Small fruit farm in NY

January 19, 2021

by an investor from Stanford University - Graduate School of Business in New York, NY, USA

While on a weekend getaway, i stumbled across an Apple Orchard that is for sale and though it might be an opportunity for an entrepreneur in this network to look into. Strong brand, lots of history, beautiful land, and a large new multi-functioning facility (everything from cold storage, to bakery/kitchen, to farm stand). All on a well trafficked country road.

Loses money but with sweat equity, product redefinition, focus, and thoughtful marketing and expansion it might be a different story.

Happy to share details with anyone who has farming experience and/or has the desire to.

2 Likes

7 Replies

286 Views

Replies

Reply by a searcher
in Loudon, NH, USA

I've actually looked at these as a I have weak spot for agriculture. The challenge I have found is that most of the value is in the real estate and there is not usually enough cash flow to support the debt and generate a return on equity. I've had owners tell me the farm generates enough income to 'carry' itself but what that really means is they have no mortgage and their profits pay the property taxes. It's too bad there are not more land conservation grants or funds available to help a would be farmer preserve these properties as what often happens is the highest and best value for the land is development. I know of one in New Hampshire that was on the market for $3.2M last year and may have generated $100,000 in cash flow? Hard to make those numbers work, at least for me.

Reply by a searcher
from Massachusetts Institute of Technology in Colorado Springs, CO, USA

Although it doesn't necessarily change the value proposition, I was recently made aware of grants and loans specifically for businesses in rural areas. These are sponsored by the USDA instead of the SBA. I haven't looked into it much, but consider it another resource for such a business or another one in a rural area of the country. https://www.rd.usda.gov/programs-services/programs-services-businesses

+5 more replies.

Join the discussion