2014 fall terra firma

OFFICIAL PUBLICATION OF THE REALTORS® LAND INSTITUTE

TerraFirmaUnder All Is The Land

FALL 2014 Vol. 68 No. 2

www.nationallandconference.com 1-800-441-5263

TerraFirma

TerraFirma

Fall 2014 3

Fall 2014 Edition

Published by the REALTORS® Land Institute430 North Michigan Avenue

Chicago, Illinois 60611Telephone: 1.800.441.5263

Fax: 1.312.329.8633E-mail: [email protected]

Website: www.rliland.comListing Website:

www.thelandconnections.com

Editor/PublisherMichele Cohen, Chief Executive Officer/

Executive Vice President

EditorKate E. Noble, Communications and Membership Development Manager

Contributing EditorAmanda Jenkins, Professional Development

and Project Manager

Copyright 2014. All rights reserved.

Reproduction in whole or in part without permission is prohibited. Views expressed within the publication are not necessarily endorsed by the REALTORS® Land Institute and information should not be construed as recommendations for any course of action regarding financial, legal, or accounting matters.

REALTO

RS® LAND INSTITU

TE

2014

CONTENTS

FEATURES

President’s Message . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

News Briefs from National . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Member News . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Chapter News . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Newest ALCs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

New Members . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Education . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

Commentary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

Government Affairs Briefing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13Russell W. Riggs, Institute Government Affairs Liaison, National Association of REALTORS®

Climate Change: A Growing Concern for Companies Expanding their Footprint . . . .15Joyce Coffee, Managing Director, Notre Dame Global Adaptions Index

Oil & Gas 101: Oil and Gas Basics for the Mineral Owner . . . . . . . . . . . . . . . . . . . . . . . .17Kenneth DuBose, Founder/Publisher, MineralWeb.com

Internet Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23Gayle Harvey, ALC, Broker/Owner, Gayle Harvey Real Estate, Inc.

Auction: Is Your Client Really Ready to Sell? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25Drew Ary, Director of Farm Ranch and Land Sales, Williams & Williams Real Estate Auction

Lessons Learned in South Carolina at the 2014 National Land Conference . . . . . . . .27Luke Worrell, ALC, Real Estate Broker, Worrell-Leka Land Services, LLC

Under All is the LAND! . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .40Terri Jensen, ALC Advanced, 2014 Institute National President-Elect, Investor Relations Manager – Appraisal Manager, Farmers National Company

Military Transition Program of the REALTORS® Land Institute . . . . . . . . . . . . . . . . . . .42Ray Brownfield, ALC Advanced, Managing Broker/Owner, Land Pro LLC

Fall 2014 TerraFirma

PRESIDENT’S MESSAGE

IN 2014 WE CELEBRATED THE CULTUREWhat an honor being the 2014 Institute National President has been. I have traveled meeting colleagues who all have common interests with a commitment to land use and the land business. Through these travels, I have seen firsthand the respect that our organization and the Accredited Land Consultant (ALC) designation receive.

The Institute celebrated its 70th year in 2014. The mission and vision from stewards throughout the years have stayed the core values. Land is a specialty and the echoes of history are heard through land. In honor of the anniversary and in recognition of how land actually records history, the 2014 National Land Conference’s tag line was “If Land Could Talk.” Members wrote articles covering what land would say “if it could talk” in their states. The Conference Carriage made its way to the historic Conference host city, Charleston, SC, and was hitched in front of the historic host hotel. Through knowledge, networking, valued partners, and cultural activities, we celebrated our culture. These events are the places to be to convene with like-minded individuals who want to make deals and have some fun making them!

We have a voice in D.C. with a Government Affairs Committee and a Government Affairs Liaison who stay on top of what is happening that is relevant to the land business. The Institute’s voice was heard and is being heard regarding water rights and tax reform proposals—matters that could negatively affect our industry. We put out a Call-for-Action regarding the EPAs direction with the Waters of the United States. At mid-year meetings in D.C., members participate in committee meetings and have an opportunity to share viewpoints. They meet with politicians and staff on the Hill to build relationships that allow them to be heard.

Awareness of the Institute has increased and continues to build strength. We had more new members join the organization in 2014 than in the past ten years. Strong chapters are getting stronger, some chapters are revitalizing, and new chapters, such as the Arkansas Chapter, are building.

We have a committed staff with talents and skills to serve our members and the Institute at large. They bring forth quality educational programs; drive public relations through press releases, articles, and advertisements; and build membership through creative thinking and a passion to spread the word about the benefits of the Institute.

A listing site exclusively for members of the Institute was rolled out in 2014—THE LAND CONNECTIONS: Do Business with the Best in the Business (www.thelandconnections.com). We had ALC-to-ALC TeleConferences, developed and rolled out four new courses, hosted Hot Topic Web Seminars, organized a successful LANDU Education Week, and built a strong new Future Leaders Committee to bridge the generations.

Thank you to the Chairs of all 2014 Committees. Thank you for your commitment to driving the organization to always be the best through strong programs and discerning decisions. Thank you to all of the members of the Board of Directors for keeping a wise and open mind as policy was developed regarding visual standards, finances, membership categories, Accreditation requirements—and more which can be viewed in the most current Institute bylaws.

A successful President has a talented “executive posse.” A special thank you to Chuck Wingert, ALC Advanced; Terri Jensen, ALC Advanced; and to Bob Turner, ALC Advanced. Another special thank you to our staff who bring the programs to life—Michele Cohen, Chief Executive Officer/Executive Vice President; Karen Calarco, Manager of Operations and Member Records; Kate Noble, Manager of Communications and Membership Development; and Amanda Jenkins, Manager of Professional Development and Projects.

This is not the last you will see of me. The organization has made a difference in my life by adding to my business success and friendships. I will continue to serve on the Executive Team as the 2015 Immediate Past President, work to build chapters, help with strategies to add to financial strength—and will see everyone at the one and only 2015 National Land Conference: Unbridled. Unleashed. on March 23-25, in Tucson, AZ. Let’s learn, network, make money, and enjoy the 5-star resort. Bring family and friends. It doesn’t get much better than this!

Regards,

George R. Clift, ALC Advanced2014 Institute National President

George Clift, ALC2014 National President

4

Feature

TerraFirma Fall 2014

2015 Institute Officer Inductions and Reception

The induction ceremony for the 2015 Institute Officers will take place in New Orleans, LA, on November 6, 2014 at 5:00 p.m. at the Omni Hotel in the Institute President’s Suite. Chuck Wingert, ALC Advanced, will have the honor of conducting the oath of office to the 2015 officers: Terri Jensen, ALC Advanced, 2015 National President; Bob Turner, ALC Advanced, 2015 President-Elect; and Brandon Rogillio, ALC, 2015 Vice President. George Clift, ALC Advanced, will be a member of the Executive Committee as the 2015 Immediate Past President. After the reception, the 2015 Executive Committee will attend the Inaugural Gala of the National Association of REALTORS®(NAR) where the induction of the 2015 NAR officers will take place.

Jensen was elected Vice President of the Institute in 2012. In 2013, she served as the Vice President and in 2014, during Clift’s administration, she served as the President-Elect.

I am humbled and honored to be a part of the Institute and to have been elected to fulfill an officer position. It is a privilege to participate in an organization that provides so much to land professionals. As land professionals, we are selling our experience, education, and expertise. The Institute is the only organization I have found that offers education and networking geared specifically to land.

I am committed to the mission of the Institute and will continue to work towards:

n Creative and innovative programs;n Active leadership that promotes volunteerism and collaboration;n Growth of the ALC network and candidate membership base.

–Terri Jensen, ALC Advanced 2015 Institute National President

Spotlight on Brandon Rogillio, ALC 2015 Institute National Vice PresidentTechnology continues to streamline certain aspects of our industry allowing deals to be done from anywhere without ever putting pen to paper and without stepping foot in the offices of a title company.

The deals themselves, however, are becoming increasingly complex. What once might have been a routine transaction, in some cases, now requires a wealth of specialized knowledge. This is due to many factors, such as environmental issues or ever-increasing government regulations. This organization, more so than any other, has positioned itself to provide members access to this knowledge, not only through its educational offerings, but more importantly, through the shared experiences of its members. I consider myself fortunate to be a part of this membership. I am proud to call myself an ALC, and I’m honored to have been chosen by this organization’s members as the next Vice President of the REALTORS® Land Institute.

–Brandon Rogillio, ALC, 2015 Institute National Vice President

Brandon Rogillio, ALC, is the owner/broker of Rogillio Real Estate, LLC, in Baton Rouge, LA. Rogillio has held several Institute leadership roles including Representative to the National Association of REALTORS® Commercial Committee, member of the Government Affairs Committee, and the 2011 Co-Chair of the National Land Conference. His experiences have allowed him to see firsthand the importance of the Institute’s political voice in Washington. Rogillio is the president of the Louisiana Chapter of the REALTORS® Land Institute and lives in Louisiana with his wife, Jennifer, and two sons, Brandon Junior (BJ) and Bennett.

Terri Jensen ALC Advanced, 2015 National President

Bob Turner ALC Advanced, 2015 National President-Elect

Brandon Rogillio ALC, 2015 National Vice President

NEWS BRIEFS from NATIONAL

5

Brandon Junior (BJ) and Bennett Rogillio


Excellence in Instruction AwardsThe 2013 Excellence in Instruction awards were announced at the 2014 National Land Conference honoring Randy Hertz, ALC Advanced, 2006 Institute President, and Jim Miller, Esq. Both LANDU Instructors bring quality, timely, and accurate information to their students. By updating courses and providing up-to-date technology and discussion on current industry laws, they capture the true spirit of businessmen who share and believe in the importance of knowledge and professional development.

Distinguished Award RecipientsNEWS BRIEFS from NATIONAL

Randy Hertz ALC Advanced

Jim Miller, Esq.

The ALC-to-ALC Networking awards recognize Accredited Land Consultants (ALCs) with the most lucrative peer collaboration during 2013. The deals between the 2013 award winners are clear indications of increased productivity and business expansion from networking among ALCs.

ALC-to-ALC Networking Awards

2013 Largest In-State ALC-to-ALC Transaction by Sales Volume Murray Wise, ALC, and Ben Crosby, ALC2013 Largest In-State ALC-to-ALC Transaction by Total Acreage Murray Wise, ALC, and Ben Crosby, ALC

Largest National Referral for an ALC-to-ALC Transaction by Sales VolumeRandy Hertz, ALC Advanced; Terry Rupp, ALC; and Troy Louwagie, ALC (left to right)

ALC-to-ALC Networking Award for Overall CollaborationBen Crosby, ALC; Squire Smith, ALC; Clay Taylor, ALC; and David Hitchcock, ALC Advanced (left to right)

Auctioneer Hall of FameThree Institute auctioneer members, Tommy Rowell, of Moultrie, GA; Rex Schrader, ALC, of Columbia City, IN; and Bill Sheridan of Mason, MI; were inducted into the Auctioneer Hall of Fame. Rowell, Schrader, and Sheridan were recognized for their hard work, continued success, leadership, and commitment to the industry. The Hall of Fame was established in 1961 and only 146 auctioneers hold this honor.

Tommy Rowell; Rex Schrader, ALC; Bill Sheridan

Fall 2014TerraFirma 7

New Finance Advisory CommitteeThe Institute created a new Finance Advisory Committee charged with the purpose of developing and performing procedures for financial oversight of the Institute in the following areas: budgeting, financial planning, financial reporting, auditing, and monitoring of internal controls and accountability policies. The members serve as representatives of the membership as a whole. They are charged with fulfilling the responsibilities and functions as described in the Institute Finance Advisory Committee Charter and are responsible for submitting agenda items, attending and participating in meetings, and providing input. The Institute has a new Finance Policy that will be adhered to by the Advisory Committee and all Institute Leadership. The Finance Advisory Committee will submit their suggestions and findings to the Executive Committee for review with the final decisions to be made by the Institute Executive and the Board of Directors.

The following are the 2015 members of the Finance Advisory Committee:

Ray Brownfield, ALC Advanced, 2012 Institute President, Committee Chair Terri Jensen, ALC Advanced, 2015 Institute President, Executive Committee Representative Jesse Lane, ALC, 2011 Institute President Charles Wingert, ALC Advanced, 2013 Institute President Michele Cohen, Institute CEO/EVP, Staff Representative

Institute Leaders Give Land a Voice at the REALTOR® Party Convention and Trade Expo in D.C.The REALTOR® Party Convention and Trade Expo took place in Washington D.C. on May 12-17. REALTORS® Land Institute had a strong representation at the committee meetings to cover areas of concern and importance to our members. The Executive Team and the Institute Representatives to the NAR Committees participated in the meetings relevant to the land profession: Land Use, Commercial, Business Issues Policy, Global Business, Professional Standards, Public Policy, and Resort and Second Home.

An Institute Government Affairs Meeting took place at the Marriott Wardman Hotel on May 13. Facilitated by George Harvey, 2014 Chair of the Government Affairs Committee, with Russell Riggs, NAR Senior Regulatory Representative and Institute Government

Affairs Liaison, the information covered relevant updates on topics of interest—Waters of the U.S., land use, the Farm Bill, Flood Insurance, Tax Reform Proposals.

Two special guests gave information about the Tax Reform Proposals regarding Tax Deferred 1031 Exchanges: David E. Franasiak, Esq., D.C. Counsel of the Federation of Exchange Accommodators (FEA), and Bill Horan, FEA President. The FEA is conducting analyses of the proposal and has found it problematic, containing a lack of understanding of the like-kind concept. Franasiak will keep the Institute informed of the findings of the FEA regarding the tax reform proposal and 1031 Exchanges. He is a presenter at the 2015 National Land Conference: Unbridled. Unleashed. in Tucson, AZ, on March 23-25, 2015. The Government Affairs Committee will keep a keen eye on the progress of the proposed tax reforms, and, when the timing is appropriate, address the issue with government officials and/or join a coalition. Visit the Institute website at www.rliland.com and enter the Government Affairs area to learn more about topics covered by the Institute.

George Clift, ALC Advanced, 2014 Institute President; Bob Turner, ALC Advanced, 2014 Institute Vice President; and Michele Cohen, Institute CEO/EVP, represented the Institute at the NAR Board of Directors Meeting held in D.C. on May 10. As NAR Directors, Clift and Turner voted on issues giving the Institute a voice. In addition, NAR’s president, Steve Brown, announced to over 1,000 attendees that the historic Institute is celebrating its 70th Anniversary.


REALTO

RS® LAND INSTITU

TE

2014

ReputableReliable

Hardworking

Real Estate Brokerage | Auctions

Farm Management | Consulting

just like my “H”

Putting Land Investments to Work

www.landprollc.us

2683 US 34Oswego IL 60543

630.258.4800c331.999.3490o

TerraFirmaFall 2014

The U.S. Environmental Protection Agency (EPA) and the U.S. Army Corps of Engineers (Corps) has released a proposed rule to revise the definition of the Waters of the United States (WOTUS) for all Clean Water Act (CWA) programs. The definition changes contained in the proposed rule significantly expand federal control of land and water resources across the nation. The EPA and Corps have requested a deadline of October 20, 2014 for all comments regarding the proposed rule.

The REALTORS® Land Institute is advocating for this rule to be completely withdrawn and strongly encourages all Institute members and land professionals to submit a personalized letter giving your voice to why this rule should be withdrawn. A template letter is available.

1. Download the template letter at www.rliland.com/dc-updates.2. Personalize the letter by placing it on company letterhead.3. State specifically how the rule would negatively impact your

business.4. Stay on topic by not addressing other issues.5. After personalizing the letter, mail to:

The Honorable Gina McCarthyEnvironmental Protection Agency 1200 Pennsylvania Ave NW Washington, DC 20460

Note: The Institute’s name is included in the letter as a result of the approval for this Call For Action by the Board of Directors and Government Affairs Committee. Therefore, if this template is used with the organization’s name, comments should only relate to the reasons for withdrawing the proposals affecting the WOTUS.

Should you have questions, please contact to Institute office at 800-441-5263 or [email protected].

Ba Da Bum Ba Da Bum Ba Da Bum!

The sound of horse hooves roared louder as the official registration was opened for the 2015 National Land Conference: Unbridled. Unleashed. on Monday, August 4. Patti Davis, ALC, was the first to officially register for this “cannot afford to miss” event—with Mary Garbett being the second. They and other professionals in the diverse segments of the land business—investments, agriculture, ranch, recreation, appraisal, auction, site selection, law, development, banking, and more—will gather at the Loews Ventana Canyon Resort on March 23-25*, where the best in the land business rub shoulders to learn, make deals, have fun, and make money.

Don’t miss the Welcome and Recognition Ceremony that includes American Indian Dance presentations, the color guard ceremony of the 1st Battalion of the 415th Regiment of the United States Army, the traditional passing of the gavel, recognition of Institute leadership, introductions of the new ALCs, and awards announcements. Join in the diverse networking events such as in Meet, Greet, Make Money and attend the 2015 President’s Inaugural Reception. Networking and learning events will abound including the Hot Topic Round Table Breakfast and increased break-out sessions led by subject matter experts. Attend the even greater Greatest Cowboy Auction on Earth to have fun, mingle, and purchase some unique items to support member benefits and education programs of the Institute.

And, of course, gain knowledge at the General Sessions where experts on the economy, climate, tax issues, wildfire effects, marketing, and more help you plan and position for the future. The Economist Armchair chat is always a favorite.

A ticketed learning session exclusively for ALCs, Placing a Value on Your Business, will take place Monday, March 23 at 10:30-11:30 a.m.

After the Conference adjourns on Wednesday, March 25, attendees, friends, and family are invited to participate in the Institute “Giddy-Up Golf” Scramble to unwind, win prizes, network, and just enjoy. This nine-hole scramble will end with a gathering of all at the clubhouse. Proceeds will go toward LANDU Education scholarships.

See you there!

*Committee Meetings will take place on Sunday, March 22 starting at 3 p.m. See the full schedule on page 29.

Unbridled.Unleashed.

2015 NATIONAL LAND CONFERENCE

TUCSON, ARIZONA.MARCH 23-25, 2015

Waters of the U.S. (WOTUS): Institute Call for Action

8



2014 ALC Allies by StateCaliforniaLinda Pillard, ALC

FloridaChristy Kurtz-Clark, ALC

GeorgiaButch Armistead, ALC

IowaKyle Hansen, ALCRandy Hertz, ALC Advanced, Past Institute PresidentSam Kain, ALC, Past Institute President

IllinoisDaniel Bock, ALCRay Brownfield, ALC Advanced, Past Institute PresidentMac Boyd, ALC Advanced, Past Institute PresidentWinnie Stortzum, ALC Advanced

IndianaMichael Lunn, ALC

LouisianaBrandon, Rogillio, ALC, 2015 Institute Vice President

MinnesotaRoger Heller, ALC, Past Institute PresidentChuck Wingert, ALC Advanced, 2014 Immediate Past President

MissouriNorma Nisbet, ALC Advanced, Past Institute President

MississippiTom Smith, ALC

North CarolinaChristina Asbury, ALCLou Jewell, ALC

NebraskaTerri Jensen, ALC Advanced, 2014 Institute President-Elect

New MexicoLarry Ilfeld, ALC

OklahomaSandy Brock Bahe, ALC

TennesseeBob Turner, ALC Advanced, 2014 Institute Vice President

TexasAndrea Anderson, ALC AdvancedSteve Anderson, ALC AdvancedGeorge Clift, ALC Advanced, 2014 Institute PresidentDeitra Robertson, ALCMinor Taylor, ALC

VirginiaBill Burruss, ALCSuzanne Fields, ALC

WashingtonFlo Sayre, ALC Advanced

The exclusive listing site for members of the Institute, THE LAND CONNECTIONS: Do Business with the Best in the Business successfully launched on January 3. It is the “go to” site for land listings. Starting in 2015, the ability to post international listings will be added and a no-cost core subscription level will be included for members.

Take a look at the site today at www.thelandconnections.com or access it from our website at www.rliland.com.

If you are a member, be sure to take advantage of this important member benefit. To find out how to feature your properties on the home page of the site or to learn about the advertising opportunities, call 1.800.441.5263 or visit www.rliland.com/sponsor-opportunities.

Exclusive Land Listing Site for Institute Members THE LAND CONNECTIONS: Do Business with the Best in the Business

Ba Da Bum Ba Da Bum Ba Da Bum!


Accredited Land Consultant (ALC) AlliesThe following ALCs have volunteered and been approved for the ALC Allies program. These professionals are available to answer questions about the organization and the value of education and earning the prestigious designation. Thank you and congratulations to the following:

9

YourLandSold.

Well.

williamsauction.com

Drew AryLand Specialist918.362.7312


Based on information supplied by NAR Research, the volume of land sold increased between 2010 through 2013 from $4,031,200,331 to $16,505,762,861. The results of an Institute survey in which about 200 random land specialists participated, indicate that the average Accredited Land Consultant (ALC) earned $373,925, which is approximately $100,000 more a year than the average earned by non-designee respondents. The largest ALC transaction in 2013 was $80 million and the largest ALC transaction reported to date in 2014 is $562 million.

Institute Survey Results


10

Building Awareness of the ALC DesignationThe Institute is increasing exposure of the Accredited Land Consultant (ALC) designation by placing advertisements in local newspapers across the country. Advertisements similar to the above graphic have appeared in the Houston Chronicle, Champaign News Gazette, Jacksonville Daily News, Wilmington StarNews, Kinston Free Press, and New Bern Sun Journal. Login to the members-only area of the Institute website at www.rliland.com/marketing-materials to download and use these advertisements.

New Marketing ToolsIn 2014, the Institute has designed and made available to Accredited Land Consultants (ALCs) personalized promotional collateral. Currently, two are available with them developed quarterly throughout the year. Brand yourself and bring awareness to clients about your accomplishments and how you stand out as an ALC.

The marketing tools may be used on a website, sent out to potential clients, distributed as a flyer, and/or placed in a newsletter or magazine to spread the word. To learn more or to order these marketing tools, call 1.800.441.5263 or visit the General Store at www.rliland.com.

Additional good news: In 2015, a Marketing Kit will be available to all members of the Institute. Stay tuned for more information.

Can’t Fight it so Join It—Get SocialMore communication and spreading the buzz takes place via the internet. Stay up to date with Institute benefits, professional career tips, and market trends by connecting with the Institute on our social sites. “Like” us on our Facebook page--Realtors Land Institute, “Follow” us on Twitter--@RLILand, and “Connect” with us on LinkedIn—REALTORS® Land Institute/Accredited Land Consultants and the member exclusive listing group Lands for Sale Network.

The Institute rolled-out its official blog over the summer. Stay up-to-date on industry issues, trends, and happenings by following it at www.rliland.wordpress.com. Institute contributors are Jon Filarsky of Weiss Realty; Caleb McDow of Crosby and Associates; G. Kent Mor-ris, ALC, of Waddell Land Co. LLC; and Luke Worrell, ALC, of Worrell-Leka Land Services (pictured left to right above).


Collaborative Land Business StudyThe Institute and the National Association of REALTORS® (NAR) collaborated on gathering important data for those in the business of land. The Institute Executive Committee and the research area of NAR created the content of the survey to explore information to help land people understand the markets across the regions. The final report is available at www.rliland.com.

Membership Categories—UpdatesThe Institute is the leading membership organization for land professionals. The Board of Directors approved three new Institute membership categories that were rolled out in 2014:

Military Transition Program Membership This category is for those who served in the military starting in 2000 and are now looking to build or enhance a career in the land.

International Membership International Institute Members are those who live and work outside the U.S. and Canada for more than nine months of the year. They may vote and hold office only if they hold a category of membership as a REALTOR® or a REALTOR ASSOCIATE® member of the National Association, or hold Institute Affiliate membership in a member Board/Association.

University Professor MembershipUniversity Professor Members are those who serve as academic professors in a university setting.

The following category descriptions have been modified:

Emeritus MembershipEmeritus Members shall be those who are recognized by the Institute for extraordinary service to the Institute, who have held an Institute National Office, who have been continuous candidate members or ALC designees for at least 20 years, and who are at least 70 years old. Emeritus members have voting privileges and are entitled to receive all services accorded Institute membership. The dues are one-quarter of the regular dues for Institute members. To apply for Emeritus Membership status, the requirements must be met and a letter of intent must be submitted to the Institute Board of Directors c/o [email protected].

Honorary MembershipAn Honorary Membership is awarded to an individual who displays exceptional contributions and achievements to the business of land but is not necessarily one who would qualify to earn the ALC designation. To receive an application for this category of membership, the Institute should be contacted at [email protected]. The completed application will be brought before the Board of Directors for approval. The Honorary Members cannot vote or hold office and are not required to hold membership in the National Association of REALTORS®. This membership is for a twelve-month period.

To view all eleven of the membership categories, visit www.rliland.com/categories-of-membership.

2015 Initiatives—PreviewThe year 2014 has been a great so far with the roll-out of the new listing site THE LAND CONNECTIONS: Do Business With the Best in the Business; new best-in-class LANDU courses; the biggest increase in new members in the last ten years; client-directed marketing in newspapers and other media venues; strong voice in government affairs on land issues; the largest and best annual land conference to date; stronger social media presence; increased strategic alliances; the Military Transition Program; new chapter development; revitalization of chapters; and more.

The Institute has already started working on 2015 initiatives to add additional member benefits and increased opportunities to build relationships, knowledge, and productivity. Below is a preview:

a. 2015 Member Marketing Kitb. Increased number of presenters and networking opportunities

at the 2015 National Land Conferencec. International Programsd. University Co-Op Programe. New LANDU Coursesf. Increased Corporate Partnershipsg. 2015 Partner Marketing Kith. Exclusive Adventurei. Land Rising Star Awardj. Let’s Make Deals Marketing Sessionsk. Enhancements to the exclusive Institute member listing site,

THE LAND CONNECTIONS: Do Business with the Best in the Business i.e. International Listings, free base subscription

l. ALC email address offeringm. E-Properties List Serv


We’ve got specialized knowledge of the land. And the visibility, tools, and support of a worldwide network of independent offices and agents. That’s why you need to partner with a CENTURY 21 Farm & Ranch professional.

GLOBAL REACH. LOCAL KNOWLEDGE. THAT’S CENTURY 21 FARM & RANCH REAL ESTATE.

© 2014 Century 21 Real Estate LLC. All Rights Reserved. CENTURY 21® and the CENTURY 21 Logo are registered

service marks owned by Century 21 Real Estate LLC. Century 21 Real Estate LLC fully supports the principles of the Fair Housing Act and the Equal Opportunity Act.

Each Office is Independently Owned and Operated.

FOR MORE INFORMATION, VISIT COMMERCIAL.CENTURY21.COM OR CALL 800-577-1634.

11

News and Notes from Inside the Beltway

NAR Testifies Against Expanded Clean Water Act RegulationsThe Environmental Protection Agency (EPA) and the Army Corps of Engineers continue to push their regulatory efforts to regulate all Waters of the U.S. The agencies have jointly issued a proposed rule that would significantly expand the number of waters that would be considered under their jurisdiction and would require permits to develop and maintain.

While the EPA is hosting several forums across the country to listen to the public’s reaction to this proposed rule, more and more public officials from across the ideological and political spectrum are questioning the scope of this rule and wisdom of moving forward. In the U.S. House of Representatives, several committees held oversight hearings on this proposed rule. The National Association of REALTORS® (NAR) provided a written statement on the proposal focusing on the existing homeowner and small business concerns. Also, NAR is working closely with a coalition of real estate groups to concentrate on the commercial and home buyer impacts and hired an economic consulting firm to review the EPA’s cost/benefit analysis and scientific rationale for the rule.

A central issue of the proposed rule is whether federal agencies must continue to physically visit and collect data before issuing wetlands determinations restricting land use on private property. However, because the agencies complain it’s too hard to prove the Clean Water Act applies, they want property owners to either a) do the analysis themselves and prove otherwise or b) go through a broken permit process in order to make routine land improvements like clearing brush or planting trees. Given all of the flaws with this proposed rule, we are urging Congress to stop these agencies from moving forward until they provide base regulation and sound science, and fix the wetlands permit program which is creating only confusion and uncertainty. See the Institute Call for Action on page 8.

FEMA Releases Refund GuidanceThe Federal Emergency Management Agency (FEMA) recently released guidance related to providing refunds to property owners who overpaid for flood insurance. Pursuant to Section 3 of the Homeowners Flood Insurance Affordability Act (HFIAA), refund amounts will be determined using rates made available in Bulletin

W-14026 issued on May 29, 2014. Section 3 of HFIAA requires FEMA to restore Pre-Flood Insurance Rate Map (FIRM) subsidized rates and issue refunds of excess premiums collected above the subsidized rate for the following:

n Pre-FIRM properties not insured when the Biggert-Waters Flood Insurance Act of 2012(Biggert-Waters) was enacted;

n Pre-FIRM properties purchased after Biggert-Waters was enacted; and

n Policies for Pre-FIRM properties that were rated full-risk under Biggert-Waters due to a lapse in coverage, but only for policies where the lapse was due to a property owner no longer being required to purchase flood insurance.

The issuance of refunds will begin on October 1, 2014, and must be completed by December 31, 2014.

See the refund fact sheet at www.fema.gov/media-library-data/1404830857286-60cdd9d1e7b83d90cf2da35935d239a0/FEMA_HFIAA_Refund_FactSheet_070714.pdf

NAR Comments on Unmanned Aerial Vehicles PolicyNAR submitted comments on the Federal Aviation Administration’s (FAA) recent “Interpretation of the Special Rule for Model Aircraft”, which specifically mentioned REALTORS® use of Unmanned Aerial Vehicles (UAVs) for taking property videos as being a commercial use and therefore prohibited under FAA policy.

While safety and privacy concerns presented by UAV technology are NAR’s primary concerns, NAR members are also concerned about current FAA policy that prohibits any commercial use of this technology and hinders the growth of many industries. NAR supports regulation that allows industries to use this technology safely to enhance business development. However, members also want to ensure that any future regulatory framework is not so burdensome and expensive as to prevent UAVs from being used by industries that can benefit from its use. NAR encourages the FAA to comply with the statutory directives issued by Congress to develop rules that integrate UAVs into the national airspace by 2015.

NAR on Rural Access to CreditNAR submitted a statement to the House Agriculture Subcommittee on Livestock, Rural Development, and Credit for their hearing entitled, “A Review of Credit Availability in Rural America.” In the

GOVERNMENTAFFAIRS BRIEFING

Feature

Russell W. RiggsInstitute Government Affairs LiaisonNational Association of REALTORS®

TerraFirma Fall 2014 13


statement, NAR stressed the importance of access to credit for all homebuyers, and described the specific challenges for rural communities. The statement also urged three changes to expand access to credit: 1) update the definition of “rural”, which hasn’t been changed since 1974; 2) allow the Rural Housing Service (RHS) to utilize direct endorsement lenders, to speedup transaction time and lessen the burden on RHS staff; and 3) resist calls to limit access to federal programs. NAR made similar pleas recently with House and Senate Appropriations Committees, urging them to allow RHS to use direct endorsed lenders as part of the FY 2015 Appropriations process.

Action on 1031 Reform Absent…For NowWhile tax reform is considered dead for this Congress, NAR is continuing to work with other trade associations and interested groups to prepare for a possible battle over curtailment or repeal

of 1031 Like-Kind Exchanges in the next Congress. NAR is working to build a broad coalition of stakeholders and also is working with other groups to commission economic and academic research on the impact such a change would have on the economy and real estate in particular.

About the author: In his position with the National Association of REALTORS®, Russell Riggs serves as Institute’s Government Affairs Liaison in Washington, D.C., conducting advocacy on a variety of federal issues related to land. Riggs will be a presenter at the 2015 National Land Conference, taking place on March 23-25.

Feature

14

WWW.FARMANDRANCH.COM

&A P r o u d S P o n S o r o f r L I

Uniting affluent buyers with distinguished land professionals since 1992

TerraFirma

Climate Change: A Growing Concern for Companies Expanding their FootprintJoyce Coffee Managing Director Notre Dame Global Adaptions Index

Fall 2014

Traditionally, the most important factors in choosing a location for a new factory or operation have always been workforce supply and economic incentives. But a new consideration, climate change, is quickly moving up the ranks as a major factor for corporate decision-makers. Recently, as climate-related crises have hit cities across the globe, it’s become increasingly clear that companies need to consider the financial impact of paucity – or an excess – of water.

Operational, strategic and quality-of-life issues factor heavily in the decisions that giant enterprises make about where to locate their much sought after capital projects. As the devastating environmental conditions associated with climate change – including water shortages, severe storms, natural disasters, rising seas and hotter climates – become more pressing, it’s clear that these, too, will become key considerations for companies hoping to press their competitive advantages.

As a result, these decisions will begin to dramatically affect both traditional and emerging business, transportation, manufacturing and travel hubs. And as with anything else involving corporations, real estate, jobs and money, there will definitely be winners and losers.

Supply chain linksIn the wake of natural disasters, which appear to be getting increasingly severe, a “new normal” has emerged among corporate decision-makers. With some analysts citing the impact of the mutable climate, more companies are adding a climate-change dimension to their strategic supply-chain planning and site selection. Adaptive management of climate risks is playing a growing role in boardrooms and C-suites across the globe, particularly at multinationals.

A report from CDP, the global non-profit that measures vital environmental information, found that 72% of companies surveyed see physical risks from climate change disrupting their supply chain. For New Orleans-based energy company Entergy, 2005’s Hurricane Katrina was a lesson in the potential supply disruptions that could be caused by increasingly extreme weather events. Since then, Entergy has begun incorporating climate risks into its business planning and operating activities; consequently, it has strengthened its power-distribution network, including the sites that are most vulnerable.

Water, water nowhereCompanies often underestimate the importance of water to their business, and few have a comprehensive global process to assess water risk. But this is quickly changing, notably in the west and southwest regions of the US, as drought sinks critical water supplies. Companies in the food and beverage, mining and oil and gas companies sectors especially base their site assessments on high-level projections of water scarcity.

In 2013, the Aqueduct Project, a hydrological mapping initiative at the World Resources Institute, ranked 36 countries based on their water risk. Sixteen, including the UAE, Barbados, Cyprus, Jamaica and Singapore, received a 5.0, the worst possible rating.

But if drought is a consideration, so is flooding, and too much water can also affect site selection. After Thailand’s extensive flooding in 2011, losses for badly damaged global parts suppliers alone totaled an estimated $15-20bn, and the flood hurt the bottom line of several multinationals, including Ford, Toyota, Dell, Cisco and Honda. HP, another company that was especially hard-hit, estimated that half of its 7% fourth-quarter 2011 revenue slide was due to the flooding. Not surprisingly, global companies are increasingly assessing the issue of monsoons and other water-related weather events when making decisions about where to locate or enlarge their facilities. As for the US, it won’t be long before severe water-supply problems in states like California and Arizona will begin to affect their popularity as site locations for plants. And look for other states as well as cities with plentiful supplies, such as those surrounding the Great Lakes, to woo businesses with water as their big asset. Already, Milwaukee is leveraging the business potential of its plentiful water supply. It’s certainly not alone.

Site selection heats upWater isn’t the only climate issue that is increasingly affecting site selection. Too much heat is also becoming a factor as it becomes clear that fiery temperatures and air pollution can have a major, devastating effect on workplaces and workforces. Air-conditioning alone can’t make up for such conditions.

A team of climate-change researchers recently studied 170m hospital admissions and eight million deaths in Germany. After tracking them season by season, day by day, for 10 years, they found that the temperature-and-pollution spikes associated with extreme

Feature

15


heat events tended to increase hospital admissions and deaths by 2% to 5% the first day. Adverse health effects and mortality mounted with each day of a heat wave.

Interestingly, the analysis found that extreme cold events typically had a negligible to nonexistent impact on hospitalization and deaths. Distributed across the population of a country such as Germany or the US, the analysis estimates that the cost of a hot day is between 10 cents and 68 cents per resident in terms of health care and lost productivity.

Winners and losersSo, when it comes to site selection and climate, which countries top the list? The Notre Dame Global Adaptation Index (ND-GAIN), where I work, has ranked the climate adaptation performance of 177 countries over the last 17 years, has found that, while the top-ranked countries are often prone to sea level rise, drought and flooding, they are nonetheless able to maintain the security of their water, food, and health systems. They are able to preserve their fundamental ecosystems, and their coastal, energy and transportation infrastructures remain sound, enabling greater social, economic and governmental stability.

The ND-GAIN›s highest-ranked country is Denmark, which has an index score of 83.4. Other European countries and Australia round out the top 10, while the US ranks 13th, with a score of 79.

North Korea is the lowest-ranked country, with an index of 34.3, and Afghanistan, Burundi, the Central African Republic and Eritrea fill out the bottom five on the list of countries that aren›t likely to draw many foreign industrial and business operations any time soon.

The most surprising low-ranked countries are India, which is number 120, and China, which is number 98. But as two of the hottest spots for global business in the last decade, both demonstrate the impact that corporate investment can have on resiliency. India has moved up 10 points on the relative ranking since 1999, and China has moved between three and six spots during that period.

In real-estate parlance, the desirability of a property is based on location, location, location. And while climate change may still rank below such factors as workforce and incentives, more and more organizations are weighing climate conditions as they determine where they will locate new operations.

Consequently, cities, states and countries that lag on the climate-change index need to launch initiatives, such as public-private partnerships, to strengthen their attractiveness. The private sector, of course, can play an invaluable role in this effort.

This article was originally published in the Guardian at www.theguardian.com/sustainable-business/hubs-water-climate-change-siting-drought-flood-business

Feature

About the author: Joyce Coffee is managing director of the Notre Dame Global Adaptation Index (ND-Gain) the world’s leading assessment informing public and private sector decision-makers about which countries are best prepared to deal with climate change and other global shifts. She is also the executive lead for related resiliency research, outreach and execution.

16

www.thelandconnections.com 1-800-441-5263

The offiicial land listing site of the REALTORS® Land Institute

LANDTHE

CONNECTIONS

Fall 2014TerraFirma

Oil & Gas 101: Oil and Gas Basics for the Mineral Owner

In America, we enjoy a broad range of property rights. One such right is mineral ownership under the land we own, assuming someone before us has not severed the mineral estate from the surface estate. A legally binding mineral title opinion is typically the only document that substantiates mineral ownership (at least with regard to earning income from mineral production, which is our focus).

The complexity of such a mineral title opinion can vary dramatically. In the 18th and 19th century, when land was originally deeded to individuals, the mineral estate naturally came with the land, and if it has not been severed since, remains with the land.

Learn Oil and Gas BasicsOften landowners are relatively uninterested in minerals, mineral estates, etc. until they receive a letter from an oil company proposing to lease their mineral rights. Then, everything changes. Now they’re quite interested in learning a few things… which is the reason Oil and Gas Mineral Services Co. exists, to serve America’s mineral owners. An oil company is interested in leasing your minerals because they have reason to believe that they can find oil or gas there. Consider this article as your Oil and Gas 101 course, primarily written for the mineral rights owner. Learning oil and gas basics will help you maximize the value of your mineral rights.

The Oil Company (a.k.a. the Operator) Relationship with the Mineral OwnerTo bring oil and gas reserves to market, minerals are leased by oil companies through a legally binding contract known as an Oil, Gas, and Mineral Lease. This arrangement between individual mineral owners and oil companies began prior to 1900 and still thrives today. Although there are numerous other important details, the basic economic structure of the Lease is straightforward: in exchange for an up-front lease bonus payment, plus a royalty percentage of the value of any production, the mineral owner grants the oil company the right to drill and produce. In some cases, no drilling occurs and the lease simply expires. However, a well may in fact be drilled. We’ll assume here that drilling is viewed as a good thing by all involved. After all, nobody will enjoy economic gain if no drilling activity occurs.

Drilling and Completion ActivitiesAssuming the oil company decides to drill, they may drill on your tract. If you are a surface owner, the oil company will likely

propose a drill site, notify you, and offer to pay for damages related to the surface use. Obviously, all parties should be guided by reasoned thinking as to the compensation for damages, road usage, pipelines etc. Both parties should remember that realizing economic gain from mineral production is accomplished by partnership between the mineral owner and the Operator. Drilling operations can vary from 10 days to 90 days, or even more. Completing the well (perforating, hydraulic fracturing, installing production equipment etc.) can take a similar period. Now, let’s say that we’ve “made a well”…

Producing Characteristics of Oil and Gas WellsOil and gas is produced from what are commonly known as reservoirs. Production rates generally decline more rapidly in the early stages of a wells producing life. There are typically three types of drive mechanisms from which hydrocarbons flow through reservoirs: water drive, depletion drive, and solution drive.

One of the primary determinants of value for a producing well is its decline curve. A decline curve illustrates the production history of a particular well, and is also used to predict future performance. Now, the hydrocarbon must be sold; let’s look at the marketing of the production.

Oil and Gas MarketingIn the majority of cases, a royalty owner’s share of production is marketed and sold along with the working interest owner’s portion (working interest owners are those owners obligated to pay for the expenses of drilling and operating a well).

The quality of produced hydrocarbons varies substantially and has direct impact on its value. Oil gravity and sulfur content are the two most important characteristics affecting crude oil pricing. With natural gas, the MMBTU content and the amount of impurities have the most impact on the value per MCF.

Oil and Gas MeasurementProduced oil and gas is measured prior to leaving the well site, as required by law. The gross volume from which your royalty share

Kenneth DuBose Founder/Publisher MineralWeb.com

Feature

“You don’t make progress by standing on the sidelines, whimpering and complaining. You make

progress by implementing ideas.”—Shirley Chisholm, former U.S. congresswoman

17


is calculated is based on this measurement. Customary industry standard requires that the Operator verifies the measurements of the First Purchaser through a “check” meter for gas, or by rechecking (behind the First Purchaser) the levels in the oil storage tanks. With respect to the risk of you being “shorted” or cheated on your properly due production, it is important to keep in mind that it is in your Operator’s best interest to insure proper product measurement.

Oil and Gas Royalty Statement DeductionsYou may notice a column on your royalty check stub that contains deductions for making production ready for sale. Common deductions are for compression, dehydration, and removing impurities from gas. Debate, often in court, has gone on for years as to the applicability of these charges.

Oil and Gas PricesImportant to any article on oil and gas basics is certainly a paragraph on pricing. Crude oil and natural gas are commodities, and subject to daily swings in their value in the marketplace. The New York Mercantile Exchange (NYMEX) is the primary market maker for pricing these commodities. The actual cash (or physical) price which royalty owners and oil companies receive is usually based upon a contracted price set each month. Keep in mind that the oil company (along with you the royalty owner) benefits by negotiating for the best price possible.

Oil and Gas Severance Taxes and Ad Valorem Taxes – The Tax Man ComethState governments levy a severance tax when natural resources such as oil and gas are “severed” from the earth. Generally, the First Purchaser is responsible for collecting and accounting for this tax which is collected during the normal monthly accounting cycle. This should be easily calculable, and match the deduction shown on your royalty check stub.

County governments render and collect a yearly ad valorem tax on producing minerals in many states. Owners are usually assessed and billed annually.

Additional Reading:

MineralWeb.com

About the author: Kenneth DuBose is the founder/publisher of MineralWeb.com, a web resource for land and mineral owners. He is past President of Cheyenne Minerals, an independent oil and gas company. He writes on topics of oil and gas investing, wealth management and personal finance, having appeared in the Wall Street Journal, and Kiplinger’s Personal Finance.

Feature

18

Even in rural areas, RPR Commercial provides the data you need.

Even in rural areas, RPR Commercial provides the data you need.

Syd Machat, ALC, CRE, CCIM Prudential Bowen Realty - Hagerstown, MDWatch Syd’s story at www.myrpr.com

TECHNOLOGYANALYTICSINNOVATION

Fall 2014TerraFirma

The Institute is pleased to recognize the below members for their outstanding accomplishments and contributions.

George Harvey and Gary Hubbell set three regional sales records in Colorado--the highest-priced property sale, highest-priced ranch sale, and largest ranch sale by acreage--with the closing of just one

property. The networking of these two Institute members resulted in a property sale of $17 million for undeveloped ranchland. Harvey gave recognition to Hubbell for referring Harvey to the international buyer’s broker.

Century 21 Harvey Properties, owned by Renee Harvey, ALC Advanced, 2014 Chair of the Institute Education Committee, was named the 2013 Top Producing Office in the Century 21 Commercial Investment Network in addition to one of the Top Five Producing Companies. The office led the charge in both commercial sales and lease production.

Rusty Lowe, ALC, was honored as the 2013 Top Producer by Century 21 Commercial Investment Network. Lowe is an associate broker at Century 21 Harvey Properties. He led the national Century 21 System in both commercial leases and sales production. Lowe is the 2014 President of the Texas Institute Chapter.

Guy Spitzer, ALC, was honored by the Sacramento Association of Commercial Real Estate with the 2013 Sacramento Land Broker of the Year award. Spitzer has over 24 years of real estate experience in the Sacramento region and specializes in land development, agricultural land, and investment properties.

Jeramy Stephens, ALC Advanced, 2014 Institute Arkansas Chapter President, and owner/broker of Mossy Oak Properties of Stuttgart-Land and Auction Company, received national recognition from Mossy Oak Properties as the national Agent of the Year. The award is given annually to the salesperson with the

highest sales volume over the course of the year in the Mossy Oak Properties network composed of over 400 land specialists. This marks the third time Stephens has received the award, having earned it in 2008 and 2012.

Larry Ilfeld, ALC, was named the Chair of the 2015 National Land Conference: Unbridled. Unleashed. taking place in Tucson, AZ, on March 23-25. Ilfeld is the Managing Director of Sperry Van Ness in Albuquerque, NM. He is the sole Accredited Land Consultant (ALC) in New Mexico and is spearheading a new chapter in

the state.

Murray Wise, ALC, was honored as the Parkland College’s V. Dale Cozad Entrepreneur of the Year and recognized as one of the nation’s top authorities in farmland management and marketing. According to Greg Cozad, the son of Mr. Cozad, Wise is “innovative, decisive, and willing to embrace new opportunities.” He is

impressed by “Murray’s quiet generosity to many, particularly those who have expressed an interest in either agriculture or entrepreneurship.”

Danny Smith, ALC Advanced, 2014 ALC Committee Chair, swept the Central Florida Commercial Association of REALTORS® (CFCAR) Annual Hallmark Awards-- the Top Land Producer for Central Florida, a Top 5 REALTOR® in Investment Sales, a Top 10 REALTOR® for Overall Sales in central Florida, and the Top Producer for Sumter County.

Smith plays an integral role in the advancement of the Institute and the Accredited Land Consultant (ALC) designation as a member of the Institute Board of Directors and as the Chair of the ALC Accreditation Review Committee.

Member NewsMember News

Bill Eshenbaugh, ALC, was honored with the 2013 Florida Gulf Coast Association of REALTORS® (FGCAR) Henry Blanton Lifetime Achievement Award. In addition, Accredited Land Consultants (ALCs) and Institute members swept the 2013 Florida Gulf Coast Association of REALTORS® (FGCAR) Pinnacle

Awards. They shined as they received all of the awards in the top land producer categories. Several were also recognized for their individual sales. Congratulations to the ALCs and members who earned these honors:

Henry Blanton Lifetime Achievement AwardBill Eshenbaugh, ALC (pictured)

Top Land Producers in the FGCAR Regional Division: #1: Bill Eshenbaugh, ALC #2: Ryan Sampson, ALC #3: Sage Andress, ALC

Top Land Producers in the National Division: #1: Bruce Erhardt, ALC #2: Renee Dyer, ALC #3: Jill Carbonelli

Deal of the Year in the Industrial Category: Nancy Surak, ALC

Million Dollar ProducerChris Bowers

Overall Deal of the YearBill Eshenbaugh, ALC, and Ryan Sampson, ALC

19

TerraFirmaFall 2014

George Clift, ALC Advanced, 2014 Institute National President, was a guest speaker at Texas A&M Real Estate Center’s 24th Annual Outlook for Texas Land Markets in San Antonio, TX, on April 17. Clift covered strategies for connecting with buyers and real estate professionals nationwide, as well as insight into the changing dynamics of buyers and sellers. He also was a presenter at the

2014 National Association of Auctioneers’ 65th Annual Conference and Show in Louisville, KY. Clift shared the importance of gaining land knowledge through the Institute LANDU program and how that knowledge and earning the Accredited Land Consultant (ALC) designation increases productivity.

Ray Brownfield, ALC Advanced, 2012 Institute President, was featured on This Week in Agribusiness on May 24, 2014. In the interview with Orion Samuelson and Max Armstrong, Brownfield discussed land market issues and land values in 2014. This may be viewed at http://farmprogressamerica.com/video.aspx/week-

agribusiness-may-24-2014-part-2-14-2158.

On June 25, Brownfield led a Century 21 teleconference titled Best Practices for Partnering with a Land Professional and Strategies for Entering the Open Land Market. Brownfield shared his professional experiences, strategies for success in the land profession, and the benefits of knowledge attained through the Institute LANDU program. The call was promoted to over 60,000 real estate professionals.

Dean Saunders, ALC, made a generous donation of $37,500 to the Florida Cattlemen’s Association (FCA) Foundation on behalf of Coldwell Banker Commercial Saunders Real Estate. The funds support Florida’s youth and give back to the cattle rancher community. The Saunders Gives Back (SGB) program was created

in July 2013 and is directed to donate five percent of the brokerage’s closed property sales commissions to a FCA member.

Roger Heller, ALC, 1998 Institute President, had an article published on 2014 Minnesota land prices in the Minnesota Association of REALTORS® Magazine. Heller discussed market trends, particularly in crop producing counties of the state. The article may be viewed on the official Institute website as a white paper at www.rliland.com/general-resources.

Bryan Clift completed a prestigious two-year agriculture leadership program offered through Texas A&M, the Texas Agriculture Lifetime Leadership (TALL) program. Clift was one of twenty-four selected for this highly competitive honor. The program helps “ensure effective understanding and encourage positive action on

key issues, theories, policy, and economics that will advance the agriculture industry” for Texas leaders.

Bob Turner, ALC Advanced, 2014 Institute Vice President, was appointed as a Federal Political Coordinator to Congressman Stephen Fincher of the 8th District of Tennessee. In 2015, Turner will serve as the Memphis Association of REALTORS® Commercial Council President. He currently is the Institute Representative to the Executive

Committee. He represented the Executive Committee in meetings with leaders from Taiwan and Latin America to discuss the Institute International Programs.

Suzanne Fields, ALC, was interviewed on the Todd LaBorwit of the Real Estate Radio Network on June 21. Fields discussed the prestige of the ALC accreditation and benefits of working with an Accredited Land Consultant (ALC). With this information, she gives an inside look into her land business. Fields shared the extensive volume and

education requirements required for the designation, as well as the incredible network that is attached to it. Watch the interview at www.youtube.com/watch?v=HRy66yupVqQ.

Aaron Graham, ALCArlan Brown, ALCBart Miller, ALCBen AlderBen Crosby, ALCBill Eshenbaugh, ALCBob Turner, ALC AdvancedBrent WellingsBruce Charlie ChernakCathy Cole, ALCCharles Wingert, ALC AdvancedCharles Lathem, ALCChrist TaylorChristy Belton, ALC Craig Browne, ALCDaniel Crocker, ALCDan PerezDann DegenDavid Jirasek, ALCDawn TruaxDean Saunders, ALCDietra Robertson, ALCErskine Don Donald, ALCFletcher Majors, ALCFlo Sayre, ALC AdvancedFord CartwrightFrank Roberts, ALCGary HubbellGeorge Clift, ALC Advanced

H JacobsonIvan Judd, ALCJeramy Stephens, ALC AdvancedJohn Hjelm, ALCJ. Gardner Lile, IVJonathan StevensJustin MasonJustin OsbornKem Winternitz, ALCKen Richardson, ALCLou Jewell, ALCMartin JurischMichael MurphyMike Konstant, ALCMyers JacksonRay Brownfield, ALC AdvancedRobin BakerSherman ShanklinSuzy MooreTerri Jensen, ALC AdvancedTerry PaulingTom Niewohner, ALCTom PercivalTom Smith, ALCTrey AllenWayne Cooper, ALC

Membership AmbassadorsA special thank you to the following Ambassadors who have brought valuable new members to the Institute.

Member News

20

Fall 2014TerraFirma

Chapter News

Chapter News

21

Colorado ChapterThe Colorado Chapter in 2014 hosted major events in Durango, Grand Junction, Denver, and Fort Morgan. The Durango meeting included a farm and ranch tour led by Justin Osborn. The July Chapter meeting, hosted by Kent Lindell and Donald Jones in Fort Morgan, focused on agriculture topics and presentation packages of productive farms and working ranches. Special guests were George Clift, ALC Advanced, 2014 National Institute President, and Ivan Judd, ALC, the Wyoming Chapter President.

Alabama and Georgia ChapterAlabama and Georgia Chapters of the Institute recently hosted a training and networking conference The conference was held at George T. Bagby State Park and Lodge near Fort Gaines, GA. Six hours of continuing education were offered at the two-day event. The conference started Thursday afternoon with a program on deeds, conveyances, and boundaries and was followed by a property marketing session. The Friday morning session covered title reports and boundary surveys. There were over 70 participants from Georgia, Florida, Alabama, and South Carolina.

George Clift, ALC Advanced, 2014 Institute President, presented the benefits of membership in the Institute and earning the ALC designation at the meeting. Butch Armistead, ALC, organized the event to bring more awareness of how the organization and the courses can be helpful in adding to their productivity and client base.

Butch Armistead, ALC; George Clift, ALC Advanced; G. Kent Morris, ALC; Sam Bowers, ALC

Florida ChapterThe Florida Institute Chapter installed its 2015-2016 officers during the summer chapter meeting. David Hitchcock, ALC Advanced, was sworn in as President, and Myers Jackson was sworn in as Vice President. Clay Taylor, ALC, is the Florida Chapter Treasurer and Lisa Jodray is the Secretary.

Dean Saunders, ALC, was named the 2013 Florida Land REALTOR® of the Year by the Florida Institute Chapter for completing the sale of over 380,000 acres with a sales price exceeding $562 million. Saunders is the owner/broker Coldwell Banker Commercial Saunders Real Estate.


Chapter News

22

Minnesota ChapterThe Minnesota Chapter held a meeting in June filled with learning and entertainment. The event included a state update from Wendy Forthun, ALC, 2014 Minnesota Chapter President, and a National update from George Clift, ALC Advanced, 2014 National Institute President. The group took tours of the Department of Natural Resources Fisheries and of CenterPoint Energy. They heard a presentation on Brazilian agriculture and concluded the evening on a pontoon ride on Lake Washington hosted by Chuck Wingert, ALC Advanced, 2014 National Institute Immediate Past President.

Carolinas ChapterThe 2014 North Carolina Association of REALTORS® President, Tomp Litchfield, installed the 2015 Carolinas’ Institute Chapter officers and Board of Directors in late July:

Dick Havens, 2015 Carolinas Chapter President Lou Jewell, ALC, 2015 Carolinas Chapter President-Elect Christina Asbury, ALC, 2015 Carolinas Chapter Treasurer Trey Allen, Pam Hayes, ALC, Dustin McClure, and John McAllister, ALC; Directors

The Carolinas Chapter named John McAllister, ALC, Institute Past President, the 2014 Carolinas’ Land REALTOR® of the Year. McAllister was recognized for his service on the chapter Board of Directors, the closing of a few large-volume land transactions, his Chairmanship of the 2014 National Land Conference in SC, and his strong level of professionalism when serving customers and clients.

Tom Litchfield, John McAllister, ALC, and Mark Cumbust, ALC

Courteouswww.TellurideLuxuryBroker.com

George Harvey

Fall 2014TerraFirma

Gayle Harvey, ALC Broker/OwnerGayle Harvey Real Estate, Inc.

Internet Marketing

The Internet has leveled the playing field in the real estate world. In the past, unless you had a tremendous local sphere of influence, a large network of former clients or deep pockets for advertising, it was incredibly difficult to establish yourself in this industry. But now that almost everyone goes online for real estate information — a whopping 97% of buyers in 2013, according to the National Association of REALTORS® — the Internet has opened the door for small firms and individuals to build a brand and compete on a regional or even national level. At the same time, larger firms have been forced to “step up” to maintain their position in the marketplace.

Building a brand on the Internet takes more than just creating a website, having a Facebook and LinkedIn page, or sending out random Tweets. A successful Internet presence requires time, organization and constant tweaking to keep abreast of ever-changing search engine algorithms, social media developments, and new advertising platforms.

Regardless of whether you do-it-yourself or hire an outside firm to handle your Internet marketing, knowledge, as in any sphere, is power. My purpose in this article is not to give you how-to instructions, but rather to make you really think about your Internet marketing strategy, which will be unique to each business. One of the biggest complaints I hear today is that with so many different platforms available, how can you do everything or afford to hire someone to do it all? The answer is to prioritize your efforts according to which methods will achieve the best results for you.

The most important strategy for many of us is to get our website into a high position on organic Internet searches. Holding one of the top three positions is optimum and can generate an abundance of leads. But achieving this is much easier said than done. Recently all the rules have changed for search engine optimization, making this strategy more difficult than ever. In fact, quite a few of the old strategies can now land you in the search engines’ penalty boxes. The most important rule for today is to consistently produce good, interesting, and relevant content for your website.

Other ways to drive potential clients to your website include Facebook and Linked In postings, Google+, Tweeting, pay-per-click ads like Adwords, real estate sales portals, and offline print media. Each channel can be quite costly — in time, money or both. Since most don’t have an unlimited supply of either, we need to know where to focus to obtain the greatest ROI (return on investment) for our inputs and resources.

Quantifying ROI in terms of a specific dollar amount for each marketing channel doesn’t work for real estate businesses. E-commerce sites can track to the penny where their sales are generated, but I don’t think we will ever get to the point where people purchase homes, farms, land or commercial space through shopping carts, if so, we are all in trouble. For the sake of simplicity, let’s assume your website is so phenomenal that any visitor that gets to your site will work with you. Your marketing goal is to get those visitors.

The first step is to track and analyze where your current website visitors are coming from, then you will know where to allocate your time and resources for future marketing efforts. Would you still post to Facebook if you knew that for every hundred hours you spent doing that, only two people visited your website? Would that 100 hours be better spent writing content for your blog? Do the people reading your blog click through to your website and search for properties? Does anyone reading that glossy magazine you place your ad in ever go to your website?

To get these answers, there are several great web analytics packages available. For this article, I will be focusing on Google Analytics, a free tool that offers a wealth of information. Just by inserting their code into your webpages, you can track where your visitors are coming from— a search engine, pay-per-click ad, your Facebook page, print ad, etc. If they found your website address in your print advertising, you can even identify the physical location of your web traffic, which can help you target the areas in which to advertise in print.

For example, I recently placed an advertisement of five farms on the online version of a major newspaper. After two weeks, I have only received five click-throughs to my website. Five! Even worse, all five clicks can be traced back to my assistant and me checking to make sure that the links worked properly. This ad was not cheap, and without analytics, I would have continued to waste my money advertising on this site. Those dollars will now be diverted to

Feature

23

“A successful Internet presence requires time, orga-nization and constant tweaking to keep abreast of

ever-changing search engine algorithms, social media developments, and new advertising platforms.”


another marketing channel. Reviewing my analytics saved me not just money, but also the time it takes to upload ads to that site.

Through Google Analytics, you can compare your web traffic to your historical traffic as well as to industry averages. You can track what search engine keywords are generating traffic, how your visitors get to your site and also where they go within your site. Google Analytics will tell you which website pages are the weakest and cause you to lose visitors, so you can either improve or eliminate them.

By setting up trend tracking and analysis, you can decide where to invest your time and energies, and which areas need to be improved. This puts you in control; no more shooting into the dark. Analytics give you hard data to make educated decisions.

A successful Internet marketing strategy must include timely responses to inquiries. That level playing field also gives customers the ability to jump from firm to firm (agent to agent) in seconds. Quick, or even instantaneous, responses are paramount. If another agent answers an inquiry first, you have lost that lead. Check out these facts from a recent study by the consulting firm WAV Group and Weichert Lead Network:

n 48% of buyer inquiries were NEVER responded to.n Average number of call-back attempts after the initial contact

was 1.5 (per inquiry)n Average number of email contact attempts was 2.07 (per inquiry)n Average response time was 917 minutes (or 15.29 hours)

The entire article can be found at: http://waves.wavgroup.com/2014/01/13/agent-responsiveness-study-reveals-critical-flaws-in-real-estate-lead-response/

If you are frustrated at the lack of ROI from your efforts on the Internet, perhaps you fall into one or all of the above groups. We may be playing on a leveled field and with some new rules, but the basics of being a good service business still apply. You must be willing to work and at a much faster pace than you have ever worked before. The old saying, “the early bird gets the worm,” has never been more relevant than it is in today’s world.

About the author: Gayle Harvey, broker/owner of Gayle Harvey Real Estate, Inc., located in Charlottesville, Virginia, began her real estate career in 2001 after completing her MBA in e-commerce. Seeing the opportunities available within the real estate industry, Gayle began building her web presence and today has over 50 websites and is one of the leading farm and estate brokers in the central Virginia region.

Feature

24

Fall 2014TerraFirma

Auction can turn challenging situations into closed transactions, fence sitters into bidders, and bidders into buyers. Most agents have worked with at least one client who continually asks, “Can we drop the list price to draw in an offer?” Eagerness to reduce the price may be a signal that your client is ready for the freedom of letting go and may be a good candidate for auction. They may have a tough-to-sell asset or something else going on in their life that creates the need for a new market, new energy, and a time-definite sale. There are many advantages to agents as well as their clients to take a property to auction.

Sellers who want to expose their sale to the largest possible market use auction. Also, sellers increasingly want to be in control of when the property changes hands while avoiding frivolous offers or uncertain contingencies. Costs are measured not just in dollars but also in lifestyle and personal opportunity costs. The certainty of auction gives sellers control to move on with their lives on their own schedule. As Pam McKissick, co-owner and CEO of Williams & Williams states, “Time is all we’ve got. Spending it in the right place, with the right people, on the right issues is important. Auction can improve your quality of life.”

Agents utilize auctions as an incremental sales tool to for clients who are ready, willing and able to sell and to retain commissions from expiring listings. With an auction, the seller can expect a very intense, continuous marketing strategy. If the reason the property is not selling is because there has not been much if any traffic and, therefore, insufficient interest in the property, the property likely has remained on the market and become “stale.” People start to question why the property has been listed for so long and then tend to avoid it.

When Dean Williams, Williams & Williams co-owner and Chairman, was asked for his thoughts on this topic in a recent interview, he said, “Today, transaction volumes are at historic lows for the number of owned properties. This is where auction done right, not unlike private equity IPOs in general, can make a huge difference for agents. By increasing reliability of timing, terms and values paid, agents can use the most reputable auctions to create liquidity and, therefore, increase transactions.”

Dean Williams further points out that unreliability has always been the industry’s Achilles heel. “Whether it’s questions as to when a deal will happen not to mention if or for what, traditional private treaty sales have not been able to improve market confidence.” There is no better way than auction to remove the stigma of past marketing, introduce a fresh campaign, revive the interest and create an exciting, transparent event that gathers people together to compete for the property, resulting in a closed transaction in 60 to 90 days.

Have you ever bought anything at auction? The competition is as exciting as most sporting events. It’s a thrill to see if you are the high bidder. While many of us buy or sell equities at auction or even art, autos, livestock and equipment, selling real estate at auction isn’t always top-of-mind. Auction is a sound strategy for selling all types of real estate. Many of us already understand that the values of farmland in Iowa and other states are established by auction. Auction follows basic socio-economic principles: the stronger the demand (or perceived demand) for a property, the higher the competition and typically the resulting high bid.

An experienced auction company understands the art and science behind selling a farm or ranch at auction and presenting it to the public in a variety of ways. Parceling, for example, is an effective strategy to increase the high bids. Parceling a property can make it more desirable to purchasers with diverse goals, which heightens the competition between bidders interested in one or more parcels and bidders who may be interested in purchasing the ranch in its entirety.

Farmers or ranchers may have spent years piecing a ranch together, buying every tract for sale around them, negotiating trades with contiguous landowners. For obvious reasons, they are emotionally attached to the ranch they have created. It may be difficult for them to see their land once again parceled. In today’s market, there are fewer individuals who can afford a large tract of land. An experienced salesperson can identify what is happening in the current market and help his or her seller separate from the emotion of the sale so they can move forward with their lives.

Choosing to sell real estate at auction is a strategic decision to bring the marketplace into open competition to own a property in a time definite manner and allow the seller to determine when his or her property will sell. The more interest and demand generated for a property, the better it will do at auction.

When choosing an auction company, keep in mind that a low seller commission should not equal increased confidence. Many times an auction company will cut the marketing budget right along with commission and increase the risk of the property not selling. As Pam McKissick explains in her book, Auction Your Home? Absolutely, an inside guide to real estate auction, “Cut-rate auction companies don’t ‘do it for less’; they simply ‘do less.’ They hire less talented auction staff, spend less on marketing your property, and simply pray someone will show up and bid high – which is like skimping on helium at a balloon festival and hoping wind picks it up.”

Who you choose to handle your auctions says as much about you as it does the property you are selling. Farm, ranch and land brokerages are finding it advantageous to partner with reputable and experienced auction companies to broaden their suite of

Drew Ary Director of Farm Ranch and Land Sales Williams & Williams Worldwide Real Estate Auction

Auction: Is Your Client Really Ready to Sell?

Feature

25


services for clients. Whitetail Properties, America’s leading land brokerage, recently formed a strategic alliance with Williams & Williams to sell hunting, ranch and farm land across North America. The reasons for the alliance were clear according to Dan Perez, Whitetail Properties CEO. “Williams & Williams shares our vision of providing landowners with innovative ways to market and sell properties to achieve highest market value.” He added, “With over 100 years of experience selling land properties, there isn’t a better partner to bring the global market to North American properties and to expertly handle real time, time definite real estate sales for our clients.”

The first property cooperatively marketed and successfully auctioned under the alliance was Hunter Ridge Ranch, a prime game habitat in the Ozark Mountains of Missouri.

Auction expands your opportunity to close more deals and offer a broader range of solutions to clients. Understanding how auction works and who best to partner with are important first steps to

unlocking the benefits of auction to deliver faster, better results for your clients and to grow your business. As Pam McKissick points out in her book, “Auctions are competitive, efficient, exciting, entertaining, time-definite, public, and proven.” It’s time to put auction to work for you.

Feature

26

About the Author: As a Director of Farm Ranch and Land Sales for Williams & Williams Worldwide Real Estate Auction, Ary is responsible for developing and maintaining relationships with sellers that seek timely and transparent exchange of their farm, ranch and land real estate. Drew joined Williams & Williams in 2010 and initially served in the role of Client Services/Closing and Project Management.

JANUARYJanuary 2-10: ALC Advanced Applications due

January 5: Award Nominations Open

January 5-31: ONLINE Course Essentials of Negotiation

January 5-31: HYBRID Course Agricultural Land Brokerage and Marketing

January 19: MLK Day

FEBRUARYFebruary 2-28: HYBRID Course Land Investment Analysis

February 2-28: ONLINE Course International Aspects of Real Estate

February 16: Presidents Day

MARCHMarch 23-25: National Land Conference Loews Ventana Canyon Resort, Tucson, AZ White Paper Course Option March 22: Committee Meetings starting at 3:00 p.m. March 23: BOD Meeting from 8:00-10:00 a.m.

APRILApril 2: Let’s Make Deals Marketing Session

April 6-May 2: HYBRID Course Tax Deferred 1031 Exchanges

April 6-May 2: Online Course Marketing Strategies

MAYMay 4-30: HYBRID Course Google Earth for the Land Professional

May 4-30: ONLINE Course Mineral, Oil, and Property Rights

May 11-16: REALTOR Party Convention & Trade Expo Washington, DC

May 25: Memorial Day

JUNEJune 1-26: HYBRID Course Auction Verdict & the UCC 2-328

June 21-28: LANDU Education Week

JULYJuly 3: Independence Day

July 6-31: HYBRID Course Building Business Through Technology

July 6-31: HYBRID Course Land 101: Fundamentals of Land Brokerage

July 9: Let’s Make Deals Marketing Session

AUGUSTAugust 3-15: HYBRID Course The Auction Tool: A Core Course

SEPTEMBERSeptember 1-26: HYBRID Course Land Investment Analysis

September 1-26: ONLINE Course Essentials of Negotiation

September 7: Labor Day

OCTOBEROctober 5-30: HYBRID Course Timberland

October 5-30: HYBRID Course Tax Deferred 1031 Exchanges

NOVEMBERNovember 2-30: HYBRID Course Google Earth for the Land Professional

November 4-9: 2015 REALTORS Conference & Expo November 5: Institute Officer Inductions

November 5: Let’s Make Deals Marketing Session

November 26-27: Thanksgiving Holiday

DECEMBERDecember 24-25: Christmas Holiday

2015 EVENTS CALENDARREALTORS® LAND INSTITUTE

TerraFirma

Luke Worrell, ALC Real Estate Broker Worrell-Leka Land Services, LLC

Lessons Learned in South Carolina at the 2014 National Land Conference

Attending the National Land Conference of the REALTORS® Land Institute has become an annual trip for me. Every March, I eagerly anticipate attending. This year was no exception as I made my way down to Charleston, SC, to recharge my batteries, network, and, most importantly, learn.

One of my favorite points about the conference is the scope and diversity of the speakers. Often, I lose myself in the day-to-day tasks of my job. I get in “Corn and Bean” mode. When I participate in the Institute National Land Conference, my eyes are opened to other worlds of agriculture and of land such as the oil boom of North Dakota, the timber market of Maine, or the water issues in Texas. The knowledge expands my overall education and increases my awareness and expertise and ability to participate in fresh ideas and options.

This year’s speakers included a member of the Federal Reserve, an official from the NRCS, Auction professionals, investors, and economists. The speakers were spread out over two days and the wealth of knowledge dispensed was immense. In general, the underlining theme was positive for the realm of “Agriculture”. Here are just a few snippets of the information shared:

1. The agriculture sector is NOT set up for failure but is, in fact, steadying

2. The rapidly aging population of America is reshaping the economy

3. America’s ports and rails are thriving

4. Energy independence is on the horizon. The energy ride is just beginning with vast changes ahead in the next 20 to 30 years

5. Housing will reflect local demographic factors

6. Farm booms always “end”, it is how they end that is important

8. Experts do not see rapidly rising interest rates anytime soon

9. Bullish news in the future with rapidly growing middle class around the globe

There was no shortage of information in Charleston and thankfully no shortage of positivity for agriculture.

Another aspect I always enjoy about the conference is the chance to catch up with my colleagues. There is strong value in reaffirming what you see in your own market in comparison to neighboring areas. Sharing tips and work strategies with peers you trust can be an invaluable experience.

I would encourage anyone to attend and look into joining the Institute. Between the main sessions, breakout tables, and social functions in the evening, I always leave the National Land Conference a better Land Consultant, Broker, and Farm Manager.

About the Author: Luke Worrell is a Broker, Accredited Land Consultant and Accredited Farm Manager in Jacksonville, IL. He specializes in agricultural real estate and land management in west central IL. Luke enjoys all things sports and traveling. He resides in Springfield, IL with his wife Allison and son Kale.

Feature

27Fall 2014

28

Partnerships and sponsorships with the Institute are available and can be customized to fit your needs and increase brand awareness. They can be geared toward the Institute as a whole, LANDU, THE LAND CONNECTIONS-the Exclusive Listing Site of the

Institute, the 2015 National Land Conference, and more. Find out more by calling 1.800.441.5263 or writing to [email protected].

The REALTORS® Land Institute extends special recognition to the partners and sponsors of the 2015 National Land Conference for their commitment to the organization and to land.

2 0 1 5 I N S T I T U T E P A R T N E R S A N D S P O N S O R S

G O L D S P O N S O R S

S I L V E R S P O N S O R B R O N Z E S P O N S O R A N D E X C L U S I V E G O L F S P O N S O R

P L A T I N U M P A R T N E R

B R O N Z E S P O N S O R S

29

2 0 1 5 I N S T I T U T E P A R T N E R S A N D S P O N S O R S

SUNDAY, MARCH 22PRE-CONFERENCE

3:00-3:45 p.m. Past Presidents’ Meeting4:00-4:45 p.m. Concurrent Committee Meetings I Government Affairs Committee ALC Designation Committee5:00-5:45 p.m. Concurrent Committee Meetings II Future Leaders Committee Education Committee Finance Task Force

MONDAY, MARCH 238:00-10:00 a.m. Board of Directors Meeting

2014 CONFERENCE BEGINS10:00 a.m. Registration Opens10:30-11:30 a.m. ALC Exclusive Session (ticketed) Placing a Value on Your Business Dan Duffy, Chairman & CEO, United Country Real EstateNoon-3:20 p.m. Partner Exhibits Open3:20-5:00 p.m. Welcome & Recognition Ceremony3:20-3:40 p.m. American Indian Eagle Dance3:40-3:50 p.m. Introduction & Color Guards Larry Ilfeld, ALC, 2015 Conference Chair, Sperry Van Ness Commercial Real Estate Advisors3:50-3:55 p.m. Tucson CEO Welcome Philip B. Tedesco, RCE, CAE, CEO, Tucson Association of REALTORS® 3:55-4:05 p.m Institute Welcome & Passing of the Gavel Ceremony Michele Cohen, CEO, REALTORS® Land Institute4:05-5:00 p.m. Awards and Recognition Terri Jensen, ALC Advanced, 2015 Institute National President, Farmers National Company5:00-7:30 p.m. Networking Events5:15-6:00 p.m. Meet and Make Money6:00-7:30 p.m. President’s Inaugural Cocktail Reception7:30 p.m. Dinner on your own–Enjoy!

TUESDAY, MARCH 247:00-7:50 a.m. Continental Networking Breakfast8:00-10:10 a.m. Economic Macro8:00-8:50 a.m. About the Economy Mark Dotzour, PhD, Chief Economist, Real Estate Center at Texas A&M8:50:-9:30 a.m. What’s in KC’s Crystal Ball Now? KCConway,SeniorCreditRiskOfficer, SunTrust Bank9:30-9:45 p.m. Partner Visits9:45-10:10 a.m. Barstool SPAT with Economists Bob Turner, ALC Advanced, Moderator, Southern Properties

10:15-11:45 a.m. Economic Micro10:15-11:00 a.m. The State of Land Lending/Working with Lenders Bill Davis, Senior VP, Chief Credit Officer, Farm Credit Services of America11:00-11:45 a.m. Future of 1031 Exchanges…and Taxes Dave Franasiak, Esq., Principal, Williams & Jensen PLLCNoon-1:15 p.m. Lunch Our Man on the Hill Update Russell Riggs, Institute Legislative Staff Liaison, NAR1:15-1:30 p.m. Partner Visits1:30 p.m. Sessions Resume1:30-2:15 p.m. A Changing Climate: Fires and Forests Zander Evans, Interim Director, The Forest Guild2:15-3:00 p.m. Climate and Land Issues Gene Takle, PhD, Professor of Agronomy and Director of Climate Sciences, Iowa State University3:00-3:45 p.m. Identifying and Building Your Brand Marshall Brown, CPCC, CEO, Marshall Brown & Associates3:45-4:00 p.m. Partner Visits4:00-4:40 p.m. Take Your Pick Break-Out Sessions I• Technology Uses for Your Business: Nobu Hata,

Director of Digital Engagement, NAR• Mineral Leasing, Title, and Valuations: David Smith,

Senior VP, Farmers National Company• Types of Land Auctions: Jimmie Dean Coffey, CAI,

Business United Country Auction Services4:45-5:30 p.m. Take Your Pick Break-Out Sessions II• Real Estate Opportunities in North American Shale

Plays: Michael Elliot, Managing Principal, Energy Real Estate Solutions, LLC

• The Increase in Regional Wines and New Vineyard Development: JoAnn Wall, ARA, CEO/Principal Appraiser, Central Coast AgAppraisal, Inc

• What Land Professionals Should Know About Soils: An Introduction: James Walworth, PhD, Department of Soil Water, and Environmental Science, University of Arizona

6:30-7:45 p.m. Best be Biddin’…Networkin’… Havin’ Fun The Greatest Cowboy Auction on Earth

WEDNESDAY, MARCH 257:30-9:00 a.m. Breakfast Round Table Topics• AgLand Apprasials/Values: JoAnn Wall, ARA• Timber Trends: Bob King, ALC• Leveraging Land Auctions: Bill Sheridan• The 1031 Exchange Tool: Ray Brownfield, ALC Advanced• Using Social Media: Caleb McDow• Resort and Second Home Market: George Harvey• Client Needs and Site Selection: Butch Armistead, ALC• Effective Business Strategies: Randy Hertz, ALC

Advanced• The Asian Market: Minor Taylor, ALC• Building Small Business Websites: Aaron Graham, ALC

• The Road to the ALC: Flo Sayre, ALC Advanced• Effective Farmland Management and Marketing:

Murray Wise, ALC• Using the USDA Web Soil Survey for ID and

Mapping of Soils: James Walworth, PhD• Mentoring the Team for Success: Bill Eshenbaugh, ALC• Land Contracts: Danny Smith, ALC Advanced• Absentee Land Owner Management:

Wendy Forthun, ALC• Technology Uses for Your Business: Nobu Hata• Building a Strong Chapter: George Clift, ALC Advanced• Tips for the Professional Land Woman:

Renee Harvey, ALC Advanced• Energy Production on and near Agricultural Lands: A

Threat, an Opportunity...or Both: George Frisvold, PhD• Developing an Effective Network: Marshall Brown, CPCC• Wind Farms and Performance: Gene Takle, PhD

9:15-10:00 a.m. Take Your Pick Break-Out Sessions III• Fisheries and Water Management: Greg Grimes,

President, Aquatic Environmental Services, Inc.• Land Investment Funds: Phillip Wiggins, CEO/Founder,

Strattford Land• Highest and Best Use: Sharon Woods, CRE, Principal,

Target Market Analysis Team Leader, Land Use USA10:15-11:00 a.m. Take Your Pick Break-Out Sessions IV• Beyond Location, Location, Location: The Geography

of Better Deal Making: Simon Thompson, Director of Commercial Solutions, Environmental Systems Research Institute (ESRI)

• The $562 Million Dollar Deal: The Story: Dean Saunders, ALC, Coldwell Banker Saunders Real Estate

• 2014 Farm Bill, Agricultural Land Markets, and Land Values-Impacts so Far: George Frisvold, PhD, Professor & Extension Specialist, The University of Arizona

11:00 a.m. Adjournment

POST-CONFERENCE ACTIVITYWednesday, March 25 1:00 p.m. Giddy-Up Golf (ticketed) Tuesday, March 24 8:00 a.m.- 4:00 p.m. Companion Tour: Tucson at Its Best! (ticketed)

Preliminary Schedule of Events

Full details at: www.NationalLandConference.com

HOST HOTEL: Loews Ventana Canyon

7000 N Resort Drive Tucson, AZ 85750

(conference rate upon availability)

For reservations call 800-234-5117 and mention the REALTORS® code.

TerraFirmaFall 201430

Newest ALCs

Tom Damon, ALCOregon Opportunities548 Business Park DriveMedford, OR [email protected]

Damon is now included in a field of some of the most trusted, knowledgeable and experienced experts in all segments of land. A lifetime stockman and rancher, he is also an Auctioneer and Real Estate Broker specializing in rural property.

Jay Frazier, ALCFirst Weber Group Realtors1120 N. Wisconsin AveMuscoda, WI [email protected]

Frazier works in the heart of Southwest Wisconsin enjoying the country lifestyle all his life, he has in-depth knowledge of the land throughout the region. Frazier’s passion for outdoor sports gives him unique insight into recreational properties.

Christopher Smith, ALCHertz Farm Management415 South 11th StreetNevada, IA [email protected]

Smith has more than 20 years of professional experience, successfully managing teams and driving business strategy. He brings strong interest in agribusiness and leadership opportunities, and specializes in farmland sales, and farm management/auctioneering.

Olen Zirkle, ALCTri Outdoor Properties2209 Plaza Dr. #100Rocklin, CA [email protected]

Zirkle is a seasoned land specialist and real estate professional. He offers a keen understanding of natural resource issues while still managing the land for production agriculture. He is especially knowledgeable in water rights issues, endangered species, and water quality.

Shane Dawson, ALCElevation Real Estate Company530 Main Avenue, Suite DDurango, CO [email protected]

Dawson has been in real estate since 1997 when he began managing resort properties for one of the Country’s largest private land owners. He cut his teeth on helping with the rezoning and redevelopment of one of the company’s key properties.

Rick Rupp, ALCColdwell Banker Commercial Saunders Ralston Dantzler Realty 114 N. Tennessee Avenue Lakeland, FL 33801 863-774-3549 [email protected]

Rupp is a sales associate specializing in agricultural land, industrial acreage, recreational tracts, vacant land, warehouses, and commercial buildings. He has a strong background in the cattle ranching, land, commercial lease, and manufacturing industries, and he has been in the roles of owner and executive management.

Garrett Zoller, ALCOregon Land and Wildlife 1254 Casino Rd. Medford, OR 97501 866-559-3478 [email protected]

Zoller has owned and developed small businesses, as well as invested and worked in real estate. His hands-on experience with recreational, agricultural, and timber properties, combined with his expert knowledge of Oregon, provides valuable information to his clients in search of that perfect place.

Congratulations to the newest Accredited Land Consultant (ALC) Designees of the REALTORS® Land Institute


Chris AndersonTown & Country RealtyRamona, [email protected]

Gerald GraceyKeller Williams RealtyWeatherford, [email protected]

Ron BeitzelFour Seasons Land CompanyWesterville, [email protected]

David PercivalPercival Land & Timber Inc.Lumberton, [email protected]

Ricky WardReMax Champion Land BrokersPoteau, [email protected]

Janet PorterfieldPorterfield Real Estate Group, LLCWoodland Park, [email protected]

Todd RobertsonLand ProsDuncan, [email protected]

John G. Lile VLile Real Estate, Inc.Little Rock, [email protected]

Gardner ReynoldsLegacy Farms and Ranches NCRaleigh, [email protected]

Tim MasonRe/Max Midwest Real Estate GroupPrinceton, [email protected]

Michael AutreyColorado Group RealtySteamboat Springs, [email protected]

Bob RichSVN - Miller Commercial Real EstateSalisbury, [email protected]

Jim AllenColdwell Banker Commercial Saunders Real EstateLakeland, [email protected]

Eva LokenJack White Real EstateRiver, [email protected]

Cane YearyCartwright Real EstateLufkin, [email protected]

Ford CartwrightCartwright Real EstateLufkin, [email protected]

Peter MazeineProvidence Land Advisors, LLCCharlotte, [email protected]

Joshua BarkhimerUnited Country - Neeley Forestry Service, Inc.Camden, [email protected]

Kimberly LowryMason & Morse Ranch CompanyHelena, [email protected]

John David NeeleyUnited Country - Neeley Forestry Service, Inc.Camden, [email protected]

Brady SaundersKeller Williams RealtySpring Hill, [email protected]

Randy DickhutFarmers National CompanyOmaha, [email protected]

Brian SmithHall And HallSteamboat Springs, [email protected]

Lonnie GustinHayden Outdoors, LLCCraig, [email protected]

Caleb Mc DowCrosby & Associates, Inc.Winter Haven, [email protected]

Scott TwillmannLegacy Appraisal Services, LLCWaxhaw, [email protected]

Stan GardnerGardner Home TeamOwasso, [email protected]

Brenda KirkleyUnited Country - Neeley Forestry Service, Inc.Camden, [email protected]

John NeeleyUnited Country - Neeley Forestry Service, Inc.Camden, [email protected]

Kathleen DewoinaColdwell Banker Mountain WestSalem, [email protected]

Bernard UechtritzBriggs Freeman Sotheby’s RanchDallas, [email protected]

Robert WarmbirHertz Farm ManagementKankakee, [email protected]

Steve PurvisVicksburg Realty LLCVicksburg, [email protected]

Bo BurkesTom Smith Land and HomesStarkville, [email protected]

Stephen JusseaumePrivate Label RealtyGreenwood Village, [email protected]

Donna Williams SuchockiKeller Williams RealtyPalm Harbor, [email protected]

Justin MasonWhitetail Properties Real EstatePaducah, [email protected]

Mark WilliamsWhitetail PropertiesMarion, [email protected]

William StraitRiver Valley RealtyDover, [email protected]

Drew AryWilliams And Williams Worldwide Real Estate Auction CompanyTulsa, [email protected]

Jeff HeilWhitetail PropertiesSte. Genevieve, [email protected]

Carey BondRE/MAX KerrvilleKerrville, [email protected]

Timothy RogersTim Rogers RealtyDubois, [email protected]

Troy W. JacobsColdwell Banker Harris Mchaney & FaucetteBentonville, [email protected]

Travis KaddatzUnited Country Jones Swenson Auction MarketingMertens, [email protected]

Welcome New MembersThey are more than real estate people…they are land people!

New Institute Members

Fall 2014 TerraFirma32

Patricia BulinskiBear Island Land Co., IncEly, [email protected]

Jonathan FlemingSaunders Real EstateLakeland, [email protected]

Karl BundesenCentury 21 BundesenPetaluma, [email protected]

Jacob CullerTarget Realty LLCOrangeburg, [email protected]

Lori McFaddenKeller Williams Realty Angel FireSan Marcos, [email protected]

J. Meryl StoltzfusBeiler-Campbell REALTORSMillerstown, [email protected]

John HayesKeller Williams Lake TravisAustin, [email protected]

Todd HenonTodd Henon Real Estate Group/ Keller Williams RealtyChattanooga, [email protected]

Beth PottsKeller Williams Realty Partners, Inc.Overland Park, [email protected]

Brian BierschenkSkogman RealtyCedar Rapids, [email protected]

Gary BierschenkSkogman RealtyCedar Rapids, [email protected]

Casey BerleyNo Fences Land Co.Rockwall, [email protected]

James Jay JohnsonFarmers National CompanyOmaha, [email protected]

Jason PettigrewNo Fences Land Co.Bedford, [email protected]

Russell David TaylorKeller Williams RealtyAustin, [email protected]

Pam DavisChubb Associates, Ltd.Thomasville, [email protected]

Eugene SchoeckRealty USAUnadilla, [email protected]

Austin BryantTulsa, [email protected]

Robert GashColoradoCountryBroker.comCedaredge, [email protected]

Calvin PerrymanGreat Southern LandCamden, [email protected]

Dave PetersonSummit PropertyRapid City, [email protected]

Bill PatrickTom Smith LandBrandon, [email protected]

Dan MurphyTeam Murphy Realty, LLCLake City, [email protected]

Timothy LockhartKeller Williams Realty ArlingtonWichita Falls, [email protected]

Enid SchlipfPraire Land Gold Real EstateGridley, [email protected]

Chris TruaxRegal Pines Real Estate Inc.Pagosa Springs, [email protected]

Billy Long Ranch Marketing AssociatesBasalt, [email protected]

Shari HeidtbrinkFarmers National CompanyLincoln, [email protected]

Scott HenrichsenHertz Farm ManagementOmaha, [email protected]

R. Wayne JefferiesRW Jefferies & AssociatiesDurango, [email protected]

Brady CowanClift Land BrokersAmarillo, [email protected]

Hunter HarriganHarrigan Land Company LLCSedalia, [email protected]

Bob RegesterColorado Mountain Realty-Mossy Oak Prop.Divide, [email protected]

Charles KeelenIllinois Agland Services Inc.Harvard, [email protected]

Neal BoltonPiedmont Resources Realty, IncAtlanta, [email protected]

Tina Marie KropkePremier Commercial RealtyLake in the Hills, [email protected]

Jeff DavisUC Southern Properties LLCChatham, [email protected]

Carol Janice FriedlanderFriedlander Commercial Real Estate, LLCCastle Rock, [email protected]

Steve BilicekTexas Ag RealtyRichmond, [email protected]

Elaine StucyStucy Realty Co.Castle Rock, [email protected]

James ZellerKeller Williams CommercialSt. Paul-Woodbury, [email protected]

Jordin HanceColdwell Banker Commercial Valley RealtyLancaster, [email protected]

Elizabeth StuartUnited Country-Stuart AssociatesLebanon, [email protected]

Blair BachmanTexas Diamond PropertiesNew Braunfels, [email protected]

Cameron BurrellBurnell Construction StrategiesConverse, TXcameron@burrell constructionstrategies.net

Justin GrimwoodBayfield, [email protected]

Jared SouzaMirr Ranch GroupDenver, [email protected]

Phyllis TietjenKeller Williams Brazos ValleyCollege Station, [email protected]

“Knowing is not enough; we must apply. Willing is not enough; we must do.—Johann Wolfgang von Goethe, German writer and scientist



Bryhn CraftMidwest Land GroupStanley, [email protected]

Neil HummelCENTURY 21 The Neil Company Real EstateRoseburg, [email protected]

Larry JacksonJackson Realtors, Inc.Kosse, [email protected]

Heike McInallyBirgit EnterprisesRiverside, [email protected]

Brian AndrusStonebridge Real Estate Co., Inc.Clearwater, [email protected]

Mary GarbettKW Commercial Texas GulfPattison, [email protected]

Sandra KahleKW CommercialOrange Park, [email protected]

Spence MaynorCyprus PartnersBirmingham, [email protected]

Robert AikenHarry Norman RealtorsCumming, [email protected]

Lisa MayerRound Top Real EstateRound Top, [email protected]

David HuenekeTotal Realty Co.DeWitte, [email protected]

Rick TaylorSouthwest Land Associates, LLCUvalde, [email protected]

Chip FortenberryCrosby & Associates, Inc.Winter Haven, [email protected]

Ronald CharityLandPros RealtyOlathe, [email protected]

Jacob HartHigh Point Auction CompanyRochester, [email protected]

Kevin HartHigh Point Auction CompanyRochester, MNkevin@highpointauction company.com

Peg Pannell SmithColdwell Banker Commercial NrtRockwall, [email protected]

Rachel PickensMetro First Stillwater- Pickens Real Estate GroupStillwater, [email protected]

Annemarie BeaversSouthern Heritage Land CompanyGainesville, [email protected]

Mary LyonsHeritage Texas Country PropertiesBrenham, [email protected]

Aaron MillikenWhitetail PropertiesNiota, ILaaron.milliken@whitetail properties.com

John Wendt, IIIColdwell Banker Mason Morse Real EstateCarbondale, [email protected]

Derek FisherWhitetail Properties/ Southern Central KentuckyPittsfield, [email protected]

Boyce FlenerWhitetail PropertiesMorgantown, [email protected]

L. Monique GonzalezImpeccable Properties LLCSugar Land, TXmgonzalez@impeccable properties.com

Enoch PoonAmstin, LLCLutz, [email protected]

Steve StanleyUnited Country-Stanley RealtyHarrisonville, [email protected]

Rich BaughWhitetail PropertiesMt. Pleasant, [email protected]

Ronald LewisLewis Realty Company, LLCBirmingham, [email protected]

Dean AndersonWhitetail PropertiesJenas, OKdean .anderson@whitetailproperties .com

Grant OlsonWhitetail PropertiesCentral City, [email protected]

Colin ColleyWhitetail PropertiesManhattan, [email protected]

Gabe AdairWhitetail PropertiesVan Meter, [email protected]

Mel FinnellResults Realty, LLCClarkston, [email protected]

Christian WallaceWhitetail Properties Real EstateLincoln, [email protected]

Cory DegenRe/Max Masters, Inc.Greenwood Village, [email protected]

Jason SchendtWhitetail PropertiesPapillion, [email protected]



Education

34

ALC Advanced Congratulations to the Accredited Land Consultants (ALC) who have achieved the ALC Advanced in 2014. Your commitment to continuing professional development is what makes you the “Best in the Business.” The next period to apply for the ALC Advanced is January 2-10, 2015. Those who earn the ALC Advanced in 2015 will be recognized at the 2015 National Land Conference in Tucson, AZ.

Goal Statement: The Accredited Land Consultant (ALC) designation is an indication of a professional who is the most accomplished, experienced, and knowledgeable land expert. Staying current in trends and information is inherent in being the best in the business. The ALC Advanced program is designed to offer opportunities to ALCs to stay current in the area of land to assist clients through up-to-date knowledge and stewardship in the National organization of the REALTORS® Land Institute.

Program: ALC designees have the option to complete 30 hours of professional development within a two-year period starting with the year 2013. If the requirements are fulfilled and the appropriate paperwork is submitted to National when due, the participant will become an ALC Advanced for a two-year-period. The following counts toward these required hours. All of the below must be from options available through the Institute:

n One-day courses: 8 contact hoursn Two-day courses: 16 contact hoursn Three-day courses: 24 contact hoursn UPDATE: Annual Land Conference (2013 or later): For those

applying in January 2015, participation in the 2013 and 2014 conferences count 16 contact hours. Starting in 2015, the participation in the conference will count 10 contact hours.

n White Paper Elective Option at Annual Land Conference: 16 contact hours

n Presenter at the Annual Land Conference: 5 contact hoursn Presenter at NAR Annual Conference and Expo: 20 contact

hoursn ALC-to-ALC TeleConference Facilitation: 2 contact hoursn ALC-to-ALC TeleConference: 1 contact hourn Web Seminar Development and Facilitation: 30 contact hoursn Web Seminar Attendance: 1 contact hourn Comprehensive Course Updates: 15 contact hoursn Minor Course Updates: Based on updates submittedn New Course Development: 60 hours per completed coursen Short Instruction: 2 hours per session (maximum of ten hours

per year)n Executive Committee: 30 hours a yearn Board of Directors: 2 hours per meeting attendedn National Committee Chairs: 10 hours per yearn National Committee Vice Chairs: 10 hours per yearn National Committee Members: 2 hour per meeting attendedn Article in TERRA FIRMA: 10 contact hoursn ALC Allies Program: 2 contact hours

Other Institute-related activities: Must be submitted to the Institute Professional Development Manager for approval at least sixty days prior to submitting the three-year report.

Administration: ALCs will submit their 30 hours with proof of attendance and/or completion of the activities once a year to the Institute. These will be collected between January 2-January 10 on the year following the due date (i.e. For 2014, the records would need to be sent to National for credit between January 2-January 10 of 2015).

Program Policy: Starting for those applying in January 2015, the ALC Advanced, if earned, is in place for two years and, then, the ALC must reapply fulfilling requirements taken during the two years prior to the application date. If an ALC Advanced designee desires to keep that designation tier, he/she must submit proof of having fulfilled the requirements every two years (i.e. If an ALC Advanced, submits the fulfilled requirements in January 2015, he/she would need to reapply in January of 2017 with professional development taking place in 2015 and 2016).

Congratulations to the elite group who earned the ALC Advanced in 2014:

Andrea Anderson, ALC AdvancedSteve Anderson, ALC AdvancedMac Boyd, ALC Advanced Ray Brownfield, ALC AdvancedGeorge Clift, ALC Advanced Gene Curtis, ALC Advanced John Dean, ALC AdvancedRenee Harvey, ALC AdvancedRandall Hertz, ALC Advanced David Hitchcock, ALC AdvancedWilly Hugron, ALC Advanced Terri Jensen, ALC Advanced David Klein, ALC AdvancedJim Maxwell, ALC AdvancedNorma Nisbet, ALC AdvancedPatricia Purvis, ALC Advanced Russ Russell, ALC Advanced Flo Sayre, ALC AdvancedDanny Smith, ALC Advanced Jeramy Stephens, ALC Advanced Winnie Stortzum, ALC AdvancedBob Turner, ALC Advanced Chuck Wingert, ALC Advanced

ALC Fast Track ProgramA “Fast Track” to the ALC designation is available to those real estate professionals who hold the following designations: (CCIM, SIOR, CRE, AFM, ARA, RPRA, AAC, MAI, CAI, SR/WA) or to those who hold either a B.S. or M.S. with a major in real estate or a program related specifically to land. Individuals who apply for Fast Track consideration must provide proof of holding one of the approved designations or degrees.

For additional information about earning the ALC designation through the Fast Track program, call 1.800.441.5263 or write to [email protected].


The 2014 LANDU Education Week held in downtown Chicago lasted ten days, featuring expert instructors and best-in-class education. From June 22-30, Institute members and ALC designees completed one to six courses. Marketing Strategies was rolled out for the first time in a face-to-face delivery, providing expert tips to members and ALCs to help them grow their business and sell land.

Beth Potts and Paul Penrod completed the 104 required education hours for the ALC designation during this week. Two ALCs and one ALC Advanced, all from Illinois, attended a course during LANDU Week to expand their knowledge-- Dwayne Anderson, ALC, Luke Worrell, ALC, and Gene Curtis, ALC Advanced. We were honored to have two Military Transition Program (MTP) members in attendance, John Hayes and Timothy Lockhart.

“LANDU” was the perfect opportunity to hone my brokerage skills and learn a specialty. I’ve been a CCIM since 1999 and the Land Investment Analysis course took my CCIM education to another level. I’ve completed my education requirements for the ALC designation yet I continue to take courses. My experience at LANDU has helped me become a better broker.” –Tina Kropke, CCIM Premier Commercial Realty, Lake-in-the-Hills, IL

“The strength of LANDU Week comes from the discussions that take place both in and out of class. Everyone leaves with knowledge directly relevant to improving their business and with an expanded network of business associates.” –Madeline Johnson, PhD, University of Houston-Downtown

LANDU Education Week Update

Education

Education


2014 Course ScheduleMineral, Oil, and Property RightsStarts October 6: ONLINE Course (16 contact hours)Register online or call Institute Staff at 800.441.5263

TimberlandStarts October 6: HYBRID (16 contact hours)Register online or call Institute Staff at 800.441.5263

Timberland October 9-10: Lufkin, TX (16 contact hours)Contact Patricia Webb at [email protected] or 800.873.9155

Land Investment AnalysisOctober 20-22: Waco, TX (24 contact hours)Contact Patricia Webb at [email protected] or 800.873.9155

Land DevelopmentOctober 23-24: Waco, TX (16 contact hours)Contact Patricia Webb at [email protected] or 800.873.9155

Site SelectionOctober 29-30: Tampa, FL (16 contact hours)Contact Lisa Couture at [email protected] or 813-879-7010

Marketing StrategiesStarts November 3: ONLINE (16 contact hours)Register online or call Institute Staff at 800.441.5263

Essentials of NegotiationNovember 5-6: Tulsa, OK (16 contact hours)Contact Maggie at [email protected] or 303-506-8805

New 2015 LANDU CoursesThe Institute is pleased to add the following new 16 hour courses in 2015 to the LANDU curriculum. These courses have been created by the individual instructors who are experts in their fields.

Auction Verdicts & the UCC 2-328: Mike Brandly, CAI, AARE, Instructor This course will cover how courts from around the country have ruled in high-profile auction cases, establishing laws that every auctioneer must follow. In addition, it will explore the history and importance of the UCC 2-328, and students will learn how they could save $30,000 in real estate auction sales.

Google Earth for Land Professionals: Eric Pimpler, GISP, Instructor This session will focus on using Google Earth to visualize various land development projects. Pimpler will cover how to create personalized projects in Google Earth, symbolize the properties, add text, and attach files, photos, and video. Instruction on how to overlay existing project files over the Google Earth terrain will be shared. In addition, the course will examine how the professional can use Google Earth to better understand the terrain of a land parcel and the viewable area of a property from any point.

International Aspects of Real Estate: Adrian Gil, Ph.D., MBA, Instructor; and Kurt Stanberry, PhD, ProfessorPurchasing in an unfamiliar market can be daunting. This course will prepare real estate professionals to work with global buyers, sellers, and investors. Similarly, many Americans want to buy or invest in foreign real estate, for purposes ranging from retirement plans to investments. The course will cover of what an American buyer should be aware. These points include a list of important considerations including tax law, real estate law, and other related issues.

Starts January 5: Essentials of Negotiation ONLINE COURSE

Starts January 5 : Agricultural Land Brokerage & Marketing HYBRID COURSE

Starts February 2: Land Investment Analysis HYBRID COURSE

Starts February 2: International Aspects of Real Estate ONLINE COURSE

March 23-25NATIONAL LAND CONFERENCE White Paper Tucson, AZ FACE-TO-FACE

Starts April 6: Tax Deferred 1031 Exchanges HYBRID COURSE

Starts April 6: Marketing Strategies ONLINE COURSE

Starts May 4: Google Earth for the Land Professional HYBRID COURSE

Starts May 4: Mineral, Oil and Property Rights ONLINE COURSE

Starts June 1: Auction Verdict & the UCC 2-328s HYBRID COURSE

June 21-28 LANDU WEEK FACE-TO-FACE

Starts July 6: Building Business Through Technology HYBRID COURSE

Starts July 6: Land 101: Fundamentals of Land Brokerage HYBRID COURSE

Starts August 3: The Auction Tool: A Core Course HYBRID COURSE

Starts September 1: Land Investment Analysis HYBRID COURSE

Starts September 1: Essentials of Negotiation ONLINE COURSE

Starts October 5: Tax Deferred 1031 Exchanges HYBRID COURSE

Starts October 5: Timberland HYBRID COURSE

Starts November 2: Google Earth for Land Professionals HYBRID COURSE

December

Enjoy the holidays!

2015 LANDU COURSE SCHEDULE

*Schedule is subject to change. Visit the website at www.rliland.com or call 800.441.5263 for updates.

Fall 2014

Daniel Dalton, Esq, facilitated the Hot Topic Web Seminar, Land Use Development & Regulations to Institute members on August 13. Participants learned important information regarding land use regulations, consequences of building or buying without complying with regulations, transitional land uses, and when and how to initiate litigation.

The facilitator, Daniel Dalton is a founding attorney with Dalton & Tomich, and focuses on commercial litigation with an emphasis on banking, business, land use, and zoning laws. He is a frequent author, lecturer, and considered a leading litigator on behalf of religious entities concerned with religious land use. He has been named one of the top land use and zoning attorneys in the United States by Martindale Hubble in 2012, and a top 25 attorney in the State of Michigan in 2010.

Hot Topic Web Seminar Available on CD Land Use Development & Regulations

How to Promote Your ALC Designation October 22, 201410:00-11:00 a.m. CT

This complimentary ALC-to-ALC Teleconference will cover techniques on how to use your designation to market yourself and to build business. Remembering to include the designation in marketing tactics will help attract clients, retain clients, and increase deals.

An exclusive benefit for ALCs, this event will be facilitated by Wendy Forthun, ALC. Member guest speakers will share their valuable experiences and information on the topic of promoting the ALC designation to build business and trust.

ALC-to-ALC Teleconference

Education

TerraFirma 37

LANDU offers courses through traditional classroom courses, online classes, hybrid courses, blended courses, independent study opportunities, and the National Land Conference course elective option.

Hybrid Courses combine independent study with optional instructor-led phone lectures and discussions; no-travel is needed.

Online Courses are in an online college classroom setting. Virtual interaction takes place with the professor and students. Available 24/7. No travel is needed.

Traditional Classroom courses are held face-to-face and offer participants the chance to attain knowledge while networking with like-minded professionals in-person.

Independent study is self-paced with no instructor or classmate interaction. Students have 90 days during which to complete the program. Land 101: Introduction to Land Brokerage is offered as an independent study course. This course plus one other course approved by the Manager of Professional Development may be taken in this delivery.

White Paper Option at the National Land Conference can count as a 16 contact hour course elective option for the Accredited Land Consultant (ALC) designation. This option includes the submission of a substantive white paper developing information on a topic covered at the conference.

New White PapersGet up to speed on issues and trends impacting the land industry. Five new white papers from the 2014 National Land Conference were added to the Institute’s members-only general resources section of the website. Attendees at the 2015 National Land Conference will be able to participate in the whitepaper course option to earn 16 contact hours to count towards the ALC or ALC Advanced.

“Auction: Is Your Seller Ready to Let GO?” by Drew Ary, Williams & Williams Worldwide Auction Company

“Hydraulic Fracturing in Nevada” by Paul Bottari of Bottari & Associates Realty Inc

“Over a cliff and Hoping for Solid Ground” by Brad Nolen of TrueSouth Properties

“Southern Timber Outlook” by John Burnham of TrueSouth Properties

“The Economic Outlook of 2014 and Beyond” by Jo Ann Holba, ALC, of Heritage Texas Country Properties

Resources The Institute General Store offers the following marketing tools and educational materials for the Land Professional at www.rliland.com: Marketing Collateral Package for the ALC; Land Conference Presentations; ALC Review Manual; Hot Topic Web Seminar CDs, and White Papers. Members may access the white papers as a member benefit in the members’ only section of the website at www.rliland.com. Additional resources are also available in the members’ only section of the website in the resources area.

LANDU Course Delivery Methods—Styles for all needs

Education


39

Accredited Land Consultants (ALCs) earn approximately $373,925, which is approximately $100,000 more than non-designees.

REALTORS® Land Institute

ALC

The REALTORS® Land Institute is the leading organization for those who specialize in all segments of land—agriculture, timber, ranch, recreation, vacant, land management, appraisal, commercial, auction, legal, investments, and corporate. The best-in-the-business achieve the Accredited Land Consultant (ALC) designation.

Get Smarter. Expand Networks. Grow Wealth.

REALTORS® Land Institute 430 North Michigan Ave., Chicago, IL 60611

www.rliland.com | www.thelandconnections.com

• Exclusive land listing website• Professional development courses & seminars• Strategic partnerships with member discounts• Access to a national network of land experts

• Legislative advocacy• National Land Conference• Member-to-member networking • Strong chapter organizations

Featured Member Benefits

Call 800-441-5263 to join today!

Feature


Terri L Jensen, ALC Advanced2014 Institute National President-ElectInvestor Relations Manager – Appraisal Manager Farmers National Company

Under All Is The LAND!

Under all is the land! Investing, buying or selling land, then, is simple – right? Or, are there many factors affecting land rents, taxes, uses, values, and prices that working with a land professional should be your first choice in reaching your investment, buying, selling, or leasing goals? Land professionals offer the education, experience and expertise to make sense of complex factors and issues affecting land in today’s complex world.

There are many factors affecting land values that land professionals take into consideration when assisting you with your land situation, problem, or goal. Some of these include:

n Location, legislative issues, larger crop sizes, lower commodity/grain prices

n Availability of financing, availability of land, availability of water/resources, as an alternative investment asset

n Negotiationn Demand, demographics, data

Location: the utility, scarcity, and desirability of land contribute to:

n Land rents: an annual fee a tenant is willing to pay to use a specific property for a specific period of time.

n Land taxes: will be charged based on the highest and best use of the land. Taxes contribute to the good of the community – roads, schools, fire, police, education, etc.

n Capitalization rates: the anticipated return that considers the benefits and risks associated with a particular investment.

n Land value/market value: a most probable price between a willing buyer and willing seller as of a specific point in time…Market value is reached when a property is utilized to its highest and best use: the use that is legally permissible, physically possible, financially feasible, and produces the highest return. A land professional considers all of these elements when assisting you with your goals.

Legislative issues: zoning laws, taxes, tax reform, the Farm Bill, water rights (Clean Water Act/Waters of the U.S.), the use of drones, conservation practices and many other government regulated items. Land professionals utilize many sources to keep abreast of legislative issues, not the least of which is membership, participation, education, and the ability to network and market through local, regional, and national organizations whose focus is land, such as the Institute (REALTORS® Land Institute), ASFMRA (American Society of Farm Managers & Rural Appraisers), IREM (Institute of Real Estate Management), CCIM (Certified Commercial Investment Member), and NAR (National Association of REALTORS®).

Larger crop sizes help meet global demand for food and fiber and better yields in the 2013 crop year were noted in many parts of the country. These larger crop sizes, however, softened grain prices,

which in turn has stabilized land prices in some areas. Premium quality land, however, throughout mid-year 2014 has noted stable, continued premium pricing. Lower quality land purchases slowed somewhat and prices have dropped in some areas as of mid-year 2014 by 5-10% or more as landowners concentrate on owning more productive land assets vs. lower quality land.

Availability of financing and interest rates impact every segment of land: the housing market, commercial and industrial development, institutional expansions, the timber market, as well as those segments considered luxury items after the 2008 collapse in the economy such as the hunting/recreation land marketplace. High commodity prices over the past five years, together with low interest rates have enabled the agricultural land segment to see high demand by both expansion farmers, as well as investors. Low interest rates and low returns in the stock market and/or other investments have attracted investors to the land market which continues to offer stable returns. Expansion farmers continue to be the largest purchaser of agricultural land at this time with 70-85% of ag land purchased by this group; the balance of land purchases reflect investors and/or 1031 exchange buyers. The use of 1031 exchanges allows a seller of an income-producing property to purchase another income-producing property and defer the tax consequences. Your land professional’s knowledge and experience in dealing with lenders, commodity brokers, qualified intermediaries and others help you negotiate the financing jungle and tax consequences.

Studies have shown many sellers, buyers, tenants, and landowners dislike the Negotiation part of the transaction. A great REALTOR® can help you evaluate, negotiate, and write counter-offers with price and terms that meet your goals as closely as possible. A great farm manager or leasing agent can assist with the best lease, improvement, and management of your land or real property.

Demand for land and/or real property is tied to many factors, not the least of which is the shift in demographics at this time. Since I deal mainly with agricultural land, I will use this as an example. The following information is from the 2012 Census of Agriculture: the number of farms has declined dramatically over the past fifty years, while the size of farms has increased exponentially (not inclusive of the small truck farms or organic farms); farmers are getting older with the average age of a principal farm operator at 58 years of age; the number of female farm operators has risen and stands at approximately 30% of all operators nationwide; only 22% of all farmers in the US were beginning farmers in 2012; less than 1% of all U.S. wage and salary workers are hired to work on today’s farms. Yet, the demand for food, animal production, renewable fuels, etc.

Fall 2014TerraFirma

continues to increase with the demands of a rapidly expanding global population.

Many of today’s older landowners want to provide a succession plan for their heirs to continue as landowners and a land professional can assist in reaching this goal. Others want to sell as there may be too many heirs to ensure an income from the ownership; the heirs may not be familiar with how to manage the land; or they are far-removed from the land. Again, the land professional can assist with an appraisal for use in estate planning, lease and management, or a sale.

Overall trends indicate there is demand for agricultural land at this time and that premium quality agricultural land values are holding steady with reductions being noted on lesser quality land. However, trends are very location-specific. Supply of available properties for sale is low in many areas. This factor, combined with demand and continued low interest rates and available financing at this point, have contributed to the stable prices seen for good quality land. Factors to watch as we move forward include commodity prices which have dropped in 2014, interest rates that are expected to rise the end of 2014 and into 2015, and renewable fuels – especially the ethanol mandate – all of these may impact demand, and consequently, prices in 2015 and into 2016. Weather is a contributing factor as well. Drought conditions in Texas, Colorado and other cattle-producing areas have created demand for grass land in other areas not as hard-hit by drought. As a result, record grazing and pasture grass prices have been noted in Nebraska and South Dakota as of mid-2014.

Examples of average prices of premium quality land sales by Farmers National Company reveal the following comparing June

2013 to June 2014 sales:

Data: “big data” is the buzzword mid-year 2014. How do land professionals deal with big data; where does data come from; how does it impact your land situation?

Land professionals keep abreast of the many factors that impact land—from competitive listings to comparable sales; to demographics; to interest rates and financing; to legislative issues; to tax and tax reform issues; to availability of water and other mineral rights and their impact on land values and development; to commodity prices; supply and demand issues at the local, regional, national and global level; not to mention technology and its impact on the industry. Technology is used by land professionals who assist with your land real estate, land lease, or land appraisal. In many instances, technology serves to increase productivity, reduce expenses, identifies limitations and potential options, assist in managing risk and providing investment opportunities.

This “big data” comes from many sources: government entities, national publications or media, regional media, local newspapers and other media, the land professional’s own experiences/company, land universities, colleagues – real estate brokers/appraisers/farm managers, lenders/local bankers, and the interne. The data sources grow daily as technology continues to fuel the availability of information.

Land professionals are members of organizations who assist in keeping them apprised of current “hot topics” and encourage participation with legislative issues that affect land. They subscribe to publications, network with colleagues in their area of expertise as well as in related fields (pun intended), they earn designations that show their commitment to the industry and share with you their expertise in real estate, management, appraisal, etc., to provide the service and professionalism you need and want to successfully reach your goals. At today’s land prices, the investment, sale or purchase of land requires the services of a land REALTOR®. Changing market conditions require the services of a proficient land appraiser. Experienced farm managers can help you obtain the best lease and management of your land.

About the author: Terri Jensen, ALC Advanced, 2014 National Institute President-Elect, is the Investor Relations Manager - Appraisal Manager of Farmers National Company in Omaha, NE. Jensen has been in the real estate business since 1984; licensed in MN as an appraiser, REALTOR®, and auctioneer.

41

Feature

42

It is with a great amount of humbling gratitude and respect that I write this article regarding the REALTORS® Land Institute’s Military Transition Program (MTP).

Being a retired Army veteran, I was given the opportunity to personally try to reach out and contact each of our new MTP members. To date the Institute has 21 MTP members, and I have had the opportunity to make contact with fifteen. In doing so, I was able to privately discuss their military background and experience. All were proud of their service; but, those who actually were in positions of combat, prefer, and understandably so, not to discuss much about such, desiring to move on with their lives. They all expressed sincere thanks for the opportunity to join the Institute through the MTP and were thankful that membership was free for the first year—to assist them in getting their “feet on the ground” financially. Many expressed a desire to pursue the ALC designation, which I feel is in keeping with their military leadership and the desire to always be better at what they can do.

Many were deployed, most to a combat zone, and some actually are combat veterans. Some experienced multiple deployments. All were in leadership positions as Non-Commissioned Officers (NCOs) and Commissioned Officers. To protect their privacy, I will not name the individuals, but will share the following: one was a Military Policeman as a special guard for a President of the United States with helicopter detail. Another was a Navy F-14 Weapons officer. Many were helicopter/fixed wing pilots, and some were infantry NCO’s and Officers. Some were severely wounded while serving. Of the individuals I have contacted to date, one is a lady who was an Army Military Policeman.

The Institute has many great programs, but, in my personal opinion, this is one of the best. All of the current MTP members are experienced leaders who have sacrificed much in their service to our great country. They will become tremendous members of the Institute and will be committed to our wonderful organization. They are trained to be “team players” and will make outstanding leaders at committee levels and on through our leadership chairs, if they so desire.

Finally, I would like to personally thank Bill Eshenbaugh, ALC, of Eshenbaugh Land Company for making five military scholarships available for MTP members. All have been redeemed. At some point reach out to these MTP members, thank them for their service, and welcome them to the REALTORS® Land Institute team.*

* Note from National: Congratulations to the following two MTP members who at press time completed 88 hours of LANDU Education. They are on the road to earning the prestigious Accredited Land Consultant (ALC) designation.

Military Transition Program of the REALTORS® Land InstituteRay Brownfield, ALC AdvancedManaging Broker/OwnerLand Pro LLC

About the author: Ray Brownfield, ALC Advanced, 2012 Institute National President, is the owner and managing broker of Land Pro LLC, a full service real estate company in Oswego, IL. He is an industry expert known for his commitment to clients, colleagues, and the Institute. Brownfield is a key player in the success of the Institute’s MTP and he has volunteered his time to personally reach out to each individual MTP member.

John Hayes Keller Williams Lake Travis Austin, TX

Timothy Lockhart Keller Williams Realty Arlington Wichita Falls, TX


Commentary

Fall 2014 43

IncreaseUnited Country is the nation’s leader in land sales and rural real estate. And after nearly 90 years, we’re new again... we’ve implemented significant marketing and technology enhancements to further differentiate our affiliates from the rest, and the results speak for themselves.

Land sales up 37%, Farm sales up 28%, Timberland sales up 112%, Ranchland sales up 31%*

What can you get with the new United Country? • Land-specific marketing programs for farms, ranches, recreational land & more • Exclusive, top-ranked & wholly owned websites for all property types • The nation’s largest land buyer database – 500K+ • A team rated the top land brokerage by LandReport

your listings. Maximizeyour buyers.

If you’re a Broker, Agent or Auctioneer looking to take your career to the next level,join the team that sells more land than anyone else.

JoinUnitedCountry.com · 800.999.1020*January 2012 to July 2014

www.nationallandconference.com

TerraFirmaOfficial Publication of the REALTORS® LAND INSTITUTE430 N Michigan Ave. Chicago, Illinois 60611

2014 fall terra firma

Documents

land sales

land use

land business

land pro llcfall

worrellleka land services

institute national president

alc advanced

gayle harvey real estate