I’ve had backyard chickens for probably 15+ years now. In the event that chickens ever come up in casual conversation, and sometimes they do, people who want to know more about chickens will invariably ask, “How many chickens do you have?”
Which is a difficult question to answer. “How many chickens do you have, right now?” is a better way to ask the question. The number of chickens is always in flux. Chickens come, and chickens go. Over the years, my adopted management technique is something slightly akin to “Survival of the Fittest. Only the strong survive.”
I built them a coop, and it keeps them warm and dry and a place to lay their eggs, if they choose to lay in there. Oftentimes, they will lay in the barn, or under the rosemary bush, or under the flat-bottom boat, or anywhere else they have a mind to. And they have a 1/2 acre of minimally manicured and 100% organic yard to free range in. So, I don’t feed them grain that often. I want my chickens to always be just a little bit hungry. Put them to work out on the 1/2 acre, and they’ll spend all day, scratching out bugs and pests. And I make sure they have clean water. Beyond that, good luck girls. My birds don’t get medicine, dirt tubs, oyster shells or any of this other stuff you may read about. They have the yard. Go to work, ladies.
As a result, sometimes we lose a chicken. Most notably, to predators. Even though we live in an urban environment, we have all the same predators as those of you in rural areas do, albeit in lesser concentrations than you. Sometimes, at dawn or dusk, we’ll see Coyote come skulking about. Mr. Hawk is easy to see in the treetops, especially in the winter, when the trees have lost their leaves. And if Mr. Hawk has found the flock, you damned sure better to be willing to keep the girls locked inside the coop and be willing to stand over them, until Mr. Hawk decides to go look for easier pickings. I don’t bear any of the predators any ill will, though. They all have their role to fulfill in nature’s web. They need to eat, too. Ultimately, I try and provide some protection for The Girls, in the form of their coop and lots of natural undergrowth, but there’s is, in fact a natural attrition rate to the flock.
There’s also an unexpected growth rate that happens, too. We have friends that buy baby chicks at Easter and then, not know what to do with them after they quit being cute. So we collect chickens in much the same way that a shelter collects cats and dogs. There’s always a period of adjustment when you bring new birds into the flock. Thus, the phrase, “Pecking order.” It’s a real thing. If added in small groups, the chickens will divide up into teams, based on their original order. For instance, it might be “The three” and then “The two.” But, eventually, they all coalesce into one small flock.
It’s a little bit like a riff on that old story of Theseus’ ship. If you replace the entire ship one piece at a time, is it still the same ship? In the case of chickens: If you replace the flock onesies-twosies over time, is it still the same flock?
The most accurate answer to the question of “How many?” is probably somewhere between 12-13 on the high end, and maybe 2-3 on the low end. The reason I bring all this to your attention is to tell you a story about one remarkable chicken and a tale of survival.
We were down to 4 chickens at the time. I think we had 2 Americanas from the original flock of 12, and a couple of add-ons. One evening, several weeks ago, when I went to close the coop door, I noticed there were only 3 heads in the roost. Huh. That’s odd. Chickens are both unpredictable and predictable. It’s impossible to know where they’re going to lay their eggs. But once they get homed into their coop, they’ll return there, every single evening, at dusk. In my mind’s eye, I’m designing an automated system, running from Arduino, for this exact reason. The chickens always come home to roost. Always. I did a cursory look around for #4, but I knew if she wasn’t right there with the others, the prognosis wasn’t good. I got a flashlight, and scanned around the yard, but she wasn’t there. I knew she wouldn’t be. I shut the coop up, and realized that this was just another bird we’ve lost over the years.
The next morning, I got up to look for the carcass, so I could bury it in the garden somewhere. Depending on the kill pattern, you can sort of deduce who got your chickens. Coyote will take the whole bird, leaving only a plume of feathers, while Mr. Hawk will only bite their heads off and leave the bodies behind. But on this morning, there was no feathers, no headless carcass, nothing. Which was weird – Even if it was Coyote, you can at least see the spot where the kill happened – Usually, right outside the periphery of the undergrowth of the trees and brambles.
“Well, this is something new. But, nevertheless, the chicken is gone. So that’s that.”
And when Mother Nature takes a chicken from you, you never get it back. Never, never, not ever. Never. And that’s final. After spending some years watching their behavior, I’ve decided it’s a big, cosmic joke: From Apex Predator to Lowest Prey in only a few million years. You can easily deduce that Spielberg used chickens as the models for his ravenous Velociraptors in the movie Jurassic Park. They’re just too similar. And now, through some Grand Shift, they’ve been reduced to among the most vulnerable in the animal kingdom. So when you lose one, it’s not a joyous occasion, but let’s be honest: It happens.
Except in this one particular case. The chicken actually came back to us. About 6 weeks later, we had a neighbor reach out to us. This neighbor raises chickens, also. Somehow, our chicken had been surviving out on the streets for a month and half, scraping by on scraps, and somehow getting connected to the other chicken family.
When we first got her back, she looked like Hell. Her feathers were all ripped out and torn off, and her vent was all hanging outside of her body. Boy, did she look rough. I didn’t expect her to make it. The flock wouldn’t accept her right away – She had to find another place to roost at night. The Girls wouldn’t let her inside the coop to sleep. But I kept feeding her. And when I say feeding her, I mean, dumping some scratch in the trough. I don’t mean any kind of extraordinary feeding measures. But she was hungry, and kept coming back. The first few nights, she would vanish – But come back during the day for food. And she would stick around our yard, as opposed to going back over to the other place. They have many more chickens than we do, and their yard is 100% dirt and mud, whereas our yard is mostly overgrown. Perhaps it’s because we have better grazing here?
Regardless, it looks like she’s back from the dead, and here to stay. The others still haven’t fully accepted her yet. Right now, it’s “The Three” and “The One” but they at least let her sleep inside with them now.
There are few successful ventures that did not start with a little forethought and planning. A “game plan” is needed for just about everything we do from cradle to grave to avert the “slings and arrows” of life. Things like family planning, financial planning, a health plan, and even a burial plan come to mind. And if you are a landowner, you know that good planning may be the difference between making it or breaking it financially. But, “if you don’t write down the rules of your game, you’ll always be playing a different game”. Developing a plan that addresses the proper management of wildlife populations and habitats on your land is no different. Whether you are making a living at it, or just trying to do the right thing for the land and wildlife, developing a plan of action is fundamental to success. But not everyone has all the “tools” in their tool chest to automatically know how to manage wildlife and wildlife habitat. There is more to it than most people think, and there are few shortcuts in this process. Aldo Leopold said, “The urge to comprehend must precede the urge to reform.” Consulting with a professional wildlife biologist and other resource management specialists will add an important perspective and dimension to proper planning of the wildlife and habitat resources on your land. Landowners should draw on the expertise of one or several resource professionals to help develop a wildlife management plan, one that is based on good science and sound population and habitat management principals. In Texas, on-site assistance is available from state and federal agencies such as the Texas Parks and Wildlife Department, Texas Agricultural Extension Service, and Natural Resources Conservation Service. These agencies do not charge a fee for their services, and complying with their recommendations is generally voluntary (a specific level of compliance may be required for participation in programs such as financial cost-share or the issuance of special permits). There are also non-governmental groups and private consultants available to provide wildlife management assistance to landowners. These others may charge fees for the services, but in return, they may be able to devote more time and provide more personalized service. In short, there are a number of wildlife management assistance options available to landowners. It doesn’t hurt to go to several sources for help. You will likely find that the advice and recommendations offered by one will be very similar to that offered by another (singing the same verse of the same hymn), providing validation. But there also may be some variations (same hymn, but singing a different verse), presenting you with the opportunity (or dilemma) to pick and choose what you think works best for your particular situation. Even if the white-tailed deer is your primary, or one and only, species of interest, be wary of anyone, regardless of who is consulted, who does not include a healthy dose of ecosystem management philosophy that goes beyond single species (i.e. deer) management. A good land stewardship philosophy should address the whole landscape as well as all the wildlife species that are found there, and the habitats they occupy.
WHY HAVE A WILDLIFE MANAGEMENT PLAN?
To be successful, a wildlife management plan must be ecologically sound, economically practical and realistically attainable. Practically every landowner has different ideas about what he or she wants to do with a piece of property, and different expectations for the land to meet their goals and objectives. And their financial resources range from shoestring budgets to bottomless pits. In reality, it is the land that will determine whether or not their goals and objectives are attainable. The Texas landscape is a lesson in biological diversity with 10 major ecological regions and many sub-regions and ecotones that are the end product of the geologic past, rainfall and temperature patterns, and land use history, both past and present. Plant communities in many areas have been altered over time by the cumulative influences of livestock grazing, fire or the lack thereof, and other land uses. Wildlife populations of the present are a reflection of the existing configuration of plant life on the landscape. Developing a wildlife management plan is primarily a matter of working with what you have and then trying to elicit responses from the land through implementation of proven sound land enhancement and management practices. The art and science of this process constitutes management, and it is an inexact science at best. “Trial and error” is often recommended to see what works and what doesn’t. Flexibility is an important component of any wildlife management plan because responses to habitat enhancement practices from well-intentioned management schemes and strategies often “go astray”. The concept of measuring twice and cutting once comes into play. A wildlife management plan will provide a sense of direction for achieving long-term goals and objectives. It should outline a plan of action to follow so that wildlife, both game and nongame species, and their habitats are not adversely affected. Actions taken to enhance habitat or wildlife populations will result in reactions, many of which may be undetectable to the eye but significant to the welfare of something else. In addition to providing a sense of direction to a landowner, a written wildlife management plan is required for participation in many state and federal land management cost-share incentive programs, and for the wildlife management use option of the open space tax valuation. Also, the Texas Parks and Wildlife Department requires a written plan as a prerequisite before landowners can participate in special hunting regulations, seasons, and bag limits – programs such as Managed Lands Deer Permits, Antlerless Deer and Spike Deer Control Permits, Trap, Transport and Transplant Permits, and Deer Management Permits.
ELEMENTS OF A WILDLIFE MANAGEMENT PLAN
The following subjects are the basic components of a wildlife management plan and some of the topics that should be addressed and documented. The list of topics is not necessarily all inclusive – every management plan is different, and the list may not fit every situation. Hopefully it is sufficient enough to understand the scope and concept of a wildlife management plan. A plan should include most of the following headings and subheadings, but should be customized for each particular situation.
Background Information –
• Ownership – Name, address, and phone number(s) of the landowner, as well as others (e.g. manager) who are responsible for assisting with making management decisions and implementing management practices.
• Location of the Property – County; distance and direction from the nearest city or town; roads used to access the property.
Statement of Goals and Objectives – This is basically a statement of where you want to go with your wildlife and habitat resources, providing direction for the specific things that will be needed to get there. Remember, the goals and objectives should reflect ecological soundness, economic feasibility, and realistic attainability. If they don’t, you’ll likely be disappointed with the results. The statement can be one sentence, or several one-line sentences. They may be general, but the more specific they are, the better they are for determining what needs to be done to achieve them. Some examples are:
• To properly manage habitat for native wildlife species for personal enjoyment and recreational use.
• To conduct habitat enhancement practices beneficial to native and migratory wildlife species.
• To produce trophy white-tailed deer and harvest mature bucks with 18 inch inside spreads and field dressed weights of 150 lbs. at 4 ½ years of age.
• To enhance habitat for maximum bobwhite quail production.
• To manage wildlife habitat for increased plant diversity and species composition.
Size of the Property and Acreage of General Habitat Types – The general habitat types found on the property should be categorized and expressed in number of acres. This should include acreage in croplands or cultivation, improved pastures, native grasslands, native brush or woodlands, wetlands or riparian areas, number and acres of ponds or lakes, etc. This will give you an idea of what you have to work with and help you determine if you are in the general ballpark of your goals and objectives. If you are interested in managing for white-tailed deer, it helps if you have white-tailed deer habitat. If your interest is in managing habitat for a diversity of songbirds, you would need a variety of habitat types.
Past History of Land Use and Wildlife – Knowledge of past land use practices is very important, and may help explain why the land looks like it does today. Knowing the history of hunting and wildlife harvest and the demographics of wildlife populations often explains present population levels of game animal species and the quality of those populations. Go as far back in time as possible. In some situations, such as a new ownership, the known history of management under the previous ownership may be minimal – in other situations it may be possible to go back several years, or generations. This section should include information such as:
• Habitat management practices conducted –
• Where, when, and how much brush control has been implemented, and by what method (burning, mechanical, chemical, etc.).
• Livestock grazing history (grazing intensity, classes of livestock, number of pastures, type of grazing system used – rotational, continuous, or none, etc.)
• Range reseeding (species used, where and when), farming conducted in the past, etc.
• Any other land use practices that may have had a direct impact on the land and plant life.
• History of wildlife populations and harvest of game animals. This is an area in the plan where you can establish a baseline to work from to measure the success of your management efforts.
• Historic population densities, sex ratios, and species composition of wildlife determined from censuses.
• Numbers of game animals harvested annually.
• Field-dressed weights, antler measurements, and ages of harvested animals.
• Hunting history (leased or non-leased, shortterm or season-long, numbers of hunters, etc.)
• Any stocking of wildlife species, including exotics, that may have occurred.
Current Situation – Provide information on:
• Vegetation management practices currently being conducted.
• Current livestock grazing practices (stocking rate, class of livestock, grazing system used, number and sizes of pastures, improved pastures used for grazing, etc.).
• How the property is currently hunted.
• Wildlife species present, including predators, exotic species, nongame and feral species.
• Amount of supplemental feeding and food plots currently being provided for wildlife.
• Amount and distribution of livestock and wildlife water sources (tanks, streams, wells).
• Habitat types and hunting practices on adjacent lands. Unless a property is high-fenced, species with large home ranges, such as deer, will liberally move back and forth across property boundaries. Documenting the habitat types, habitat management, and hunting practices on neighboring lands will help to identify liabilities, and assets, that will to some extent guide the management of your property. (Although you can’t dictate or control how adjacent lands are managed, you can possibly influence management decisions by setting positive examples.)
Description of Habitat – Aerial photographs and topographic maps are very beneficial in identifying and assessing habitats and other features of the property. A combination of a desk review of photos and maps and an on-site field review should be used to gather information.
• Include information on elevations and topography, geologic features on the landscape, and the names of creeks, rivers or watershed drainages
• Since plants are a direct reflection of soil types, this section should include information on the different soil types or associations present on the property. Soils maps are readily available in soil surveys that have been published for most Texas counties by the Natural Resources Conservation Service. The “range site” designation associated with each soil type provides a description of the native plant community that can potentially grow on the site, which can be compared to the plant community that actually currently occurs. Knowing soil characteristics such as texture, water holding capacity, erosion hazard, and rooting depth are important for planning the locations of management practices such as food plots, brush control, and range reseeding.
• A professional wildlife biologist or resource specialist can be of assistance by identifying in detail the plant species composition present on the property. This description should be a comprehensive inventory of the trees and shrubs, forbs, and grass species present on the landscape. The species that are valuable as food and/or cover for wildlife should be identified. The plant list should include both native and introduced plants and identify any problem areas where invader species occur. The present degree of plant use by livestock and wildlife should be evaluated, and the overall condition of the plant community should be rated (i.e. fair, good, excellent). The adequacy of the density and distribution of wildlife cover should be evaluated.
Habitat Management Recommendations – This section is the “meat” of the plan. It identifies the habitat management practices specific to your property that address your goals and objectives, and are beneficial to the entire spectrum of wildlife and wildlife habitats that occur. Recommendations should be practices that affect wildlife food, cover, and water, and the proper arrangement of these habitat components. Refer to these recommendations often and update them as you progress with your management efforts. They may include but are not limited to the following:
• Livestock grazing recommendations (stocking rate, class of livestock, deferred-rotation grazing system, additional cross-fencing).
• Vegetation management recommendations (prescribed burning, mechanical brush control, proper use of herbicides, farming practices, rangeland reseeding, shallow disking to encourage forb growth, etc.).
• Watering facilities (development of additional livestock/wildlife water sources, or modification of existing facilities to better accommodate wildlife).
Featured Species – Your wildlife management plan should contain detailed information on the biology, life history and habitat requirements for the specific wildlife species (e.g. white-tailed deer, etc.) that are the intended primary beneficiaries of your management projects. Many species of wildlife have specific habitat requirements that are biologically driven. Knowledge of things like home range, territoriality, food habits, reproduction, population dynamics, longevity, seasonal movements, migration, and spatial requirements are fundamental to the management of each species. Management recommendations should then be provided specifically for the featured species, in addition to and in conjunction with the overall management recommendations provided earlier in the plan. Specific recommendations could include:
• Supplemental Feeding / Food Plots – Feeding and food plots should not be viewed as a substitute for other proper land and wildlife management measures. Rather, as the term implies, these practices should be used to supplement the diet of the featured species and other wildlife during periods of stress or food shortages. The plan should identify the kind of feed to use, the type and number of feeders needed, and a schedule for distribution. Food plots almost require a plan of their own and can turn into downright farming if you want to do it right.
• Census Method(s) Used to Determine Population Density and Composition – This section should contain your plan for monitoring the populations of the featured species. List the census techniques to be used, when and where surveys are to be conducted, and method for data analysis. Here again, a professional wildlife biologist or resource specialist can assist you in determining how to gather and interpret this information.
• Recommendations for Harvest – For game species such as deer, turkey, and quail, hunting is an important part of the overall management program. Annual harvest recommendations, determined from annual census data, are especially necessary for deer to determine the appropriate harvest needed to maintain the desired density, sex ratio, and age structure of the deer population. A management plan featuring deer should address general deer harvest strategies to meet specific goals and objectives. However, the plan should stop short of making specific deer harvest recommendations – specific harvest rates should be developed annually and be based on current census data. The landowner should also put some forethought into the hunting strategy (numbers of hunters, etc.) that will be needed to achieve the desired harvest.
• Records Management – Good record keeping should be an important part of your wildlife and habitat management plan that will help you evaluate your efforts, environmentally as well as financially. Try to develop systematic measures to quantify the density and distribution of wildlife populations, habitat, plants, and land improvements. In addition, keep records on all wildlife surveys, population counts or casual observations throughout the year and develop trend information where possible on species abundance, distribution, and occurrence. Record data from game species harvested – numbers by sex, weights, antler measurements, and ages. Record the costs associated with any of the practices or conservation measures you use to enhance, maintain, or improve the land for reference or verification. Keeping good records is also recommended for documenting the land and wildlife management activities conducted if participating in the wildlife management use option of the open space tax valuation.
Other Species/Comments – This section can be devoted to “add-on” recommendations for the management of populations and habitats of other species on your property:
• Nongame species management (providing supplemental shelter such as birdhouses and brush piles, providing supplemental foods such as feeders, etc.).
• Control of predators and exotic and feral species of wildlife.
Species of Concern – In closing, your management plan should document if species of concern (that’s the politically correct way of saying rare, threatened, or endangered species) occur on your property, or if there is suitable habitat indicating that a species of concern could potentially occur. The presence, or potential presence, of a federally-listed threatened or endangered species should not necessarily be considered a liability – good land stewardship, even if management is directed toward a game species or non-listed species, can be very compatible with maintaining habitat for a listed species, and vice versa. However, for every action there is a reaction that could either positively or negatively effect something in addition to the intended target. Professional resource specialists are legally obligated to not recommend any management practices that would knowingly harm a federally-listed species, or degrade its habitat. Likewise, landowners are obligated to not implement practices that could cause harm. Documenting the presence or potential presence of species of concern helps guide which management practices can be implemented, and those that should not be, to avoid causing adverse impacts.
PRIVATE LANDOWNERS ARE THE KEY Since 97% of the land in the State of Texas is privately owned, the vast majority of the state’s wildlife populations and wildlife habitats occur on private lands. Texas landowners are the key to maintaining and improving wildlife populations and habitats through the implementation of good, well informed, land stewardship practices.
Landownership means owning more than “just land”; it means owning a “bundle” of rights associated with a particular property. In this economic climate many people are considering making an investment in rural land or are looking for ways to justify purchasing a recreational tract.
I always recommend having an exit strategy when buying land in the event that you need to sell your property in the future. It is also wise to evaluate what potential sources of income your prospective purchase can generate. If you were to split off pieces of your ownership bundle and lease or sell them, you could generate income and help with the carrying costs associated with your land. Here are some ideas about the pieces of your bundle of rights that can be sold or leased.
1. Hunting rights – Big game, deer, turkeys, dove, squirrel, you name it, someone hunts it. In Alabama owners are leasing their land to hunters for $6 to $17 per acre.
2. Timber – Timber can be thinned, harvested, or leased. One great thing about a timber investment is that it has the potential to generate some income with some frequency depending on the site index, species, and age of timber.
3. Mineral and Gas rights – This can be a boon for a landowner if the lessee finds something of value. Exploration companies will often pay an up-front fee per acre for 5 to 10 years for the right to retrieve minerals or gas from your land. Royalties are paid to the owner if extraction is undertaken.
Desirable minerals and gases would include: oil, natural gas, coal, coal-bed methane, chalk, clay, gravel, chert, river rocks, iron, gold, silver, fill-dirt, and numerous others.
4. Conservation Easements- Wetland mitigation, native forests and grasslands, and many other options are available to consider placing your property into a conservation easement for tax benefits
5. Renewable Energy Potential – Solar, mini-hydroelectric generation, wind, and geothermal
6. Cellular phone tower, radio tower, electric utilities, and natural gas transmission lines – These entities pay to lease a portion of your land to further their corporate mission. Payments range from monthly to once every 40 or 50 years.
7. Carbon Sequestration Offsets
8. Cropland, Pasture, Livestock Grazing land – Cash rents in Alabama range from $25/acre for hay cutting to $90/acre for agricultural cropland
10. Renting out your lodge or hunting cabin
11. ATV, horseback, bicycle trail riding, and hiking
12. Mud bogging and off-road competitions
13. Landing Strip
14. Water rights from wells, streams, or rivers
15. Billboards and advertisements
16. Birding and wildlife observation
17. Caves, waterfalls, or other natural formations that are of public interest
18. Weekend flea market
19. Boarding Horses or other animals
The preceding list was meant to jumpstart your thoughts about the potential of leasing some of the rights associated with your property. It is by no means exhaustive, but my aim is to show that there are ways to help generate some income from your tract.
Thinking creatively and looking for opportunities can pay significant dividends. I heard of a landowner in Alabama near a car manufacturer that was approached about leasing some of his land to the manufacturer for them to park some of their excess inventory for a few months while they waited on vehicle sales to pick up.
Be sure to weigh all of your income-producing options when evaluating a prospective purchase. This is one way an experienced land agent can assist you by providing information about potential revenue sources. You just might find that purchasing a rural property now is a reasonable and justifiable investment.
I’m excited to share with everyone an interview I conducted with Allen Shannon, founder of LandsofAmerica.com. The site was created 5 years ago to bring together buyers and sellers of rural land for sale. Shannon spent 2 years as a Senior Software Engineer at Ebay before dedicating his time and energy into this website. Today, LandsofAmerica consists of a network of 90 different websites with over $8 billion worth of properties for sale.
Rural investing isn’t something most investors traditionally think about, but there are many opportunities in this field. I set up this interview in hopes of educating you all about the many possibilities that exist.
What exactly are rural properties?
We leave this up to the discretion of our members. The guideline that we try to follow is defining it as property outside of a city limits and with acreage. Most of these acreage properties include farms, ranches, lake and river front, timberland, and mountain properties. It’s a part of Real Estate that not many investors think about because it’s not a part of their everyday lives in larger cities. It’s amazing to think about how much “rural land” there really is.
What are the biggest concerns for rural property owners?
The concerns are mostly prioritized by the use of the land. Some of the biggest concerns in general are trespassing, weather, neighboring property values, and revenue streams via the property.
What are the tax benefits of investing in rural properties?
There are two benefits that most people take advantage of. One is an agricultural tax exemption — which means if you or someone else manages livestock then you only have to pay a fraction of the property taxes that your neighbor might pay. Another benefit is if your property is being run as a business than anything you buy for it can be a tax deduction. Of course, state to state these laws are different and there are other ways that a rural property can assist you tax-wise.
Are there grants or subsidies available for purchasing or maintaining rural properties?
There are certain government programs that can assist you in owning rural property. One of the major ones is a government program called the Crop Reduction Program (CRP). This program was started years ago because there was an overabundance of crops being grown. The government started paying land owners not to plant their crops and is still continuing to pay them. Buying land in CRP is another way to make instant returns on your rural land investment.
If investors want to buy rural properties near developing areas in the hope of selling/subdividing, where would they best find them?
Well these properties tend to be a good distance from the typical real estate investor so the best place to start is online searching. This is what sparked us to build a website that focuses on rural property, www.landsofamerica.com. Currently, we have just about 13,000 rural properties for sale across the U.S. I would recommend narrowing down your search to a specific state, and then a specific county. Get to know the price per acre in that area and get a feeling about how much you want to spend, if you want raw land or some kind of shelter on it. Then just get out and drive to see a few places. You have to just get out there. The more you see the better you’ll know what’s best for you. Personally, I think the best investment is to find rural land that has the potential of becoming commercial property. This seems to be where the best bang is for the buck.
What alternate revenue sources exist on rural properties?
There are many ways to have the land provide you with extra income. Here are a few ways: CRP, wind generating farms, quarry rocks, lease for hunting/fishing, harvesting timber, livestock management, growing crops, billboard leases, lease highway frontage to businesses, rent housing, gas and oil production, and cell phone tower leases. The tax breaks don’t necessarily provide you with cash flow, but will help out financially.
Has the growth in ethanol affected the rural farm market?
I have not seen growth yet resulting from this specifically. It will depend on what the whole energy sector ends up selecting as it’s primary fuel source besides gas. If it’s corn-based ethanol than I can’t imagine anything other than corn producing farm land to dramatically increase in value.
This could be a really interesting turn of events considering how difficult it is for farmers and ranchers to make it by financially these days. If ethanol produced in the U.S. gains popularity you’ll see a lot more “city-folk” becoming farmers.
Tell us a little about recreational land properties? Are these good investments?
I love the outdoors, so naturally I am a big fan of investing in a property that can also be used recreationally. This doesn’t necessarily set actual properties apart much, but it does help to define what exactly you’re looking to purchase. It’s so great that someone can buy the right piece of land for sale and while it accumulates value, you can use it for hunting, fishing, photography, rock climbing, biking, kayaking, camping, and teaching kids about nature. Try doing that with a stock!
Do you see the value of rural properties climbing in the future? What is the outlook for farms as cities continue to expand?
I can see land values start to slow down – a little bit – not now – but in the next couple years. As our country’s population continues to grow it’s a fact that more land is needed to accommodate that growth. There is only so much land so just like everything else, supply vs. demand will eventually force the price up. There might be an occasional dip, but overall we’ll see the trend steadily continue to go up for the value of land.
It’s interesting too because of the value of our dollar. Right now, investors overseas are seeing property in the United States on sale, so they are buying up land too. It’s a lot easier to manage a piece of rural America from overseas than it is to manage an apartment complex. These overseas investors also drive up the land values. As these values rise and the cities grow larger, it’s difficult for farms not to sell their land; this is because the taxes go up along with the property values.
What are the hottest trends in rural land right now?
The two hottest trends being seen right now are recreational buyers purchasing and developers purchasing. The recreational buyers are purchasing both to hold long term instead of putting money into the stock market, and to reinvest a previous property’s proceeds that they’ve sold. The developers are purchasing because of the demand for “country living” that has risen and because of cities expanding into rural areas.
Thanks for taking the time to share your thoughts with us. Good luck to you. We send you our best wishes, Allen!