| r owning your own private pheasant camp | | | | that is managed for pheasants but can also double |
| Have you ever looked into a wild pheasant hunting | | | | as an investment property if the buyer/hunter is |
| trip for your friends and family in South Dakota? | | | | approaching this in an intelligent manner. Here's a |
| You may be surprised at what the costs are | | | | list of the assumptions: total acreage = 700, tillable |
| compared to a hunt at your local game farm. | | | | acres = 525 (75% of total), fair market value of |
| You're not alone. Many sportsmen around the | | | | land = $1500/acre, cash rent for tillable acres = |
| country are noticing limited access to private lands | | | | $70/acre, property taxes = $12/acre, down |
| for hunting and rising rates for commercial hunting | | | | payment required on a 20 year mortgage @ |
| fees. If you grew up with free access to good | | | | 7.0% interest = 20%. Let's also assume that you |
| hunting of any kind it can be hard to stomach the | | | | can only hunt for two weeks out of the year |
| thought of having to shell out a weeks pay just | | | | because you are a non-resident. You are smart |
| to hunt some ducks, pheasants or deer for a few | | | | and you're going to try to make the farm cash |
| days a year. | | | | flow. You are hunting 2 weeks out of a 12 week |
| Now consider the American dream of owning | | | | season so that leaves 10 hunting weeks left. You |
| your own little piece of hunting heaven. I don't | | | | are a nice guy so you leave 2 weeks for |
| think any of us has not had this cross our minds | | | | friends,family and neighbors to hunt for free. That |
| a time or two. Who wouldn't love to have their | | | | leaves 8 weeks in season to lease to paying |
| own little hunting honey hole that affords them | | | | hunters. Assume an average group size of 6 |
| private exclusive use and control over the hunting | | | | hunters per week with and average price per |
| environment. For many this dream is simply not | | | | hunter of $595/person. You're going to have to |
| possible due to cash flow, time, distance or family | | | | have a place for the hunters to stay and you'd |
| constraints. | | | | like to have a place yourselves so you throw |
| How many of us have heard the phrase "You get | | | | $40,000 into fixing up the pole shed that came |
| what you pay for
"? How may of us have | | | | with the property. Luckily for you it already has |
| oftentimes found this to be quite true in dealings | | | | water, septic and electric at the building. |
| in our lives? I can assure you I have learned | | | | OK, with all the assumptions in place for a typical |
| these lessons more times than I care to admit. | | | | South Dakota Wild Pheasant Ranch, here's how |
| Maybe the bitter pill of commercial fee hunting | | | | the cost of ownership numbers shake out: |
| rates might be tamed if we understood these | | | | The Purchase + Annual Expenses: |
| rates as compared with the costs of ownership | | | | 700 acres @ $1500/acre = $1,050,000 |
| of a similar hunting setup that we wanted to own | | | | 20% Down Payment Required = $210,000 (Cash) |
| ourselves instead. For the purposes of this article, | | | | Balance on 20 year mortgage @ 7% interest = |
| we will look at pheasant hunting land which has | | | | $840,000 |
| been in the spotlight in South Dakota-one of the | | | | Annual Mortgage Payment = $79,290.06 |
| nations premier destinations for pheasant hunters | | | | Annual Property Taxes = $8,400 (700 X $12) |
| seeking the ultimate pheasant hunting experience. | | | | 50 Food Plot Acres - Fertilizer/Seed/Labor @ $70 |
| First let's set our expectation baseline by looking | | | | acre = $3500 |
| at commercial fee hunting rates on a 4-night stay | | | | Water and Electric = $1500 |
| 3-day hunt for anywheres from a do-it-yourself | | | | Total Annual Expenses years 1 = $342,690 |
| pheasant package to a premium all-inclusive guided | | | | Total Annual Expenses years 2-20 = $92,690 |
| package. As you search the internet you will | | | | The Income: |
| typically find these packages to range from | | | | 8 Groups of 6 @ $595/person = $28, 560 |
| $500-$2,000 for a person depending on what is | | | | Cash Rent on 525 acres @ $70/acre = $36,750 |
| provided in the package. Since non-residents buy | | | | Total Annual Income = $65,310 |
| a license that gives them 2 five day periods let's | | | | The Cash Flow: |
| assume that a group would want to come out | | | | Year 1 Income - Expenses = ($277,380) |
| twice and take advantage of the two hunting | | | | Year 2-20 Income - Expenses = ($27,380) |
| periods on their license. Let's also assume that | | | | Long-term Annual Cash Flow = ($27,380) |
| we're going to go all out and stay with the 5 star | | | | Now of course this doesn't factor in tax breaks, |
| outfitter. Their rate is $2,000/person X 2 trips | | | | investment appreciation, etc. But then it also |
| and you are looking at a $4000 annual bill. | | | | doesn't capture all the true expenses either. |
| Now that we have set our baseline, let's compare | | | | Bottom line, that $4,000 premium hunting trip(s) |
| these costs in order to have a similar experience | | | | of a lifetime is looking like a pretty good deal |
| at your own little private exclusive pheasant hunt. | | | | about now, and the do-it-yourself option is looking |
| For these purposes let's make some assumptions | | | | even better! |
| about a typical private property in South Dakota | | | | |