Tips for Generating an Income on Your Ranch Investment
Ranches for sale in Florida offer investors a plethora of both tangible and intangible benefits, including special tax advantages for agricultural land owners, a consistent increase in land values, lower property taxes, flexibility to build, and more. While owning ranch land may offer numerous advantages, most savvy investors expect their investments to generate a return. Some investors opt to idly wait for their investment to increase in value, and will sell the land once the value of their investment reaches a particular threshold. While other investors prefer their investments to pay out dividends as the value of their investment continues to increase. For these type of investors, we’ve put together a few tips on how to quickly start generating an income on your ranch investment.
1. Lease Your Property
One way to quickly start generating an income on your ranch investment is by leasing out the property. If the land is currently unused and in good condition, you may want to consider leasing it out to local cattle ranchers, goat farmers, hunters, or even solar power companies.If the land is used for agricultural purposes, many of the tax advantages of purchasing ranches for sale in Florida will still apply. Before entering into a lease agreement, you’ll want to ensure that your attorney draws up a lease contract, so that you and your assets are properly protected.
2. Offer Horse Boarding/Training
Another method for generating income is to offer horse boarding or training sessions on your property for nearby equestrians. You’ll want to take into consideration the cost of building and maintaining a stable if one is not already in place and the cost of hiring help to train and manage the horses. Before offering any type of horse boarding or training services to the public, it is advised to consult with an equine legal professional for advice on topics such as liability, insurance, and business incorporation.
Agritourism, a term that is used to describe the practice of attracting urban visitors to agricultural areas for educational and recreational purposes. Not only does agritourism expose curious visitors to a more rural way of life, but it can also generate a consistent income for investors. Visitors can participate in ranching activities such as herding cattle or goats, caring for horses, mending fences, and other day to day ranching activities. Before opening up your property to agritourists, we recommend consulting with an insurance professional to determine liability and insurance coverage needs for such activities.