5 Ways to Make Money From Your Land... Without Lifting a Finger
Owning land usually takes large amounts of time and resources. If you bought some land – or are thinking about it – you need to know how to make money with your land to offset costs.
How to Make Money with Your Land Quickly
Below are several fast ways to make money from your land without having to do much (or any) work yourself.
Host a Billboard
If your vacant land borders a busy road, having a billboard could put a substantial amount of money in your pocket. Advertising companies are always looking for new locations and might be interested in your location. Payments to landowners vary wildly, depending on the size of the sign, current advertising rates, traffic counts, and numerous other factors.
Lumber companies are often looking for new locations to harvest wood. Prices paid for timber vary depending on what's grown and the age of the trees.
To give you one example, thinning a young pine forest (less than 15 years old) can pay about $250 per acre, while harvesting a mature pine forest (more than 35 years old) can pay $2,500 an acre. For more information, contact your state’s Department of Conservation and ask them about selling timber.
If you have the right to put a structure on your land, you can provide indoor storage. People need a place to store heavy machinery like farm equipment, RVs, and boats – and they’ll pay for it. Just make sure you have the proper insurance for storing valuables on your land.
Open a Campground
If you have vacant land close to hiking or outdoor attractions, you could make some money by opening a campground. Make sure your land has water and some kind of toilet system in place first.
Make Money From Your Land by Leasing It
If you are willing to lease or rent it out, there are plenty of ways to make money off your land.
Offer to Rent Your Land as Pasture
If you have a pasture, you can easily rent vacant land for livestock like cattle or horses. Just remember: Animals may cause long-term damage to your land.
If your land is less than ideal for grazing animals, consider renting it out to beekeepers. Beekeepers in certain regions will pay to keep their colonies on your land. The land may be especially desirable if it borders an orchard or has a particular type of flora (like blackberries) which provides a specific flavor and makes honey more marketable.
Lease Land to Hunters
If you own a large tract of land that’s also home to wild game, you could earn a hefty sum by allowing people to hunt on your land. Arrangements vary from situation to situation, but having some accommodations (such as a cabin with running water and electricity) will make it more attractive to prospective hunters.
Always check the local restrictions for hunting with the local wildlife department. Don’t forget to check whether guests have hunting permits before they arrive.
Allow Farmers to Lease Land
Many landowners with property near farms have had success leasing it to farmers. The farmers will care for the land and harvest crops. All the owner has to do is set up a lease agreement. The larger your plot of land, the more attractive it will be to interested farmers.
Rent Plots to Local Gardeners
Community gardens are becoming increasingly popular. If your land borders residential neighborhoods or apartments, you may have luck renting plots of land to community members for their own personal gardens.
How to Make Money Buying Land: Subdividing
While the ideas above represent ways to profit while keeping ownership, the most money you can make from land is from selling it – and in more than one piece.
Selling your land in multiple pieces is called subdividing. By subdividing your plot, you could earn more from pieces of your land rather than if you sold it as a whole (unless the land is in an undesirable/isolated section). You have the option to sell all or a few of the plots to keep a portion of the land for yourself. It’s important to remember that selling a portion of your property will make the remaining acreage less valuable.
To check on the zoning laws for subdividing, go to your county’s planning and building department website.
Ask the Experts About Making Money with Your Land
InvestingAnswers is on a mission to help consumers build and protect their wealth through education. That is why we have experts answering your pertinent questions at the end of each article.
Q: How Much Money Can You Make Farming 1 Acre?
According to farming progress projections, corn and soybeans can yield $673 per acre. That said, the average cost of farming 1 acre of land is $664 on average. This means farmers barely break even one farming one acre of land. Unless you’re planting your own garden, don’t plan on renting out an individual acre to farmers.
Q: How Do You Make Money with an Acre of Land?
One acre of land can be rented out as a campsite, the spot to host a billboard, or used as storage. One acre of land is most likely too small to rent to farmers or for pasture. Keep in mind an acre is smaller than a football field which limits your ability for any scale of production, though an acre is still enough to grow smaller crops such as strawberries or lettuce and perhaps plan to sell some at farmers markets.
Personalized Financial Plans for an Uncertain Market
In today’s uncertain market, investors are looking for answers to help them grow and protect their savings. So we partnered with Vanguard Advisers -- one of the most trusted names in finance -- to offer you a financial plan built to withstand a variety of market and economic conditions. A Vanguard advisor will craft your customized plan and then manage your savings, giving you more confidence to help you meet your goals. Click here to get started.