sight, etc...from neighbors could be investigated by the town and the town could potentially force me to get rid of the offending animal. The Right to Farm Act protects family farms from such action, but again, you must be farm assessed to be covered. Finally, family members living on the farm are eligible for "Farm permits" to hunt deer and wild turkey (which there are tons of on the property). This allows immediate family members living on the farm to hunt the farm property without having to buy licenses, zone permits, etc...

• The access road is simply an easement and has no legal agreement in place for maintenance. The gentleman who used to own the house that we might buy used to arrange for plowing in the winter himself, and when he got the bill he simply "passed the hat" to all of the neighbors. This apparently has worked well, but I wonder what would happen ten years down the road if a few houses change hands and the folks living there aren't so neighborly. A legally enforceable agreement would be preferable. Also, plowing amounts to a couple of hundred dollars per year-what about ten years from now when the road is in poor condition and some want it paved/others just want it patched with stone fill here and there. Who decides what we do, how much we pay, and who we hire?

I think for now we might keep looking, but we'll keep and eye on the place. Our realtor told us that the good thing is that a property like this one is only going to appeal to folks like us who want to put work into it, so the bank may have to end up dropping the price a decent amount before they start seeing offers coming in. The septic issue really is what it is, it's old, it will fail, and it will need to be replaced, so that's kind of a "cross that bridge when you come to it." One potential solution to the farmland assessment issue is the fact that there is a 30 acre property to the rear that I could offer to purchase .4 acres from to round out the required 6 acres. Of course, that property is farm assessed (per tax records), and the property owner is likely well aware what that .4 acre would allow me to do, and would probably price it accordingly. As for the road, I've heard differing opinions. We could go in and propose that such an agreement be drawn up, but I'd hardly feel comfortable doing so, and wouldn't want to establish a reputation among neighbors as wanting to come in and shake things up.

 

[MoonShadows]

Sounds like you made a thorough assessment, and that is good. With the septic, size of property and road, there are some major situations that would need to be remedied. Remember, though, banks are not in the business of owning houses. It does them no good. And, if it has been on the market for a while, they might give you a big break to get rid of it. Perhaps speak to the farmer who has the property to see if he is willing, and how much he would want for the acreage you need to make it to 6 acres. However, with that said, I think you are smart to keep looking while keeping your eye on this one at the same time. Are you the first house on the road? For some reason, I thought you mentioned something about that in an earlier post. If that is the case, I would just worry about my portion and let the others after me to take care of themselves.

Where about in NJ is this place? NJ has some beautiful areas. I am partial to the northern NJ area myself.

Keep us informed of your search progress. Love to hear the updates.

Jim

 

[McCulloch610]

Sounds like you made a thorough assessment, and that is good. With the septic, size of property and road, there are some major situations that would need to be remedied. Remember, though, banks are not in the business of owning houses. It does them no good. And, if it has been on the market for a while, they might give you a big break to get rid of it. Perhaps speak to the farmer who has the property to see if he is willing, and how much he would want for the acreage you need to make it to 6 acres. However, with that said, I think you are smart to keep looking while keeping your eye on this one at the same time. Are you the first house on the road? For some reason, I thought you mentioned something about that in an earlier post. If that is the case, I would just worry about my portion and let the others after me to take care of themselves.

All good points-I have thought about reaching out to the rear property owner just to test the waters. As for the road issue, the house is actually next to last on the road and the road is about a 1/4 mile long. Great for privacy but concerning for other reasons.

Where about in NJ is this place? NJ has some beautiful areas. I am partial to the northern NJ area myself.

Lebanon Township-a large, rural township north of Route 78 at the northern tip of Hunterdon County. Definitely one of the nicest areas of NJ by far. Property taxes (by NJ standards) are quite reasonable as well.

 

[Denim Deb]

Have you checked on Land watch? They have a lot of properties listed. If you can find one that has a forestry stewardship in place, the taxes are dirt cheap.

 

[McCulloch610]

Have you checked on Land watch? They have a lot of properties listed. If you can find one that has a forestry stewardship in place, the taxes are dirt cheap.

I do look from time to time, but most of the properties there are pretty large (50+ acres) and therefore too expensive. In NJ, properties that large are mostly sought after by developers if they're not otherwise preserved, so you're bidding against millionaire investors looking to build a subdivision and turn a profit, not other folks looking to farm it. I have seen a few sub-10 acre properties from time to time though and will keep looking.

 

[Denim Deb]

Not all properties, but it's more so in SJ than in NJ. There are plenty of smaller tracts around here that aren't too bad. One I was just looking at was 27 acres for $119,000 but it's all wooded. The area is right, the price isn't bad, but I don't want all woods.