Land Loan Specialists | 5 Ways to Make Money from Land Ownership
Land ownership is the dream, period. It is the family man dream, the hunters dream, the outdoorsmen’s dream, the farmers dream… whether it is the back 40, a full operational farm, hunting or fishing properties, recreational land, whatever the case may be land ownership is how many people essentially feel satisfied. The struggle to achieve the dream comes with the costs of land investment and ownership, frankly it gets expensive but there are ways to make money from land ownership that can help balance the scale. There are ways to get a return on investment from land, using the land itself to pay out.
Some of the ways to make money from land ownership are significantly more profitable than others, but it all depends on what you view your land use should be. There are several, more than these 5, ways to make money off of land, but what you choose will largely be contingent upon what you view as the dream.
By far one of the biggest ways to make money from land ownership is renting cropland. Selling large tracts of cropland for crop production like corn or beans can become a great way to earn money without a lot of work. Mostly it is an initial effort on your part to rent the cropland out. The amount of money you make from cropland rental will vary greatly contingent upon many factors. Some of these factors include value of the crop, soil quality, number of acres, and the demand of farmland in the area.
Buying land to make it pay…one way is cattle. If the land is there, and you’re not cutting hay off of it, or renting the cropland, then putting cattle on it may be a consideration. Making significant amounts of money off of it depends, but if you have a significant amount of land or a big ranch then it is possible, especially considering renting your pasture land.
A land investment with timber in mind is one way to make money off of land ownership. Timber is a very valuable commodity but normally is a one-time deal. A land owner may only experience one or two true timber harvests depending on the amount of land and timber, but in general it is a big money maker that requires careful considerations and planning.
Along the same lines of cropland renting, hunting leases may be something to consider as a way to make money off of land ownership. If you land ownership ideals on your recreational property does not include hunting than leasing it out to hunters is an easy and effortless way to draw income.
If your land ownership ideals take a back seat to land use, and takes more of a recreational property ideal then there are still ways to make money off of land ownership. There are a number of voluntary programs to enroll land into a rental and payment system for conservation based management. Some of these programs include the Conservation Reserve Program (CRP), Farmable Wetlands Program (FWP), Grassland Reserve Program (GRP), and Wetlands Reserve Program (WRP) to name a few.
These are just 5 ways to make money off of land ownership, there are plenty of different options besides these, but your journey starts with achieving the first dream…owning land. Owning land, or simply starting the process does not have to be as difficult and as daunting of a task as it seems. It’s quite easy to get started, get your questions answered, and achieve the dream.
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