Buying Rural Land in Texas

10 The New Risks of Ownership

The New Risks of Ownership 10 A herd of Angus cattle descended from cows imported to the Hillingdon Ranch more than one hundred years ago on the hills near Comfort. Photograph by J. P. Beato III THe new risks Of OwnersHiP | 111 T he quest to own rural land in Texas follows a long and arduous trail. At the conclusion, the quest delivers land into the hands of the buyer whose envisioned use has the highest value. Having taken pains to methodically study all options, the new owner arrives at the end of the process with the assurance that the transaction represents the right risk taken to deliver the anticipated returns of landownership . The exercise systematically evaluated the impact of physical, legal, economic, and social influences on the buyers’ envisioned ownership experience. Along the way, the buyer gained an understanding of the various sources of risk affecting landowners. This thorough examination of potential risks allowed the buyer to either limit exposure to various threats or prepare to address problems as they arise. At this stage, the buyer has secured at a reasonable price a property that is suited to his or her purposes. In addition, the transfer has delivered ownership of sufficient property rights to achieve the owner’s goals. Having successfully navigated the risk-laden transaction process, an owner’s work to transform the land begins in earnest. As the new owner sets out to bring his or her vision to fruition, risk continues to threaten the project. Now the owner faces a different array of possible threats. For example, a kind-hearted owner planning to create a wildlife refuge might ban all hunting on a high-fenced property. The purpose of the plan was to allow the white-tailed deer population to prosper in a peaceful environment . After several years, the population will very likely expand to the point that it outstrips the ability of the land to provide enough nutrition to support the herd. The deer will literally destroy their habitat by eating everything in sight. What began as a vision of magnanimous kindness becomes a nightmare of denuded soil and starving animals.The management practices failed to achieve the vision of a peaceable kingdom because the owner misunderstood the role of the mechanism maintaining the balances needed to preserve wildlife populations in a healthy state. The overgrazing exposed soils to erosion and visited challenges to the health of the deer herd. Information provides the best protection against this new source of management risk. While well-managed land can provide substantial rewards for an owner, that owner must take proactive steps to become well informed about the consequences of specific management options to effectively transform the land into a more highly prized condition. Appropriate actions can yield positive results that enhance property values. Forexample, oneWest Texas landowner had a ranch that provided 112 | cHaPTer 10 an attractive landscape, but steep-walled canyons crisscrossed the ranch, limiting access to many parts of the property. So the owner invested substantial sums to construct good quality roads on the ranch. Before the road improvements, much of the land was accessible only by ATV, horseback , or by undertaking lengthydrives over public roads to enter the other side of the property. Establishing access within the confines of the ranch rewarded the owner with a more usable ranch and doubled the market value. Although the improvements required a substantial sum to complete , the new roads forever changed the character of the site. The owner risked a substantial sum but realized a sizable gain from the transformation . Measures needed to establish owners’ intended uses range from sustaining current conditions to reshaping the countryside to supporting desired activities like hunting, birding, or restoring native plants. Each change threatens to damage future conditions on the land if an owner undertakes them without sufficiently researching the likely outcome. Effectively supervising activities on a ranch or farm to avoid damaging the land while aspiring to reach a desired end requires judicious stewardship . Speaking of the family-owned Hillingdon Ranch, landowner/ranch manager Robin Giles observed, “The land doesn’t really belong to us. We belong to it.” His remark reveals a deep respect for the biological and physical processes taking place on the land. Further, it reveals an appreciation of the responsibilities that come with ownership. The conscientious landowner should recall the envisioned use and exit strategy that guided their property search. The task now focuses...