How can I make money from my land?
“Buy land, they’re not making it anymore.”
Land is the original asset on earth – everything we have was either produced on land or comes from underneath it. If you already own land, you probably know that land holds the potential for numerous revenue streams. Whether you own a sprawling estate or a small plot, there are ways you can harness your land’s financial potential. In this article, we explore innovative and practical ways to make money from your land, beyond the possibility of leasing your land for a solar project (contact us about this).
1) Land for Agriculture
Growing wheat, corn or other grains is a great option in Texas and the Midwest. Land for pasture is another possibility that requires less land preparation.
In some cases, you might want to target higher value agricultural products, such as flowers, orchards, berries or even a greenhouse – if the extra money you can make from your land is worth the effort and you are in a location where meeting demand for seasonal production requires greenhouses. Other land uses, such as beekeeping, can also be profitable businesses if carefully planned.
If you do not want to farm the land yourself, you can always rent or crop share your land with another farmer. Figuring out your land’s potential for agriculture is the first step. Solar energy projects can be combined with farming to create “Agrivoltaics” – creating renewable energy without taking land away from farming.
2) Harvest Timber from your land: Silviculture
If your land is suitable for forestry and you have a long term outlook, you could make an initial investment in planting trees that can be harvested for lumber. This is a long term project, since it will take decades for the trees to grow, but your land’s value will keep increasing, as the trees mature and become more valuable. If your land is located next to sawmills or paper mills, but also has access to good roads, you could have a perfect site to plant trees.
Such trees can be harvested and replanted sustainably, if carefully managed.
3) Real estate development
The simple version of development involves building or improving structures on land, such as houses, apartments, or commercial buildings. After construction, you can sell or lease these properties for a profit. Successful real estate development requires thorough research, financial planning, and a keen understanding of local zoning regulations. If you are in a rural area, this might not be an option, although some commercial applications can work surprisingly well in rural areas, such as data centers, which have rapidly expanded in rural areas of Virginia, among other places.
This enormous data center was built by Meta on rural land near Eagle Mountain in Utah. Such facilities have high electricity use, and can be combined with onsite solar power generation.
4) Land for storage
If your land is in a strategic location, perhaps you can lease it to store boats, RVs or construction vehicles. This is the same concept as a parking lot, but you’ll be surprised by how profitable it can be for some landowners. Some sites are even used to store airplanes, either temporarily (during the coronavirus collapse in demand for flights) or permanently (boneyards).
These planes were stored in hot, dry climates to prevent corrosion. Arizona and New Mexico have optimal conditions for airplane storage.
5) Host a Billboard
If your land is next to a road that is busy enough, you could lease it to an advertising firm that will install a billboard. Keep in mind that such billboard leases are normally around 20 years, so this is a similar long term commitment to leasing your land for solar. Learn how Ground Leases work.
If a long term commitment is possible for you, contact us to obtain an offer to lease your land for a solar project, which is likely to be a lot more profitable than other long term options to lease your land.
Billboards like this one can be used to advertise various uses for your land.
6) Rent your land for a campground
Is your land in a beautiful location that is close enough to interesting sites? If you can attract campers, opening a campground can be a profitable business. Campgrounds need access to electricity, water, and wastewater disposal in order to provide bathrooms. During the busy season in the summer months and around holidays, a crew is required to manage and clean the campground.
An easier way to monetize your land is to lease space for RVs or trailers to park on your land. In this case, you still need to provide electricity and sewage disposal but there is no need for as much infrastructure as is needed for a campground.
7) Short term rental for events
If your land is close enough to population centers but still large and in a top location, it could be a candidate for large events, such as fairs, music festivals or even weddings. Leasing land for events can be quite profitable over the short term, but all the stars need to align in order for event organizers to choose your land over other options. You will have to understand local ordinances and may also need permits and insurance.
8) Lease your land for hunting or fishing
If your land boasts natural beauty and wildlife, consider leasing it for hunting. Outdoor enthusiasts will often pay top dollar for access to a picturesque landscape. Just make sure to follow all rules that apply to such activities. If you lease land to hunters, you will need to understand which wildlife species are found on your property and whether they are protected from hunting. You will need to understand how hunting seasons are regulated, and ensure that your hunters don’t infringe on any regulations – even for waterfowl or small game.
9) Oil & gas or other minerals
There are many stories of people who owned land that seemed worthless, and discovered untold riches deep below the ground. One example is the experience of some Native American tribes in North Dakota, who were pushed onto marginal lands (the Badlands) in the 19th century after many broken treaties, but after nearly 2 centuries found their fortunes reversed due to the enormous oil reserve under their feet. Learn more about mineral leases here or by contacting us.
10) Sell your land
Selling might allow you to obtain the largest payout, but land is illiquid and it might take time to obtain a good offer. We are listing this last, because there are so many other ways to make money from your land without selling it, and most landowners are better off keeping their land than selling it, since its long term potential is often not evident at first site. You can sell land on your own if you want to avoid extra fees and feel comfortable managing the process.
Before you decide to sell your land, contact us to help you understand your land’s value.
LEARN MORE
How valuable is my land? How to negotiate a solar lease
How can I make money from my land? Grid interconnections needed for solar
Leasing my land: Oil, wind or solar? Or all of the above?
Texas land use past and present: how solar fits in
Case Study: A Texas Landowner who found a solar lease that allowed him to retire
