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The Green Generation: Understanding the Land Investors of Tomorrow Land professionals are not in the land business so much as they are in the people business. The client will always be at the center of the land professional’s duties, and even the most knowledgeable land experts will find their expertise useless if they cannot understand their clientele.
Terri Jensen
Accredited Land Consultant National Land Realty 1005 Superior Drive Northfield, MN 55057 (855)384-5263
For some time, at least, that facet of the land industry was straightforward: investors, farmers and ranchers wanted to make money, and all land professionals needed to do was assist them in reaching that goal. But, as no one needs reminding, times have changed. Farmland is moving quickly — 40% of the nation’s agricultural land is set to change hands in the next 15 years, reports American Farmland Trust — and the new landlords do not all resemble their predecessors. The number of female farm producers, for one, increased by nearly 27% in the five years leading up to the 2017 U.S. Department of Agriculture Census. But more notable yet are the motivations behind these new producers and investors; for many, non-economic concerns take precedence. What are these ‘conscious investors’ looking for, and how can land professionals prepare to guide them? Those questions are discussed below.
What are They Looking For?
It is important to understand who constitutes this particular wave of owners and operators. The investor in question is, more often than not, a young woman who resides in an urban area and holds broad social and political beliefs. They are willing and able, furthermore, to act on those beliefs, and will be more concerned with health, sustainability and environmental preservation than the economic prospects of entering the agricultural land market. As such, these investors are likely to seek opportunities for soil regeneration, wildlife preservation, diversification in crops and livestock, nutritious food production and safety for farmhands. They will, at the same time, wish to avoid harmful chemicals, genetically modified organisms (GMOs) and excessive tillage. All these factors converge toward a regenerative, environmentally and socially
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sustainable production model.
How Land Professionals Can Serve the Conscious Investor
Providing a “conscious investor” with the most lucrative investment opportunities will no longer cut it. It is up to the land professionals to reeducate themselves for the task of serving an entirely new kind of client, the needs of whom require organic, community-supported, regenerative agroecology and a host of external influences. Fortunately, resources are abundant; many programs exist for the sole purpose of teaching landowners how to thoroughly and efficiently meet those goals. Land professionals would do well to benefit from such resources, as there is much to be learned. To begin with, land professionals must learn to ask the right questions. Determining the specific needs of the client is a prerequisite to meeting them, and ambiguous terms like “organic” and “sustainable” can result in misunderstanding. Inquiring about specific focuses, such as those listed above, will ensure that the professional and the client are on the same page. Then, they must learn how those desires are realized (that is, the agroecology), as well as the obstacles and opportunities that may influence the process. Legislation, financing, land restrictions, easements and market trends can all hinder or, in most cases, benefit the inventor’s efforts. It is the land professional’s responsibility to guide their client through these complexities.
Conclusion
A new kind of buyer has arrived in the agricultural market, and they are certain to leave a mark. Accommodating the concerns, desires and needs of these “conscious investors” will pose a steep challenge for some, but that same challenge will, as always, bring opportunity to those who are willing to embrace it. While this overview provides a starting point for doing just that, the rest remains up to every land professional. The ones who today choose to educate and equip themselves are the ones who will, ultimately, reap the benefits tomorrow.
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