|You are here: Blog » Agricultural Real Estate » Low Commodity Prices Have Landowners Searching for Additional Income|
August 20, 2018
It goes without saying that the lower commodity prices of the past four years have both producers and landowners searching for ways to improve their net farm income. This is especially true as we head into harvest of the 2018 crops with current prices impacted by trade issues. In some states, landowners have also been facing increased costs due to rising property tax bills. So where can a landowner look to increase net income from their land?
For owners who have the right type of property, they can increase their farm income through a managed hunting lease. The land normally needs some timber, some cropland, water source such as a stream or pond on the property or nearby, and access. With the right combination of attributes, the landowner can lease their property to a hunter for the year and receive a payment. The landowner not only receives income, but also has additional oversight of the land as the hunter helps monitor access by others as well as offsetting damage to crops caused by wildlife. To insure that liability issues are addressed, the landowner may need additional liability insurance covering the leasing of their property.
There are questions that the landowner needs to answer prior to engaging in a hunting lease. Do they have the knowledge and expertise to evaluate their land for a hunting lease and what should the lease rate be? Do they know what issues need to be addressed in the lease? What hunting liability coverage insurance do they need and who pays for it, the hunter, the landowner, or both? How does a hunting lease interact with a cropland lease? In order to maximize their income from a hunting lease and to get the expertise to handle these questions, many landowners are turning to professional management for assistance. The Hunting Lease Network at Farmers National Company has the expertise to help landowners improve their incomes and to handle the leasing and insurance.
Senior Vice President - Real Estate Operations
|Category: Agricultural Real Estate News|