Thumb of Michigan | D6Joe - 2/3/2021 08:41
Um, you bought land , they still get the trees? How many years does that last for? New one on me.
Thats not uncommon in timber land. I know a guy who bought an 80 to retire on, had mature trees on it. He wasn't the kind of guy to go through all that expensive title work and junk, and he was really surprised when the loggers showed up.
I know some timber leases attached to real estate share some of the proceeds with who ever owns the land. Some don't. Large forestry companies bought up a bunch of land in the UP 150 years ago, as did mining companies. Timber was taken off, then either the mineral rights were sold to companies like Cleveland Cliffs, or CC bought land outright. Either way, those companies figured out a long time ago there was no good reason they need to own land- as long as you got the resources tied up, why pay taxes for 20 years waiting for the trees to grow back?
On a little different note: friend of mine in the UP wanted to put a pretty large chunk of land into the permanent CRP wetland program. Everything was going good until mineral rights came up. Cleveland Cliffs owned his. Not having the mineral rights kept him from signing up. He decided to contatct CC, see if he could get something sorted out. Took him a while, but he eventually got the mineral rights returned to him and was able to put the land in permanent CRP. |
Land prices and mineral rights
