building on the business concept and incorporating the wildlife lease as your profit tool. learning...
TRANSCRIPT
Building on the business concept and incorporating the
wildlife lease as your profit tool.
Learning Module #5
March 15th 2012
Presenter: Mr. Adam Tullos
Mississippi State UniversityDept. of Wildlife Fisheries & Aquaculture
Welcome
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Outline
Recreational Business ConceptsResource PlanningHunting Lease Considerations
Recreational Businesses
Entertainment businessNatural resource inventoryCompatibility with other operationsSustainability of resourcesPersonal and family assessment
Resource Planning
Business PlanLabor ResourcesPhysical ResourcesFinancial ResourcesMarketing Plan
Operating PlanDescribe the operations• Farm• Livestock• Recreation
Organizational Plan
What is a Lease?
Legal ContractBusiness Transaction
“Document of Design”
Stipulates What’s expectedDetermines who the parties areMS Code 89-2-23
Duty of Care
What is Defined?
TrespasserMay not “willfully” injure.
LicenseeHas permission but same care as trespasser.
InviteeReasonably Safe environment
What Every Lease Needs
Has to be a Written DocumentMust have Accurate Land DescriptionPayment scheduleDamage provisionsShields
Lease Guidelines
Clearly Identifies PartiesPrice Clearly SetActivities AllowedTerm of the Lease
Lease Guidelines
Escape ProvisionsAbility to Sublease or TransferRenewal OptionsRights of the LandownerLiability Insurance and other Liability Shields
Lease Guidelines
“Request” incorporation of clubStipulate Insurance coverageMandate Waivers
Signatures on lease will work.
One Step Further
Harvest RestrictionsSafety PlanReporting & UpdatesManagement PracticesFines, Penalties, and assessments
Improve Effectiveness
Choose Good LeadersMake Rules Not SuggestionsMake Safety the Primary Issue
Types of Leases
Short-termDaily HuntingWeekly HuntsSpecial Season Hunts
Perpetual LeaseSeries of Annual LeasesTypically used by Timber CompaniesBeneficial for landowners who share partial property rights. (I farm you hunt)
Types of leases
Term LeaseSeasonal• Deer SeasonPeriod• Two MonthsAnnual• Right of First
Refusal“Stacked”
Deer SeasonTurkey SeasonTrail Riding
Lease Revenue Potential
1000 acres: 900 acres forested40 acre lake60 acres in agriculture
Objective:$8,000 annual (Wildlife) revenue
Most people structure it like this?8 people @ $1,0004 people @ $2,000
Lease Revenue Potential
Or, un-bundle the lease structure with a little management and get this.
8 people @ $1,000 for (Deer)4 people @ $ 1,000 for (Turkey)10 people @ $1,000 for (Fishing)15 people @ $200 per gun (Dove)15 people @ $200 per gun (Quail)= $28,000 - $5,000 = Net profit of $23,000
Economic Potential of Leases
High variability in PriceQuality of HabitatDistance for MarketSize of TractAppearance “Management Activities
Economic Potential of Leases
Variability in DemandCurrent Economic SituationEverybody wants a dealOfferings “Packaging”Wise Marketing
Variability in ResourcesWildlife populationsWeatherSite Conditions
Hunting Leases in Mississippi
Price rangesRange: $5 - $150/A/yr2 tracts @ $150/A6 tracts @ $50/A or >$4 tracts @ $35/A26 tracts @ $25/A
1 acre @ $25/A earns $1,000 over 40 years
Hunter Satisfaction
Experience DrivenThe more game seen means higher anticipated quality of areaAs hunter density decreases hunter satisfaction increasesHigh human density may produce hunter/angler conflicts and poor sportsmanship
Harvest Success
Party success increases overall satisfactionThis understanding of hunter preference is important to outfitter successClient Surveys
Hunter Group Indicators
Some Hunters are more sociable than othersWaterfowlers, Upland Bird Hunters, and Deer Hunters share camaraderie However, turkey hunters and anglers who are guided on public waters are very secretive about activities and prefer smaller parties“Tragedy of the Commons”
As more people use a resource the resource in turn becomes limited and less satisfactory or entirely depleted unless managed for sustainability.
Enjoyment of Other Activities
30.4 % indicated no69.6 % indicated yesOf those that indicated yes
Sporting Clays ranked highest – 62 %Fishing was next – 20%Wildlife watching – 9%Skeet shooting – 5%3-D archery, quail/waterfowl hunting – 4% with quail hunting being most preferred of these two
Importance of Amenities
Having on-site lodging increases captured revenues by 30%Offering additional trip related hunting/fishing opportunities increases potential revenue by 20%
T. Adam Tullos
Verona Research and Extension Center
Department of Wildlife, Fisheries & Aquaculture
Mississippi State University
622-566-2201
www.naturalresources.msstate.edu
My Contact Information