First, let me say that I’m sorry its been so long since we have made a blog post. We have been extremely busy!
Anyway, I wanted to talk for a minute about a service we offer that isn’t very well represented on the web-site. It is, however, a part of what makes us, well, us.
Farm and ranch land is changing hands at an alarming rate these days. More people are putting resources into farm and ranch land as an investment opportunity than ever before. Good for them as its been returning great profits!
What does Ag land management entail? Well, mostly its consists of lease negotiation and tenant compatibility. It also consists of vetting out and assisting with government programs.
Are the things being done with the land in the best interest of the owners/investors? Is the tenant paying market value for the lease? Are the practices being done in a workman like manor? Are they being good stewards of the land?Are the government programs that are being implemented in the best interest of the owners over the long term or just this tenant?
Tenants will always do whats in their best interest first. Let me bore you with a quick story. We picked up a ranch in N Texas that was recently acquired by a new ownership group. They asked my firm to assist them in making sure the current price of the lease was in line with what they could get on the open the market. They also wanted to know our thoughts on the “shape” of the land and if their new investment was in good hands. So, I went to take a look and start negotiations with the tenant, who, was not paying full market value for the land. During my investigations into the property I discovered that the tenant was receiving a direct payment from the government on the land. Which is completely legal mind you, but that needed to be negotiated in to the price. We got it all squared away for them and everyone is happy. Well, the tenant might not be so happy as he is paying what the land it worth now, but we did our job. If you hire us, we have a fiduciary duty to you and no one else. We will make sure you are taken care of.
So, who is taking care of your investment? There are a few national companies that have been around forever that try to help make sure investors and owners are getting the most bang for their buck. Others might rely on a friend, neighbor, or even a current tenant to help them. To that I say, well, I really hope that is working out for them and they are not being taken advantage of.