Agricultural real estate should not be treated any differently than other types of real estate, but apparently it is, according to the below linked article by another David Kohl. The analysis is about how there are plenty of owners of ag land who have not or don't visit properties they own, and who are slow to evaluate or consider making changes.
While farming still has similar needs today than it did years ago, several key elements which make a property what it is have changed. Some owners continue to ignore unused land portions despite the possibilities of converting them into one or more profit centers. For example, an area with grown trees may not be good for growing crops, but the trees might be able to become wood for building structures on the property or sold to outside vendors for that purpose. Odd-shaped open areas could have room for a solar farm or solar panels which could reduce energy costs or produce energy for sale.
There is a lot to be said for the observation that many farmland owners (whether they do the farming or lease the land) do not seem to take on the business operation aspect that a multi-family or industrial property owner does. This could become an advantage for a savvy investor that sees an opportunity involving agricultural land. They might be able to acquire the land for a bargain price because the owner does not see the potential, or know how to operate the property like the business it should be.
One thing an agricultural property owner can do is present the potential and use it for a renegotiation tool. It's a way to increase income without giving up the farm.
https://www.farmprogress.com/commentary/when-to-renegotiate-or-drop-leased-land
Posts
No comments:
Post a Comment