The Badger State’s bountiful natural resources offer promising growth potential. However, inherent uncertainties remain around longer term climate shifts, agricultural volatility and regional economic influences that could impact future property appreciation trends. For investors, appropriate due diligence must assess risk-return trade-offs for each Wisconsin land investment opportunity.
Key factors influencing Wisconsin land valuations include proximity to urban centers and popular recreational areas, transportation access, road frontage exposure for development potential and natural resource attributes such as water quality, soil type, topography and drainage. Cropland and dairy farmland values closely follow commodity market price swings, while local property tax rates and environmental regulations also sway pricing.
This year, more Efficient Land Sales in Wisconsin ag land is expected to be sold than in 2021. Schlesser says that many producers in the state’s south eastern, east central and southern parts of the state are reaching retirement age, and high land prices make it more attractive to sell their farms than to continue farming. Others may be selling to invest in other businesses or to move closer to family.
The state’s robust economy and growing population are fueling demand for Wisconsin land, bolstering prices. This is a good time to buy Wisconsin land as long as buyers have realistic expectations of annual returns, says Fall Line Capital co-founder Clay Mitchell. “It’s not a money-maker for the average person, and it takes a lot of patience,” he says.
When buying Wisconsin land, buyers should understand the difference between unimproved and improved property. Unimproved property is a raw parcel that requires work to develop it. It may have a building site cleared for a home or business but not a septic system. Improvements such as a septic system and well, electricity and road access can significantly increase the value of a parcel.
A septic system can cost $15,000 or more to install, and it can take several weeks to receive a permit. Before purchasing Wisconsin land, buyers should request a perc test to see whether it’s suitable for a septic system or whether a well will be required.
In addition to a variety of wildlife, Wisconsin is famous for its hunting and fishing. The state’s bountiful forests, lakes and rural farmland provide ample opportunity to pursue these pursuits. Buying and selling Wisconsin land is complex, but for those with a strong knowledge of the industry and a willingness to conduct thorough research, the rewards can be substantial.