Whether your land is mainly used for farming, timber, or recreation there are plenty of ways to get a higher return on your investment for your properties. Besides the obvious ways to make money of off your land like timbering your woods or farming your tillable land, here are our top 5 ways to get the most return on your investment property!
1. Leasing The Hunting Rights
Depending on your specific property’s details you may be able to lease the exclusive hunting rights to your property and make some yearly income on your land. Our friends at Base Camp Leasing have been in the business of helping landowners lease the hunting rights to their property for over 20 years! They will have an experienced leasing agent inspect your property for what they call the “huntable” acreage of your land and find a fair market value for the exclusive hunting rights based on the leasing price of similar properties in your area.
2. Leasing The Farming Rights
Crop leases are another great way to let your property make money for you. If you are not a farmer yourself and have land that would be good for agriculture, your neighbors who farm may be interested in leasing the agricultural rights to your property to plant and harvest crops. Ag Leases are a very DIY process and will most likely require some sort of lawyer to make sure everything is on the up and up but they can be mutually beneficial for everyone when done right. You can find more on AG leases from The National Agricultural Law Center.
3. Grazing Rights
If you don’t like the idea of having your fields planted every year, another type of Ag lease is a grazing rights lease. If your neighbors have livestock, then those livestock need somewhere to graze and a neighboring farm is the perfect spot for those farmers who might not have enough land themselves or for those who want to expand the amount of livestock they raise and don’t have the option to buy more land. If you know that your neighbors are raising livestock and you are interested in leasing the grazing rights, reach out to them and see if they are interested! It could be another win-win situation!
4. Wind Leases
You’ve probably been driving down the interstate and seen the giant windmills generating electricity, but had you thought about how they got there? Energy companies will pay you to lease the land that the turbines are erected on and it is a great way to make some passive income. If you don’t mind looking at giant wind turbines out your window, this is a great way to earn a better return on your investment!
5. Solar Leases
Another alternative to traditional leases for land is a solar lease. With the cost of solar energy equipment dropping in recent years, many energy companies are investing more of their time and money in solar. They are always looking for land to lease and if you have large amounts of land that you don’t farm that is open to the sun, your property could be a perfect fit! Check out this Renewable Energy Reading Room for more info.
While not every option listed above is a good fit for every landowner and every plot of land, you can do even more research on the ones that pique your interest! When it comes to making a final decision, make sure you are sure and have talked to other landowners who have made similar agreements. The more research you do on these topics, the better off you will be as these are major decisions on your properties.
If you are looking to buy or sell property, you can fill out the form below and one of our experienced land professionals can help get you started on the right path!