Iowans find new ways to enhance revenue from rural property

On a sweltering June afternoon, dozens of Girl Scouts scamp around Maria Koschmeder's Kids in Nature farm in rural Williamsburg, tossing spears, shooting arrows and braiding feathers into their hair.

Koschmeder had invited the troops - 45 rambunctious girls and their leaders - to her 10-acre property for a camp-type experience as part of a recent decision to market her property's natural beauty and resources to anyone looking for a rural getaway.

“I had always wanted my own property to plant things on and to develop, but I didn't really think about it too much as a moneymaking thing because I didn't need to worry about that,” Koschmeder said.

She said she had to find a way to make more money off the land to support her family when the economy changed.

The original thought was to offer guided tours on her property to visitors of the nearby Amana Colonies. Those tours are still available, but at the start of this season Koschmeder hoisted a teepee and began offering camping and pond rentals as well in hopes of capitalizing on those living in and outside Iowa who have never truly experienced the state's rural majesty.

“They can sleep in the teepee, I can show them how to use the kayaks, they can go fishing on the pond,” she said. “It's just kind of like a little private campground for them.”

Growing trend

More rural landowners in Iowa like Koschmeder are renting portions of their property for recreational purposes like camping or hunting, said Mike Duffy, economist for Iowa State University Extension and Outreach and professor of economics.

The trend, in large part, seems to be financially driven, Duffy said.

“It gives them an extra source of income,” he said. “And it helps them control, somewhat, who is on the property.”

Landowners started leasing hunting rights to their private properties years ago, but Duffy said property owners have developed a wider range of rental ambitions.

“You have people who will actually raise birds and release them and will set up a whole cabin and cook breakfast,” he said. “It becomes more of a package rather than you can just walk my ground and hunt it.”

Still, according to Duffy, there are plenty of landowners simply renting their grounds for hunting purposes, and that number is growing at a quickening pace. In fact, for the first time, the Iowa State University Extension and Outreach included in its 2012 cash rental rates report the average rental rates for hunting rights.

The going rate for hunting rights in the district that includes Linn and Johnson counties is about $14 an acre, according to the report.

“I don't see why it would diminish,” he said.

Many landowners are just now becoming aware of the new way to capitalize on their own backyards.

“People are realizing there are opportunities to earn money with the property that they might not have been able to use before,” Duffy said. “So they might as well.”

The good, the bad

There are pros and cons to private land rentals. Some experts say it's helping Iowa's economy by bringing in tourists and producing revenue for some landowners. Others are not happy about the movement toward private property rentals, especially when it comes to hunting rights.

Hunters used to be able to go nearly anywhere they pleased, knock on a property owner's door and ask for permission to hunt.

“The good ol' days of knocking on people's doors and working for farmers have gone by the wayside,” said Tim Powers, 45, of Lisbon, a member of the conservation group, Whitetails Unlimited. “I never thought I would actually see this in my life, but here it is.”

Powers said he's had two pieces of property that he regularly hunted “leased out from under me” in recent years. And even though rental agreements typically last one year, those hunters with deep pockets keep returning.

Powers said many of the hunters paying large amounts to hunt on private property in Iowa come from out of state. He's concerned those people don't have an understanding of the need to maintain a balance of the wildlife and protect the crop land.

Booming business

Charlie Leece, a consultant for the Hunting Lease Network based in Omaha, Neb., said his business - which acts as a middleman for property owners and the hunters who want to rent their grounds - is booming.

The network is offering or facilitating hunting leases in 22 states, including Iowa.

“Business is probably at its highest peak right now,” Leece said. “We have right around 103,000 bidders registered on our website.”

Despite the angst that private property rentals have caused is some circles, others are grateful for the chance to experience something - or someplace - they might not have been able to before. The Girl Scout leaders and troop members who recently camped on Koschmeder's land are among the appreciative ones.

“I think it's amazing, it's really fun,” said Brooke Coffman, 10, of South English. “It's just a good way to get away from my brother.”