Recreational Land as an Investment

There are many great reasons for owning your own piece of farmland or hunting land in South Carolina, North Carolina or Georgia. Many land tracts function as both agricultural and hunting properties. Land prices are down as much as 30% in many areas with returns holding steady around 3% each year. These figures show what an attractive alternative investment land purchases currently are.
With rising food prices, agricultural land is offering even greater returns. All three measures of farm sector earnings experienced strong growth in 2011. In 2012, farmers are earning 28% more for their commodities than last year. Corn, soybeans, wheat and cotton crops all saw a 19% increase from last year to $204 billion.
As far as farmland goes, there are special tax treatments called like-kind exchanges, which can defer capital gains taxes. If you make a profit on your hunting land/farmland (or at least attempt to make a profit), the 1031 tax rule comes into effect, which applies to real estate transactions where the properties are owned as investments.
There are many advantages to owning hunting land or a hunting/farmland combination. When you purchase your hunting land, you may want to consider using your land for other advantageous purposes.