Living On A Ranch – Our Expert Take On What It’s Really Like

The lifestyle of living on a ranch is often romanticized in movies and media: wide-open skies, rugged independence, the gentle hum of livestock at sunrise. But what does it really mean to live the ranch lifestyle day in and day out? To immerse yourself in the ranching culture?

The answer lies far beyond the glossy imagery. Ranching is both a lifestyle and a livelihood that demands resilience, versatility, and a genuine connection to the land. It’s not just about riding horses or enjoying sunsets; it’s about managing livestock health, navigating seasonal unpredictability, maintaining infrastructure, and making tough business decisions, all while staying grounded in your purpose.

Ranch life blends tradition with innovation, solitude with community, and challenge with deeply personal reward. For those drawn to the rural lifestyle, it’s essential to understand the realities behind the dream.

As experts on all things ranchland, we’ve crafted a clear-eyed look at what living on a ranch really looks like, from its daily rhythms, unexpected challenges, and the many ways it can exceed even your highest expectations.

Table Of Contents

• Is Ranch Life Hard?
• What Does It Really Mean To Live On A Ranch?
• Type Of People Best Suited For The Lifestyle Of Living On A Ranch
• Common Misconceptions About Living On A Ranch
• Common Expectations vs Reality of Living On A Ranch
• Cost Considerations When Living On A Ranch
• Types of Ranch Life You Can Lead
• How To Start Ranch Life

Is Ranch Life Hard?

The short answer: it can be. But the reality of the ranch lifestyle depends heavily on the size, scope, and purpose of your ranch. Whether you’re running a high-intensity cattle operation across thousands of acres or managing a smaller hobby ranch, the daily demands can be relentless.

Physical Labor and Daily Grind:

Living on a ranch isn’t a 9-to-5 job. It’s a sunup to sundown (and sometimes beyond) commitment. A single day might include repairing a busted fence line, loading hay bales by hand, checking the water tanks before the heat spikes, and rounding up cattle that found their way through a gap.

During calving or branding season, your daily tasks can triple overnight. And if you’re short on help (which many ranchers are), you may have to do it all yourself.

If it breaks, you fix it. If it needs moving, you move it. From greasing tractors to bottle-feeding calves, ranch life demands grit, muscle memory, and the ability to keep going when you’re bone-tired. Ranchers quickly learn that “later” isn’t always an option; the work waits for no one.

Seasonal and Environmental Challenges:

Every season brings its own kind of test. In winter, it’s chopping ice so the herd can drink and keeping newborn calves warm enough to survive. Spring often means mud, flooded pastures, and round-the-clock animal care. Summer on the ranch brings drought worries, water shortages, and fire risk. Fall is for planning ahead—stacking hay, preparing stock for winter, and repairing what the other seasons damaged.

When living on a ranch, Mother Nature calls the shots, and ranchers are forced to adapt and build their sense of resilience season after season. Weather can change your plans in an instant, whether it’s a hailstorm destroying your crop or a blizzard stranding your animals. Ranching teaches respect for the land because it humbles you regularly, in the most challenging yet beautiful ways.

Emotional and Time Commitment:

Ranching isn’t just physically demanding; it’s emotionally consuming. You form bonds with the land, your livestock, and even your tools. When something goes wrong—a sick animal, a wildfire threat, a dry well—you feel it in your gut. The stakes are personal, and you’re fully invested.

There’s rarely a clear boundary between work and rest. The ranch is your home, your business, and your responsibility. That means no “clocking out” on weekends or holidays.

A vacation might be a half-day off to go to town for supplies. And yet, many ranchers wouldn’t trade it for anything. There’s a profound satisfaction in the ranch lifestyle—watching a healthy calf take its first steps, seeing green pasture after a hard rain, or fixing something with your own two hands that saves the day.

Living on a ranch isn’t easy, but it is deeply real. And for those who stick with it, that realness becomes its own kind of reward. After all, there’s a reason living on a ranch is something many could only aspire to do.

What Does It Really Mean To Live On A Ranch?

More than just a backdrop for scenic views, living on a ranch is a full-spectrum lifestyle that blends grit with grace. It’s a blend of agriculture, ecology, logistics, and land stewardship—not just a home, but a living system that needs constant observation, adaptation, and decision-making.

Ranchers don’t just live on the land; they live with it. That relationship means you’re managing variables most people never think about: soil health, animal stress, fuel costs, equipment lifespans, predator pressure, and your own endurance.

Living on a ranch isn’t a passive experience; it’s an active role in a constantly moving ecosystem. And while the views are breathtaking, it’s the behind-the-scenes responsibilities that define the lifestyle.

An Example Of A Typical Day In The Life:

A typical day living on a ranch starts before sunrise and can stretch until long after dark. Morning might begin with checking fence lines after a night of high wind, then pivoting to triage a water system malfunction before cattle go thirsty.

Midday could involve managing rotational grazing, meeting with a soil conservation expert, or troubleshooting irrigation pumps. In between, there’s feeding, doctoring livestock, tracking breeding cycles, and prepping for market deadlines.

You might spend part of your afternoon submitting paperwork for an NRCS environmental cost-share program or coordinating delivery logistics with a local butcher. Zoning and water use laws may change how or where you graze. You could be writing a prescribed burn plan for rangeland improvement or navigating new land-use compliance rules.

And it’s not just about the “work.” It’s about forecasting what needs doing before it breaks, because out here, waiting until something fails can be costly, dangerous, or life-threatening. The most seasoned ranchers are intuitive managers, reading the land like a language and adjusting their operations in real time.

At its core, living on a ranch means wearing many hats: livestock caretaker, mechanic, accountant, wildlife observer, land steward, marketer, and crisis manager. The days are long, the problems unpredictable, and the responsibilities immense, but for those called to it, there’s no lifestyle more rewarding. Needless to say, there’s never a boring day.

And yes, there often are plenty of evenings spent watching the sunset over the expanses of your ranchland, making the work of living on a ranch that much more worth it.

What Type Of People Are Best Suited For The Lifestyle Of Living On A Ranch?

Living on a ranch isn’t just a profession; it’s a personal calling. While anyone can be drawn to the romance of the ranch lifestyle, those who thrive are built for more than the aesthetics. They are gritty, resourceful, and determined individuals who don’t shy away from discomfort. They work through exhaustion, fix problems in real time, and rarely rely on someone else to save the day.

Resilience, self-reliance, and adaptability are the foundational skills for successfully living on a ranch. Problem-solving isn’t a nice-to-have; it’s a daily requirement. Whether it’s a broken axle on your feed wagon or a mother cow rejecting her calf, ranchers need to think fast and act faster. Mental stamina is just as important as physical strength, especially in isolated areas where help might be hours away.

Living on a ranch also demands emotional endurance. Solitude is part of the lifestyle—not just physical isolation, but the emotional load of running a complex operation with real stakes. For many, that solitude is a source of clarity and fulfillment. For others, it can be a deal-breaker.

But beyond sheer toughness, ranching also attracts entrepreneurial minds. The best ranchers treat their land like the asset it is, constantly evaluating risk, opportunity, and return. They understand that every decision, from genetics to grazing patterns, is an investment in the future.

Living on a ranch isn’t about maintaining what is; it’s about building what could be. It’s legacy work.

The bar is even higher for modern-day ranchers. The most successful modern ranchers are information-driven and unafraid of innovation. Drones and satellite imaging help track pasture health. GPS ear tags offer real-time insights into herd behavior. Rotational grazing models improve soil health and long-term productivity. Even water usage and fencing systems are going digital.

In today’s climate, sustainability isn’t just a buzzword; it’s a business imperative. Savvy ranchers adopt regenerative practices not only for the environment but to enhance profitability, reduce input costs, and secure conservation funding.

Whether it’s diversifying income streams with agritourism or incorporating carbon sequestration strategies, today’s rancher understands that living on a ranch requires being equal parts cowboy, conservationist, and CEO.

What Are Some Common Misconceptions About Living On A Ranch?

Media portrayals often shape the idea of ranch life, but those romanticized depictions don’t often capture the full picture of what it’s like to live on a ranch day in and day out. Western shows may showcase golden-hour horse rides and sweeping mountain views, but the real story includes diesel-slick hands, exhausted nights, and relentless problem-solving.

Let’s dispel some of the most widespread myths and misunderstandings of what it’s like to live on a ranch:

Misconception: “Living on a ranch is always peaceful and picturesque.”

Truth: Ranches can be beautiful, but they can also be loud and unpredictable. Between bellowing cattle, squealing hydraulic equipment, and barking dogs, there’s often quite a bit of noise mixed in with those peaceful moments. The work is dusty in summer, muddy in spring, and bone-chilling in winter.

Yes, there are moments of awe—a sunrise breaking over frost-covered fields, a quiet evening walk through tall grass—but those are earned between the hard parts. It’s not always serene, but it is always real.

Misconception: “Ranching is solo work.”

Truth: The image of the lone cowboy may be iconic, but it doesn’t reflect the full reality of living on a ranch. Most ranches are family-run operations where every member plays a role, from checking fence lines to keeping books.

Others depend on hired hands, especially during branding, calving, or harvest seasons. Neighboring ranchers often share labor during emergencies or lend equipment when something breaks. The truth is, successful ranching is built on networks of trust, teamwork, and shared experience.

Misconception: “Ranching is just about cattle.”

Truth: While cattle may be the centerpiece for many ranch operations, modern ranching is as multifaceted as any business. It’s about land management, pasture rotation, weed control, water rights, soil regeneration, predator mitigation, and yes, livestock care.

Ranchers may also run guest lodging, lease hunting rights, manage timber stands, or participate in conservation programs. You might spend one hour installing solar panels on a pump house, and the next guiding a wildlife biologist across your property. Needless to say, there’s never a dull moment when living on a ranch.

Misconception: “Ranch work ends at sunset.”

Truth: Livestock emergencies and equipment failures don’t follow a 9-to-5 schedule. A cow with a breached calf, a sudden wildfire, or a busted water line can turn a quiet evening into an all-nighter.

Fences go down, predators show up, pipes freeze, and these things aren’t always predictable. Many ranchers have learned to keep their phones charged, their boots by the door, and their headlamps within reach.

Misconception: “Living on a ranch is just like the TV shows.”

Truth: Television shows rarely show the hours of maintenance, stress, and decision-making that go into living on a ranch. They skip the spreadsheets tracking feed costs, the planning meetings with conservation agencies, or the slog of repairing a PTO shaft in 100-degree heat.

They miss the mental math of hay inventories or the emotional toll of putting down a sick animal you may have bonded with. Living on a ranch is more than a dramatic backdrop. It’s a long-haul commitment that tests your resolve as much as it rewards your spirit.

Common Expectations vs Reality Of Living On A Ranch

There’s a big difference between how people imagine ranch life and what it truly entails. Let’s break down some common expectations with real-world realities of living on a ranch.

Expectation: There is freedom and autonomy in running your own ranching operation. When living on a ranch, you make your own schedule and your own rules.

Reality: While you often do have quite a bit of freedom and autonomy with the ranch lifestyle, you are also tied to land and animals, leaving you with fewer opportunities and flexibility for travel.

Expectation: The ranch lifestyle is a simple one.

Reality: Living on a ranch does bring a sense of going back in time to a simpler period, but it also comes with complex operations and unexpected challenges.

Expectation: You can live off the land.

Reality: Living on a ranch absolutely does allow you to lead a lifestyle of living off the land, but it also comes with significant input costs, maintenance, and upkeep. It’s important to factor these into your decision-making process when deciding if you want to commit to ranch life.

Expectation: When living on a ranch, you will do work you love every day.

Reality: Most ranchers would agree they truly do love the work they do. But remember: some ranching tasks are fulfilling, while others are just plain tough. It comes with the territory and the lifestyle. Ranchers are a gritty bunch, and their willingness to put up with what some may consider grunt work is key to their success.

Lifestyle And Quality Of Life Considerations When Living On A Ranch

Living on a ranch isn’t just a change of address; it’s a shift in pace, priorities, and personal rhythm. The ranch lifestyle shapes more than your daily tasks; it impacts your mindset, relationships, and how you measure fulfillment. It requires a recalibration of what matters most and a willingness to trade convenience for meaning.

The Reward Side: How Living On A Ranch Surpasses Expectations

There’s a depth to the experience of living on a ranch that’s hard to articulate until you’ve lived it. Many ranchers describe the lifestyle as grounding, anchored in purpose, and connected to something bigger than themselves.

There’s a deep pride in self-sufficiency: knowing you’ve raised your own beef, fixed your own gate, or helped deliver a breech calf in the dead of night.

Watching the sunrise over a frost-covered pasture, hearing the first meadowlark of spring, or seeing a tired heifer bond with her newborn; these moments don’t make headlines, but they shape a life worth living.

It’s not glamorous, but it’s real. And for many ranchers, it far outweighs the perks of modern convenience or a corporate career path.

Necessary Trade-Offs To Consider

That said, living on a ranch comes with undeniable sacrifices.

Living hours from the nearest grocery store, vet, or hospital is routine. If your well pump goes out, you’re the repair crew. If your child needs a specialist, it may mean a full-day drive. Social circles can be limited, especially for extroverted folks who thrive on city energy and amenities.

The weather also dictates your plans. Birthday parties get postponed for branding days, and holidays may be spent checking water lines instead of relaxing. Even when you’re “off,” you’re never truly off. Animals need feeding, fences need mending, and emergencies don’t respect your schedule.

These trade-offs can wear on relationships and test your resolve, but for those who accept them, living on a ranch is often worth the reward.

Community And Culture

While physical isolation is real, emotional isolation often isn’t. Ranching communities are known for stepping up when it counts. Need help gathering cattle before a storm? Your neighbor’s already saddled up. Wildfire near your fence line? Someone’s probably grading your firebreak before you even ask.

Rural culture runs deep with values like stewardship, humility, and shared responsibility. Whether it’s a branding day, a benefit dinner, or just an extra set of hands when you’re short-staffed, there’s an unspoken code in ranch country: help is never far away, and neither is gratitude.

For many, this sense of community is one of the most treasured parts of living on a ranch, where the land may be vast, but you’re never truly alone.

Cost Considerations When Living On A Ranch

Budgeting for ranch life goes far beyond the purchase price of land and a few head of livestock. The financial reality of living on a ranch is layered, unpredictable, and highly dependent on the scope of your operation.

From ongoing input costs like feed, fuel, and vet care, to long-term investments in infrastructure and equipment, ranching requires both cash flow management and strategic planning.

Unexpected expenses are the norm, not the exception, when living on a ranch. Think broken tractors, water line repairs, or emergency hay deliveries during a drought. There’s also the cost of compliance: grazing permits, insurance, taxes, and environmental regulations can all affect your bottom line.

While some ranching costs are seasonal, others are constant, like maintaining miles of fencing, servicing equipment, or upgrading facilities to meet changing needs. These are the major cost categories that come with ranch living and highlight where new ranchers often underestimate their budgets.

Whether you’re running a full-scale cattle operation or maintaining a mixed-use recreational ranch, understanding these financial dynamics is key to long-term success.

• Operating and Maintenance Costs: Feed, seed, animal health, machinery fuel and repairs, labor, insurance—the maintenance costs of living on a ranch add up quickly.
• Infrastructure and Hidden Costs: Fencing, water rights, barn repairs, utility access, road maintenance. Many new ranchers underestimate these hidden costs.
• Financial Realities Of Traditional Models: Traditional cattle ranching often yields slim profit margins. Diversification is key to long-term viability, so it’s important to think about other uses for your land, beyond just cattle ranching.
• Long-Term vs Short-Term ROI: Many enter ranching for the lifestyle, not immediate profits. Building equity takes years of investment into your ranch. You have to have a long-term mindset.

Types of Ranch Life You Can Lead

There’s no single blueprint for living on a ranch, because no two ranchers have the same goals, skills, or land. Ranching can be as intensive or as laid-back as you make it, ranging from high-output cattle enterprises to small recreational retreats designed for stewardship and solitude.

For some, living on a ranch means managing livestock across thousands of acres with a fully staffed crew and commercial-scale infrastructure. For others, it’s a weekend sanctuary with a few horses, a garden, and space to breathe.

Increasingly, many ranchers are blending traditional practices with modern strategies, integrating conservation, tourism, and off-grid technologies to meet both financial and ecological goals.

In this section, we break down the most common ranch models and what kind of mindset, commitment, and resources each one requires. Whether you’re building a legacy or simply seeking a lifestyle shift, there’s a ranch type that fits your vision of what it means to live on a ranch.

• Working Cattle Ranch: Full-time livestock management is ideal for those with agricultural experience and dedication.
• Hunting or Conservation Ranch: This type of ranch blends habitat management with recreational access and is best for those passionate about wildlife and land stewardship.
• Lifestyle or Hobby Ranch: This type of ranch life is small-scale and less intensive. It’s ideal for retirees or those wanting a rural lifestyle without the full operational demands of living on a ranch.
• Guest or Dude Ranch: This type of ranch is a hospitality-based model that combines ranch work with tourism. It’s great for social, service-oriented individuals.
• Mixed-Use Ranch: This ranch lifestyle combines livestock, recreation, leasing, and conservation for diversified income streams.

Dream Of Living On A Ranch? Find The Perfect Piece Of Land To Make It Happen.

At Hayden Outdoors, we live and breathe the ranch life. Whether you’re dreaming of wide-open spaces or a working cattle operation, our team is here to help you find a ranch property that aligns with your vision and values.

We understand the challenges and the unmatched rewards that come with living on a ranch, and we’re ready to guide you every step of the way. Get in contact with one of our ranchland agents, or browse available ranchland.

Find Your Dream Ranch

What Is A Hobby Farm And How Do You Start One?

These days, the pull to live a more rural life can be a strong one. Establishing your own escape to a quieter time and place offers great appeal for those who crave a simpler life. One great way to pursue your dreams of large-acre land is with a hobby farm. Pleasure farming can provide self-sufficiency, lifestyle enrichment and sustainability. But how do you start a hobby farm, and what does “hobby farm” even mean?

Those of us at Hayden Outdoors are deeply rooted in the country’s farming and ranching communities and lifestyle, and we’re happy to help clients find their ideal plot of ground to start their dream hobby farm. Here are good first steps and important considerations from the farmland experts at Hayden Outdoors.

Table Of Contents

• Hobby Farm Definition – What Is It?
• Hobby Farm vs Homestead – What’s The Difference In Meaning?
• Hobby Farm Tax Deductions
• Pros And Cons Of Starting A Hobby Farm
• Is Starting A Hobby Farm Right For You?
• How To Start A Hobby Farm: Step-By-Step Guide

Hobby Farm Definition – What Is It And How Is It Different From A Business Farm?

There’s no standard meaning or definition of what a hobby farm is, but generally, hobby farms are smaller than a commercial farm, and are operated for pleasure, recreation or supplemental income instead of as a full-time business.

You and your family or friends are typically the managers of a hobby farm, and while the farm might produce crops, livestock, orchards or gardens that supply you with a fresh bounty, people who own hobby farms do not typically rely on them as their main source of income.

How Big Does A Plot Of Land Have To Be To Qualify As A Hobby Farm?

Again, there’s no hard-and-fast rule here. If you’re looking for a good amount of land that will allow you to establish your own hobby farm without becoming overwhelmed, 10 acres is a good place to start.

However, more than 10 acres can also provide additional opportunities when starting your hobby farm, such as recreation, more room for cattle or timber harvesting, depending on your location and local regulations.

Hobby Farm vs Homestead – What’s The Difference In Meaning?

The idea of homesteading is derived from the earliest days of settlement in the West. The federal Homestead Act of 1862, signed by President Abraham Lincoln, established an area of public land—typically 160 acres—granted to any U.S. citizen willing to settle on and farm or otherwise improve upon the land for at least five years.

Today, that homestead definition is a little looser, often referring more to a large-acre plot of land established with the intent of self-reliance and sustainability. This might mean growing one’s own food, raising animals, harvesting crops or other produce and generating energy such as solar or wind to help sustain an independent lifestyle.

A homestead is not usually intended as an income-generating property, although some recreational property owners do turn to outfitters, guides and recreational opportunities to help offset ownership and property maintenance costs.

Definitionally, a hobby farm is typically less about self-reliance and more about fun and lifestyle enrichment, allowing owners to pursue passion projects like raising a small number of animals, beekeeping, maintaining orchards or harvesting specialty crops. Owners do not usually rely on a hobby farm as their sole source of income.

What You Need To Know About Hobby Farm Tax Deductions

This last point—you, as the owner, not relying on a hobby farm as your sole source of income—is an important defining factor between a hobby farm and a farm utilized with the intent of turning a profit.

According to Utah State University, “In general, the IRS considers an activity a trade or business, and not a hobby, if it is conducted with a profit motive. Profit is defined as income (receipts) greater than expenses, where expenses include depreciation of capital assets. Note that this determination does not require that a profit is generated, only that there is motive for profit in conducting the activity. The distinction between a hobby and a trade or business is important because it determines the deductibility of expenses related to the activity.”

Farms that are treated as a business can deduct all ordinary and necessary expenses, even if they exceed the farm’s income. This can create a net operating loss to offset other income. By definition, hobby farms do not enjoy the same protections.

Internal Revenue Code § 183 codifies the “hobby loss” rules, stating, “if an activity is deemed to be a hobby, (i.e. not engaged in for profit), deductions for expenses are limited.” Also, “The burden is on the tax payer to prove the activity is carried out with a genuine profit motive.”

Some of the most important factors the IRS and the courts look at to determine if a farming activity is a for-profit business (and therefore eligible for full deductions) or a hobby (limited deductions) include:

• Manner of operation / businesslike behavior – In short, does the farmer utilize traditional business practices such as keeping books and records, having a business plan, utilizing a separate bank account and making improvements to the property to help improve profitability?
• Expertise of the farmers and advisors
• Time and effort – This includes how much personal time you and your family devote to your farm, especially if the amount of time suggests you’re looking to turn a profit rather than simply pursue recreational farming.
• Appreciation of assets – This one is a little tricky given that most of us buy property with the hope it will appreciate over time. However, in the form of a hobby farm, this typically doesn’t include large equipment, outbuildings or other major infrastructure that can support a profit motive.
• History of income or losses – If you don’t claim a profit over a number of years, the IRS will assume you’re not in the farm business to generate one.
• Your financial status – When you file your taxes, the IRS will look to see if you’re relying on income from your farm for your livelihood (business) or if the farming activity is subsidized by other means (hobby).
• Personal pleasure or recreation – While many farmers enjoy their work, there is a difference between someone who farms for money and others who do it for fun or personal enjoyment.
• Changing methods or improving equipment over time – Those who upgrade equipment or improve the property over time in ways that contribute to profit are viewed as commercial farmers.
• Success in similar activities – If you’ve shown success in prior farming business ventures, the IRS will most likely determine your current endeavors are intended for profit, not hobby.

Here are a few quick-and-dirty rules farmers and hobby farmers turn to to help determine how they should classify their land and the business on it, as well as what they can and can not deduct from their taxes:

The 3-of-5 years rule: If your farmland activities show a net profit in at least three of five tax years, the IRS will most likely presume you are running a business.

According to the IRS, hobby farms:

• Must report all income from farming activity on your tax return.
• Most expenses do not qualify for deduction—you cannot deduct losses that exceed the hobby income. Under the Tax Cuts and Jobs Act of 2017, miscellaneous itemized deductions, including hobby expenses, were largely eliminated. So, in most current cases, hobby farmers cannot deduct expenses at all.

For a comprehensive guide, the IRS provides Publication 225 (2024), Farmer’s Tax Guide. If you have specific questions about the tax implications of starting and owning a hobby farm, it’s important to talk to a recreational real estate professional and your accountant before you purchase the land to ensure you avoid any negative or unwanted tax implications.

The Pros And Cons Of Starting A Hobby Farm

If you dream of days in the dirt, exploring new ways to garden, farm, own chickens or experience the pure joy that piglets bring to the world, choosing to start a hobby farm might just be perfect for you. So let’s start with the pros of starting a hobby farm:

• Lifestyle and enjoyment – Hobby farming lets you connect with nature and experience a more rural setting. It can also be a gateway to lifelong passions such as gardening, raising farm animals or specialty crops. And then there’s the added benefit of stress relief.
• Self-sufficiency – Whether or not you pay attention to the current price of eggs, there’s something incredibly satisfying (and probably a lot more flavorful) about producing your own food.
• Supplemental income – As mentioned, hobby farms can’t be your sole source of income, but they can supplement it with weekly farmers’ markets, local produce stores and art fairs.
• Healthy families and communities – Your hobby farm can be an excellent way to engage with your family and local community members and teach children responsibility and focus on sustainable living.
• Environment and personal health – And then, of course, there’s the environmental and health benefits of hobby farming. Growing your own produce, knowing what goes into the soil and stocking your family’s dinner table with wholesome, homegrown goods is a great way to stay on top of your health.

But hobby farming does come with important considerations, costs and cons, including:

• Time – This is the big one. Even though it’s not your primary income source—or perhaps, because it isn’t—it’s critical to consider the time commitment of starting and owning a hobby farm. It’s a year-long endeavor and one that requires daily attention. Plants and animals don’t allow for much lifestyle flexibility; they need attention regardless of weather, holidays or time off.
• Financial costs – There are a variety of costs to think about when starting your own hobby farm, including the cost of the land itself, fencing, equipment, animal feed, livestock (if you intend to have some) and out buildings. There are also ongoing costs, such as maintenance, repairs and vet bills. And while hobby farms can be a great area of focus as you age into retirement, keep in mind that, by definition, they cannot be considered your sole source of income.
• Legal and tax limitations – As outlined above, hobby farms don’t come with many tax perks. Additionally, you’ll want to think about zoning laws, permits and property taxes.
• Physical demands – It’s part of the apparel and part of the reality: hobby farming requires a lot of physical engagement. Make sure you’re up to the task before you purchase the land.
• Unpredictability – If you’re not concerned about consistency, this might not matter. However, hobby farms are subject to weather conditions, pests, disease and market fluctuations.

How To Know If You Should Start A Hobby Farm

If, after considering all of the pros and cons of starting a hobby farm, you’re still game to give it a go, here’s a final checklist of things to think about before you do.

And if you’re still not sure, talk with your farmland real estate agent to get a better idea of what’s involved, walk some plots of land and learn more about the realities of hobby farming. If it all adds up, you’re probably a great candidate.

You might be ready to start your own hobby farm if:

• You’re drawn to rural living and you value lifestyle over profit.
• You have the time, and you want to spend it working the land, feeding the animals and weeding the garden.
• You have the financial stability required to allow hobby farming to be an enjoyable experience, and not a stressful one.
• You like getting your hands dirty.
• You crave self-sufficiency and farm-fresh food.
• You’re a student of life and willing to learn, research, experiment and make some mistakes along the way.

How To Start A Hobby Farm – Complete Step-By-Step Guide

The time is now and you’ve found the perfect plot of farmland. Here are your next steps to start a hobby farm:

1. Establish Your Goals For Starting A Hobby Farm

• Growing your own food
• Enjoyment and lifestyle
• Generating a little supplement income
• Building your dream farmhouse

2. Begin The Research Process

If you’re new to the game, learn the basics of farming, gardening, livestock care, soil management and what’s required to raise farm animals. Books, YouTube videos and local resources are a great place to start when getting into hobby farming. Don’t be afraid to ask local farmers at the weekly market how they got started.

3. Choose The Right Property To Start Your Hobby Farm On

Finding the right swath of ground for your hobby farm is key. Considerations include:

• Size
• Zoning laws
• Soil quality and water access and availability
• Accessibility

Here at Hayden Outdoors, helping your find the dream plot of land to start your hobby farm is our specialty. We’ve created a curated list of properties to get you started on your agricultural journey.

Find Your Dream Hobby Farm

4. Plan What You Want To Start Growing On Your Hobby Farm

• Crops can include vegetables, herbs, fruit trees and specialty crops.
• If your time and the farmland permit, livestock and farm animals are something else to consider, including chickens, goats, sheep, bees, rabbits or cows.
• Pursue passion projects, like beekeeping, cultivating mushrooms, cut flowers or agritourism.

5. Create A Farm Plan

• Layout fields, gardens, barns, fencing, water systems and outbuildings.
• Determine your budget and start-up costs.
• Set a timeline for planting.

6. Start Small And Grow From There

When you start your hobby farm, you’ll want to begin with a few animals, a small plot of crops and a manageable garden. Keep your operations sized to what you can realistically manage and maintain over time.

7. Stay On Top Of Finances And Legal Aspects

• Keep detailed farm financials.
• Consider farm insurance.
• Talk to your local CPA about how best to keep track of expenses, income and deductions.

8. Create Daily Routines And Stick To Them

• Establish consistent feeding, watering and care schedules.
• Track your planting and harvesting cycles.
• Keep detailed vet records for all animals on your hobby farm.

9. Scale Up Your Hobby Farm Operations

As you learn, consider how you want to grow your hobby farm. What else would you like to produce? Are there new opportunities for local sales or artisan outlets?

Equipment And Essentials – What Is Needed To Start A Hobby Farm?

Here’s a comprehensive list of the farm equipment and essentials you’ll need to start a hobby farm, although specifics will vary depending on your overall objectives, goals and timeline.

Basic Tools For Planing, Harvesting, And Farm Chores

• Shovels, garden forks, spades
• Hoes, rakes, trowels
• Wheelbarrow
• Pruners, clippers, shears, saws
• Gloves, boots, eye protection

Soil And Garden Supplies

• Seeds, seedlings and starters
• Compost and any fertilizer you plan to use
• An irrigation system, including hoses, sprinklers, drip lines, water catch containers and/or rain barrels
• Raised beds, planting rows, greenhouse

Livestock And Farm Animal Infrastructure

• Fencing (can be electric, woven or wood depending on animals)
• Animal housing, such as chicken coop, goat shed, barn, rabbit hutches or round pen
• Feed and water systems like troughs, feeders, heat lamps
• Bedding
• Veterinary supplies

Farm Equipment

This will depend on what kind of hobby farming you plan on doing, but can include a push mower, weed trimmer, ATV, trailer, plow, cultivator and manure spreader. Consider renting larger equipment or buying it at auction if you’re just starting out.

Storage And Structures

• Shed or barn
• Root cellar
• Work benches
• Compost bins or piles

Safety And Maintenance

• First-aid kit for both humans and animals
• Fire extinguisher
• Protective clothing
• Maintenance supplies (e.g. sharpeners, oil, replacement parts)

The Search For The Perfect Hobby Farm Land Starts Here

Ask those of us at Hayden Outdoors and we’ll tell you, it’s always a good time to spend more time on the land, and choosing to start a hobby farm is a great way to do it. Our recreational real estate professionals—many of whom grew up cultivating, tilling and harvesting themselves—are ready to help you find your personal dream farm, so you can start living off the land.

Or if you’d like to do a little online exploring before talking to an agent, these properties are all 100 acres or less, perfect for getting your feet wet and your hands dirty when it comes to establishing your own hobby farm.

Find Your Dream Hobby Farm

How (and Why!) You Should Finance Your Next Land Purchase

You might call Caleb Kjergaard, Director of Client Services – Rec Land at Outdoor Bank, atypical in today’s modern banking world. Born and raised in Eastern Kansas, Caleb understands land. He’s spent many mornings watching the world from a duck blind or tree stand. After working as a CPA for four years, he swapped that life for this one – one in which he gets to walk property with his clients, and work with agents across the country to find the best possible rates and options. Caleb’s style of lending evokes the friendly, lockstep approach of generations past. He believes in working with clients to find the best financing option, “Whether that’s with our bank or another finance organization.” With an understanding of finance that rivals his love of the land, Caleb offers up his tips on how – and just as importantly, why – you should finance your next land purchase. 

The Benefits of Financing Your Land Purchase

Caleb highlights three main benefits of financing your land purchase:

1. Liquidity – “This is the main reason I recommend financing land purchases. A lot of people think they’ll be saving money by paying cash and avoiding interest, but putting all of their cash into land might mean they might miss out on another opportunity that requires cash, like improvements to the land later. Keeping some dry powder in your bag for other opportunities that pop up is always a good idea.” 
2. Tax Benefits – For this point, Caleb puts his CPA hat on. “With financing, your interest payments are tax deductible. Property tax is deductible. If you put improvements on the property, those will be depreciable. And if you’re a farmer, there are loads of deductions you can take advantage of.” 
3. Leverage – When it comes to weighing the odds (and historical data), Caleb points out that using leverage has the potential to amplify the returns, especially in a bull market, when the rate of appreciation on the land exceeds the cost of borrowing. Smaller monthly payments can also be much more manageable than a huge cash windfall at the get-go, both of which can afford you more financial flexibility and leverage down the line. Also, financing can allow greater buying power. “You can finance a larger, more expensive property than one you would be buying if you just bought it with straight-up cash.” 

When getting ready to buy land, Caleb always recommends buyers talk to their tax professional first. 

Exploring Financing Options

There are typically three types of financing when it comes to buying land: traditional mortgage loans, land loans, and seller financing. According to Caleb, mortgages and land loans are pretty similar, but not every bank understands land. “Many lenders look at land and think of development, when in reality, many of our buyers are buying land for the sake of owning land, not to develop it.” 

There are a few key factors to consider when thinking about your financing options.

Down Payment 

This is where traditional mortgages and straight land loans can vary slightly. Sometimes a land loan will require a bigger down payment. Traditional mortgages usually require a minimum 20% down payment whereas raw land loans can require up to 35%. Talk with your lender about your options.

Interest Rate

Interest rates can be intimidating, but again, Caleb encourages an open line of communication between buyer and lender to find the best rate for you. “Don’t let today’s prices or interest rates push you out of the market if you’re thinking about financing. Interest rates aren’t forever, but that property you’re looking at can be.” 

Length of the Loan

This can also vary depending on the type of loan you secure, fixed-rate or adjustable-rate (ARM). Talk with your lender about the difference and which is a better option for you. 

Credit Score

Credit score is an important factor in a land purchase, even more so than when securing a traditional home loan. It’s important to make sure yours is at an acceptable threshold for your borrower. 

Seller financing, also known as a land contract, is a third option, although a less structured one. There are a variety of reasons buyers and sellers might choose this route, including the buyer having a lower credit score, wanting to avoid using a bank or lender, or a lower interest rate. However, it’s important to fully understand the terms of seller financing, including whether or not the seller owns the land and all outbuildings outright. 

Factors to Consider Before Financing

When you’re getting ready to finance a land purchase, there are some important considerations. In short, Caleb notes this step is similar to making any large purchase. “Get prequalified, look over your current financial situation to see what you can afford, find the right sized property, and make sure you feel comfortable making the payments.” In short, make sure you’ve checked these three boxes before you buy:

• Assess your financial readiness

1. 1. 1. Credit score
      2. Current personal balance sheet
      3. Debt-to-income ratio

• Understand the market dynamics and property valuation

1. 1. 1. Current interest rates
      2. Market trends
      3. End use for the land relative to the region
      4. Mineral and water rights

• Evaluate the potential risks and rewards

Navigating the Application Process

If you’re serious about buying land, or a piece of ground has become available that you can’t live without, it’s important to be ready to go. This is where the type of relationship-first banking and lending Caleb talks about comes in very handy. He’s a big believer in open communication with your lender, and working hand-in-hand with buyers to secure the best possible outcome. “Relationship banking leads to relationship pricing. We don’t have a set rate for everyone; a lot of it is based on relationships. This can start as a checking account or car loan, just so the bank knows you when it comes to getting a larger land loan.”

Having that established relationship with your lender can greatly expedite a land sale. In addition, it’s important to gather all of the necessary documentation and information. Most lenders can provide a checklist of required items to secure a land loan. These can include, but are not limited to:

• Driver’s license
• Legal name and contact information
• Federal income tax returns from previous years, typically up to three years back
• Total assets and liabilities, both personal and business
• Current employment status
• Legal proof of any assets you’ll be using as collateral

Mind Your Credit Score

As mentioned, credit scores and financial history play an important role in securing a land loan, because land loans are sometimes viewed as riskier for the lender or bank. Strong credit and a transparent, traceable financial history can help you get a lower interest rate and better loan terms. 

Getting pre-approved for a loan is a great way to stay one step ahead, even in non-competitive markets. As Caleb points out, land can be different from buying a car or a home in that the right piece of property might not be readily available. “A lot of times, these farms only pop up every 20, 30, even 100 years.” It’s important to be pre-approved and have your financial ducks in a row when it does. 

Selecting the Right Financing Partner

Back to Caleb and Outdoor Bank being the type of lenders that want the best for everyone involved. “At Outdoor Bank, we’ve built relationships with banks throughout the country so we can find the right fit for the loan, whether it’s with us or someone else.” It’s a refreshing and important perspective. “The relationship is a lot more important to us than what the client is actually buying.” 

Even if you can’t meet with Caleb and his team about your land purchase, it’s worth keeping his philosophy in mind when you’re looking for the right financing partner. Make sure to research and compare lenders. Talking with friends, industry professionals, and other landowners in the area is a great place to start. Look at recommendations and reviews from trusted sources. 

And definitely don’t forget to read the fine print. Some lenders will bury hidden fees, interest rates, and terms. Talk with lenders and finance partners at the beginning of the process about the exact fees you can expect throughout the process and at closing. 

Tips for Negotiating Favorable Terms

It’s important not to forget your power as a borrower, and highlight it when you talk with your lender. Again, this is where your financial history, credit score, and current assets come into play. 

You can also leverage market conditions and competition. In a hot market, talk with your finance partner – and even the seller – about why you’re the best person for the land. As Caleb puts it, “If you want the land at that price, there’s a good chance someone else wants it at that price, too.” But don’t let market competition scare you either. Advocating for your strengths as a buyer can include what you intend to do with the land, conservation efforts, improvements you want to make, and more. 

Talk with your lender about flexibility and repayment options. “A lot of our lending practices are based on the strength of the borrower. Other lenders are focussed on the collateral and cash flow of that property, and a lot of those programs are tailored toward profitable farmers and profitable ground. Our niche is people who are looking for the right piece of land and dreaming of what they want to do with it now and for generations to come.” 

Avoiding Common Pitfalls

Buying a big swath of land is something fun to dream about, but the reality can be trickier and more involved. Make sure you’re prepared and that you avoid the following pitfalls when buying land:

• DON’T fall for predatory lending practices
• DON’T overextend your financial capabilities
• DON’T fail to conduct due diligence on the property and financing terms

Make sure you do your homework, talking with your recreational real estate agent, finance partner, and any relevant farming, ranching, or resource oversight organizations in your area. 

Securing Your Investment for the Future

There are some straightforward and obvious steps you can take to protect your land investment. Then there are less obvious ones. Let’s start with the simple. 

1. Title Insurance – This is an important step for landowners because it protects both you and your financing partner in the event the previous owner didn’t own the property free and clear. Title insurance protects against the losses that might occur when the property is not free and clear of defects. 
2. Property Insurance – If you intend to use your property for events, large gatherings, or something else that might require risk management, talk with your finance partner or insurance agent about securing adequate property insurance.
3. Financial Planning – Creating a long-term financial plan for your property, including farming- and ranching-related costs, out buildings, improvements, maintenance, employees, and conservation is important in ensuring it retains and grows its value. 

Look for Unusual Opportunities

Caleb chimes in on some of the less obvious ways you should consider securing your land investment for the future. “My thoughts are, if someone has purchased some ground, specifically raw land, and wanted to ensure they do not hurt the valuation of the property over time, one of the best things they can do is leave the land undisturbed.  Adding some improvements such as fencing and outbuildings can help boost the value to the owner, however if they intend on selling the ground in the future, the upcoming buyer might not see the same value in those improvements.”

In the case of recreational properties, Caleb adds, “A good land investment strategy can (and often should) involve some improvements, but one of the best things, other than leaving the property as raw as possible, is to create healthy animal habitat. Whether that’s clearing out timber and other invasive plants, creating good cover for upland birds, adding food plots, and clearing game-trails, there are a lot of ways to improve the value of your property without adding too many invasive man-made structures. Enhancing wildlife habitat on your property not only increases your opportunities to see and interact with local wildlife, it can also bolster your future sales price if you were to sell it, and it very seldom, if ever, hurts the value.” 

Conclusion

Buying your dream piece of ground, be it row crop farmland or expansive equine property, can be fun and exciting, laying way to a lifetime of recreational, farming, and ranching opportunities. But back to Caleb’s point, not every bank understands land. If you’re in the market, it’s important to find both a recreational real estate agent and trusted lender to work with as you navigate your purchase, someone who gets the ins, outs, nooks, and crannies of large land deals; organizations that focus more on who they’re lending money to than what they’re lending money for; someone who believes in the kind of relationships that make a farm successful, or a piece of land thrive year after year.