Ways to make passive income off your land, including hunting leases.

Land is one of the best investments available to investors. It’s also one of the best assets to retain if inherited. Some might consider selling it and cashing out. If you inherit land, there are many reasons to hold onto it. Earning passive income from hunting leases, among other points, are crucial to know. Of course, most lands are capable of earning passive income. This can be done numerous ways, but some of the options outlined below are most popular.

Note: This is not financial, investment, or legal advice. The following are merely potential ideas for generating income from land. Furthermore, it’s a list of reasons to retain inherited land, rather than selling it.

A Great Store of Value

First and foremost, land is a proven store of value. Over time, land prices have increased greatly. As inflation has increased, so have land prices. Thus, unless capital is needed, or cash is in short supply, selling land doesn’t make sense. Actually, in most situations, leaving your money invested in land increases net worth over time. Whereas, if cash remained in the bank, it wouldn’t grow at nearly the same rate.

Government Conservation Programs

While the current state of government conservation programs isn’t what it once was, this is still a viable option for landowners. Examples include the Conservation Reserve Program (CRP), Environmental Quality Incentives Program (EQIP), and others. Consider these programs and more to offset costs and/or generate additional income.

Earning Carbon Credits

Numerous groups operate around paying landowners carbon credits. These are forms of conservation programs, but through organizations, and not government entities. Generally, carbon credits pay a sum per acre to put timber harvests on hold. Thus, trees remain standing and continue pulling carbon from the environment and storing it. Carbon credit agreements can range from one to multiple years.

All in the family

An important question to ask is whether or not each person inheriting the property wants to keep the land in the family or sell their share. If everyone agrees to keep the property in the family, it needs to be a part of the estate plan. You will also want to look at all legal implications like liability of the property, dealing with trespassers, etc. 

Short-Term Renting Homes with VRBO

Does the property have a home or cabin? If so, consider a short-term rent program. Going with a trusted agency, such as VRBO, can be an excellent source of income. It helps the property to cash flow, which can lead to increased passive income totals.

Install Storage Facilities

Seeking high-growth passive-income opportunities? In more urban and suburban settings, installing storage facilities can be a great play. The income generated per acre can be quite high. If the local market isn’t already saturated, consider this option.

Lease Out the Farming Rights

Leasing out the farming rights is one of the most common forms of passive income generated by land ownership. It’s also among the most lucrative. Therefore, if the property has tillable acreage, consider leasing to a crop farmer. If it’s rougher ground, but still offers pasturelands and/or hay fields, lease to a livestock farmer (i.e.: cattle, goats, sheep, etc.). These and more provide opportunities for farmers and landowners alike.

Lease Out the Hunting Rights

Finally, if wildlife populations are good, consider leasing out the hunting rights. This is a symbiotic leasing arrangement that compliments agriculture leases. Landowners can lease out both of these rights to two different groups, and it helps everyone involved. Similarly, a hunting lease agreement is also symbiotic with government conservation programs, such as those outlined above.

All things considered, consider profiting from passive income that inherited land can provide you. Rather than cashing out now, enjoying the effort-free cash flowing, and increase net worth over the long haul.