Commercial Real Estate News / Investing / 4 Ways to Make Money with Ranch Land in New Mexico

4 Ways to Make Money with Ranch Land in New Mexico

Published: 10-13-21 Category: Investing

Specializes in providing actionable insights into the commercial real estate space for investors, brokers, lessors, and lessees. He covers quarterly market data reports, investment strategies, how-to guides, and top-down perspectives on market movements.

This article was updated on 10/16/23.

When it comes to ranch land for sale in New Mexico, people may think of old Westerns with cowboys galloping through dusty terrain. Ranch land has become a popular investment in modern times due to its versatility and lucrative potential. Additionally, ranches provide unique experiences of connecting with nature and catching a reprieve from urban life.

The beautiful landscapes of New Mexico make it a desirable location to own ranch land. Experienced and new real estate investors alike are using land for sale in New Mexico for cattle ranch businesses, recreational use, horse boarding, guest accommodations, and other sources of passive income generation.

What's more, New Mexico is the perfect destination to live with a cowboy attitude: Delight others and your family with a Western experience that can only be encountered in The Land of Enchantment.

Let's take a closer look at how New Mexico's ranch land can offer lucrative opportunities for commercial real estate investors.

What's the Average Cost Per Acre of Land for Sale in New Mexico?

New Mexico pasture land is among the lowest-priced in the country: The average price per acre is $1,318. For pasture land, the average price is $440 per acre.

Here are some figures that reflect land prices in certain New Mexico counties:

Eddy County: $351 per acre;
Sandoval County: $4,499 per acre;
Valencia County: $799 per acre;
Catron County: $729 per acre; and
Rio Arriba County: $2,500 per acre.

These affordable rates make purchasing ranch land a smooth process.

Benefits of Owning Ranch Land for Sale in New Mexico

Many ranch owners bought their land to follow a lifelong dream of living on a ranch. However, an influx of people bought ranches as a result of the pandemic. No matter the reason, ranch land can offer a multitude of opportunities for owners.

Let's take a look at what you can do with ranch land.

#1 – Start a Cattle Ranch Business

Cattle ranchers raise and maintain the health of cows to sell. The demand for beef, dairy, and other cow products is endless. In New Mexico, cattle ranching is a top agricultural activity, with dairy and cattle bringing in the majority of agricultural income.

New Mexico continues to be one of the top ten producers of dairy.

Uses of a Cattle Ranch

There are many uses for a cattle ranch: Processing milk and beef are just a couple of options. Ranches can offer breeding services, participate in cow shows, present tours, and raise other livestock on the same land.

When maintaining a cattle ranch, your greatest expense may be managing cattle health on top of all other costs, including:

Homestead fencing;
Watering facilities;
Equipment;
Tools;
Starting cattle;
Staff;
Insurance;
Marketing;
Feed; and
Shelter.

Diligent financial planning can help you succeed in the cattle ranching business. In addition to cattle, you can grow crops, such as chile peppers and pecans.

#2 – Lease It for Recreational Purposes

Some people wish to enjoy the benefits of a ranch but don't want to commit to owning one. Ranch owners can appeal to this group by offering their land for rent.

What can renters use your ranch land for?

Hunting;
Fishing;
Paddling;
Horse Riding;
Camping;
Farming; and
Gardening.

Your ranch can be available for your own use and sharing with others. Leasing it can be the most passive way to make money from your ranch land.

Some landowners split up their ranch land to lease. For example, they may offer one section to a farmer and another to a hunter.

#3 – Board Horses

It's common for horse owners to board their horses at a nearby ranch. Many don't have sufficient space on their own properties to keep their horses there.

This can be the perfect opportunity for horse lovers to make the most out of their ranch land. Even investors without experience can hire horse caretakers to manage a horse boarding business.

Potential horseboarding profit depends on acreage size. Check on local regulations that dictate how many horses you can host on your lot based on acreage.

Here are some potential costs of boarding horses:

Feeding;
Blanketing;
Hay;
Staff;
Veterinarian care;
Security;
Stalls;
Water; and
Horse training equipment.

A full-service boarding can charge $400 to $700 a month per horse. This includes offering to feed, mucking, and tending to the daily needs of horses. You can also offer services that don't require as much work on your end. Pasture and self-care boarding charge less than full care.

#4 – Create the Ultimate Guest Experience

Staying at a ranch can be an exotic way of vacationing. Guest ranches offer camping, glamping, horseback riding, kayaking, zip-lining, and more. Some ranches are dedicated to offering spiritual or yoga retreats, as well.

You can customize the ranch to what you think others would enjoy the most. Ranches can also immerse visitors in authentic ranch living, including working and tending to the property.

It can be costly to maintain a guest ranch compared to other business ideas. Some ranches offer seasonal services. This way, they can use the ranch in other ways in the off-season.

Potential costs of operating a ranch include:

Insurance;
Hospitality staff;
Farm maintenance;
Lodging;
Utilities;
Equipment;
Animals;
Food;
Instructors;
Tour guides; and
Medical staff.

Ranches charge anywhere from $700 to $2,000 per person for each week of stay.

New Mexico rewards its residents with four great seasons. Because of this, ranches can offer summer-season experiences, winter ones, or both. Yes, skiing is even possible in New Mexico as well!

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