Many Nevada Ranches have BLM range land leases for grazing livestock. For instance, you can own 1000 acres and have grazing access to 40,000 acres through these lease arrangements. There are a few important considerations when shopping the ranch land market and leases. Are the water rights owned, is the land contiguous to the leases?
Range land condition and shared occupancy matter also. Are there wild horses on the ranges? While wild horses are beautiful and an American heritage, they can be very hard on the range land and compete with livestock for the food and water resources on the range land.
Water and drought are coming to the forefront in terms of farm and ranch land purchase considerations. Cattle herds are being sold off today due to lack of water and feed in much of the United States. This will lead to a shrinking supply of beef at your grocery store and of course higher prices.
Food production requires both energy and water. Quality food production without growth hormones, pesticides, and many other types of toxins has become high priority for many consumers. Look at Whole Foods success and the organic food craze. Who in the world would not choose a healthier diet given the opportunity?
So how do we get from old traditional farming techniques to a more efficient, productive, resource conserving food producing world? Can the free market with innovation and capitalism driven by consumer demand really make the numbers work? New innovative irrigation technology has made huge strides in recent years in both production and water consumption. We all know the government spending our money, picking winners and losers is not the answer, it up to you and me.
At the same time the aquifers of the world are dropping. Much of the world’s food production is not only subject to fickle weather patterns requiring the pumping ground water. This resource may be a far greater problem than peak oil. It is a combination of dwindling availability and contamination.
The average cow will drink 30 to 50 gallons of fresh water or a bath tub full per day, and eat up 90 pounds of feed. Hogs or pork production is not much different. Growing corn requires nearly 3000 gallons of water per bushel, Alfalfa requires about one acre foot per ton of hay, which is 325,851 gallons of fresh water per ton. These farm animals are the only source of the beef and pork the world demands. Cows are of course the primary source of dairy. All protein rich foods.
Speaking of the cattle, pork, and dairy industries, if you think you can keep antibiotics out of animals, dairy, and farming, you are dreaming. Prior to penicillin people regularly died from simple infections. You or some of the people you love would be dead today if you had been denied antibiotics.
So this brings us to the balance of the human food sources, fruits, vegetables, and grains. None of these grow without fresh water and good quality arable farm ground. Arable farm is a shrinking natural resource world wide. Aquifers world wide are dropping and irrigation pumping restrictions and reductions are becoming common in some of the most fertile and productive growing areas in the world.
Nevada has abundant affordable land, sunshine, and excellent solar intensity. Much of this land does not produce crops today. Can geothermal climate control coupled with solar, heat and cool green houses? Can hydroponics growing techniques reduce water consumption? Is it possible to eliminate the weather risk and seasonal limitations in farming by bringing farming indoors?
There are many ways you protect yourself and help solve the inevitable food and water shortages. Build your own greenhouse, get some egg laying chickens, get involved in your community gardening program or help develop one. Become educated about water consumption and use. Plant a garden. Move to a small farm .
If you are interested in the business opportunity utilizing affordable land to bring food production indoors in Nevada, call Chris W. Miller at 435-862-5951. We have the business plans, water rights, and the land.
Is Las Vegas Running out of Water? Southern Nevada Water Authority’s Water Problem
May 26, 2010 I attended the Southern Nevada Certified Commercial Investment Managers (CCIM) Chapter monthly meeting at the Rio in Las Vegas. I went for one reason, the title and speaker,
“How You May Be Impacted by Nevada’s Water Supply” presented by Pat Mulroy.
Mrs. Mulroy is the general manager of Southern Nevada Water Authority.
As a long time real estate professional who specializes in agricultural land with water rights in Nevada, I talk with Nevada’s farmers and ranchers’ everyday; I was shocked by the introduction.
The lady introducing Mrs. Mulroy said about her, among other things, how wonderful she is, how hard she works, how powerful she is, and then she said, “and something I’ll bet none of you know about her, She HATES COWS”.
Mrs. Mulroy took the stage and went on to say “anything that dumb and big has to be dangerous” referring to cattle. The friendly crowd of men and women dressed in suits and ties laughed.
I on the other hand, immediately took umbrage, and thought to myself, I wonder if this lady realizes where the food in the grocery store comes from.
I took notes the whole time she talked.
Her presentation seemed to me to be based on the fear factor.
She talked about snow pack in Colorado this past winter being at 67% of normal. She talked about continuing drought conditions. She explained that Lake Mead is running an annual deficit of approximately 2.7 million acre feet this year. There are 8.2 million acre feet coming in and 10.9 million acre feet going out.
Mrs. Mulroy explained the Lake Mead Water level measurements with future projections.
But first let me give you a little history, from 1939 to 2003 Lake Mead averaged 1173 foot elevation, the high water or maximum point for Lake Mead is 1229.
Today Lake Mead stands at about 1094. Since the canyon narrows as it descends, the water level drops faster and faster as it is over drafted, so expect the drop to accelerate.
Mrs. Mulroy explained that at the 1088 foot elevation level they could lose the upper intake for the water supply to Boulder City and 40% of Las Vegas’s supply.
She said, “At 1050 Hoover Dam stops generating power and that the dam supplies all of the electricity to Overton Power and Lincoln County Power.”
“At 1000 Vegas loses the lower intake that would literally cut off 90% of the water supply to Las Vegas and all of the water supply to Boulder City.”
She stated that, Southern Nevada Water Association uses approximately 9.5 million acre feet per year, (that sounds like ten times too much to me) and once Lake Mead goes below 1025 there are only 4 to 5 million acre feet of water left in the reservoir.
She said the Lincoln and White Pine Counties pipeline will start construction in 2012 if the lake goes below 1075, period!
What makes you think they will stop in White Pine and Lincoln Counties?
Michael Johnson, Virgin Valley Water District hydrologist, told me years ago the aquifer that runs under our Mesquite Valley travels under Lake Mead, could they tap into it?
She said “the hyperbole (hyper exaggerations) coming from rural Nevadan’s about their water table concerns was childish.” She went on to say “the rural Nevada farmers and ranchers are being Pig Headed.”
She said” If I have to set up a cot in Harry Reid’s office, I will stay until I get a permanent chair”. I did not know Harry passed out water rights. That job belongs to the Nevada State Engineer.
She said to watch for a favorable Moody’s Rating Agency report coming out that should help support project financing in Las Vegas. I wonder if Moody’s knows any thing about water. Remember the rating agencies said the Mortgage Backed Securities were safe and secure too.
She mentioned desalination, but seemed to dismiss this as a nonviable option either in Mexico or California. Eventually this will be the only answer, once the Nevada aquifers have been depleted. It is only a matter of time.
She may be powerful, but based on her comments, attitude and general demeanor; clearly she is not as sharp as you would expect!
That does not mean you should under estimate her ability or determination to get this done.
You can learn more about me by searching “Irrigated Nevada farm and ranch land with water rights for sale” on any search engine. Written By Chris W. Miller 435-862-5951
The issues of population growth, the future world shortages of food and water are not going away just because much of the worlds population chooses to ignore the facts. They actually think their food comes from the grocery store.
Technology and genetics have and will continue to improve production. Technology is making huge contributions to irrigation efficiency, and will continue to improve. This aspect requires farmers to upgrade equipment. Expensive and for some farmers a nuisance, particularly if they are happy with what they are currently doing.
Seed genetics and plant treatment technology has and will also continue to makes huge strides to add to productivity.
These will not be enough to meet damand. Athough, since 1970, productivity has stayed ahead of demand. This will change in the years to come.
We have a number of properties available for sale with water rights. Some of our properties are located in Southern Nevada. Water rights are in high demand in Southern Nevada, between Coyote Springs, Toquop, the new power plant, and Las Vegas. Water could get real short in the not to distant future. Science shows the Colorado River is way over drafted and Vegas may have a problem with water shortages. Since Nevada water rights are considered appurtenances to the land, they can be sold with the land.
Here are a few Nevada Farms and Cattle Ranches with Water Rights, and we have more:
This Nevada farm land consists of 1000 acres deeded, plus a 33,979 acres BLM range allotment, the BLM ranger told me on a tour, “this is the finest quality range he manages”. There are water rights to 13 springs, some on public lands. Two pivots irrigate 220 acres, at 5 tons per season it could produce roughly 1,100 tons of quality alfalfa per season. Current local market prices are around $130 per ton, which generates estimated gross income nearly $143,000 per season. The 2120 AUM BLM summer range allotment allows for around 250 Head. http://listings.realbird.com/VirtualTour.aspx?id=D7D5D7D4&rb-brand=1&fid=48063
This Nevada farm/ranch consists of approximately 520 acres deeded, Southern Nevada Ground water rights. The ranch is productive, raising quality alfalfa, at 5 tons per season it could produce roughly 2,500 tons of quality alfalfa per season. Current local market prices are around $130 per ton, which generates estimated gross income nearly $325,000 per season. This ranch will be transition land in lifetimes. http://www.propertypanorama.com/tour.asp?id=101804
This old homestead “estate sale” Nevada ranch has not been worked much in some years. Consisting of 266 acres, the property has an old well and I have been told functions. Possibly most important is the 821 acre feet of ground water rights. This ranch is located South of Panaca, Nevada, in Lincoln County. These Southern Nevada ground Water rights have priority dates of 1947. There are two BLM range leases, Panaca Cattle Company and BuckBoard, roughly 60AUMs. http://www.propertypanorama.com/101805
This a special Nevada ranch with water rights because of the location and lay of the land. The “Flatnose Spring/Deer Lodge Valley offers 620 acres, and approximately 3000 acre feet in certified Southern Nevada ground water rights. Plus Flatnose Spring surface water rights, the spring was measured in 2004 at 1,818 liters per minute. The ranch as a history of producing around 1500 tons per season of quality alfalfa per season. Current local market prices are around $130 per ton, which generates estimated gross income nearly $200,000 per season. The owner has been receiving two depredation Deer tags per year and sells them for $5,000 each, this year he has around 40 applicants, he is considering raising the price for the deer tags. http://www.propertypanorama.com/101808
You can own Water Rights in Nevada. The Irrigated Land in Nevada can be leased back to farmer operators and provide return on your investment.
For more information, give Chris a call 435-862-5951
Chris W. Miller
Las Vegas, NV 89123
702-733-9337 Land in Nevada
For those of you interested in understanding some of the supply and demand issues around Water Rights in Nevada and the Colorado River Basin, as well as geo political wrangling, here are some links. If you would like own some Nevada Ground Water Rights, you need to call me, I have some very nice farm and ranch land listed with water rights.
As you can tell there is plenty of science and opinion involved in these discussions. One thing seems clear to me, we are using or soon will be using more water than we have available. The opportunity to purchase irrigated farm and ranch land is today. The chances this land with water rights is going to get any less expense in the seems very slim.
City of Mesquite Recently Purchased Land for New Library Mesquite Nevada Commercial Real Estate Market, information every investor should know. The City of Mesquite just closed on a prime parcel of land on Mesquite Blvd to build a new library.
The City of Mesquite could use a nice new shiny library with all the bells and whistles. They paid $1,717,000 for 3.22 acres, that is 140,263 square feet or $12.24 per square foot. So much for the $20 a foot the market has been asking for years for Mesquite Blvd frontage.
Reports are no appraisal was required by the buyer, the City of Mesquite.
Who spends nearly two million tax dollars without the benefit of a professional opinion of value? I am surprised The City of Mesquite can even do that legally.
There is one more commercial land sale to report in the past twelve months through MLS. It was a quarter acre sold for $92,500 or $8.85 a square foot, located on Hafen just south of the Maverik the gas station. This sale was nice street frontage and would have been used as a comparable in my opinion.
Not only are the City of Mesquite elected officials out of control, so is the city manager, who played down any need for a professional second opinion of value.
What the heck, it is just our tax dollars they are spending anyway, RIGHT?
If you not planning to build a pipeline and would like to find a nice Nevada Farm or Cattle Ranch with water rights, we have few listed for sale. If you have one you are considering selling, Talk to Chris before listing it another broker, he knows his stuff.
Land in Nevada with Water Rights is listed and available today Call Chris W. Miller at ERA Brokers Consolidated Mesquite, Nevada 702-346-7200 or 435-862-5951
“In 1961 water shares in the valley were worth $14 per share and you were a damn fool to buy them” stated Cecil Leavitt, a Virgin Valley board director. He went on to say “Today they are worth more than the land”.
The final sale price for the 35 shares was $2,801,968 or about $80,056 per share. That translates to over $8000 per acre foot for surface water rights.
The surface water is not currently used by the buyer of the rights, Virgin Valley Water District as drinking water. Construction of a water treatment plant to purify the water will be required for the local rate payers to see any beneficial use from the purchase.
There are few reasons the district would go ahead with the purchase now, except the fact that if they did not buy the shares now, Southern Nevada Water Authority might. Once they are owned and headed to Las Vegas they would never be available in the Virgin River Valley again.
This story will play out across Nevada over and over in the next few years. Basins are being closed to additional allocations, additional permits are being denied. What currently exists will only increase in value. Demand continues to grow from domestic growth to agricultural needs and uses.
Funny to hear “you would have to have been a damn fool to pay $14 a share in 1961, and it just sold for over $80,000 “.
When most people think of farm land and ranch property, they think open ranges, hay fields, cattle and cowboys riding horses.
Wall Street seems like a far off place in another world. A fast paced place driven by profit and greed.
It is seems the classic contradiction, slower paced, straight talking, down to earth folks making their living off the land verses the Bernie Madoff and George Soros types.
Truth is, the story I am about to tell you just may be a little sad, because Wall Street is buying up the farm. Over the past few years investment power houses like BlackRock, and retirement plan giants like TIAA-CREF has been plowing money into farmland. In Nevada farm land generally means land with water rights, due to the arid climate.
These are smart people who are motivated by money and profit.
Here is the deal; the fundamentals are in place for a long term boom in prices for everything AG-related. Consider this; in 1960 there were 1.1 acres of arable farmland per person globally, according to data from the United Nations. By 2000 that number had fallen to .6 acres. Over the next 40 years the world population is projected to grow from 6 billion to 9 billion.
According to Joachim von Braun, director general of the International Food Policy Research Institute, “Land is scarce and will become scarcer as the world has to double food output to satisfy increased demand by 2050”. “With limited land and water resources, this will automatically lead to increased valuations of productive land.” Von Braun goes on to say, “It goes hand in hand water, Water scarcity will probably increase even more than land.”
Water in Nevada is today in short supply and clearly demand will outpace supply as they continue to close basins to new permits. Water rights in Nevadahave another issue facing the dwindling supply, the demographic shift of the baby boomers to the more tax favorable warmer climate. Choices, decisions, are being made today, do we use the water for agriculture and food production, or do we pipe to Las Vegas for culinary use.
Farmers and ranchers want to stay in the business, but millions of dollars waved under their noses make it tough to say no to the sale. Many will stay on and lease to continue to live the lifestyle they love. These lease payments are cash flow on the investments. Could it be a win-win situation?
Commodities guru Jim Rogers says, “I’m convinced that farmland is going to be one of the best investments of our time.”
Farmers are smart and they talk, they may wear overalls and talk funny, but farming is older than Wall Street. Water and food are the sources of life for the planet, demand is guaranteed to grow. There are few guarantees on Wall Street. Farming is a difficult business, but it is a fine tuned machine, executed right it is a profit opportunity.