What are the main types of ranch investments?

Cattle Ranches – One of the most common forms of ranch investments, ranching typically involves raising livestock such as cattle, horses, and sheep on expansive tracts of farmland. Aside from common livestock, animals like American bison, alpaca, and elk — as well as exotic birds like ostriches and emu — may also be raised.

At present, most of the working ranches in the United States are typically used in the production of meat, milk, wool, and other animal products. Some ranches in the country, however, have branched out to agrotourism and also offer attractions such as cattle drives, horseback rides, and guided hunting.

Ranching is especially popular in Texas, which is home to about 248,000 farms and ranches, all of which have a combined area of 127 million acres.

Farms – According to the Department of Agriculture, there are about 2.1 million farms spread throughout the U.S., the majority of which are family-operated. Farms in the U.S. typically have an area of about 435 acres, although there are some whose total area exceeds 2,000 acres.

Most farms in the U.S. grow grains such as corn, wheat, barley, and oats, while some grow crops like soybeans, as well as vegetables, fruits, and various other types of produce. Because of the demand for their products, farms are incredibly lucrative ventures, with crop cash receipts from US farms totaling $198.8 billion in 2020.

Fly Fishing and Hunting Properties – Ranch investments also cover properties and attractions that offer fly fishing, hunting, and similar activities to visitors. Fishing and hunting properties are particularly appealing to those who love the great outdoors and the sporting lifestyle, and— much like farms and ranches — come in a wide range of sizes, amenities, and features. For instance, some properties span thousands of acres and include exclusive, luxury lodgings, while some offer a more rugged and rustic experience for buyers.

Roughly 18% of the entire U.S. population, that’s 54.7 million Americans, went on fishing trips in 2020. Hunting is also very popular with 15 million Americans participating in hunting trips in 2020. This can be turned to your advantage. Not only will you enjoy your own hunting and fishing ranch, you can open your property to visitors and generate income. Having recreational activities on your ranch enhances the lifestyle you lead and adds value to your agricultural property.

If you are planning to invest in these types of properties, Montana, Colorado, and Wyoming have some of the best land for fly fishing and hunting in the U.S.

Conservation Ranches – For the most part, conservation quality ranches function just like standard working ranches and farms. These properties, however, employ conservation strategies and sustainable farming practices, both of which help preserve and enhance the land and its resources, promote healthy biodiversity, and help carry on their legacy for future generations.

Entering into a voluntary legal agreement such as conservation easements and land trusts safeguard the ranch’s character and natural resources. However, a much more immediate benefit for the owner is that they can realize tax and or cash benefits, sometimes both. Furthermore, partnership with a local trust gives a new landowner access to expert knowledge and the tools needed to manage the property in a wildlife-friendly and resource efficient manner.

Other types of ranch investments include the following:

• Plantations
• Timber Farms
• Sporting Ranches
• Equestrian Properties

What makes ranches and farmland great investments?

Ranches and farmland are great investments, not only because of the positive combined returns that they deliver to investors but because of how effective they are at hedging inflation compared to other forms of investments like gold and stocks.

Ranches and farms have the ability to provide extra income, which means that investors remain well-protected — even in times when the prices of goods rise and the purchasing power of the dollar decreases. Not only that, but the world’s supply of arable land is decreasing at a steady rate, driving up both the demand for ranch investments and their value.

They are less volatile investments when compared to other major assets, making them especially valuable to those who wish to diversify their portfolios.

Another major plus is that ranches and farmland – depending on which state they’re located in – come with tax breaks and benefits that investors can take advantage of to maximize their earnings.

For instance, Montana allows deductions of up to $50,000 on capital gains – provided that the property covers more than 80 acres, and the sale is done via a long-term, state-approved contract. Colorado, on the other hand, exempts several agriculture-related items from taxes, including farm and livestock equipment, electricity and fuel costs, and proceeds from farm close-out sales.

Wyoming does not tax properties such as farms and ranches based on their market value, but rather, on the agricultural products that they produce. The value of these products are then calculated at a fractional rate of 9.5% — resulting in massive savings for qualified investors. Texas employs a similar tax scheme for agricultural properties, with ranches and farms taxed based on what they can produce rather than their land’s market value. Not only that, but Texas also exempts farm owners and investors from paying state and local sales taxes on most of the items they buy and use for their properties.

What are the past trends and future prospects of ranch investments?

The demand for ranch investments exceeded expectations in 2021, with sales of multi-million dollar ranching properties reaching record-setting numbers.

Real estate professionals place the increase in the sales of ranch investments and other agricultural properties in places like Montana, Colorado, Wyoming, and Texas in 2021 on several important factors. These include the migration of buyers from cities to rural areas, a shift in the U.S. political environment, and stronger overall economic conditions.

As noted by several real estate agents, a significant chunk of the sales made in 2021 were off-market transactions — a scenario largely driven by a combination of limited inventories and buyers wanting to find properties that match their specific wants, needs, and investment goals.

This uptick in the demand for ranch investments and similar agricultural properties is likely to continue in 2022. Interested buyers, however, might find it difficult to get ahold of agricultural properties, especially since land inventory in several states is currently at an all-time low, resulting in a highly competitive real estate market.

Buyers may also see stiff competition from foreign investors, whose interest can often drive up property values to unprecedented heights.

The good news, however, is that current ranch investors are still likely to see healthy returns from their properties this year, with the net farm income for 2022 projected to be at $113.7 billion – only a slight dip from the $119.1 billion recorded in 2021.

What are the nuts and bolts of acquiring ranches?

Acquiring ranches and large land properties can be a complicated affair. Because of this, it is important that you follow certain guidelines, including the following:

• Find a realtor who specializes in ranch investments – One of the smartest things to do is find a real estate professional who specializes in farmland and ranches. Getting the right support at the beginning can save you time and effort, open your options and guide you to the ideal property for you.They must be experts regarding the type of property you want to develop, or at least have a working knowledge of the activities you want to pursue, such as angling, hunting, or farming.Ideally, you want to work with agricultural real estate professionals who are not only about buying and selling residential real estate. Live Water Properties is made up of people who know the land and live the agricultural, outdoor and hunting life, we live what we sell. Being able to provide the support and know how on how to set and run your ranch or farm has earned us glowing testimonials from clients. We want them to enjoy their new properties and we’re more than happy to help in any way we can.
• Decide on the kind of ranch investment you desire – One of the first things you need to do before investing in a ranch or similar property is to zone in on what it will be used for, as well as how it fits with your current lifestyle and investment goals. For instance, if you’re just looking for a place that can function as a private retreat for your family, a small to mid-sized ranch might be more in line with your needs, rather than an expansive estate that may be more suited to investors looking who are interested in activities such as hunting or agriculture.
• Experts in the field – Once you have decided on the type of property you want, the next step is to find the right realtor for your particular type of ranch or farm.For example, if you want to get a fishing property, you’ll need a ranch broker who at the very least knows where there are great fishing waterways and what type of fish are predominant in those waterways. It should then also follow that they’ll know the rules and regulations in these particular areas. Likewise, if you are looking to invest in a hunting property, you’ll want a ranch broker that can get you up to speed with hunting regulations that may be in place in that area.Aside from that, ranch brokers can provide you with nuanced information on factors that affect how you utilize your property, such as its location and accessibility, privacy, fencing, and improvements, as well as leases and conservation easements.
• Find a lender that specializes in ranch investments – If you will be financing your purchase, the next step is to look for reputable lenders who specialize in ranches and similar investments. This option is particularly helpful for those who may be planning to start dude or guest ranches, or luxury fishing and hunting establishments.If you are looking to start a standard cattle ranch or farm, another option is to approach the USDA’s Farm Service Agency, which offers Farm Ownership Loans to qualified individuals.

Ranch investment properties

When searching for ranch investments and similar real estate properties, it is important to choose the ones that best match your needs and overall investment goals.

To give a taste of what could be yours here are some properties to consider:

Ross Plateau

Available for purchase for the first time in four generations, this Bridger-Teton inholding sits 15 minutes from the Jackson Hole town square at the end of a private road. With its elevated location, the property enjoys stunning views of the Teton, Gros Ventre and Wyoming Ranges. Consisting of timber-framed lush mountain meadows, the 159 acres are divided into four parcels that capture the stunning views and have backdoor access to Munger Mountain and the southern Teton Range.

Priced at $25 million and composed mostly of timber-lined mountain meadows, Ross Plateau is not under any deed restrictions or conservation easements. As such, the property lends itself to a variety of uses and can be converted into family hunting ranches.

Ross Plateau is surrounded by the Bridger-Teton National Forest, home to an impressive variety of local fauna, including elk, deer, moose, and bald eagles.

Golden Eagle Ranch

Situated on the banks of the South Platte River in Colorado, Golden Eagle Ranch covers 2,074 acres and has extensive water resources, making it the perfect property for those who want to hunt waterfowl.

In operation for the last thirty years, Golden Eagle Ranch is noted for its healthy populations of waterfowl such as ducks and geese, as well as strong populations of birds such as turkeys, pheasant, and quail. There’s also prime deer hunting, with the owners having chosen not to extensively harvest but keep numbers of deer high by practicing archery hunting exclusively.

Now selling for $17.6 million, this property includes features, such as a six-bedroom and five-bathroom hunting lodge, and an additional storage garage complete with top-quality commercial-grade game processing facilities and kennels.

The Ranch at Aspen Ridge – A luxurious retreat in every sense, The Ranch at Aspen Ridge is located in Oregon’s South Central area and is nestled between the towns of Klamath Falls and Lakeview.

Spanning a total of 3,598 deeded acres, The Ranch at Aspen Ridge has a multitude of luxurious features, including a 7,000 square foot log lodge with a commercial kitchen, as well as five, 1,250 square foot cabins. The property is currently being sold for $10 million.

An off-grid property, The Ranch at Aspen Ridge primarily depends on hydropower for its electricity and has a propane generator as a backup for emergencies.

Aside from its scenic views, The Ranch at Aspen Ridge is also home to healthy populations of elk, deer, trout, and other fauna, making it the perfect investment for hunters and sport fishers alike.

Aspen Ridge offers complete privacy for investors.

Invest in your own ranch or sporting property

If you are planning to invest in ranches, farmlands, and other similar properties, don’t hesitate to give Live Water Properties a call.

A real estate brokerage company, Live Water Properties specializes in investment-quality ranch properties in locations such as Wyoming, Montana, Colorado, Idaho, Nebraska, New Mexico, Utah, and Texas, as well as large land properties in Georgia, South Carolina, and Florida.

Founded in 2001 our brokerage primarily focuses on agricultural and cattle ranches, farms, plantations, fly fishing ranches, bird and big game hunting ranches, and timber farms, as well as other properties like guest ranches.

Live Water Properties has over two decades of experience in the industry, and The Land Report has recognized the company as being one of the top ranch brokerage firms in the world ten years in a row. Live Water Properties is widely known for providing expert-level advice and seamless service to our valued clients, in order to help them make sound decisions when it comes to land and ranch ownership.

Aside from helping buyers find ranches and properties that match their goals and lifestyles, we also assist landowners with their daily operation, as well as their capital improvement projects. Our firm provides consulting services regarding land and ranch market valuation, fisheries and wildlife habitat enhancement and management, and conservation easements.

If you want expert guidance regarding ranch investments and other recreational properties, call Live Water Properties at [ai_phone href=”+1.833.982.1964″]833.982.1964[/ai_phone]. You can also send us a message here to set an appointment with our expert team of real estate professionals.

Jenkins’s methodology of storytelling, where he plays the role of the creative director, story editor, producer, and agent for all his listings. This contributed to extensive media coverage received on behalf of how well he marketed the property, such as Wall Street Journal, Business Insider, RobbReport, Realtor.com, and more.

“The property was shown and had the first offer by the buyer in only three days, then went under contract three days later, closing in 39 calendar days. It was truly an honor to have an opportunity to work on this estate property. You have to dig deep into the backstory and understand the heritage and legacy to tell the story from an informed standpoint,” said Jenkins.

Jenkins was the top-selling individual agent in Wyoming in 2021, as awarded by Real Trends. With $54 million in sales already closed so far in 2022. Jenkins’ distinctive approach to buyers and sellers continues to drive value in a slowing market.

“Latham is the best real estate agent I’ve ever worked with. His willingness to go above and beyond in research helped us to position our property perfectly in terms of price, which led to a fast offer and closing. He misses no detail and does everything he can to make the property look good, the process be smooth, and all parties end up happy,” said the seller, Julie Givens.

To learn more about what created this successful transaction, click here to read the case study.

About Latham Jenkins, Realtor:
Latham’s personal mantra – connecting people with experiences – informs all that he does. It’s how he guides each buyer through this life-changing transaction, driven by his three areas of “hyper-local” expertise: real estate services, lifestyle insights and valued relationships with premier financial planners. With Latham, buyers find more than a home; they find a way of life. In 2021, Jenkins was named Live Water Properties’ Top Producing National Broker and runner-up in 2018 & 2020.

About Live Water Jackson Hole
Live Water Jackson Hole is the residential arm of Live Water Properties, specializing in estate, resort, ranch and luxury properties in the greater Jackson Hole region. LiveWaterJacksonHole.com

About Live Water Properties
Live Water Properties is a land and ranch brokerage specializing in premier fly fishing, hunting, ranching, recreational and conservation land. With $2.625 Billion in closed deals, they are uniquely qualified to assist in all aspects of ranch ownership. Since its inception in 2001, Live Water Properties has grown into a 24-person, 12-state land brokerage firm. They are represented throughout the United States with Brokers in Wyoming, Idaho, Colorado, Nebraska, Montana, Nevada, Utah, New Mexico, Oregon, Georgia, Florida, South Carolina, and Texas. The team at Live Water Properties is distinctly qualified to connect clients with their dream properties.

We thought we’d share with you the many reasons that brought us to the Dancing Pine Ranch and the Durango area in the first place and how we have come to love it.

After deciding to sell our large ranch in Montana, my husband and I spent three years crisscrossing the Rocky Mountain West looking for the “perfect” place to live. We were both mostly retired. I had lived and worked in Monaco for over twenty years enjoying its culture, ballet, opera, and concerts while he was the retired CEO of a large mutual fund company in New York City and has a passion for the outdoors. We both love travel, culture, great food, fine wine, and the outdoors whether it was hiking, fishing, skiing, hunting, or photography.

We knew it would not be easy to find a place that would meet all our diverse criteria. The criteria included:

• Privacy. The property needed to be large enough to be private, but small enough that it wouldn’t be too much work, leaving us free to travel more.
• Great trout fishing. The property needed onsite fishing, with easy access from the house, as my husband is a fanatical fly fisherman.
• Good horse property. We wanted a barn, open meadows, and riding trails, as I love to ride.
• Less than a half hour to a commercial airport since we both love to travel.
• A variety of gourmet restaurants since we are serious foodies.
• High-quality hospital nearby. This becomes more important as we get older.
• Cultural opportunities such as museums, concerts, galleries, etc.
• Wide variety of shopping opportunities from box stores to boutiques.
• A myriad of outdoor activities such as hiking, rafting, skiing, snowmobiling, and wildlife viewing.
• Good weather. Not too hot or too cold and not too rainy.
• A house with a guest house having wonderful views and big enough for family and friends’ visits, home for a caretaker, or as an income-producing rental.

We knew it would be a tough search, but we just were not willing to compromise! It took us a while but after looking at over twenty properties we did finally find that very private “perfect” property.

Dancing Pine Ranch is a 182-acre end-of-the-road property that overlooks the Pine River, a totally private gold-medal trout stream with great fishing and some truly “big” fish. We are surrounded by a large ranch (the owners are here full time and are the nicest neighbors one could hope to have) on the north, south, and west and by the Pine River on the East.

The main house is a magnificent 8,000 sq. ft. home with four bedrooms, four full baths, and two half baths. The kitchen is a 120 sq. ft. gourmet kitchen (I love to cook) with an attached “breakfast” room and walk-in pantry. It is an “open landscape” design home with the kitchen, dining room, living room, and library all open to each other. This open space is great for parties yet intimate enough that it works well for just the two of us. There is a large entertainment deck with a hot tub connecting the kitchen, den, and breakfast room with the master bedroom. I love the views and the sounds of the river.

The sumptuous master bedroom suite has a log propane adobe fireplace opening onto the hot tub deck. The master bath has two quite large walk-in closets, two sinks, two toilet stalls, a glorious two-person shower, and a large soaking tub (luxury personified). They both have great views of the river and its peaceful sounds. In addition, there is a connected TV room/den enabling one of us to sleep (usually my husband) while I watch TV and cuddle with our dogs.

Just beyond the living room, there is a large entertainment room and a game room (pool and ping pong). Additionally, we have nearly finished a large in-law’s apartment.

Downstairs there are two bedrooms, two baths, a comfortable living room, and a small kitchen. A great place for children and grandchildren to stay when they visit! There is also a large (1,000 bottle humidified wine cellar).

The “piece de resistance” downstairs is a large recreation center highlighted by a heated 15-foot resistance pool with an underwater treadmill and adjustable water flow which is a great low-impact exercise. The ranch has a three-bedroom guest house at the entrance to the property plus a large barn and two loafing sheds for horses.

The variety of wildlife is stunning! Herds of elk, many mule deer, flocks of wild turkeys, and the occasional black bear and bobcat. We see deer and elk nearly every day from the house in the meadows to the west, in the same place we have gorgeous sunsets. It doesn’t get any better than seeing the fawns and calf elk frolicking or the bear cubs in our horse watering trough. The birdlife is tremendously varied and a joy to watch. From the Rufus Hummingbirds chasing each other around the feeders to the rare, brilliantly colored Lewis’s Woodpecker, to the magnificent Great Blue Heron nesting in an 80-foot Ponderosa Pine along the river.

We especially enjoy our gardens. Jon grows a large vegetable garden where he grows sweet corn, potatoes, watermelons, lettuce, and more. We fence them to keep the deer and elk from eating the fresh vegetables we enjoy eating. In addition, we have several highly productive apple and apricot trees.

Our spectacular flower gardens are a kaleidoscope of ever-changing colors from spring through fall. They start blooming in the early spring with daffodils, then out come the pink and white peonies, purple iris, Colorado columbines with their delicate flowers, and many more. They continue through the summer and into the fall. Since I lived in the south of France, I have a passion for lavender, so we have three different varieties. To attract the hummingbirds and butterflies we have a blanket, cone, and rudbeckia flowers. They are joined by salvia, hyssop, blue geranium, mock orange, Apache tears, and yucca later in July. In the fall the shrubs begin to take over with their burgundy foliage and candy pink coral berries. Since I grew up in the Midwest and love the brilliant red of maple trees, we have two that contrast with the big golden aspen trees in our front yard.

The Pine River is a trout fisherman’s dream! It is a wholly private tail-water fishery big enough to have a good population of trophy (over 20”) browns and rainbows, yet small enough and private enough that there is never a drift boat or another fisherman. Since it is a tail-water fishery it fishes well pretty much all year long. Jon loves fly-fishing and gets truly excited to watch a big brown or rainbow rise to his hopper imitation. While the average fish he catches is in the 16” to 18” range he frequently catches ones much larger. His biggest is a 27” brown and most days he will catch at least one that is 20” plus. Usually, a half day of fishing produces six to ten fish, mostly browns with a good number of hefty rainbows. Having the river down the hill from our house is tremendously convenient – no loading the car, attaching a trailer, and driving an hour or more to start fishing.

The nearest town of Bayfield is about a ten-minute drive from the Dancing Pine Ranch. Bayfield has all the essential small-town services plus a couple of quite good restaurants. If you want to join the locals for a hearty meal the western atmosphere of Brenda’s is the place to go. There are a couple of good restaurants serving Mexican, pizzas, and burgers with craft beers. Our favorite for dinner is the Mill Street Bistro, which serves three gourmet entrees, great starters, and the choice of some awesome cocktails. They are open Wednesday to Saturday evenings and will do catering to your home.

In Durango, only a half-hour drive from Dancing Pine Ranch, there are at least a dozen truly gourmet restaurants. Eating in the historic Strater Hotel is a must. You have the choice of the Diamond Belle, a western saloon, where the staff dresses in period dance hall costumes and has great food and drinks. The more romantic choice in the Strater is the gourmet Mahogany Grill. We are frequent diners at Seasons who have won the Best Award of Excellence from Wine Spectator, Eolus with their rooftop dining and incredible “Two Ways’ prime rib that Jon usually eats and the lobster burger that is my favorite. Other restaurants that we regularly dine at including Ore House (steak and seafood), Primus (wild game and seafood), and 636 Main (Fine dining and martinis). The wide range of choices includes American, French, Mexican, Italian, and even Himalayan. It is so close to such outstanding food choices that we are regular patrons.

Durango and its airport are each about a 30-minute drive from the ranch. The Durango/La Plata County Airport has frequent daily service by American and United to Denver, Dallas, and Phoenix.

Durango is a marvelous town. The weather in Durango and Bayfield is nearly perfect. With early springs, late falls, and comfortable summers. It was recently ranked by the Tourism Sentiment Index as the most loved tourist destination in Colorado and number seven in the United States. No wonder we love it so much! Its number of gourmet restaurants, a wide array of cultural opportunities and outdoor activities, and great shopping are what brought us here in the first place. The incredible cliff dwellings at Mesa Verde National Park, the narrow-gauge steam-driven train up the near vertical Animas Canyon, the world-class hot springs at Pagosa Springs, the skiing at Wolf Creek and Purgatory, the 1.8-million-acre San Juan National Forest with its many hiking trails to high mountain lakes, wildflower meadows, and bugling elk, are all within an hour’s drive. Additionally, historic high mountain towns like Telluride, Ouray, and Crested Butte are only a day’s trip away. Sante Fe with its myriad of art galleries and fine restaurants is only about a three-hour drive away. You could live here for a lifetime and not have seen all the fascinating activities the area has to offer.

Friends ask us, “Why are you planning to leave the place you love so much?” Well, we are not leaving Durango we love it too much! We’re just downsizing a bit and buying a boat that will enable us to cruise the Bahamas, Nantucket, and other places for six months of the year.

Explore the Dancing Pine Ranch and the lifestyle that awaits a new owner here.

Tommy Bagwell was the owner of American Proteins, before selling the company to Tyson Foods in 2018. Originally founded by his father in 1949, the company is a world leader in poultry protein and fat sales. The Bagwell family owns a similar sporting property in north Georgia and enlisted Live Water Properties to help purchase a ranch with the goal of creating a legacy retreat for their family with sporting elements and privacy. After narrowing the search to Colorado, they looked across the state, from the Vail Valley, South Park, Gunnison, and Crested Butte. Their search eventually led them to Steamboat and the Big Creek Ranch. The property was not actively listed at the time of purchase, though it had been listed previously.

According to a recent article in the Wall Street Journal, “Mr. Bagwell said he spent several years searching for the right property and was drawn to the privacy of Big Creek Ranch. About 80% of his property line abuts land owned by the U.S. Forest Service. The eight-bedroom, 10,000-square-foot main residence also is situated a few miles from the main road. ‘You can be out roasting s’mores and know in the next 100 years, no one will have a house on the ridge looking into your property,’ Mr. Bagwell said. ‘That’s very rare.’”

“As the crow flies, it’s less than 10 miles from the resort area,” Live Water Properties Broker Brian Hartley told the Wall Street Journal. The article continues with Hartley adding, “the ranch’s size, proximity to town and privacy would be impossible to replicate in other popular resort areas, including Jackson Hole, Wyo., Telluride, Vail and Aspen. Compared with other resort valleys, Steamboat has been under the radar until recently. That shifted in the past couple of years. Numerous large parcels traded hands in late 2020 and 2021.”

The ranch is partially under conservation easement by Colorado Cattlemen’s Agricultural Land Trust. As exceptional stewards of the land, the Bagwell family intends to pursue additional conservation and habitat enhancement projects on the ranch. According to Live Water Properties Associate Broker Brian Hartley, “The Bagwell Family looks forward to continuing the long-standing agricultural practices on this iconic Colorado working and sporting ranch. With an eye towards preservation and land stewardship, the family will be undertaking efforts to improve the fishery habitat along Big Creek, as well as considering the placement of conservation easements on the ranch to protect the private valley in perpetuity”.

Read the entire Wall Street Journal article here.