Agricultural farmland is typically valued based on its productivity, location, and access to infrastructure. However, in recent years, there has been a growing trend of recreational development on agricultural land, particularly in areas known for their natural beauty or recreational opportunities. This includes the development of duck hunting land in the Mississippi Delta, a region known for its rich wetlands and diverse wildlife.

One of the key factors that can add value to agricultural land for recreational development is the availability of water resources. In the Mississippi Delta, this includes both natural and man-made water sources such as rivers, streams, and wetlands. Improving these water resources can not only enhance the recreational value of the land, but also improve the overall productivity and value of the agricultural operation.

The Primary benefit of recreational development on agricultural land is the opportunity to generate additional income streams for the landowner. This can include income from hunting leases, fishing permits, and other recreational activities that take place on the property. In some cases, these income streams can be more reliable and profitable than traditional agricultural operations, particularly in regions where agriculture is impacted by environmental or economic challenges.

One way to improve water resources on agricultural land is through drainage control and water management. This can involve constructing levees, ditches, and other structures to control the flow of water and prevent flooding. It can also involve working with agencies like the U.S. Army Corps of Engineers and the Natural Resources Conservation Service (NRCS) to implement best management practices and make informed decisions about water management on the land.

Another way to add value to agricultural land for recreational development is through the development of green tree reservoirs. Green tree reservoirs are areas of land that have been purposely flooded to create habitat for waterfowl and other wetland-dependent species. These reservoirs are typically managed for hunting, fishing, and other recreational activities, and can provide significant economic benefits to the surrounding community. The process of developing a green tree reservoir involves careful planning and coordination with agencies like the NRCS and the Corps of Engineers. This can include conducting environmental assessments, obtaining necessary permits and approvals, and working with local stakeholders to ensure that the project aligns with community values and goals. The value of green tree reservoirs as recreational destinations is often determined by the quality of the habitat and the number and diversity of species that they support. Factors such as the size of the reservoir, the proximity to other recreational opportunities, and the overall level of investment in the project can also impact the valuation of a green tree reservoir.

When beginning your search for recreational investment grade property please keep in mind the following:

1. Research the local market: It is important to understand the local market for recreational land and what factors are driving demand in the area. This can include the availability of hunting, fishing, and other recreational opportunities, as well as the proximity to major cities and other amenities. Please don't limit your search to what you find being marketed heavily on popular land sites. The best value is often derived from off-market farms that can be found through local networks.
2. Determine your goals: Before purchasing land, it is important to consider what you hope to achieve with the property. Do you want to create a hunting and fishing destination, or do you have other goals in mind? Understanding your goals can help you identify the right type of land and assess its potential value to you as well as the market as a whole.
3. Consider the environmental and regulatory context: Recreational development on agricultural land can be subject to various environmental regulations and requirements, such as those related to water management and habitat conservation. It is important to understand these requirements and ensure that the land meets any necessary standards. Understand the encumbrance of any existing conservation easements and how they impact land value in the area you are looking.
4. Assess the water resources: Water resources are often a key factor in the value of agricultural land for recreational development. It is important to assess the availability and quality of water resources on the property, as well as any opportunities for improvement or expansion. Always have wells checked by professionals to ensure they are in working order before executing a purchase to avoid expensive repairs.
5. Work with experienced professionals: Purchasing agricultural land for recreational development can be complex, particularly in terms of navigating regulations and managing the property. It can be helpful to work with experienced professionals, such as land brokers, attorneys, and conservation experts, to ensure a smooth and successful transaction. MFO USA has a vast network of the Southeast's best in class attorneys, conservation experts, and local brokers.
6. Invest in improvements: Improving the land and developing amenities like green tree reservoirs can significantly increase the value of the property. However, these improvements can also be expensive and time-consuming. It is important to carefully assess the costs and benefits of any improvements and make informed decisions about how to best invest in the land. Knowing the best contractors in the area is key to achieving the value you are looking for through land improvments

By following these tips and considering these factors, individuals interested in buying agricultural land for recreational development can make informed decisions and maximize the value of their investment. MFO USA understands each component of this process and has intimately worked with professionals across the Southeast to achieve phenonemal development results. Feel free to reach out if you're interested in learning more or would like to begin the search for the right property.