Do you have a big stretch of unused land? By investing in the right opportunity, you can put that land to work for you. Then, in turn, you could use the supplemental income and tax incentives to further maintain or even restore your property. Below, we’ll briefly go over a few income opportunities landowners can seize under the right conditions.
One of the most common ways to generate income — and with very little work — is by planting a timberland. Seen as a long-term investment, this path entails thinning area out to grow high quality trees for timber wood. It’s essential to consult with a registered forester before making a forestry investment for insight into the best practices. Furthermore, any timber harvest contracts should be reviewed by legal counsel to ensure the arrangement suits your interests.
Along the same lines is planting specialized trees that produce an annual yield. While it depends on your geographical location and climate, this might include fruits or nuts, such as pecan trees in the South. Often, the arrangement is made with the company on a share basis with the proceeds going to the landowners annually. A similar setup for up North could be Christmas trees. While developing the land for this endeavor may require more maintenance, it could turn into a lucrative business opportunity every holiday season.
Timberlands could also provide owners revenue through emerging initiatives and conservation programs. One up-and-coming example is a carbon credit program. Organizations big and small are looking for new ways to improve their carbon neutrality. With the help of landowners with timberland assets, these companies agree to pay for harvest deferral credits and boost their standing. In other words, instead of harvesting the timber, the landowner is paid to let the mature trees stand for a certain period of time.
Another more well-known environmental effort you could take part in is a renewable energy program. Whether your property is more suited for generating wind power or as a solar farm, this course of action could be a boon to both you and the environment. Typically, the process involves a solar or wind company who installs equipment to harness the elements for energy and then pays you for the use of the land. If such a contractual arrangement interests you, it’s advised to reach out for appropriate legal advice to determine the developer is a credit-worthy entity and to ensure protections are in place for you and your property.
These examples of potentially lucrative income opportunities for landowners only scratch the surface. For further examples on how to bring in additional earnings with your land, please see the accompanying resource.
Infogrpahic provided by National Land Realty, buy land in Georgia