Timber Plus: Additional Revenue Sources for Landowners

By Jennifer Hunt (Content Writer) and Chuck Mathis (Managing Director, Southern Operations)

Taking a traditional view of land, revenue often comes from timber sales. However, as forestry has evolved, the industry has taken a holistic approach to the land, finding other alternatives to maximize and diversify revenue streams. There are numerous ways to earn revenue from land and non-timber products and services, including land leases, conservation and carbon opportunities, and other land uses.

Land Leases

Leases are a way for owners to rent out portions or the entirety of their land to gain passive income. This can take the form of recreational leases, agricultural leases, and beekeeping leases.

• Recreational leases: Hunting leases are an attractive option since so much land is privately owned. Hunters can purchase leases through our hunter portal and gain access to acres of hunting land in various geographies. AFM manages the entire process from start to finish.
• Agricultural leases: As with recreational leases, agricultural leases define the terms in which the land can be used. They determine the duration, acceptable purpose, and expectations for how to farm the land (conservation tillage, etc.), and the cost of rent, etc.
• Beekeeping leases: This option is beneficial in tandem with agricultural leases as it makes the land more productive and helps farmers pollinate crops. It can make use of underutilized or lower-quality portions of a tract that have little to no impact on the property itself. Leasing property to beekeepers may also help landowners qualify for agricultural tax benefits depending on the state and county.

While AFM handles all the details and logistics, landowners can rest easy knowing that their property is earning income.

Conservation and Carbon Opportunities

Similarly, conservation and carbon storage can create revenue streams by engaging with third-party entities that are designed to incentivize landowners to commit to certain land priorities. Companies like Mast, Family Forest Carbon Program, Greenline, LandYield, and others offer carbon sequestration opportunities to NIPF landowners, TIMOs, and other large-scale forest owners depending on tract size and location. Some programs allow landowners to enroll portions of their property in a program, providing important flexibility to achieve other land management goals. Each program has its own specifications and qualifications, so landowners should engage with those companies to determine which will best suit their needs.

Conservation opportunities also abound. While conservation easements can provide tax relief, there are numerous other options for landowners. For instance, grants are available through the USDA NRCS, EQIP, and other federal and state entities. Still, dollars may be available for:

• Wetland preservation
• Neotropical migratory bird conservation
• Renewable energy systems
• Protecting bat populations
• Hardwood rehab

Regardless of your interest area, there may be conservation avenues to explore.

Other Land Uses and Non-Timber Forest Products

There are other land uses and non-timber forest products that can be implemented on part of a tract to help diversify income. Pine straw is a natural result of pine trees shedding their needles, and it is a renewable resource that is widely used in southern landscaping. While there are various costs associated with harvesting pine straw, with assistance from a forester or land manager, the landowner’s profits can often offset these expenses, making it a profitable venture. Collection processes (hand-baled or mechanical), human capital and labor costs, and land management techniques like prescribed burning, fertilizers and herbicidal treatments, and periodic cleaning can all impact the start-up costs. While these conditions are necessary considerations, many landowners do not find the initial investment to be cost-prohibitive.

Finally, other land uses like solar, wind, silvopasture, and minerals are opportunities to create revenue. These options tend to be more prevalent in certain geographic regions and are dependent on local factors like timber and cattle prices, as well as the location of transmission lines. It’s important to note that recreational leases, pine straw leases, and beekeeping leases do not permanently change the land usage, but solar and minerals can impact the opportunity for further timber production. Landowners should work with their AFM forester, land manager, or Certified Wildlife Biologist to determine the long-term result of any revenue sources or land changes, and we want to ensure that our clients feel confident that they’ve made the decision that is best for them, their family, and their land.

Managing land is not a one-size-fits-all solution, and there may be diverse uses for one landowner’s property. Being limited to timber is a thing of the past, and there are now multiple revenue streams to enjoy, whether it’s through land leasing, alternative land uses, or chasing conservation dollars. Whatever works best for you, AFM is there to help you realize your land’s full potential.