January 6, 2020
There are millions of acres of land in the US that are not suitable for crop production or livestock grazing and are sometimes referred to as recreational land. To some, these acres have little value, but to others, these might be the most enjoyable and ultimately of highest value to the individual. One of the bundle of rights that a landowner has is enjoyment and many people own land for the recreational aspects. Recreation can be defined as using the land for hunting, bird watching, exercise, having a private space, having a place of one's own to use as they please, and many other reasons that a person wants to own land that does not produce crops or livestock.
One of the biggest uses of recreational land is hunting. The Hunting Lease Network (HLN) of Farmers National Company allows landowners who have recreational type land or even portions of farms or ranches that have the right attributes to lease out hunting rights on their land to sportsmen or women. The lease revenue generates income from the recreational acres while also giving more oversight of the property. The written lease is usually for a year and includes proper insurance coverage for the landowner.
For those who don't currently own land, but may want to purchase a recreational tract, knowing the land is important. Randall Thompson, HLN and Farmers National Company real estate agent in southern Alabama reports that an important part of his business is helping buyers find the right recreational property to own. For Randall, it is a critical component of the due diligence process when buying land to host the potential buyer on the property so that they can tour the tract and learn if it meets their ownership goals.
Recreational land has value and owners may want to sell the asset to generate cash or reinvest the proceeds. Again, it is important to know the land in order to properly value it for sale and to fully expose the land to the right market. Each area of the country has recreational land, but values can vary greatly depending on location, proximity to urban areas, and attributes. Farmers National Company HLN agents know the land in their area and how best to market a property to potential buyers.
Senior Vice President - Real Estate Operations
|Category: Agricultural Real Estate News|