Debate me, or whatever.
Indeed, I agree that running a monocrop business is not going to be a winning plan right now. However, I suspect that a small ranch would have the ability to cover property taxes, and over time I'm guessing we're only going to see the value of such land increase drastically. If one is reasonable with their foresight, I think selling off parcels would provide relative security, even if real estate isn't exactly the most liquid asset.
As for timber, its only expensive if you're seeking a 5-10 year turnaround. Native trees are generally pretty cheap and easy to to start as saplings, even if they do take decades to add significant value.
Of course I'm not arguing that a cash retirement strategy should be all together abandoned. Everyone needs money for daily goods. I just think that land provides a security that cash on its own never can.
Indeed, I agree that running a monocrop business is not going to be a winning plan right now. However, I suspect that a small ranch would have the ability to cover property taxes, and over time I'm guessing we're only going to see the value of such land increase drastically. If one is reasonable with their foresight, I think selling off parcels would provide relative security, even if real estate isn't exactly the most liquid asset.
As for timber, its only expensive if you're seeking a 5-10 year turnaround. Native trees are generally pretty cheap and easy to to start as saplings, even if they do take decades to add significant value.
Of course I'm not arguing that a cash retirement strategy should be all together abandoned. Everyone needs money for daily goods. I just think that land provides a security that cash on its own never can.
Timber isn't cheap to plant unless you can get a grant from the government. It can easily run 6 to 7 figures for the planting once you add in prep work (raking, spraying, and burning) and cost of seedlings. The USDA offers a grant program for some native species where you can get up to 90% of the costs back but it's on a first come basis, has strict deadlines, and you have to put the land in conservation status for at least 10 years. And you still have to pay property taxes on the land and maintain the land with periodic controlled burns. If you want to be making income from it without selling pieces then you can grow pine and setup a pinestraw operation about 5 years after planting.
Source: My family is currently replanting our timber tract and I'm the one who gets to make sure the process is going correctly since I live the closest to it.
Timber isn't cheap to plant unless you can get a grant from the government. It can easily run 6 to 7 figures for the planting once you add in prep work (raking, spraying, and burning) and cost of seedlings. The USDA offers a grant program for some native species where you can get up to 90% of the costs back but it's on a first come basis, has strict deadlines, and you have to put the land in conservation status for at least 10 years. And you still have to pay property taxes on the land and maintain the land with periodic controlled burns. If you want to be making income from it without selling pieces then you can grow pine and setup a pinestraw operation about 5 years after planting.
Source: My family is currently replanting our timber tract and I'm the one who gets to make sure the process is going correctly since I live the closest to it.
Ask the farmers in Georgia about it right now. Estimates are currently at $3 billion in agriculture losses from Hurricane Michael and they are saying that number may go even higher. Pecan harvesting was at 5% harvested when Michael hit and that was from the first drop. Second drop is gone in many areas. Cotton was affected, peanuts were affected, and timber was hit hard. All farmland that just took a hit like the 401ks did in 2008, except this has happened 3 years in a row for South Georgia farmers. And if you're think that the land itself is worth something, it isn't worth that much. Land is cheaper in rural areas compared to suburban or urban land. And it doesn't gain value unless you plant timber, which isn't cheap to do.