View Property Listing - Kootenai Springs Ranch

Posted by:
William C. McDavid
Ranch Partner
Missoula, MT

I have had the great fortune to travel to Brazil twice now through my work with Hall and Hall. We have worked towards the sale of several properties in this fascinating country but the most significant in my mind is a very special place called “Fazenda Santo Antonio do Paraiso”.

This holding includes nearly 400 square miles (255,000 acres) and is located in the Pantanal – our planet’s largest wetland (10x the size of Florida’s Everglades). With over 650 species of birds, almost 100 mammal species, 165 reptiles and over 260 fish it is home to a more diverse population of wildlife than I have seen anywhere in the world. This is to say nothing of the flora!

The Pantanal is also home to a rich culture of cowboys known as the Pantaneiros. These men craft their own tack from leather they tan from their own livestock and travel through caiman infested waters on horseback. Their way of life has been virtually the same for the last 200+ years and is akin to the days of the Old West in the United States. I could have spent months documenting this amazing place in photographs. Nevertheless, I was pleased to at least have the time that I did.

Overseas Living Article: Investment quality properties in the United States

It should come as no surprise that those seeking to purchase prime sporting properties consider privacy, exclusivity, proximity to public lands, and availability of good water to be the top factors in their search. Properties that have the highest potential for appreciation and liquidity are also very important. The best sporting properties are unique, desirable, and in very short supply. Two key ingredients that make a fishing property ‘investment quality’ are water and privacy. Accessibility is another important factor. If one has to charter a helicopter or a floatplane to access a property, then one has to discount the value that relates to the quality of the water or exclusivity of the property. If it is difficult to get into a piece of property, buyers will typically insist on a substantial discount or select a more accessible property…

Read The Entire Article at Overseas Living

Download a Copy in .pdf Format

This 80± acre horse ranch is located at the base of the Ruby Mountains near the scenic small town of Lamoille. Improvements include: owners home, caretakers home, heated shop and equipment storage, guest house, stable and indoor riding arena. Senior water rights irrigate 63± acres with creek frontage and two ponds. Only 15 miles to Elko with all services and a commercial airport. $1,600,000

Find More Nevada Ranches for Sale

About 90 miles north of Billings, Montana, the property, N Bar Ranch, is one of the state’s oldest and largest cattle ranches. N Bar, founded in 1885 and comprising grassy foothills and valleys, open meadows and aspen forests, supports 1,500 head of cattle and specializes in raising purebred Aberdeen Angus cows. The white frame buildings of the original ranch headquarters are part of the National Register for Historic Places. Crossed by several trout-filled creeks and streams, the 97-square-mile ranch includes about 51,400 deeded acres and about 10,600 acres of leased lands. There’s a 2,500-square-foot farmhouse, a guest house and an airstrip.

Read The Entire Story at the Wall Street Journal Website || View Slideshow || View Listing

I was looking through some old photographs today and came across this shot I took of a group of Mule Deer bucks I spotted on a ranch I was showing a few years ago. It has always seemed to me that a large part of being a photographer is being in the right place at the right time. I do not mean to diminish the importance of knowing how to use a camera but having a subject that presents itself in a unique way is critical. I have always loved photography and I appreciate that living in this part of the world affords me some of the best and most beautiful opportunities available. I am equally thankful to enjoy a career that often puts me in the right place at the right time!

Posted by:
William C. McDavid
Ranch Partner
Missoula, MT

This ranch property was eventually purchased by a client of Hall and Hall’s who is committed to protecting the integrity of this unique holding.`

Market Trends as a title itself is not fitting for a year end synopsis of 2009 as the ranch market stood fairly still for this calendar year. Portions of the market are seeing volume off by as much as 80%. The activity that has occurred points towards receding values, in some cases as much in percentage terms as was witnessed in the mid 1980’s. Though the future is hard to predict in this current environment, there are several aspects of this market worth discussing.

We are fortunate at Hall and Hall that our volume has not been off as much as the overall market. We are off about 1/3 from 2008. Transactions are still occurring, both on listed properties about which we have let you know in our monthly e-market updates as well as a number of “under the radar” ranches that were handled confidentially and do not appear on our website or in any of our periodic updates. There are buyers looking at ranches to buy and, combined with a normal level of internet activity, it appears there is still quite an audience. What are selling are high quality “recreational” ranches at discounted levels in most cases. The speculative buying market has completely vanished and today’s buyers are looking for long term family holdings or pure agricultural operations. It is interesting to note that activity on the “pure ag” side has been comparatively high and values are stable to perhaps very slightly lower.

The western ranch market has proven to be not as volatile as the markets for other types of real estate - just less liquid. The majority of landowners have enough wealth to endure these tough economic times and most have not leveraged their ranch land assets. However, there are notable exceptions. Several “deals” have occurred this last year related to situations where excessive leverage came into play. They sold at discount levels approaching 20% off of the 2005/6 market. We anticipate that there will be a few more of these sales that will have to work their way through the system in 2010 before the market reestablishes its equilibrium. In that regard, we have re-evaluated the market and we now feel that 2005 through early 2006 was in fact the rational peak in the market and many of the sales that occurred between then and 2007 reflected what has come to be known as “irrational exuberance” or perhaps a “bubble.” We reckon it will be a long time before we recover any of that last 25% that occurred after 2005/6. In the same way, we hope that once the few real distress sales work their way through the system, a more sane base will be established.

At this point, there is simply not enough volume to state that there is a defined discount in the market. For sellers who are forced to sell, it has taken upwards of 20% discounts off of 2005/6 to entice buyers. We have not seen many “short sales,” where the debt exceeds the sale price. It has also been gratifying to see a few sales where a willing seller and a willing buyer with neither party under duress came to terms at price levels that are within range of the 2005/6 market – some even arguably at that market level. This is a more likely equilibrium point once the few remaining distressed situations have moved through the system.

Clearly, each part of the market is reacting differently. The greatest loss in value is for lands that earlier experienced exceptionally high price increases such as those found in near proximity to resorts and the more sought after western cities. Many properties in these locales experienced high levels of speculation. In contrast, the more remote and more agriculturally based properties did not see such high levels of price inflation and as a result they are now not experiencing high levels of price deflation.

What is a welcome feature of these recessionary times is the appearance of some exceptionally high quality properties for sale. Presently, there are multiple opportunities available for ranches that represent truly lifetime opportunities. There are indicators pointing towards increasing volume in 2010. Twelve months ago, our economy was still freefalling causing unparalleled levels of uncertainty. In spite of the fact that our country’s economy continues to languish and we may experience a lengthy transition back out, there is a far different sentiment today. Year end 2008 sales collapsed without carrying business into 2009. While Hall and Hall’s 2009 sales have been off, we have carried some business into 2010 and more importantly, contrary to the beginning of 2009, there are buyers in the market and sellers have come to accept that whatever bubble was there has now burst. Also, the buyers that we are seeing, while they are expecting to get a good buy, are more focused on finding something that they like and that will work for them. This year may prove to be the best time and the last chance for buyers to capitalize on the few remaining “deals.” In addition, because the deals are often not available on the specific property that one wants to buy, there is an extensive inventory of very well priced opportunities. For an educated buyer, this is an attractive time to look.

It is important to address a segment of the market, mentioned briefly above, that has been remarkably stable over the last decade. That is the farm market and to a somewhat lesser degree the market for ranches whose value is almost entirely based on their agricultural production. While we saw some softening in prices over this last year, these properties are generally in demand and there are very few actively on the market. Top quality farm properties are particularly hard to find. They are being pursued both by the usual suspects – operators and private investors – and by institutional investors lured by high commodities prices and the ability of these properties to be leased out or operated directly at a good profit. Again, the recognition of investment quality rural real estate as a legitimate asset class is becoming increasingly pervasive and it is creating growing demand across the board.

Looking farther down the road, the demographics are favorable with the baby boomers moving into retirement and investment quality rural real estate increasingly being recognized as an asset class that fits into a long term investment portfolio. It is also one of the few asset classes where the investment is measured based on long term appreciation, inflation protection, stability and, most important of all, the pleasure and happiness that the land brings to its owners and their employees, friends and families.

As we drive through the landscape of the intermountain West these days, it is clear that Mother Nature likes change – and forest damaging insects are Mother’s little helpers. We are presently in the midst of a historically unprecedented outbreak of destructive insects in our Rocky Mountain forests. From Colorado to British Columbia, millions of acres of public and private forests have experienced catastrophic tree mortality over the last several years.

It is indeed alarming to watch our beloved and valuable forests change in one short season from vibrant green to rusty red. It is a common human trait to resist the idea of change – both in our perceptions and in our paradigms. We cherish the lovely views offered by the forested landscape and want to believe that it will always be so. In fact, forests are dynamic entities that are constantly changing. Why is this change suddenly so dramatic and apparently catastrophic? If you are a forest landowner, knowledge of the processes that the forests are undergoing is the first step in devising a strategy to mitigate the effects of these agents of change.

In Montana, where I principally practice forestry on private forestlands, there are two forest changing insects that are currently the perpetrators of this dramatic intrusion into our perception of forest dynamics. The first and most noticeably destructive is the Mountain Pine Beetle (MPB), a diminutive (1/8 inch) beetle that, through sheer force of numbers, can readily kill any of the pine species in one season. The second is the Spruce Budworm (SBW), the larva stage of a drab little moth that defoliates Douglas fir, spruce and other true firs. A heavily defoliated Douglas fir forest is a sad sight indeed, though immediate tree mortality is unusual. I will discuss these two insects in more detail, but first an important question must be answered: Why are we currently experiencing such a deep and widespread outbreak?

Our Rocky Mountain forests have evolved in the presence of and in conjunction with the most energetic agent-of-change of them all – wildfire. The dense forests we are accustomed to in lower elevations are not the forests the first settlers saw when they arrived in the 19th century. Early photos of the Rocky Mountain Front, the Bitterroots, the Gallatin Range and the Judith Mountains depict open, nearly savanna-like forests characterized by scattered large trees. This forest profile was maintained by the mostly low intensity fires that swept through the lower elevations on an average interval of 15 – 20 years. Thickets of young trees were thinned out and the large, fire-scarred dominant trees survived as individuals or in small groups.

Early ranchers and settlers fought wildfires as they could, but it was the increasingly efficient institutional fire suppression efforts of the US Forest Service throughout the 20th century that largely excluded fire from these wildfire-evolved forests. An additional intrusion into the natural forest profile was the early logging of both public and private forests that focused on removing those large fire-resistant dominant trees – particularly ponderosa pine, western larch and Douglas fir. This one-two punch has left us with a low-elevation forest profile entirely unlike a naturally maintained forest. These forests are invariably overstocked and often have an out of balance species composition. For example, Bitterroot ponderosa pine forests that likely were 60 – 75% pine are now dominated by Douglas fir, a species that proliferates in partially cut stands.

So we now have forests that offer highly favorable habitat for the MPB and SBW:

• Densely stocked stands where excessive tree competition weakens trees, making them more susceptible to attack by both MPB and SBW.

• Forests with a high component of densely stocked, closed-canopy Douglas fir, the prime host tree for SBW.

So how do these bugs do their deeds? Here is a brief description of how each operates:

MOUNTAIN PINE BEETLE - Mature beetles emerge from their overwintering sites underneath the bark of host trees in July through early September, depending on weather conditions and elevation. The female beetles attack a suitable host, laying eggs in a vertical gallery just beneath the bark. The hatching larvae spend the winter consuming the phloem/cambium layer, burrowing in a horizontal direction, effectively girdling the tree. Infested trees will typically fade and turn red the following summer. And the cycle begins all over again when the new adult beetles emerge, mate and seek new host trees.

SPRUCE BUDWORM - Spruce budworm larvae emerge from overwintering sites on host trees, typically Douglas-fir, in late spring or early summer. Microscopic in size, they migrate to tree tops and branch tips where they mine through breaking buds and devour first new and old needles. Among their favorite meals are the female flowers, thus destroying the year’s cone production. Rapidly growing to their maximum size of 1 to 1 ½ inches, they disperse on silken threads to young host trees in the understory.

Voracious in appetite, ever feeding larva wreak the most dramatic damage on young trees. Tree mortality in seedlings and saplings is common in one season. Mature trees often suffer killed tops and can die after successive seasons of heavy defoliation. At a minimum, tree vigor and growth are greatly diminished, leaving them susceptible to other pathogens, such as the Douglas-fir beetle. Thickets of dead young trees greatly increase dangerous fuel loading in affected forests.

Unfortunately, we have now entered a period of reactive forest management. My work of late is largely focused on salvage of killed trees, with the goal of retrieving lost timber value and decreasing dangerous forest fuels. I have also prescribed aerial spraying of biological pesticide to interdict SBW or the placement of pheromone repellents on high value pine trees - effective short term defenses.

The best long term approach to help forests resist insect outbreaks is proactive forest management that entails selective harvest and thinnings that promote increased individual tree vigor and intercrown space. Obviously, this is most effective if done before the insects arrive. Foresters have been preaching proactive forestry in the low elevation stands of the Rocky Mountains for decades. Again, our entrenched paradigms and resistance to change have exacerbated the situation.

But all is not lost! It is unlikely that these two insects will entirely wipe out our forests, with the possible exception of pure stands of mature lodgepole pine. Let’s not forget that these are naturally occurring insects that currently are enjoying the highly favorable forest profiles we have created.

If you are a concerned forestland owner, contact a professional forester. There are a number of private consulting foresters in Montana, Idaho and Washington. The Association of Consulting Foresters has a website that lists foresters in all states. State forestry offices are great sources of information. In Montana, DNRC service foresters will visit your forest and recommend a course of action, but cannot directly treat your forest.

And above all, let us review our paradigms of the way we see and interact with our forests. Change is inevitable in our dynamic Rocky Mountain forests, but we can often guide that change in a direction that more closely is in tune with natural processes and achieves our forest management goals.

Hall and Hall would like to thank John E. Wells, ACF, CF (Forester) for providing the above insights into an area of concern to many of us. For more information, please feel free to contact John at: 406.544.3346 or forestry@montana.com.

Surrounded by the unspoiled wilderness of central Idaho, this historic guest ranch is located 30 miles northwest of Salmon, Idaho and 11 miles downstream of North Fork along the wild and scenic Salmon River. The property features 2.5± miles of Indian Creek, a large trout pond, and a full set of classic ranch improvements including a main lodge, guest cabins, a manager’s residence and staff quarters. The ranch consists of 120± deeded acres and adjoins U.S. Forest Service lands on three sides. $2,750,000

View more Hall and Hall Idaho Ranches for Sale

Located just 15 miles from Sheridan, the Rapid Canyon Ranch is the only significant ranch property currently available that joins the National Forest on the face of the Bighorn Mountains. Offering complete privacy, the 1,160± acre ranch features a private mountain valley with a dramatic canyon setting, lush grassy hills, timbered mountainsides and a rushing stream. It also has a main residence, stone shed, stone bunkhouse, manager’s house and a large horse barn. Reduced to $6,950,000.