The ability to enjoy quality hunting close to home is a dream of many sportsmen.  Often, the only available nearby hunting land is either over-run public areas or strictly controlled private land.  If I were a betting man, I would bet that things are not going to improve in that regard.  With urban sprawl and development gobbling up square miles of real estate appetite of a shark eating chum, it is unlikely that this trend will ever decelerate, let alone reverse.

 If you want to enjoy a quality hunting experience close to home, you have little choice but to lease or buy recreational land.  It is the harsh reality of these times.  However, the good news is that anyone who has a decent job and is willing to make a commitment to the future can, either alone or with the help of like-minded friends, buy land and save it from the bulldozer.  And the best part is, this land that will some day be highly sought as a country subdivision should make a good long-term investment.

 In this article, I will look into the two options that you have when setting up a long-term hunting area for you, your family and your friends. 

EXPLORING THE LEASE OPTION

 We live in a capitalist society where things of value quickly assume a price based on the free market system.  The ability to control hunting land and to manage wildlife on it is no different. 

 I’ve never been a fan of leasing because the free market system is ruthless.  Here’s an example.  I have a friend who leased several thousand acres in South Texas.  During the four years that he had the lease, he sacrificed both sweat and money to improve the property and the deer that lived on it to the point that the place gained a local reputation.  When his lease agreement came up for renewal, Jack was floored to find that the landowner had dropped him like a hot coal in favor of someone who was willing to pay more than twice as much. 

 You will always fight this when leasing land.  I dislike it so much that I’m not even going to discuss it further.  Unless you have an unusually strong relationship with the landowner, leasing is not a long-term solution.

BUYING LAND

 The days of buying recreational land that will cash flow (pay for itself) in most of the United States are about over.  I’m going to look first at the cash flow that you can achieve to help make the payments.

 Cash flow: Typically, there will be little income from hunting property.  Most wildlife enthusiasts don’t want cattle grazing in their timber and that eliminates one source.  You can sell timber.  If you keep your eyes peeled and buy a property with good timber, you may be able to make about half to three-fourths of your down payment back with the initial cut and average enough to pay your property taxes with regular timber sales thereafter.  That would be a good goal, but not always attainable. 

 In most areas with a solid timber market established, timber sales will net you about a 2 to 3% annual return from forested acres.  In southern regions with their longer growing seasons, that can be more than double.  Additionally, bankers I’ve spoken with suggest that you should be able to return roughly 6% per year on crop ground in the form of cash rent. 

 You can also add the cost you’ve been paying to hunt elsewhere to the “income” of owning recreational land.  That expense is now one you no longer have to incur.  From purely a financial standpoint, it would be tough to justify buying recreational land unless there was some hope that it would appreciate. 

 Capital appreciation: Recreational land is different from pure farmland.  It’s value is not tied to the price of commodities, but rather to supply and demand.  Demand is currently growing, in most areas.  Recreational land is appreciating at faster rates than farmland.  It is not unheard of to see 15% annual appreciation right now in many parts of the country.  It would be hard to get that kind of return for your money anywhere else at a similar risk.  Of course, this rate can’t go on for much longer, but there is only so much good recreational land out there so the bottom will never completely drop out from under this type of investment.  And if you buy in the right areas (more about that later), it could actually be your very best investment.

 My point here is that while recreational land may never produce much cash annually, it is actually a reasonably sound long-term investment because of appreciation.  If you are planning to save money anyway, it makes sense to consider land.  And if you are considering land, why not consider hunting land.

 The downside: From a financial standpoint, there is a big problem with having hunting land as your primary investment.  The return is only on paper until you sell it – you can’t live off it (in most cases).  Let’s say you are saving for your retirement.  You have the ability to put $15,000 per year into tax-deferred investments and have a nice nest egg some day, or you can buy hunting land.  When you reach retirement age, are you going to want to sell the land?  Just what I thought.  That’s when you plan to use it most.  Like millions of farmers, you will find yourself land rich but cash poor when you reach retirement.  You can’t retire with any comfort if all your money is tied up in land unless you sell it.

 It is a very serious consideration, and the reason why hunting land should be only one part of your long-term savings plan.  If it is your whole savings plan, you will have to sell it, or at least part of it, when you retire in order to maintain a decent standard of living.

 As an alternative to this approach, consider buying with partners so no one has to give up their retirement to own the land.  Partnerships are fraught with problems, but having a partner is better than driving a long ways to hunt or competing for a spot on public land.  Plus, in theory at least, it is still growing in value.

MAKING THE BEST INVESTMENT

 Doug Adams heads up a company called OEI Properties, a business devoted to buying, improving and selling recreational land as well as to consolidating recreational land listings from a number of independent realtors throughout the country.  Doug recently told me that you make the best money in the land investment business when you buy, not when you sell. 

 In other words, Doug focuses all his efforts on finding and buying land that is at or below market value and he rarely pays a premium to the market.  He keeps his net wide and throws away many fish before he finds one worth keeping.

 If you have options and aren’t focusing solely on property near your home, you should adopt Doug’s strategy.  Look for a diamond in the rough in all areas that fit your requirements, but be sure to pay special attention to areas where you can buy the necessary non-resident tags (if the land is out of state).  You’ll want to hunt and manage the property every year without the worry of having to draw tags.

 Again, from an investment standpoint, buying recreational land within an hour of a city is a smart move – an even smarter move if you can buy it close to home.  The housing market is driving the prices for this land up faster than similar land in other locations.  This ripple effect of rising land value may slow for periods when housing declines, but it is unlikely to fall off the map long-term.  While the initial buy-in price will be higher, you should also enjoy a greater annual appreciation in your investment. 

 Without a doubt, you will pay a healthy premium to buy land in high profile hunting areas.  From what I’ve seen in many areas of the country, you should expect to pay 10% - 25% more when purchasing land that is already managed to suit your goals.  In other words, for a turnkey operation, you should expect to pay more than you would for nearby land that is still a number of years behind on the management curve.

HAVE A LONG-TERM VISION

 Ideally, your hunting land will have exactly the mix of tillable and timberland that you desire.  Personally, I like roughly 75% to 80% timber to tillable for deer and turkey hunting.  This will permit you to grow plenty of food while still having enough timber to hunt effectively. 

 However, don’t be turned off by immature timber or pastureland because cutting certain trees to open up the canopy for greater production of ground level brush and planting certain other trees and native grasses can change the landscape dramatically in just five years.  If you want an expert opinion on what you might be able to do with a certain piece of ground, hire a private forester to look at it before you make an offer.  He or she will be able to tell you quickly if the property will meet your long-term goals.

MY IDEAL DEER HUNTING PROPERTY

 If I had a blank slate to design my ultimate deer hunting property, I would settle on about 600 acres.  Possibly a friend and I could purchase it together.  In my experience, that is the maximum amount of quality ground that two people can manage properly in their spare time without needing big (expensive) equipment. 

 Ideally, the property would be an island of 80% timberland in a sea of open pasture or cropland.  This would reduce hunting pressure right on the borders and allow me to manage my own herd with little influence from neighboring properties.  Most people make a common mistake when they look to purchase their dream property by focusing on trying to border areas with high deer numbers.  That is fine if your goal is simply to shoot deer, but eventually you may get the bug to produce big bucks. 

 It is tough to produce big bucks in areas with high deer numbers.  In fact, if trophies are your goal, you are better off buying an over-hunted property in a good county and starting from scratch.  This gives you the opportunity to fine-tune the herd as it grows and assures that your habitat will be in prime shape (not browsed to death).  The best of all worlds, of course, is low to moderate deer numbers and low hunting pressure on the boundaries – that’s where the island concept comes in.

 A range of topography would be nice, with rolling hills and some rough areas producing nooks and crannies for food plots and plenty of terrain features to funnel traveling deer.

 Properties like this are out there, no doubt, but finding one that is for sale within driving distance of your home may take a few years of searching.  You will likely have to compromise from the ideal.  One direction I would quickly move would be toward buying a block of land bordering like-minded landowners who are focused on managing the resource to its fullest.  Again, it is important to note that management to the fullest does not mean managing for the highest possible numbers.

CONCLUSION

 Owning land requires time and focused attention if you are going to manage it well.  Someone needs to patrol it, work with the government on farm programs, plant the food plots, coordinate the farming on tillable acres, buy equipment, perform basic maintenance on the property and equipment, work with timber buyers, manage timber stands, fix fence, mow weeds, shoot does, etc.  Of course, these can be rewarding aspects of land stewardship but only if you have the time. 

 Just because you want to buy land doesn’t mean someone wants to sell it to you.  It may take months or even years to find your ideal property.  But, if you invest the time to do it right you may only have to do it once and you and your family will benefit from the fruits of your labor for a lifetime.

The Price of Hunting Land

 Hunting land sells for a wide range of prices based on where you find it the kind of wildlife it supports.  For example, time-proven duck marshes near significant flyways will sell for many thousand dollars per acre.  The price for deer hunting land also fluctuates widely.  In parts of Georgia within driving distance of Atlanta, some purely recreational land sells for more than $5,000 per acre.  In North and South Dakota, some good deer, upland and waterfowl hunting land still sells for well under $1,000 per acre. 

 In parts of central and northern Minnesota and Wisconsin, the common price is about $1,000 per acre.  In parts of Illinois and Wisconsin with high profile deer management traditions, hunting land sells for as much as $3,000 per acre in medium-sized blocks.  As you go east, toward higher human densities, to areas of Pennsylvania and New York the price is even higher.  Development value drives the price in these areas more than hunting value. 

 In general, the farther you get from urban areas, the lower the price for recreational land, but that also brings with it a lower top-end value for the land in your lifetime.  In parts of the western and southwestern U.S., (areas in the middle of nowhere) you can buy ranches with huntable populations of big game such as mule deer and elk for under $500 per acre.

Where to Start

 Start looking within driving distance of your home.  There are many advantages to owning land near home (easier to manage, more time to use, better investment potential, etc.).  Make contact with a number of realtors and scan every newspaper in your selected areas for real estate listings.  Your best price will usually be from people who are actually trying to sell.  If you go knocking on doors, you may find someone who is willing to part with their land - everyone has their price - but it will surely be well over market.