Rising interest rates, skyrocketing inflation, and the costs of general maintenance continue to climb. Other expenditures do, too. In a time when everything is more expensive than it’s ever been, landowners must find creating ways to make their land more profitable.
“Regardless of how much income the property produces, any amount is helpful,” said Whitetail Properties Director of Marketing Alex Gyllstrom. “Maybe there is tillable acres where the farming rights can be cash rented every year. Other sources of income might be timber value, CRP programs, or other options. This income could help with the down payment of the property, the monthly loan payment or just be added to your annual earnings. However you decide to assess or utilize the income a potential property produces, it is always a good thing.”
Editor’s Note: We are not financial advisers. This is not tax, financial, investment, or real estate advice. Additionally, we are not lawyers. This is not legal advice. Consult with an attorney and/or certified financial advisor before making any decisions on these matters.
Building Tiny Houses or Small Cabins to Rent or VRBO
A new trend throughout the nation, many landowners are building “tiny houses” and small cabins. In turn, they offer these as short-term rents. Or they make these available via VRBO, or through a similar service. Regardless, this is an excellent way to maximize property revenue.
Use Vacant Buildings as Storage
Some properties have barns, sheds, and other unused buildings. Oftentimes, a neighboring or local farmer might rent these spaces to store agricultural machinery and other equipment. Someone might even store extra or old cars, among other things.
Build Camper and RV Storage
Around 2020, RVs became all the rage. Sales and price tags spiked. Now, as some people lose interest, and interest rates ride a runaway train, some people are parking or selling their campers and RVs. But those who aren’t selling still need places to store. You can build this on your property.
Rent to Glampers
People love to go camping (or glamping). Setting up a glamping destination isn’t too difficult. You might even find an old fleet of Airstream campers, or something else, to outfit the place. Then, all that’s left is a good marketing plan.
Harness Wind Energy
While expensive to get started, some might consider wind energy methods. Harnessing this power can deliver income opportunities that are unique to other options. If it makes sense for your state, county, and property, this can be a viable solution. Sometimes, you can even lease out land to others for this.
Generate Solar Energy
Similarly, others might choose to go the solar energy route. This is easier to get started, and can deliver a good return. Not to mention the many programs available to help people jumpstart this effort. For some, this route might make a lot of sense. It’s also a leasing opportunity.
Host Important Infrastructure
While rare, some properties are selected for hosting important infrastructure. Think cellular towers, for example. These are commonly placed on hilltops, and the companies tend to lease the ground from the landowners. Those who land such deals often encounter significant returns.
Harvest Some Timber
One of the most obvious options available is harvesting some of the timber on the property. Josh Ongley, a Whitetail Properties land specialist in Pennsylvania, says that harvesting timber can be one of the most significant forms of recurring income on a property. With proper management, timberland can be a sustainable, long-term investment that you can also enjoy with friends and family.
“A lot of variables play into timber value,” Gyllstrom agreed. “What kind of timber is on the property? How was it cut last? When was it cut? All [of these things] play a factor.
“For example, if the timber was thinned, it could possibly be thinned again in another 10 years or so,” Gyllstrom continued. “If a heavy cutting was done, it could be 20 to 30 years before the full timber value could be realized again. Whatever the situation of the timber on a piece of property, we recommend consulting a forester for the most accurate assessment.”
Plant a Vineyard
Others might choose the vineyard route. This investment doesn’t come without risks, but if done correctly, it can lead to brow-raising profits. It’s a good way to utilize ground.
Plant Chestnut Trees
One of the most overlooked options is planting chestnut trees. While the American chestnut has long since been wiped out. The Dunstan chestnut offers hope. This variety is approximately 98% American chestnut and 2% Chinese chestnut, which makes it resistant to the blight which killed all (and continues to kill all) American chestnut saplings. Despite this, the Dunstan chestnut is a survivor, and it’s a great investment tree. Within five to seven years (sometimes sooner), you can begin harvesting valuable crops of chestnuts.
Plant Christmas Trees
Christmas tree farms do quite well. As with planting chestnuts, these require some patience to realize gains. That said, it’s a viable option for some, especially if the market isn’t already saturated near you. Then you really stand to benefit.
Raise Some Livestock
It isn’t for everyone, but some might decide to raise their own livestock. Cattle, chickens, hogs, goats, sheep, and more, can be viable ways to make land more profitable. Of course, markets rise and fall with livestock. Study current events and future projections before proceeding.
Raise Some Crops
Others might choose the crop route. If they have equipment, or can lease it, and if they have the knowledge and skillsets, it can be a smart play. Those who don’t have the equipment, knowledge, or time to do this work themselves can still technically “raise” their own crop. Merely hire the work done, and you assume all risk and reward based on how the crop turns out.
Plant a Community Garden
Community gardens are becoming more popular. These are grown by the landowner, but remain open to anyone who wishes to use it. The public picks its share of fruits and vegetables. Before leaving, they pay for their share of the haul. (Some use the honor system and establish a “self-checkout” via a box.)
Lease to a Crop Farmer
Some landowners want no part of working the ground. A great choice for these individuals is leasing to a crop farmer. Then, after paying a cash rent, they use the property to grow their crops for the year. This generates money without the landowner putting forth much effort.
Lease to a Cattle Farmer
Likewise, consider leasing to a cattle farmer. Right now, cattle prices are performing better than corn and soybeans. Therefore, it might be easier to locate a cattleman seeking to lease ground than a grain farmer. In some areas, pasture comes at a premium.
Lease to a Hay Cropper
To that point, while the beef market is up, and farmers are raising more cattle, they also need more hay. Leasing land for hay ground is becoming more common. That’s especially true since grain prices are so low.
Lease to a Beekeeper
Bees are vital to all life. Fortunately, beekeepers are looking for places to place their bees. Your property can serve as a long-term location. Don’t expect to make much money from this type of lease, but every little bit helps. It also helps the flora.
Enroll in Government Subsidy Programs
While government subsidy programs aren’t what they once were, some still exist today. These certainly hit their peak in the 2000s and 2010s, but it’s still possible to benefit.
“Some government programs are a great source of income and they're a great way to provide quality wildlife habitat,” said Dave Skinner, a Whitetail Properties land specialist in Kentucky. “Knowing the program is critical to ensure you will be able to continue receiving payments and what maintenance requirements you'll have to meet. You can actually make too much money to be eligible for some of these payments and some types of ownership are not eligible for payments. These instances are very rare, but you need to know about it.”
Cash in on Carbon Credits
While certain regulations and stipulations apply, another option is applying for carbon credits. While it’s more complicated, this is where landowners receive revenue for not cutting their timber. It pays landowners to keep timber intact.
Lease Out Hunting and Fishing Rights
Those who own land and don’t hunt themselves might considering leasing out hunting and fishing rights. This is a growing trend. Plus, it’s a “symbiotic” lease, meaning it pairs nicely with leasing to farmers, and usually doesn’t conflict with other lease types.
Host Educational Events
Those who are experts in certain fields might host educational workshops. Or they might rent out their property for other groups to do so. Regardless, hosting educational events is a viable way to add revenue.
Enhance the Property
While making other enhancements to a property don’t always generate immediate income, it can increase property value. In the long run, it’ll lead to a greater appraisal and hopefully a larger sale. This is true from hunting perspectives, utilities investments, and more.
“I often tell clients water is the most overlooked thing in deer hunting,” said Bob Stalberger, a Whitetail Properties land specialist in Minnesota and Wisconsin. “Having a river, creek, trout stream or pond in the middle of your property would be perfect, and without a doubt, adds value to your property.”
Sell Unused Portions of the Property
Those who own larger acreages likely don’t use all of it. In that event, they might choose to sell off unused parcels. This liquidates unused assets and creates capital to pay off debt or make other investments.
Divide Into Lots and Sell the Farm
One of the best ways to maximize the return on a larger property is to survey it off into smaller tracts and sell as smaller lots (https://www.whitetailproperties.com/). Of course, if a buyer wants it all, they’ll piece it back together via listings, or at auction.
“If utilities are not available on a particular property you are looking at, it would be important to inquire about potential costs to get them ran into the property,” said Jeff Propst, a Whitetail Properties land specialist in Iowa and Missouri. “I frequently contact utility companies for my clients to get a quote in writing on potential costs to get water and electricity ran into a property. Also, having utilities on the property is a very good feature if you elect to sell the property in the future. It’s always a plus to have them.”
Make the Call
Regardless of the methods you choose, conduct plenty of research. Study the nuances of each trade. Learn these inside and out. Consult professionals in these fields. Then, make the best educated decision possible. Do that, and you’re sure to choose wisely over which ways to make your land more profitable.
