Missouri Lease Hunting/Fishing Arrangements (& Wildlife Watchers) Joe Parcell Department of Agricultural Economics, University of Missouri - Columbia College of Agriculture, Food, and Natural Resources Lease Hunting Provides landowners the opportunity to supplement their income while enhancing wildlife habitat on their property Recreational Lease agreement between a person who controls access to the property and person who wishes to use the property for recreational use College of Agriculture, Food, and Natural Resources College of Agriculture, Food, and Natural Resources College of Agriculture, Food, and Natural Resources Hunting Equipment Hunting Coat Hunting Pants Hunting Hat Dog Gun 4-wheeler Truck College of Agriculture, Food, and Natural Resources Note: Native wildlife cannot be leased or sold by a landowner because it is publicly owned by the state. The public owns it, but . . . private land managers control wildlife populations College of Agriculture, Food, and Natural Resources The Leasing Process What sportsman look for in a hunting lease: Less competition from other hunters Abundant game densities An atmosphere in which they feel welcome Safety Convenience or close to home Potential trophy quality game Convenient, comfortable and dependable lodging College of Agriculture, Food, and Natural Resources Liability Landowner should: inspect property for hazards inform lessee of hazards adequate liability coverage have lessee sign a proper written agreement with a liability waiver monitor actions of lessee College of Agriculture, Food, and Natural Resources Liability When landowner accepts a fee for hunting on their property, they take on legal responsibility for the safety of the hunters. The paying hunter becomes the “invitee” Missouri law states that landowners have a “duty of ordinary and reasonable care” to their invitees College of Agriculture, Food, and Natural Resources The Liability Cost $1,000,000 Umbrella Liability policy It has been suggested that $500,000 is sufficient, but . . . @$100/annually the cost of $500 K and $1 mil may not be that much different Check with your insurance sales person College of Agriculture, Food, and Natural Resources Cost - Benefit Analysis Cost are generally minimal in a simple lease Legal fee to review the lease Additional insurance premiums Landowners time to: • write contract • interview lessee • analyze harvest information • monitor lessee College of Agriculture, Food, and Natural Resources Habitat Enhancement “The Better the Experience, the More Hunters are willing to Pay” Habitat management through: brush control choice of crops timber management weed control planting perennial grasses tillage burning College of Agriculture, Food, and Natural Resources Fee Hunting Income Potential Farm Game: Forest Game: Potential daily lease Annual rental income income with additional with straight lease services provided Quail/rabbit $1 to $5 /acre $150 to $465/person/day Dove $20 to $40 /acre $5 to $20/person/day Deer $1 to $10 /acre $200/person/day Turkey $1 to $10 /acre $150 to $350/person/day Grouse $1 to $5 /acre --------------------------- Squirrel Wetland Game: $1 to $3 /acre Ducks $30 to $300 /acre --------------------------$50 to $150/person/day Geese $30 to $300 /acre $100 to $200/person/day College of Agriculture, Food, and Natural Resources Cost - Benefit Minimum cost - $200 Charge $3/acre Conclusion: minimum 70 acres to breakeven College of Agriculture, Food, and Natural Resources Cost - Benefit Example $3.00/acre hunt lease, $100 insurance, $50 legal fee, & $50 in landowner time suppose you leave filter strip around 300 acre corn field • 4 acres out of production Corn price $2.30 $2.50 $2.70 $2.80 Net return from corn -$44 $36 $116 $196 Lease net value $700 $700 $700 $700 difference $744 $664 $584 $504 College of Agriculture, Food, and Natural Resources Marketing What game are you going to market? Who is your target market? How will you advertise? College of Agriculture, Food, and Natural Resources What game are you going to market? College of Agriculture, Food, and Natural Resources Deer Harvest in Central Missouri (10 districts reporting) (percentage of total deer harvest) 18 16 14 12 10 8 6 4 2 0 1994 1995 1997 1998 1999 College of Agriculture, Food, and Natural Resources Source: MDC 1.0 -1.9 0.0 0.1 - 0.9 College of Agriculture, Food, and Natural Resources > 2.0 Not surveyed Source: MDC 0-5 6 - 15 College of Agriculture, Food, and Natural Resources > 15 Not surveyed Source: MDC 0.0 - 0.4 0.5 - 1.0 College of Agriculture, Food, and Natural Resources < 1.0 Not surveyed Missouri Dove Density Source: MDC College of Agriculture, Food, and Natural Resources Missouri Turkey Density Source: MDC College of Agriculture, Food, and Natural Resources Who is your target market? College of Agriculture, Food, and Natural Resources Game Bird Hunting 19,341 pheasant hunters in Missouri in 1998 57,995 quail hunters in Missouri in 1998 College of Agriculture, Food, and Natural Resources Turkey Licenses sold in Missouri Source: MDC 150000 145000 140000 135000 130000 125000 19 86 19 87 19 88 19 89 19 90 19 91 19 92 19 93 19 94 19 95 19 96 19 97 19 98 120000 College of Agriculture, Food, and Natural Resources College of Agriculture, Food, and Natural Resources College of Agriculture, Food, and Natural Resources College of Agriculture, Food, and Natural Resources College of Agriculture, Food, and Natural Resources College of Agriculture, Food, and Natural Resources College of Agriculture, Food, and Natural Resources 206,000 in age group 25 -64 College of Agriculture, Food, and Natural Resources 793,000 in age group 25 -64 College of Agriculture, Food, and Natural Resources 1,900,000 in age group 25 -64 College of Agriculture, Food, and Natural Resources Advertising Newspaper add Suggested beginning at 45 days prior to season Internet College of Agriculture, Food, and Natural Resources The Lease College of Agriculture, Food, and Natural Resources Types of leases Year-round Limited duration Most year-round leases convey exclusive rights to specified recreational activities Most seasonal leases convey exclusive rights to the specified recreational activities during the term of the agreement. Day Hunting College of Agriculture, Food, and Natural Resources Types of leases Guided Hunts General recreational lease Activities such as fishing, camping, hiking, or wildlife observation College of Agriculture, Food, and Natural Resources Every Written Lease Needs: Description of the recreational rights, services and facilities being leased Names of the lessor and lessees involved Description of the property being leased Species to be hunted Terms of payment Duration of the lease Definition of who has recreational rights Signatures College of Agriculture, Food, and Natural Resources Other Considerations College of Agriculture, Food, and Natural Resources Miscellaneous Owner retains hunting rights for family/friends Hunters record game harvest If lessee builds a shelter who provides the utilities? who owns it? College of Agriculture, Food, and Natural Resources Care of Property Access to hunting areas/Parking/When vehicles are allowed over fields Improvements allowed to the lessee Rules on opening and closing gates College of Agriculture, Food, and Natural Resources Care of Property Restrictions on fires and cook stoves Trash removal Use of buildings, toilet facilities and water Tree cutting College of Agriculture, Food, and Natural Resources Additional Benefits Allows landowner to have someone monitor land for trespass problems Lessee may be willing to exchange recreational rights for helping out on the property Example • Given hunting rights for a year in return for helping paint a building College of Agriculture, Food, and Natural Resources Conclusions Economic value Liability Market College of Agriculture, Food, and Natural Resources