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June has come and is slipping away, which means it is time for our annual Mountain Hatch Report, where our brokers give their expert advice for how to fish the rivers and streams of our premier collection of fly fishing ranches for sale. The lure of landing trout is what draws us out to the water, however the serenity and grandeur of each of these ranches is so often what sets the day apart. Beyond the hatch report, we would leave you with the words of Charles F. Orvis from 1886, “More than half the intense enjoyment of fly fishing is derived from the beautiful surroundings, the satisfaction felt from being in the open air, the new lease of life secured thereby, and the many, many pleasant recollections of all one has seen, heard and done.”

2018 Mountain Hatch Report
2018 Mountain Hatch Report
2018 Mountain Hatch Report

colorado ranches for sale
Fly Fishing Ranches for Sale in Colorado

Colorado Hatch Report

Winding River Ranch – Fairplay, Colorado
Flows are steady, and the fishing is in primo. Small terrestrials fished tight to the undercut banks will be rewarded, while black and olive buggers will likely produce the “catch of the day” in the deeper pools. Anglers can expect to work the soft edges with smaller stoneflies and a variety of bead-head droppers during the middle of the day when hatches may have slowed. The explosive Blue Damselfly hatch is happening on the ranch’s four trophy lakes; this approach produces exciting “eats” and long runs from the resident rainbows. View Winding River Ranch

Hidden Lake Ranch – Pagosa Springs, Colorado
Hidden Lake Ranch offers three miles of meandering willow-lined bends, plunge pools and rocky pocket water on Weminuche – all of which hold trophies. PMDS and caddis will be the go-to small dries in the weeks ahead, while foam terrestrials with or without a dropper will land a fair share of sizeable trout. As the sun begins to fall, or clouds settle over the valley, streamers will be the hot fly fished tight against the extensive cover structure on the banks. This is often where we see the big fish lurking; of course, in the last hour of light a mouse pattern skated across the surface could lead to an explosive brown trout attack. The five lakes onsite are fishing great and offer a diverse array of dramatic scenery. View Hidden Lake Ranch

Rocking TW Ranch – McCoy, Colorado
PMDs and caddis have been the go-to dries of late with potential for fun green drake action upcoming. Fish are holding in the deeper seams so when not actively feeding on the surface a stonefly nymph and caddis pupa fished deep should produce as fish go low to find cooler water. When clouds are present streamers can produce exciting grabs on this section of the Colorado. View Rocking TW Ranch

DM Ranch – Fairplay, Colorado
The fishing on the DM Ranch right now is excellent. Caddis hatches are thick and consistent with trout rising to them throughout the day. The “go-to” rig on the DM for the next few weeks will be a hopper dropper or a double caddis set up with varying hook sizes. When the fish aren’t looking up a small stonefly pattern should produce, given the abundance of stoneflies in the system. Don’t forget to prospect the deep slots behind the beaver dams with a black or olive streamer; that’s where the big ones can be found. View DM Ranch

Elk Meadows Ranch – Black Hawk, Colorado
The two lakes on Elk Meadows Ranch, which total approximately 15 acres, offer some of the premier stillwater fishing in the state of Colorado. There is an abundance of food sources in the system from mysis shrimp to a variety of scuds. When the caddis are popping, the fish are rising to the surface all over making it fun to pick your fish and target it with a long, precise cast. The true trophies can’t seem to resist a skated hopper placed tight to the banks; “the grabs” are often explosive, and then its game on. Hooking up on this ranch is one thing, landing the fish is another ball game altogether – these fish are BIG and healthy. View Elk Meadows Ranch

Sleeping Dog – Lake City, Colorado
As is the case with many of Colorado fisheries this year with the low snowpack flows are down this year on Cebolla Creek, but the fish are still thick in the system and bugs are hatching. Throughout the day anglers should be armed with a variety of caddis imitations as well as PMDs, As summer progress the hopper dropper should produce when fish are eager to rise to terrestrials or eating subsurface in the riffles and deep bends. If there is a lull in the fishing be sure to remember to look around at the grand surrounding; you may find a big horn sheep looking back at you from the hillside. View Sleeping Dog Ranch

2018 Mountain Hatch Report
fly fishing ranches for sale
2018 Mountain Hatch Report

Colorado Fly Fishing Ranches for Sale
Colorado Fly Fishing Ranches for Sale

Idaho Hatch Report

Greater Yellowstone Legacy Ranch – Ashton, Idaho
The Fall River remains high and off-color from its headwaters in Yellowstone N.P. above the ranch, all the way down to its confluence with the Henry’s Fork River. The recent rainy cycle in the area has bumped flows up again. Prior to that, the Fall River was dropping, clearing and fishing very well on both nymphs and dry flies, including the big Salmon Flies and Golden Stones! Smaller dry flies were also producing aggressive takes in the softer water and deeper buckets. Dropping a large rubber leg or beadhead prince or pheasant tail off one of your big dries will certainly increase your numbers. Look for healthy caddis hatches, PMDs and Yellow Stones as the warmer temps settle in, flows stabilize, and the river begins to clear. View Greater Yellowstone Legacy Ranch

South Fork Luxury Home and the River House on the Upper South Fork – Swan Valley, Idaho
The fishing on the South Fork of the Snake is entering prime time. The flows have been reduced to 17,000 cfs as of June 29 and there are Salmon Flies showing up on the lower river, including the lower reach of the Canyon. Nymphing and streamer fishing have been the most consistent methods of fishing but with water clarity improving, the dry fly fishing will get better every day. In addition to the Salmon Flies, there are Drakes, Caddis and PMDs beginning to hatch. This looks to be a big fish year on the South Fork, buckle up! South Fork Image (below right) Courtesy of World Cast Anglers

View South Fork Luxury Home
View River House on the Upper South Fork

Steelwohl Retreat on Henry’s Lake – Island Park, Idaho
Memorial Day marks the true beginning of trout fishing in the Island Park area with numerous fishing opportunities in Yellowstone Park nearby, including the Fire Hole, Gibbon, Gallatin, Madison and the famed Henry’s Fork River. This area has long been a draw for regional as well as destination anglers because of the many fishing options this area of the Rockies provides. Mid – June marks the tail end of the Salmon Fly hatch on the Henry’s Fork and the grand opening of the Railroad Ranch on June 15. Expect to see fish rising to PMD’s, Caddis, Golden Stones, Yellow Sallies and the occasional Green Drake. View Steelwohl Retreat on Henry’s Lake

Teton River Retreat – Victor, Idaho
Mother Nature is keeping us on our toes here in Teton Valley this spring. From sunny summer like days to several days of consistent heavy rains, the Teton River is back on the rise and off color. Anglers have been getting cutthroat and rainbows with nymph rigs and streamers for the most part with very limited dry fly fishing opportunities. The flows should begin to drop once this rainy system moves on and then summer conditions will finally be upon us! View Teton River Retreat

Bitch Creek Canyon Ranch – Ashton, Idaho
Bitch Creek is a major tributary to the Teton River and Henry’s Fork river systems and major spawning grounds for the Yellowstone Cutthroat trout. Much of the fishing on Bitch Creek remains subsurface with Pats Rubber Leg stone fly and simple pheasant tail patterns being most effective. Adult stone fly and PMDs will soon bring fish to the surface as will terrestrial patterns moving forward into the warmer months. View Bitch Creek Canyon Ranch

2018 Mountain Hatch Report
2018 Mountain Hatch Report

Montana Hatch Report

Lone View Ranch – Ennis, Montana
Much of the Upper Madison is fishable, but the tributaries are less clear. The recent cool weather has stalled most hatches, but we expect that caddis fishing to improve dramatically when we see a few warm days. Also expect to start seeing adult salmon flies when things warm up too. Nymphing has been good in the afternoons; try size 10 to 16 bead head prince, hares’ ears and lightning bugs as well as Golden Stone and Salmon fly nymphs.

The Gallatin is dropping. Currently it is not clear enough for good fishing. In a few weeks be ready with caddis, pale morning duns and yellow sallies. The evening rise over egg laying caddis and mayfly spinner falls can produce great fishing an hour or two before dark. Dry flies should work well all day, however if action slows you may do better nymphing or swinging a streamer. View Lone View Ranch

Lodge on the Bitterroot River – Hamilton, Montana
The Bitterroot is currently high and off color. We expect that to change in the next few weeks. As soon as the river starts to clear try a size 4 or 6 bugger or rubber legged fly. As it continues to drop tie on an elk hair or Goddard caddis, Chubby Chernobyl or ant and be ready to switch to your favorite PMD when you see fish on the surface. Later in the summer, search with a hopper/dropper rig, and don’t be afraid to fish the deeper holes with a bead-head indicator rig. View the Lodge on the Bitterroot River

West Fork River Mountain Retreat – Darby, Montana
There is plenty of water in the Bitterroot these days… After a snow-packed winter and steady rain storms this week, the “Root” is running higher than average going into late June. The West Fork and upper river remains fish-able with clear water and plenty of dry fly opportunities despite higher flows. Hatches of Salmonflies, Golden Stones, and Sallies have the fish looking up. As we near the end of June and beginning of July expect to see dropping flows coupled with prolific hatches of PMD’s, Bitterroot Stones, and Caddis. This river is poised to break out into its dry fly paradise potential river-wide as flows drop over the coming weeks. View West Fork River Mountain Retreat

Historic Black Bluffs on the Yellowstone River – Park City, Montana
The Yellowstone at Billings was shaping up to fishing form before the most recent rains. Currently at 52,500 cfs, nearly twice the 89-year June average, it will be early July before it clears. Flows coming from the upper tributaries should drop quickly with the end of the rain, and we will all be back in our boats. View Historic Black Bluffs on the Yellowstone River

The Circle Bar Ranch – Utica, Montana
The Judith River will be dropping and clearing in the next week or two. This property has quality fishing during the first three weeks after the flows come down, so grab your rod and waders. As the water clears expect to see good caddis hatches in the evenings with a few Yellow Sallies in the afternoon on the property and the adjoining forest service. When the river is low, fish are starting to look at general attractors like Wulffs and stimulators as well as terrestrials like ants and small hoppers. If dry fly fishing is slow, bead heads and small buggers can work well any time of day. View The Circle Bar Ranch

Bridger Creek Cabin – Bozeman, Montana
Summer conditions on Bridger Creek will be here soon. Like most Montana mountain streams, Bridger Creek calls for your favorite attractor fly, preferably one that’s easy to see. Bridger Creek is a nice mix of small pocket water, short riffles that drop into nice holes and undercut banks. Expect dry fly fishing so pack your favorite 7.5 to 8.5 foot, 4 or 5 weight. View Bridger Creek Cabin

Stillwater River Ranch – Nye, Montana
The Stillwater River is running at 6,400 cfs at Absarokee with the fishing best in June with flows under 3,800 cfs. The Stillwater can drop quickly and should be in good form by the first part of July. View Stillwater River Ranch

New Mexico Hatch Report

Canones Creek Ranch on the Chama River
Canones Creek Ranch on the Chama River – Chama, New Mexico

The Chama River on the Canones Creek Ranch has been fishing well since early spring. Coming off a light snowpack year, which is the opposite of the two previous near record setting snowpacks, the river is still fishing well into the summer, although water levels are dropping much earlier than normal. With a current flow of approximately 40 cfs, the Chama is fishing well with both dries and nymphs. Small mayfly patterns and Grey Drakes have been the preferred dry flies recently with plenty of action below the surface, as well, on your traditional prince nymphs and flashy worm patterns. As always, don’t be afraid to throw a big nasty streamer into one of the many deep runs on the Canones Creek Ranch for a shot at a 24” hog such as this one!

View Canones Creek Ranch on the Chama River

Oregon Hatch Report

Salmonberry Estate & Lodge – Nehalem, Oregon

With Winter steelhead season long over, fishing over the summer on the Nehalem River turns to coastal cutthroat trout and, by July, sea-run cutthroat trout. The sea-run fish average 16-18 inches and are much larger than their resident brethren. The sea-runs, or “bluebacks” as they are known in the Pacific Northwest, are following the Summer and Fall chinook into the rivers on their annual pilgrimage to spawn. Tactics for chasing coastal cutthroat are standard trout flies as well as traditional sea-run cutthroat trout flies like the Female Coachman, Pete’s Special, Spruce fly, and Siletz Special. Egg patterns can also work well as Salmon get on their redds and begin to spawn. View Salmonberry Estate & Lodge

Salmonberry Estate & Lodge

Wyoming Hatch Report

Flat Creek Fishing Estate – Jackson, Wyoming
A second year of solid snow pack in Jackson Hole and a cool damp June should provide excellent fishing opportunities on the Flat Creek Fishing Estate throughout this summer. There have already been emergences of early season drake mayflies, and this summer we expect to see mayfly, stonefly and caddis hatches that will bring the native cutthroats to the surface. Once again spring fishing has produced quality trout. View Flat Creek Fishing Estate

Rainbow Canyon Ranch – Saratoga, Wyoming
The Encampment River is running about 300 cfs and clear. Anglers are taking trout on Pat’s Rubber Legs, Posse Buggers and a variety of streamers. Expect hatches of midges and BWOs. View Rainbow Canyon Ranch

Double L Ranch Luxury Home – Etna, Wyoming
The prime attraction to the Salt River are the Snake River Fine Spotted Cutthroat and Brown trout in the 10-22-inch range. The river offers great opportunities to catch trophy sized fish during this time of year with fish moving to and from Palisades Reservoir. Spring run-off on the Salt occurs sooner and clears faster than many of the other rivers systems in the region. The current hatch report includes PMDs, Spotted Sedges, Golden Stones, Little Yellow stones and green drakes. View Double L Ranch Luxury Home

Barber Creek Ranch – Pinedale, Wyoming
Stream flows on the Green and New Fork Rivers are on par with the annual mean flows and have begun their recession. The rivers are gaining clarity daily and fishing should be great in time for the 4th of July festivities. Currently, anglers can expect to find fish moving out of their winter holding patterns and into the deeper holding water and along the slower inside seams and cut banks. Nymphing and streamer fishing remain the most productive this time of year, but we are only weeks away from incredible dry fly action with the emergence of the grey drake, caddis BWO and stone flies. View Barber Creek Ranch

Crow Creek Ranch – Afton, Wyoming
Crow Creek is a major tributary to the Salt River system a smaller, more intimate fishery, with Median flow of 80cfs. Fish in Crow Creek tend to be less educated than other regional fisheries due to lack of public pressure and difficult access on private lands. With spring run-off nearing its end on this tributary expect to find fish feeding on simple mayfly patterns like the Adam’s and small stones. As spring turns to summer, fish will settle on the banks looking for terrestrial patterns imitating grasshoppers. View Crow Creek Ranch

Popo Agie River Estate – Lander, Wyoming
The Middle Fork is still running a bit high at about 3,000 cfs at mid-day, but it’s clearing up. Anglers are taking browns and rainbows on larger, more visible patterns like red bead-head San Juan worms and conehead Wooly Buggers. Grasshopper naturals are also starting to appear. Try a #6 Dave’s Hopper with a Purple Batman dropper. View Popo Agie River Estate

North Platte Riverfront Estate – Saratgoa, Wyoming
The North Platte is running near 1,300 cfs in Saratoga and dropping quickly. The water is almost clear, and fish have been taking Yellow Sally nymphs, Pat’s Rubber Legs, and various worm patterns. Anglers are seeing Adult Caddis and Pale Morning Dun hatches, and Green Drakes are expected soon. View North Platte Riverfront Estate

Jackson Hole Fly Fishing Ranches
Jackson Hole Ranches for Sale
Wyoming Fly Fishing Ranches

Flying Fishing Ranches for Sale in Wyoming

Over the past 15 years I have been licensed in five states, in order to represent clients in the purchase and sale of ranches. During that time, I had the opportunity to work on ranches for sale in Montana, Wyoming, Idaho, California and Colorado. Of the many nuances that set each state apart from one another and is the most applicable topic to the types of ranches I most consistently work on is the differing stream access laws among states. While some states tend to heavily favor landowners, others are more public friendly and allow more access to fishable stream and river corridors, even if the land surrounding those rivers is held privately.

This is a general overview of the stream access laws in the states in which we sell ranches. Please note this is not to be construed as legal advice as we encourage all buyers to engage local counsel to investigate and advise on their rights pertaining to any property considered for purchase.

Wyoming Stream Access Laws

In Wyoming, landowners own the streambed. Anyone may float across private land on navigable water, but the streambed is the property of the owner. As stated by Wyoming Game and Fish Department, “Anglers are not allowed to wade fish or fish from a bank or island without permission if the stream bank, island, or streambed is privately owned. Wading, bank fishing, or anchoring without permission is trespassing.” One example of the benefits to stream access laws is a ranch we have for sale on the Encampment River near Saratoga, WY. While there is a brief period of several weeks post-runoff during which the ranch sees float traffic given the incredible fishing on the Encampment, the river is otherwise completely private for the balance of the year and is not legally able to be floated. During the period which flows are ideal for floating, the landowner can launch a boat directly from the ranch or take out at the ranch. This allows more flexibility to enjoy evening hatches and prime fishing hours, as opposed to having to rely on public access points.

Wyoming Fly Fishing Ranches For Sale

Flying Fishing Ranches for Sale in Wyoming

Flying Fishing Ranches for Sale in Wyoming

Saratoga, WY Fly Fishing Ranch

Idaho Stream Access Laws

In Idaho, the state controls the waterways to the ‘Ordinary High Water Mark’ (OHWM); the land submerged below the ordinary high water mark of streams and rivers within the state are held by the Idaho Public Trust. The OHWM is defined as the “line on the shore established by the fluctuations of water and indicated by physical characteristics such as a clear, natural line impressed on the bank, shelving, changes in the character of soil, destruction of terrestrial vegetation, the presence of litter and debris, or other appropriate means that consider the characteristics of the surrounding areas.” For the purpose of fishing, anglers are able to float or wade these waterways up to the OHWM so long as they are to gain access to such land by legal access.

Oregon Stream Access Laws

If a river or stream is deemed navigable, and one can access the mean high water mark from public land, then he or she can float and stand in the river so long as remaining below the mean high water mark. For rivers that are labeled as non-navigable, property owners may own the bed of the river and therefore are allowed to float through but may not anchor or wade in the river, depending on the ownership of the land.

How Stream Access Laws Affect a Landowner 1
How Stream Access Laws Affect a Landowner 2

Montana Stream Access Laws

The Montana Supreme Court ruled in 1984 that the public may use streams and rivers for recreational enjoyment, such as floating and fishing, even if those waterways were not historically deemed to be navigable. This access is allowed to the high water mark, and it should be noted that the Montana Stream Access Law does not grant public access to cross private property to access the rivers. One of the benefits to land ownership on a productive fishing stream in Montana is the ability to wade from your stretch of river onto neighboring landowners upstream and down to continue your pursuit of Montana’s famed trout.

Colorado Stream Access Laws

Regarded as having some of the most landowner-friendly laws related to private property, along riparian corridors floaters, and anglers are not able to access privately-owned streambeds, regardless of how the waterway’s navigability is defined in Colorado. The streambed is owned by the landowner; boaters are able to float but do not have the right to anchor or otherwise access the private land in the streambed. In instances where the river is owned on one bank by private ownership, and public ownership owns on the opposite bank, the private landowner generally owns to the center line of the river down to the streambed. Ownership on a large floatable river, such as the Colorado, provides excellent benefits to an avid angler who would enjoy the convenience of launching a drift boat or taking out at the ranch. This allows more flexibility in your fishing times to take full advantage of the prolific hatches and periods of less float traffic; there is also something special about taking out at your own ranch and storing your gear onsite and ready for the next day’s adventure. Take a look at our Rocking TW Ranch, which provides such convenience on a productive stretch of the Colorado River.

Ranches for Sale in Wyoming, Montana, and Colorado
fly fishing ranch for sale
Ranches for sale in Colorado Rocking TW Ranch Luxury Fishing

 

winding river ranch colorado
fly fishing ranch in colorado
Ranches for sale in Colorado Rocking TW Ranch Luxury Fishing

colorado ranches for sale

Stream access laws can be a sensitive topic and could potentially change as a result of policy updates in each respective state. For additional details or for specific questions about a particular state please contact one of our knowledgeable Ranch Brokers in that state; they will be able to explain the distinctions among the laws in their home state and provide insight into the challenges and benefits.

As Ranch Brokers, we have the opportunity to visit, view, and represent some of the most beautiful properties in the west. Past land practices from over 100 years ago are still present on the properties telling a picture of how the property and region were utilized as the west was settled. As people who enjoy wildlife, we are the beneficiaries of these long term private land stewards. These well managed properties have more plant diversity, which leads to more wildlife.

Peace

Settling Montana

Following the initial discoveries of gold in 1862 in the southwestern valley of Grasshopper Creek, Montana grew rapidly, first as a territory and later as a state. Timber harvesting allowed for the building of industry in Montana with railroads, mining, agriculture, homes, and commerce regarding enormous amounts of lumber. Huge blocks of timber were removed from government, railroad, and privately-owned ground. Sometimes, as chronicled, harvesting was completed with illegal or unethical means. In Montana, it takes a while to grow a tree to merchantable size. A tree that would be of size to harvest in Western Washington in 50 years, may take 120 years to grow in Montana.

As with mineral extraction, the timber companies of 100 years ago weren’t worrying about consequences of their activities on later generations. Replanting, thinning, erosion control and fishery protection were not on the list of concerns during this initial harvest period. Our current awareness of the value of the beauty of Montana and the West, is our map of how to create a land use plan that is responsible and minimizes harmful impacts, or actually improves resource quality through land practices. These old timber roads are a useful tool for this resource management.

Sunlight

Present Day Forest Management

Federal public lands have borne the brunt of public criticism for lack of management in the recent past leading to poor forest health and disease. We have seen in these past years how lack of proper management may lead to large scale forest fires.

Private landowners are able to act more fluidly in managing their property. Owners are also able to manage timber as a diversified piece of their overall operation. Many ranch families throughout the west have practiced what is now call “sustainable harvest timber management” for a hundred years or more. Harvesting select timber and opening up the forest canopy allows better spacing for trees to grow faster and opens up the ground to grow more grass for livestock and wildlife.

Tractor Wheel

Road Systems

In addition to land biodiversity and land health, what I believe is the most significant impact of forestry management is the road systems in place for landowner use. Our Lone View Ranch is an impressive Montana ranch for sale. It has 14 miles of interior ranch roads, built for timber management that allows access to all parts of the ranch. Without these roads, the majority of this ranch would only have access by foot or horseback. With the interior road system, people can travel comfortably by car or truck, ATVs, mountain bikes, and snowmobiles all on these interior roads. At an estimated $8/foot to build, the cost today would be close to $600,000 to construct this road system.

Limestone Butte Hunting Ranch, which is a newly listed elk and mule deer hunting ranch, has 20 miles of roads, allowing hunters access throughout the ranch. The road systems allow us to stay in the field longer, (not that any of us are getting older), bring aging, young, or handicapped family and friends with us and provides an opportunity for their success as hunters. It also increases ranch use to summer activities like hiking, biking, and ATV riding.

I am sure the folks harvesting timber 50 or 100 years had no idea how their work would help wildlife populations, plant diversity, and access on these incredible properties. When you make it out on these ranches, take a look around and give them a moment of thanks.

In Jackson Hole, the spring rain that fell on Saturday May 12th made it feel more like a wet day in November. None-the-less, Beckett, who is twelve and not a rookie at this, ventured out in layers, with me to do the Spring Clean Up. We met Jackson Hole Trout Unlimited board members Jay Buchner and Mark Heineken at Flat Creek in Karns Meadow. We used grabbers from Ace to pick up trash and debris, uncovered from the snow melt. Despite the dampness and dripping willow branches, we laughed as we picked up an old dirty sweatshirt, paper cups, candy wrappers, and even a beat-up walkie talkie. There was no shortage of wayward beer bottles and cans. ‘Til next time, the fish that swim among us in our gorgeous Town of Jackson, can do so in pristine water, free of rubbish. Swim on, dear trout.

By Macye Lavinder Maher, Owner Live Water Properties and TU Member

Boy holding a black jacket
Holding red plastic

With the largest ever one-day price drop in the Dow of 1,175 points on February 5th, 2018 and market volatility finally creeping back into the public markets after being absent for almost eight years, some investors are wondering if their investment allocation will weather the future.

It is easy for investors to become complacent when markets are skyrocketing, but when the markets turn negative for no well-understood reason, investors inevitably question their decisions and allocations.

The fact is, market volatility is good for the investment markets and good for investors’ returns. It weeds out the weak investments and it allows entry into new investments that can propel those investments forward. Corrections have always been a part of investing in public markets, and we were long overdue.

For those that were over-allocated to one sector or too-allocated to the public markets and are now reconsidering a strategy for going forward, trimming from gains, rebalancing, and investing into other asset classes or sectors that are not overpriced and still considered a good buy may make sense.

2018 has a lot of changes to contend with, including tax reform, interest rate increases, a mid-term election, and geopolitical issues around Russia and North Korea to name a few. To diversify away from the public markets, investors are looking to private markets to help reduce volatility, increase diversification and enhance returns.

The two main options qualified investors have is to go into private equity and private real estate. In 1996, there were 7,322 listed companies on the NYSE and Nasdaq. As of 2017, there were 3,671 – a decline of almost 50%. There are fewer companies seeking an IPO – down 66% from historical annual averages, and more private companies are staying private. The private companies who may have considered an IPO as their only exit strategy in the past are now either purchased by larger private companies or larger public companies. That alone has many investors transferring assets away from public markets to seek diversification as the public markets now provide much less coverage of our entire economy than before (Economist, April, 2017).

Oregon Ranches for Sale

While private equity is one option, many investors choose private real estate for its historic stable values and long-term appreciation in value, cash flow opportunity, tax write-offs, depreciation, and as a hedge against expected inflation. As of 2017, the aggregate US stock market value was approximately $26 trillion, and the global equities market value is now over $76 trillion according to Bloomberg’s World Exchange Capitalization Index – the highest ever. That said, global real estate’s total value as of 2016 was over $217 trillion, or 60% of the entire world’s investment value, including all equities, bonds/debt, and gold. Approximately 75% of this global real estate value is in residential homes, leaving $29 trillion in commercial real estate value and an additional $26 trillion in agriculture and forestland value (Barnes, Savills World Research, 2016).

So, is now the right time to invest in farm and ranchland as an investment?

In a recent January 1, 2018 article by LandOwner Editor, Mike Walston featured on AGWeb.com, he shows the below chart depicting the relationship of the S&P 500 Index against the Goldman Sachs Commodities Index (GSCI).

CommoditiesvsStock

© Dr. Torsten Dennin, Incrementum AG, LandOwner

This is the lowest the GSCI has been in over 50 years compared to public equity prices in the US, and why many investors consider farmland a value buy today.

This data does not necessarily suggest that we are heading for another “Great Recession” or that the public markets will crash. However, value investors, in theory, attempt to buy what is cheap and sell when prices are high. What is clear from this data is that commodities prices are a value buy when compared to equities – and current farmland real estate prices should eventually reflect this opportunity and react to commodity prices.

Reading the tea leaves, as the population continues to grow, global middle-classes expand, and demand for global commodities and consumer staples increases, commodities prices should increase over time, making current investors in agriculture happy well into the future, all while providing diversification away from the public markets.

My son turned 12 on November 1st, and we were lucky for him to draw some late season tags, one of which was a cow/calf tag in a Wyoming hunting unit close to our home. This is the story of his hunt, in his words. Happy Holidays and hope you are out and about hunting with your children!
– Alex Maher

My Hunt

By Beckett Maher
When I am twelve, I have an extraordinary moment of my young adult life. The date is 11-12-2017, and we are near Bondurant, WY. There’s a clear sky and I have a sense for success. When my dad and I enter the gate of the ranch, we see our guide and good friend, Vance. After loading all of our gear into the ATV, we embark up a white, snow-covered, slick hill on our journey to find and shoot an elk.

When we get in the ATV, I notice that its tires are bald, meaning they do not have any tread. This makes me think about if we are going to have any trouble on the muddy and slick ranch roads. I soon get my answer. It happens when we are trying to drive up a snowy road, we slow down and are about to get stuck, Vance suggests we stop. I later ask Vance if my dad’s truck could make it up the hill, he responds, “Anything with tires could get up this hill.” His statement makes me chuckle. We think it is best to walk from there.

Mentoring Young Hunters

The first moral lesson here is, “Not everything in this world is easy.” It feels like hours, walking, but it truly only takes 20 minutes. All of a sudden we observe fresh elk tracks going across the road, and then we begin to follow them into a meadow. We soon come upon a spot where two elk had been bedded down. The blood makes us suspicious of poachers. Two steps later we spot an elk. From this moment on we are in the “hunting zone.”

As soon as my dad sees the elk we get the shooting sticks out and the gun ready. As I am setting up my shot, I have so much adrenaline and want to shoot the elk badly. As I am settling the image of the elk into the scope of my gun, it moves 5 feet, which makes me nervous. The problem is there are branches in between the elk and I. Ten seconds later it moves again (Hallelujah!!). Now I have a good shot at the neck, and as I gain confidence with the gun, Vance whispers to shoot when I am ready. I am definitely ready!

Mentoring Young Hunters 2

The elk’s neck is in the dead center of my crosshairs, I take a breath, then another. That’s when I shoot! It drops immediately but is still a bit alive. The three of us sneak up to the elk as its body is spazzing a little. Vance tells me to shoot it behind the ears to finish it off. As soon as I do that, I have shot my first elk. I am happy and joyful. It makes me thankful that I am with two great hunters who are passing on an age-old tradition.

Another moral lesson of this story is that it doesn’t matter where you are, it matters who you are with and what you are doing. I am thankful that the owner of this ranch let us hunt it, and I had the wonderful guide Vance to help me. After this adventure my dad and I were able to go home sooner than expected and be with our family. We have a nice family dinner that night and make a fire in our fireplace. I look forward to seeing Vance again and going hunting with him. I am grateful that I have my life ahead: to hunt, to be in the woods with my dad and honoring the wild game that we hunt.

Mentoring Young Hunters

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