South Dakota Family Puts Down Roots using FSA Farm Ownership Loan

Wade and Lonna Livermont purchased a turn-key tree farm in South Dakota with the help of a FSA farm ownership loan.

By Cassie Bable, Public Affairs Specialist, FSA Office of External Affairs

Wade and Lonna Livermont understand that raising livestock is an iconic way of life in South Dakota, but they put their ranch work behind them when they used a USDA Farm Service Agency (FSA) farm ownership loan to purchase a turn-key tree farm north of Allen in Bennett County.

Wade, a horse trainer, and Lonna, a professional quilter, have tried their hand at several jobs in the agriculture sector, but decided it was time to buy a place of their own. After coming across a tree farm for sale, they did their homework and came to the conclusion that the small 160-acre property could pay for itself in the long run.

“We realize that we’re in cow country where ranchers require thousands of acres to run their livestock, but we wanted something on a smaller scale,” said Lonna.

The Livermonts have previous experience using FSA operating loans to purchase livestock so they turned back to FSA to apply for a farm ownership loan.

Direct Farm Ownership loans allow producers to purchase farmland, construct and repair buildings and make farm improvements. The maximum loan amount is $300,000 and a down payment is not required.

The previous tree farm owner was ready to retire from the business, but agreed to help the Livermonts transition into operating the farm. After gaining experience and knowledge from inventory to harvest, the Livermonts were ready to start their new adventure as owners and operators.

The operation includes 20 acres of trees and 90 acres of alfalfa. The Livermonts currently have 2,000 tress in the ground that were planted anywhere from three to 12 years ago and include Colorado Blue Spruce, Pines, Junipers, Crab Apple, Honey Locust, Bur Oak, Red Oak and Ash trees.

The Livermonts have 2,000 trees in the ground and plan to expand their operation by partnering with local landscaping companies in addition to selling to the public.

They sell trees directly off the property near wholesale prices. Harvest happens twice a year when the trees are dormant in the spring and fall.

Their first year was not easy. They started pruning the trees in February of 2015 and saw a few buds when temperatures started climbing so they harvested earlier than usual last year. After harvest, a late frost and thick snow damaged many of the remaining trees. The Livermonts lost quite a few of those trees.

“Unlike the livestock industry when you have a loss, with trees they are still alive but not salvageable enough to sell to the public,” said Lonna.

The Livermonts will continue to grow the tree farm by planting more trees each year. They also plan to diversify by starting a meat goat operation since demand is on the rise in South Dakota.

“Having livestock on the land will help make up for a bad year with the trees or a harsh winter,” said Lonna.

The Livermont’s children, Wyle and Rietta, also help with the operation. Wyle is the resident bronc rider who helps with training horses and also assists with tree harvesting. Rietta enjoys cooking and has become the kitchen help.

The Livermonts plan to grow their tree operation by planting more trees and developing partnerships with local landscaping companies. Right now, they are working with the public and stand out among their competitors because they offer larger, more mature trees that are highly sought after by clientele.

For more information on farm loans, visit www.fsa.usda.gov/farmloans or contact your local FSA farm loan office. To locate an office, visit http://offices.usda.gov.