Passive Income From Your Ranch

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I've been pondering ways to maximize the potential of our properties. I'm curious - how do you all generate passive income from your land?

From short-term rentals, hunting leases, leasing grazing rights to wind turbines, or maybe something I haven't even thought of - I'm all ears!
 
There is no passive income from a ranch. Ranches require work from you in one way or the other.
Got that right!
Secondly be very careful of hunting lots of liability there!

Grazing lease is probably the least bothersome just not much money in it.
Now if you have good hayfields you can maximize some land.
I know of several that fertilize and have someone cut it on halves.
Depending on your area hay is a great commodity here.
 
I inherited a working beef cattle ranch and continued ranching until I was too old.
Now I lease it to a younger cattleman and just have a few of my old longhorns.
Because I had to hire help, I never made a profit from cattle.
We also sold some timber off the property and leased mineral rights on some of it.
To satisfy my sister's inheritance I had to sell much of it.
But that also has provided a comfortable future for me.
I'm counting on rising land values for the long term.
My children enjoy the property and want me to keep it.
I could have leased it out for hunting but instead just let my cousin hunt it for free.
 
Over here people are having concerns about the costs of decommissioning solar farms and wind turbines after their lifespan. Apparently it is very expensive, similar cost to establishing them. There is no guarantee that the companies that put them in will remain solvent at the end and the cost could fall to the landowner so all of this has to be factored in when considering a project like this.

Ken
 
imho, it really depends on the ranch. I don't know where you're at and what you have. I don't know the surrounding area.

Around here hunting leases are an option. Deer, duck, goose. Even fishing or fish farming if you have any water.

Then it depends on buildings. Several people with machine shed space lease out for boats and RVs. You only see them twice a year, when they pick up and when they store for the winter.

I don't know the local market. Some raise quail, goats and sheep. While not exactly passive, it can bring in a few dollars.

One guy sells square hay bales around Halloween for decoration at a HIGH price.

So while a ranch requires the work, a little creativity might bring in a couple more dollars
 
We are a commercial beef cattle farm, and have short term rental on property.
Short term rental is definitely not passive.
It's quite a bit of work during spring, summer and fall, drops off significantly here over the winter months.
There are initial investments to starting out and then added expenses in maintenance and amenities.
Wife puts in a lot of time cleaning, I help some too. She does a lot of updating the listing to keep it current.
It's decent money, and has its advantages over a full time conventional rental but can be a headache at times too. There's a lot of undesirable situations that can end up renting your property. It's not for the faint of heart.
 
Currently just oil leases and we have a 1 acre fenced in area where the oil company can store their implements, pump jacks, etc. but that's separate/in addition to the oil leases. But the previous owners had hunting & fishing leases (we have a watershed lake). We're in the Flint Hills and at one point, they leased part of the property as a rock quarry.
 
Land rental is most of our income. Cows are secondary here, just for fun.
Just a couple bucks added to the pot here and there. We have 30yo timber when were ready to select cut. Always something going on around here...
 
I've been pondering ways to maximize the potential of our properties. I'm curious - how do you all generate passive income from your land?

From short-term rentals, hunting leases, leasing grazing rights to wind turbines, or maybe something I haven't even thought of - I'm all ears!
Calf sales, eggs, a few rabbits shares in a steer. Plan on looking into carbon sequestration, we have about 20 acres or wooded land, hardwoods. Just a thought.
 
Basically your asking where can I make a little extra money with what I already have. Most of that answer will have to come from you and what you have and if you have the ability to do it yourself. Usually and especially on a small operation to make any profit at whatever you're going to do you will have to do it yourself. I'll list the things that are working for US.

Gas or minerals lease
Lease pond out for Crawfishing
Lease pond out for duck hunting.
Cut extra hay off of pond to sell.
Sell any extra hay we may have for that year.
Lease on a monthly basis a right of way to a landowner located behind us.
Lease a spot for a cellular site.
Occasionally cut hay or other jobs with my equipment to people that doesn't have access to machinery.
Lease out the area where we ween calves to others that may not have the facilities to do it, we have pens, shelters, automatic feeders and water and really good fences.
We sell deer corn in bulk out of our bins.

I will give you a piece of advice on leasing rights of ways. In my previous life one of my jobs was a project manager for construction of gas transmission lines, so I know the other side of the fence in this area. If a company wants to purchase a right of way across your property, take it to an attorney that has lots of experience in doing just that kind of work. Don't settle for X amount for them to cross your land, make them pay an annual fee and have that fee tied to cpi.

Hope this gives you some ideas.
Good luck and Merry Christmas
 
Considering doing guided hunting in future...but presently nothing passive. Row crops, cattle, and timber. Waiting for the carbon markets to mature before stepping in them.
 
Hi all,
Lease hay barns and old cattle loafing barn to hay man.
Lease pasture for cattle/calf operation by same man.
Lease crop fields to a reliable (also pays!) crop farming corporation.
Lease two rental houses on property.
Just starting a hunting lease Jan. 1, 2024 for current hunter who has had a free ride for 10 years prior. (Have to many people willing to carry liability insurance and pay $2000 per year.
Nope don't even come close to being even. Still lose money.
 
Hi all,
Lease hay barns and old cattle loafing barn to hay man.
Lease pasture for cattle/calf operation by same man.
Lease crop fields to a reliable (also pays!) crop farming corporation.
Lease two rental houses on property.
Just starting a hunting lease Jan. 1, 2024 for current hunter who has had a free ride for 10 years prior. (Have to many people willing to carry liability insurance and pay $2000 per year.
Nope don't even come close to being even. Still lose money.
How many acres total?
 
We had ours in CRP (Conservation Reserve Program), but that's not exactly passive income. We did have to keep the thistles down, which was a little bit of labor, but then again, we only had about 130 acres. I'm not even sure they do that any more.
 
Basically your asking where can I make a little extra money with what I already have. Most of that answer will have to come from you and what you have and if you have the ability to do it yourself. Usually and especially on a small operation to make any profit at whatever you're going to do you will have to do it yourself. I'll list the things that are working for US.

Gas or minerals lease
Lease pond out for Crawfishing
Lease pond out for duck hunting.
Cut extra hay off of pond to sell.
Sell any extra hay we may have for that year.
Lease on a monthly basis a right of way to a landowner located behind us.
Lease a spot for a cellular site.
Occasionally cut hay or other jobs with my equipment to people that doesn't have access to machinery.
Lease out the area where we ween calves to others that may not have the facilities to do it, we have pens, shelters, automatic feeders and water and really good fences.
We sell deer corn in bulk out of our bins.

I will give you a piece of advice on leasing rights of ways. In my previous life one of my jobs was a project manager for construction of gas transmission lines, so I know the other side of the fence in this area. If a company wants to purchase a right of way across your property, take it to an attorney that has lots of experience in doing just that kind of work. Don't settle for X amount for them to cross your land, make them pay an annual fee and have that fee tied to cpi.

Hope this gives you some ideas.
Good luck and Merry Christmas
I want to know how you cut hay OFF OF POND???
Sorry - couldn't help myself. LOL
 
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