I N S I D E
T H I S
I S S U E
Bottoms Up: How a Kentucky Rye Initiative Benefits Bourbon, Farmers, and the Environment
Farm Transition Planning How to Prevent Wire Fraud Tuning into the Land:
An Unconventional Path from Music to Land Real Estate
2024 National Land Conference Preview
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Contents
36
BOTTOMS UP:
How a Kentucky Rye Initiative Benefits Bourbon, Farmers, and the Environment
42
A Note from President Bowers
2
RLI News Briefs
6
2023 By The Numbers
7
Chapter News
10
ALC Achievers
14
2024 National Land Conference
18
LANDU® Education
24
News & Views from Inside the Beltway
30
Marketing Moves
34
My Land Story: Tuning into the Land
44
How to Prevent Wire Fraud
Transition 40 Farm Planning Terra Firma
Winter 2024 Edition REALTORS® Land Institute 430 North Michigan Avenue Chicago, Illinois 60611 800-441-LAND (5263) info@rliland.com rliland.com
Publisher Aubrie Kobernus, mba, rce Chief Executive Officer
Contributing Authors Rebecca Frantz, alc, Hertz Farm Management
Marketing Manager Kat Szymanski
Jim Miller, General Council, IPX1031 Investment Property Exchange Services, Inc.
Design & Layout Halupka Studio • ha-lup-ka.com
Stephen JB Davis, Christies International Real Estate Bluegrass Russell Riggs NAR Government Affairs Liaison
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. Copyright 2024. All rights reserved.
B O A R D S
A Note from the President Dear Fellow Members,
S TA F F
&
I extend my heartfelt appreciation for your steadfast support for the REALTORS® Land Institute (RLI) throughout the past year. I’m excited to embark on a new journey together. It’s a true honor to serve as your 2024 RLI National President, and I am enthusiastic about the opportunities that lie ahead. First and foremost, I want to acknowledge the outstanding leadership of President Luke Worrell, ALC in 2023. His dedication and service leave an undeniable and lasting impact on our organization, and I am grateful for the robust foundation he has established. As we stride into 2024, my primary objective is to uphold the principle of "Making the Best Better." To achieve this, I am directing my focus towards three key areas: 1. S trengthening Chapters: Our state and regional Chapters form the beating heart of our organization, laying the groundwork for a thriving community. In 2024, I am committed to working closely with Chapter leaders to bolster their capabilities. This involves providing additional resources, fostering collaboration, and implementing targeted initiatives. Together, our aim is to ensure that each Chapter not only endures but flourishes, delivering maximum value to our members at the local level. 2. E ducation and Professional Development: In a real estate landscape that evolves swiftly, staying ahead of the curve is imperative. To equip our members with the latest knowledge and skills, I am dedicated to the ongoing development of our LANDU® courses, webinars, and virtual roundtables. These educational opportunities will cover foundational principles and address emerging trends, empowering our members to maintain a competitive edge in the dynamic land real estate sector. 3. E mpowering Our Members: Our members are the heart and soul of RLI, and their success is paramount. In 2024, we will implement initiatives aimed at empowering our members by providing them with the necessary tools, resources, and networking opportunities. By fostering a supportive and collaborative community, we can collectively elevate the standards of excellence within the land real estate industry. I am genuinely excited about the journey ahead and am eager to collaborate with the dedicated individuals who make up the RLI community. Together, we will build upon the strong foundation laid by our predecessors, ensuring that RLI remains a leader in the land real estate profession. One of the highlights of the upcoming year is the National Land Conference, scheduled to take place in Louisville, KY from March 10-13, 2024. This event promises to be a unique opportunity for our members to connect, share insights, and stay current on the latest trends in the land real estate industry. I encourage all members to mark their calendars and make plans to join us for what is sure to be an enriching and memorable experience. Thank you for your continued support, and I am optimistic about the positive impact we can achieve together in 2024. Warm regards,
Sam L. Bowers, ALC 2024 National President REALTORS® Land Institute
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Meet the 2024 Executive Team Bowers and Burns Real Estate Company Newnan, GA sbowers@bowersandburns.com
M4 Ranch Group Lake City, CO dan@M4ranchgroup.com
Sam is a long-time member of RLI and earned the elite ALC Designation in 2002. He brings a wealth of industry and community leadership experience to his role. Among numerous accolades in both residential and land real estate, Sam was named 2003 Georgia Land REALTOR® of the Year by the Georgia Chapter of RLI. He served as President of the Georgia Chapter in 2017 and as its Treasurer in 2021. At the national level, Sam has served on RLI’s Budget and Finance and Governmental Affairs committees and on the National Land Conference Task Force. He was a member of the APEX Producers Club in 2021 and 2022. Sam is a President of Bowers and Burns Real Estate in Newnan, GA.
B O A R D S
2024 President-Elect
&
Dan Murphy, alc
2024 RLI President
S TA F F
Sam Bowers, alc
Dan joined RLI as a member in 2008 and earned the elite ALC designation in 2019. His record of service to RLI includes past Chair of the Education Committee, as well as serving on the Board of Directors. Dan is currently 2022 President of the RLI Colorado Chapter. In 2020, his Chapter awarded him the prestigious Colorado Land REALTOR® of the Year Award. Dan’s national RLI accolades include recipient of the APEX Top National Producer Award in 2017, Top Twenty National Producer Award in 2021, 2020 and 2017. He was a member of the APEX Top Producers Club in 2022, 2021, 2020, 2019, 2018 and 2017 and received the 2017 National Broker of the Year Award in Recreational Land Sales. Dan is Broker/Co-owner of M4 Ranch Group.
Geoff Hurdle, alc 2024 Vice President Hurdle Land & Realty Chattanooga, TN thelandman@geoffhurdle.com Geoff joined RLI as a member in 2018 and earned the elite ALC designation in that same year. His record of service to RLI includes most recently serving on the Board of Directors in 202021. He served as the Tennessee Chapter President in 2018-20. He currently serves on the Educational Committee and has served on the NLC Planning Committee as well. Under his leadership, the Tennessee Chapter was awarded Outstanding Chapter of the Year in 2020. Geoff’s national RLI accolades include recipient of the APEX Wrangler Award in 2018 and 2020. He was a member of the APEX Top Producers Club in 2018, 2019, 2020, 2021, and 2022. As Broker/Owner of Hurdle Land & Realty based in Chattanooga, TN, he focuses on working with land acquisition managers, developers, and builders. He also owns a rural residential development firm based in Monroe, GA.
Luke Worrell, alc 2024 RLI Immediate Past President Worrell Land Services, LLC Jacksonville, IL lukew@worrell-landservices.com Luke has been a member of RLI since 2009 and earned the prestigious ALC Designation in 2012. He has an extensive record of service to the organization, having served as Chair of both the Education and Budget and Finance committees, as Treasurer, and on the Board of Directors. Luke also has served as President of the RLI Illinois Chapter. Luke brings a wealth of industry and community leadership experience. Among his many accomplishments, he has twice served as President of the Jacksonville Area Association of REALTORS®; was 2021 Chair of the Illinois Farmland Values and Lease Trends Conference; and served a six-year term on the Morgan County Fair Board. Luke received RLI’s 2018 Rising Star Award, and the 2017 RLI ALC-to-ALC Networking Award for the largest ALC-to-ALC land transaction nationwide based on sales volume. He was a member of the APEX Producers Club in years 2017, 2018, 2019, 2020, 2021 and 2022. Luke is the owner and managing broker of Worrell Land Services, Inc. in Jacksonville, IL.
Follow RLI on Social Stay on top of the latest updates: new blog posts, industry updates, partner offers and more.
Winter 2024
3
S TA F F
&
B O A R D S
2024 Board of Directors
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RLI President-Elect M4 Ranch Group, LLC Lake City, CO dan@m4ranchgroup.com
Sam Bowers, alc
Luke Worrell, alc
RLI President
RLI Immediate Past President
Bowers and Burns Real Estate Company Newnan, GA sbowers@bowersandburns.com
Worrell Land Services, Inc. Jacksonville, IL lukew@worrell-landservices.com
Geoff Hurdle, alc
Bob Turner, alc
RLI Vice President
NAR Executive Committee Representative
Hurdle Land & Realty Chattanooga, TN thelandman@geoffhurdle.com
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Dan Murphy, alc
Southern Properties • Cordova, TN bturner@southernprop.net
Barry Upchurch, alc
Dan Kevorkian, alc
Treasurer
ALC Designation Committee Chair
Barry Upchurch Realty LLC Chesterfield, MO barry@upchurchrealty.net
Pearson Realty Fresno, CA dkevorkian@pearsonrealty.com
Christina Asbury, alc
Jennifer Janet, alc
At-Large Director (2024-2025)
Chapter Leadership Council Chair
Coldwell Banker Sea Coast Advantage Sneads Ferry, NC christinasellsrealestate@gmail.com
Coldwell Banker Professional Associates Perryville, MO jennifer.janet@coldwellbanker.com
Joel King, alc
FD Bell
At-Large Director (2023–2024)
Education Committee Chair
Peoples Company Jonesboro, AR joking636@gmail.com
Bowers and Burns Real Estate Company McDonough, GA fd@landbrokerpro.com
Billy Rollins, alc
Raborn Taylor, III, alc
At-Large Director (2023–2024)
Future Leaders Committee Chair
LSI Companies Fort Myers, FL wrollins@lsicompanies.com
George F. Willis, Realty Cartersville, GA rt3@gfwillis.com
Ray Brownfield, alc
Johnny McAllister, alc
Government Affairs Committee Chair
Land Education Foundation Chair
Land Pro LLC • Oswego, IL ray@landprollc.us
Mission Possible: John McAllister Realty Consulting, LLC • Columbia, SC john@mpjmrc.com
NAR LEGISLATIVE LIAISON
CHIEF EXECUTIVE OFFICER
Russell Riggs
Aubrie Kobernus, mba, rce
National Association of REALTORS®
REALTORS® Land Institute
500 New Jersey Avenue NW • Washington D.C. rriggs@nar.realtor
430 N Michigan Ave • Chicago, IL akobernus@rliland.com
Meet the Staff Chief Executive Officer
Karen Calarco Manager of Operations 312.329.8287 • kcalarco@rliland.com Karen handles, manages, and controls expenditures within the set budget as well as member records. Members may contact her for assistance changing their information, paying dues, and answering financial inquiries about their account. Karen has been with RLI since September 2007.
Education Manager 312.329.8441 • amorrone@rliland.com As the Education Manager, Amanda manages all matters pertaining to RLI’s LANDU® Education Program. She is responsible for scheduling courses and managing instructor relationships. She also serves as the staff liaison for the Education Committee. Members may contact her with any questions about the LANDU® Education Program. Amanda has been with RLI since February 2019.
B O A R D S
Aubrie is responsible for the overall management of the Institute. This includes working together with the Board of Directors to develop the vision, goals, objectives, and related policies for RLI. Within that framework, Kobernus organizes and directs the staff, programs, financial performance, and activities. She is designated by the National Association of REALTORS® as a REALTOR® Certified Executive (RCE). She is also the main point of contact for members working toward earning the elite ALC Designation. Members may contact her if they have any questions or concerns. Aubrie has been with RLI since March 2016.
Amanda Morrone, mshc
&
312.329.8837 • akobernus@rliland.com
S TA F F
Aubrie Kobernus, mba, rce
Traci Schermerhorn Chapter Relations Specialist 312.329.8519 • traci@rliland.com Traci engages all RLI state and regional Chapters to help them innovate and strengthen their value to local members. She works with Chapter leaders on best practices for member engagement and Chapter programming, meetings, and events. She also helps to organize and facilitate the creation of new state/regional Chapters where there is interest. Traci has been with RLI since October 2023.
Kat Szymanski Anne Leigh McAllister-Elmore, MAEd Learning & Development Manager 312.329.8129 • anneleighme@rliland.com As an instructional design and curriculum development expert, Anne Leigh works with LANDU® subject matter experts to design dynamic courses that use current instructional techniques to help land professionals achieve their objectives. She builds education courses that overcome skill gaps and meet the needs of a variety of learners. Members may contact her with questions about the LANDU® Education Program. Anne Leigh has been with RLI since May 2023.
Marketing Manager 312.329.8353 • kszymanski@rliland.com As Marketing Manager, Kat is responsible for all areas related to communications and marketing for the organization. She oversees the website, digital and print marketing materials, and manages the organization’s brand as well as press and social media campaigns. She also serves as the staff liaison for the Government Affairs Committee. Members may contact her with articles for publication on the RLI blog, advertising or an article contribution for Terra Firma magazine, member or Chapter news regarding awards or accomplishments, or with questions about RLI logo use policy. Kat has been with RLI since July 2022.
Melissa Lutz Programming & Events Manager 312.329.8574 • mlutz@rliland.com Melissa Lutz (rhymes with roots) is responsible for the overall programming and coordination of RLI’s meetings and events, including our largest annual event, the National Land Conference. Her role also works in conjunction with our Communications and Education Managers, overseeing topics and programming for RLI communications, managing the member affinity program and webinar program, and serving as staff liaison to the Future Leaders Committee. Melissa has been with RLI since October 2021.
Winter 2024
5
B R I E F S
RLI News Briefs 2024 RLI Leaders Inaugurated in Anaheim
N E W S
At the National Association of REALTORS® NXT convention, November 12-15 in Anaheim, CA, RLI leaders and members met to address key issues impacting land and landownership. Priority issues include the revised Waters of the U.S. rule, Open Fields cases, foreign land investment, the Endangered Species Act and special land use permits. REALTORS® from across the country learned how land transactions differ from residential during a lively Land 101 session presented by Christina Asbury, ALC. Thank you Christina for sharing your expertise and bringing more awareness to what RLI members do every day.
Luke Worrell, ALC, Aubrie Kobernus, RLI CEO, and Sam Bowers, ALC represent RLI at the NAR Commercial Affiliate Reception.
Christina Asbury, ALC educates REALTORS® on the complexities of land transactions.
We welcomed Christina Asbury, ALC, Geoff Hurdle, ALC and Dan Murphy, ALC to the 2024 RLI Board of Directors.
We officially inaugurated the Institute’s 2024 officers: Sam Bowers, ALC (2024 President), Dan Murphy, ALC (2024 President-Elect), Geoff Hurdle, ALC (2024 Vice President) and Christina Asbury, ALC (2024 At-Large Director). We thanked Luke Worrell, ALC for his leadership this year as our 2023 President. The reception was one of our best attended and included RLI members, other NAR commercial affiliates and Georgia REALTORS® who sponsored the event. As of 2024, officers will serve a calendar-year term beginning January 1. Thanks to all who attended our events and represented RLI and the land industry well at NAR NXT.
RLI 2023 President, Luke Worrell, ALC inducts Sam Bowers, ALC as our 2024 President.
Members Give Top Ratings to Online Dues Renewal Process RLI’s revamped website and database continues to help members complete association transactions in a faster, simpler way. There’s still time to renew for 2024. Simply login to your member dashboard by going to the Login link at the top left of the screen. Once you login, go to Member Resources on the top menu, then select Member Dashboard. You can conveniently pay by credit card and retrieve your invoices within the dashboard.
In a recent survey, 77% percent of members say they renewed their 2023 dues online.
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Of those, 79% gave ease of online renewal a 4 or 5 rating on a scale of 1-5.
RLI by the Numbers As of November 30, 2023
new RLI members in 2023
ALC
new Accredited Land Consultants (ALCs)
683
B R I E F S
323
RLI members
90
N E W S
2,006
490
attendees at the 2023 National Land Conference ALC
total ALCs
42
RLI Partners in 2023
10
New Voices of Land Podcast Episodes
3
NEW IN 2023
Virtual Education Roundtables (and 12 Webinars!)
Registered User • Logout
Winter 2024
7
Land Connections
TOP 5 STATE S
N E W S
B R I E F S
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SEARC H ED ON L AND CONNECTIONS
1. Texas 2. Utah 3. Colorado 4. California 5. Georgia
In 2023, 2,042 searches were initiated on RLI’s Land Connections resulting in 888 listing page views, and 18,400 impressions. RLI members receive free listings on Land Connections as a member benefit.
Land Connections is the official listing site of the REALTORS® Land Institute. With prime property listings from the best in the business land professionals, this is the place to find and post properties. RLI members are able to post listings to this page at no cost as a member benefit.
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Top Properties Searched on Land Connections Ranked by most popular search
1
2 Acreage
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Terra Firma
Ranch
Acreage with Home
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3
Hunting Land
2 3
4 5
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RLI Illinois Chapter
R L I
C H A P T E R
N E W S
Chapter News Arkansas • rliland.com/arkansas
Georgia • rliland.com/georgia
The RLI Arkansas Chapter held a joint “Renewable Energy Conference” with the Midsouth Chapter of the ASFMRA this past spring at the Oaklawn Racetrack Convention Center. Several quality speakers in the industry such as Craig Kaiser with Landgate, Seth Hampton an attorney now specializing in Solar leases and negotiations, Kayla Rowan and Blake Singleton with Peoples Energy Group, Jarrod Yates with AR Farm Bureau, Richard Pickens with Valley Irrigation and Jonathen Siebert with Corteva. The Chapter is looking for new leadership and hopes to have educational opportunities in 2024.
The RLI Georgia Chapter has had a successful 3rd Quarter. The Chapter hosted the LANDU® course Land Investment Analysis in southeast Georgia in August with strong attendance.
Colorado • rliland.com/colorado The RLI Colorado Chapter held a Land Recreation class taught by Justin Osborn, ALC in Fort Collins on May 9 and 10, 2023. Seventeen members attended and earned both ALC course credit along with Colorado Education credit. The RLI Colorado Chapter held a successful ranch tour in beautiful southeastern Colorado in June. There were sixty attendees throughout the three-day tour. Thanks to the sponsors and to all those that attended. The January 2024 meeting will take place on January 18 and 19 at the DoubleTree by Hilton, 3203 Quebec Street, Denver. Check the Chapter’s website for information regarding hotel room reservations. Thursday will be the marketing and Friday’s education sessions to register and attend.
With a focus on Southeastern US Agriculture, the Georgia Chapter hosted a multi-state 2-day event in November at Calloway Gardens Resort and Conference Center in Pine Mountain, GA. On day one of the event, a 4-hr CE course was offered, Basics of Agricultural Brokerage and Marketing, Instructed by Ben Crosby, ALC, CCIM. On day two of the conference, an Ag Expert Panel gave insight on current events that affect Farmers & Agriculture. The conference provided multiple networking opportunities scheduled throughout the multi-state event. A great highlight of the event was the attendance of RLI’s CEO, Aubrie Kobernus, 2023 RLI President, Luke Worrell, and Sam Bowers, 2024 RLI President. This RLI team brought updates on RLI’s future happenings to our Southeastern RLI Chapters Conference attendees. The Georgia Chapter RLI’s Annual Meeting and Installation of new Officers was held at the conference. RLI Georgia Chapter is looking forward to being the host of RLI’s 2024 LANDU® Boot Camp. Check rliland.com for updates and registration!
RLI Arkansas Chapter
RLI Illinois Chapter President Ray Brownfield, ALC introduces RLI CEO Aubrie Kobernus at the annual summer social.
Illinois • rliland.com/illinois The RLI Illinois Chapter has enjoyed a vibrant and eventful year! In June, the Chapter hosted their muchanticipated annual summer social at Destihl in Bloomington, IL. The event was graced by the presence of several sponsors, who shared valuable insights with the attendees. Members were especially thrilled to have RLI National's CEO, Aubrie Kobernus, join this memorable evening. In September, the Chapter’s Annual Meeting marked a significant milestone as they welcomed the newly elected board of directors. Rob Warmbir, ALC, assumed the role of President, while Tucker Wood, ALC, took on the responsibilities of Vice President, and Spencer Smith, ALC, is serving as Secretary/Treasurer. The Chapter is delighted to share the news that their membership has surpassed the 100-member mark, a remarkable achievement in the Chapter’s history. This remarkable growth can be attributed to the dedication of their board of directors, who have played a pivotal role in expanding their outreach and welcoming new members. The Chapter is absolutely thrilled about this current momentum!
RLI Colorado Chapter RLI Arkansas Chapter members gather at a social hour at First Turn Bar.
RLI Colorado Chapter members participate in the Ranch and Land Tour in June.
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RLI Georgia Chapter
RLI Georgia Chapter 2024-25 Officers with RLI CEO, Aubrie Kobernus and RLI National 2023-2024 Presidents.
The RLI Louisiana Chapter is growing and looking for leaders to help develop the Chapter's future. If you are interested in being a part of designing the education, programing or network for RLI in Louisiana please contact Chapter President Bradley Cook via email: bcook@stirlingprop.com
The RLI Texas Chapter has hosted several classes this summer and two networking events, one in Stephenville and one in LaGrange, Texas. The Chapter had Steve Roberson with Land id™ teach a short class at both networking events, as well as having Dr. Charles Porter teach a short water rights course.
RLI Illinois Chapter members enjoy a memorable evening of learning and networking at Destihl Brewery.
Iowa • rliland.com/iowa The RLI Iowa Chapter held a successful Land Law Update class with the Iowa Association of REALTORS® on October 5. The Chapter also held its annual leadership installation and welcomed a new leadership team consisting of President Rachelle Heller, ALC, President-Elect Otto Nobis, and Vice President Doug Bear. The RLI Iowa Chapter will offer Land 101 in West Des Moines on January 18-19, 2024, and their Annual ASFMRA/RLI Joint Spring Seminar and Dinner will be held on March 20, in Ankeny, IA. More information on RLI Iowa and future education offerings can be found on their website. rliland.com/iowa
Missouri • rliland.com/missouri On September 18, the RLI Missouri Chapter hosted two land-specific CE classes, “Ag Law and Foreign Ownership” and “The Hot Topic in Real Estate: 1031 Exchanges.” These classes were a great opportunity for RLI members to network with other real estate professionals and discuss the unique land sales business. The Chapter held its annual meeting that evening to celebrate the many successes of 2023 and discuss plans for 2024, including announcing their new leadership team. In 2024, the Missouri Chapter will be led by Dean Eshelman. The executive team includes Kathy Loew (vice president), Travis Kempf (treasurer), Jennifer Janet, ALC (immediate past president), and Traci Schermerhorn (board secretary). The Chapter’s directors are Tim Hadley, ALC, Mark Stallmann, and Dan Hartman.
The Chapter also held its yearly general meeting to elect new officers on September 7. This meeting was held during the Texas REALTORS® Shaping Texas Conference in San Antonio, Texas. It was a great meeting. The future is looking bright for the RLI Texas Chapter!
N E W S
The RLI Louisiana Chapter will offer Land 101 in Baton Rouge on April 22-23, 2024. More information on RLI Louisiana and future education offerings can be found on their website.
C H A P T E R
Texas • rliland.com/texas R L I
Louisiana • rliland.com/louisiana
The RLI Texas Chapter installed it’s 2024 Board of Directors that will take office January 1, 2024: Megan Turnipseed, ALC (President), Chip Bubela, ALC (President-Elect), Lani Rust (Past-President) Jessica Rumbaugh (Secretary), Chandra Stout (Treasurer) and Directors Cathy Cole, ALC, Jody Rapp, Carroll Bobo, Kasey Mock, Clayton Pilgrim, ALC, Clay McCullar, ALC. The board has already started preparations for 2024 and is working hard on getting a class schedule together, as well as some land tours and networking events.
RLI Texas Chapter
Tennessee • rliland.com/tennessee The RLI Tennessee Chapter has welcomed 15 total new members since the beginning of 2023. Congratulations to RLI Tennessee's recent ALCs: Tim Burnette and Lisa McBride.
RLI Iowa Chapter
Kyle Hansen (Past RLI National President) with the new RLI Iowa Chapter Leadership Team Doug Bear, Otto Nobis, Rachelle Heller, ALC, and David Whitaker, ALC.
The RLI Tennessee Chapter hosted two Chapter-Wide Zoom Meetings on June 27 and August 24. These meetings consisted of fellowship, sharing of knowledge amongst members, and a discussion on the topic of "Local Land Use Planning".
The RLI Texas Chapter hosted a refresher mapping course in La Grange on September 28th with instructor Steve Roberson founder of id.land. Following the course this group gathered for networking and happy hour at Frisch Auf! Valley Country Club.
The Chapter looks forward to opportunities for local members to connect, as well as meeting with RLI National members in Kentucky at NLC24!
Winter 2024
11
R L I
C H A P T E R
N E W S
RLI Upper Midwest Chapter
Upper Midwest
Western States
rliland.com/upper-midwest
rliland.com/western
The RLI Upper Midwest Chapter has been busy with monthly, educational meetings covering “what’s driving agriculture now”, marketing, 1031 Exchanges and offering CE in MN, ND, and SD for a 3.75 hr negotiation course in August; and CE for brokers/agents and appraisers in MN, ND, SD, and WI for the Chapter’s annual conference and National RLI course in September 2023. Upcoming meetings will cover trusts, additional marketing sessions, wells, title opinions vs. title insurance, 1031 exchanges and DST’s.
The Pacific Northwest Chapter is now doing business as the Western States Chapter. The name change better reflects the states the Chapter represents.
Elections were held and new officers and board members will take office January 1, 2024: Darin Milbrath, Pres, ND; Al Wisnefske, VP, WI; Terry Dean, Treasurer, MN; Jessica Lamker, Secretary, MN. Board members: Vivian Thingelstad, ND; David Pluim, SD; and Kelly Frisch, MN. Terri Jensen, ALC, immediate past Chapter president. A transition team meeting was held in November, 2023. The Chapter is fortunate to have officers and board members from each state the Chapter has members in! Many thanks to the current officers and board members who accomplished much in 2023! The transition meeting focused on those continued efforts, as well as updating its strategic plan and goals for 2024. The annual conference/national RLI course was held at Craguns Resort on Gull Lake, Brainerd, MN and kicked off with a welcome reception aboard Gull Lake Cruises. The weather could not have been better!! Great weather, food, drinks, people and great sponsors! A picture of attendees and instructor is included (missing Vivian). Rave reviews for Craig Kaiser, instructor for Valuation & Transactions of Environmental & Energy Assets!
The Chapter held their fall meeting in Kennewick, Washington, and hosted the Transitional Land course taught by Phil McGinnis, ALC, for the educational portion. The Western States Chapter works to secure CE credit for courses they host in each state the Chapter represents. The Chapter was blessed to host NAR President, Tracy Kaspar, as the guest speaker. President Tracy discussed the legislative issues concerning real estate and land, and how important the Institute involvement is in shaping and retaining the integrity of LAND legislation. WOTUS, 1031 Exchanges, land use and land grabs, housing density and affordability. She also touched on the upcoming NAR lawsuits and encouraged everyone to keep a vigilant watch on the proceedings. She recognized that RLI is the oldest Institute in NAR and has been the strongest Institute driving the legislative concerns for many years. This is the first time an NAR national president is from Idaho and only the 3rd time in history to have one from the Northwest! The Chapter was honored to have her speak. Coming from a farming background, she truly understands and recognizes that RLI is the “solid bones” of the industry; that the motto, “under all is the Land”, truly IS what RLI is all about.
The RLI Upper Midwest Chapter members gather for the Chapter’s annual conference at Craguns Resort on Gull Lake, Brainerd, MN.
RLI Western States Chapter
Above: LANDU® Instructor Phil McGinnis, ALC teaches the Transitional Land Course at the RLI Western States Chapter. Inset: NAR President, Tracy Kaspar speaks with the RLI Western States Chapter on the importance of RLI involvement in shaping land legislation.
As national RLI is the voice of land, the Chapter continues to try to meet that goal as well with offering land professionals education and CE that pertains to land!
18 RLI Chapters Launched Newly Branded Websites in 2023! As part of RLI’s rebranding and database conversion, all 18 RLI Chapters have officially launched their new websites this year and are utilizing their databases. The integration between these systems provides a better experience for Chapter members, as well as improved account management and reporting for Chapter administrators and leaders. Our national staff will continue to support the Chapters’ use of these new tools to better serve and deliver value to members. Thank you to the Chapter leaders and admins who dedicated time for training to complete their website content. Have questions about a Chapter website? Contact Kat Szymanski, RLI Marketing Manager at kszymanski@rliland.com. 12
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A C H I E V E R S
Congratulations to Our New Accredited Land Consultants!
A L C
ccredited Land Consultants (ALCs) are the most experienced, most accomplished and highest-performing land real estate experts in the nation. Conferred exclusively by the REALTORS® Land Institute, and the only land-specific designation backed by the National Association of REALTORS®, the ALC is the gold standard of achievement in the land sales profession.
The individuals highlighted below completed their ALC designations from June 2023 to November 2023. Luke Alston, ALC RE/MAX Mena Real Estate
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Chad Andrus, ALC
Whitetail Properties
Mock Ranches Group
Mena, AR
Wagoner, OK
Houston, TX
Clay Baxter, ALC
Chris Bennett, ALC
National Land Realty
Whitetail Properties
Whitetail Properties Real Estate, LLC
McAlester, OK
Jonesboro, AR
Bloomsdale, MO
Tim Burnette, ALC
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Dean Anderson, ALC
Clayton Blum, ALC
Robert Chandler, ALC
Whitetail Properties Real Estate
United Country Clear View Realty & Auction LLC
Lenoir City, TN
Atoka, OK
Mineral Point, WI
Adam Crumrin, ALC
Jeff Garrett, ALC
Damon Gottschalk, ALC
Whitetail Properties
#1 Properties Ranch and Recreation
Benchmark Real Estate Group
Martinsville, IL
Cheyenne, WY
Belton, TX
Adam Crist, ALC Peoples Company
Jan Gunter, ALC
Landmark
Mock Ranches
Keller Williams Realty
Tampa, FL
Paige, TX
Austin, TX
Tracie Hicks, ALC
Louis Hoffman, ALC
Whitetail Properties Real Estate, LLC
John L Scott Real Estate Central Oregon
Pine Knoll Shores, NC
Bend, OR
Michael Horstman, ALC RE/MAX Signature Properties Sherman, TX
Colby Marshall, ALC
Shawn Kelley, ALC
AJ Mangum, ALC
Whitetail Properties
Hayden Outdoors
United Country Real Estate Jett Blackburn Real Estate Inc
Dryden, MI
Colorado Springs, CO
Burns, OR
Lisa McBride, ALC United Country Real Estate Clinch Mountain Realty & Auction
Lizzie McGann, ALC
Samantha Medve, ALC
Allen Tate
Schultz Texas Properties
Bean Station, TN
Brevard, NC
Washington, TX
Doren Morgan, ALC
Collin O’Berry, ALC
California Outdoor Properties
Altamont Property Group (KW)
Arcata, CA
Asheville, NC
Steve Purviance, ALC Whitetail Properties Real Estate Woodward, OK
A C H I E V E R S
Matt Gruetzner, ALC
A L C
Kurt Gremley, ALC
Max Ramsey, ALC
Walker Powell, ALC Homeland Properties Huntsville, TX
Vickie Ricker, ALC
Mock Ranches
Realty Executives East TN Realtors
New Braunfels, TX
Greeneville, TN
Jennifer Shupe, ALC
Amy Rogus, ALC
Tyler Ross, ALC
Century 21 Circle
Ross Real Estate
Real Estate Marketplace NW, Inc.
Naperville, IL
Warrenton, VA
Deer Park, WA
(continued on next page)
Winter 2024
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A C H I E V E R S
Congratulations to Our New Accredited Land Consultants! (continued)
A L C
Jodie Siptak, ALC Legacy Land Associates Flatonia, TX
Nelson Taylor, ALC
Doyle Spencer, ALC
Jeff Switzer, ALC
RE/MAX Integrity
Rocky Mountain Ranch and Land
Tomball, TX
Colorado Springs, CO
Paul Terjeson, ALC
LSI Companies, Inc.
Oregon Farm & Home Brokers
Fort Myers, FL
Albany, OR
Brian Utecht, ALC
Eric Wilkinson, ALC
Whitetail Properties Real Estate
Hertz Farm Management
Marshfield, MO
Kankakee, IL
Curtis Trousdale, ALC Preferred Properties Williston, VT
Joel Wood, ALC Meta Bellevue, WA
4 Steps to Become a Prestigious Accredited Land Consultant Complete the Education Requirements Applicants must complete six LANDU courses, which are divided into three categories. Once the education requirements are met, applicants must pass a comprehensive exam which covers the three core courses. ®
Meet the Volume Production Requirements for Land Sales Applicants must complete a minimum of $10M in land transactions within the five years before their application, or complete 25 separate land transactions. A transaction is considered a land transaction if the value of the land, including improvements that are agricultural in nature, account for at least 51% of the total sale of the transaction. Agricultural improvements include, but are not limited to, barns, livestock operations, equine facilities, etc.
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Compile a Portfolio Applicants must compile a portfolio documenting the completion of the education, experience and volume requirements.
Submit the Application Applicants must submit their portfolio to the REALTORS® Land Institute Designation Committee and Board of Directors for final review and approval.
ALC
Ready to start your path to becoming an Accredited Land Consultant? Visit rliland.com/ALC for more information.
Updates to ALC Criteria Maintain High Standards and Focus on Land The RLI Board of Directors approved the following changes to the ALC Designation Criteria. These changes went into effect on January 1, 2024. » Qualifying Categories for Volume Requirements: The only approved qualifying categories will be Sales, Brokerage, Development, Consulting, Investor/Developer category; Appraiser category; and Farm/Forestry Manager category. The following categories have been eliminated: Auctioneers, Broker Sales Managers, Non-Transactional Land Professionals, and American Association of Professional Landmen (CPL) and International Right of Way Association (SR/WA) designees. » Fast Track Program: The only approved designations/degrees for Fast Track will be CCIM, SIOR, CRE, MAI, AAC, AFM, ARA, RPRA and a degree from a college/university with a minimum overall GPA of 3.0 and a major in real estate. No other designations or college majors will be allowed for the Fast Track program.
The following changes go into effect July 1, 2024. All applications received on or after July 1 will be reviewed under the new rules. » Minimum Volume Requirements are increasing from $10M to $15M. The applicant’s portfolio must show a minimum of five transactions totaling at least $15M in sales. All transactions must be completed no more than five years prior to submitting their ALC application and portfolio. » Attendance at the National Land Conference: ALCs are considered the most experienced and educated land professionals. Participating in the National Land Conference is an extension of that commitment. ALC applicants are required to attend an RLI National Land Conference in-person within five years prior to submitting their ALC application and portfolio.
RLI 2023 President Luke Worrell, ALC congratulates members who earned the Accredited Land Consultant (ALC) designation in 2023 at a special recognition lunch at National Land Conference in Denver.
ALC
DID YO U KNOW ?
A record number of ALCs received the designation this year (96 total in 2023) We'll recognize everyone who received their ALC since NLC23 at our Recognition Lunch at NLC24, Tuesday March 12 at noon ET. Winter 2024
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MARCH 10-13, 2024 Hyatt Regency Louisville Embrace the spirit and energy of Bourbon City while you connect face-to-face with the best in the land business. NLC is the ultimate destination for land professionals who want to collaborate, exchange knowledge, and make deals. If you’re serious about being in the land business, NLC24 is the destination event for you.
See the full schedule at rliland.com/NLC
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N AT I O N A L L A N D C O N F E R E N C E 2 0 2 4 L A N D
NLC24 Event Highlights
C O N F E R E N C E
First Time Attendees/New Member Welcome Reception • Sunday, March 10 • 4:30–5:30 pm ET We are excited to welcome our NLC First Time Attendees and newest RLI Members to the National Land Conference. Get connected and comfortable at the start of conference. Hosted by the Future Leaders Committee and RLI Leadership. Join us to meet other first-time attendees and new RLI members, get your specific questions answered and get a better understanding of how to make the most of your first NLC!
Welcome Reception • Sunday, March 10 • 6:00–7:30 pm ET Enjoy cocktails, appetizers, the chance to connect with other professionals across the country at the historic Kentucky Derby Museum at Churchill Downs. The RLI Georgia Chapter is sponsoring this official kick-off to NLC24. Photography courtesy of Louisville Tourism
Let’s Make Deal$ • Monday, March 11 • 2:30–5:00 pm ET Have a tough property to sell? Have a buyer looking for a unique piece of land? Let's Make Deal$ is the perfect place to make deals happen! Join fellow land professionals interested in presenting and finding properties for their clients—and close more deals for your clients. As a presenter, you can let your client know their property will be showcased to other land agents from across the country with interested buyers. The property submission form will open in February 2024.
Howdy Partner Happy Hour • Monday, March 11 • 5:00–6:00 pm ET Join us for appetizers and drinks at the Howdy Partner Happy Hour where we will be thanking our 2024 RLI Partners for making the National Land Conference possible. Mix and mingle with fellow attendees and—most importantly at this event—our valuable partners! Take full advantage of this opportunity to network while discovering the latest and greatest land technology and service providers in the industry to help you grow your business and close more deals.
Cowboy Auction • Monday, March 11 • 6:00–7:15 pm ET Get ready to pony up and lasso in some great items at this year's Cowboy Auction sponsored by United Country Real Estate! This fun filled event will be brimming with energy and laughter. Place your bid on exclusive items like hunting trips, autographed memorabilia, vacation packages, and unique items. Auctioneers are sure to drive excitement and bids throughout the event. Donated items are what make this auction a success. All auction proceeds benefit the Land Education Foundation (LEF) which provides financial scholarship grants for assistance in land-based education opportunities, including the pursuit of the elite ALC Designation through RLl's LANDU® Education Program. To donate an item, contact Amanda Morrone at amorrone@rliland.com.
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Meet Gary Black, Opening Keynote Speaker at NLC24
L A N D
Our country needs servant leaders. How do you inspire people to take up the mantle of leadership in public service, business, and community? Gary Black, the 16th Commissioner of Agriculture for the State of Georgia, will be our honored Opening Keynote Speaker at The 2024 National Land Conference in Louisville, KY. Gary’s stories and lessons from his impressive career in public service will inspire you to think differently about being a business and community leader. Get to know Gary, then be sure to attend his Keynote talk We Get to Do This—Five Lessons from Public Service on Monday, March 11 at NLC24.
Q: You have an impressive record of public service in agriculture for the State of Georgia, having served in multiple positions and helping to craft policy at both state and national levels. What sparked your interest in politics? What are you most proud of from your time in politics? My plan was to be an ag teacher. I was quite active in UGA campus governance, and as a senior, was told that I had been selected to serve as an intern for Senator Herman Talmadge, Chairman of the US Senate Committee on Agriculture, Nutrition, and Forestry. I remember saying “great, but how’s this going to happen?” At the time I was blindfolded (going through an honorary ritual ceremony on campus) and did not know the Senator or the person talking to me. The voice said, “let me handle that.” The twelve weeks in Washington changed my trajectory for sure. I have been blessed to work with many good, smart people. I will always be grateful for those along my journey who took a risk on me. We celebrated many policy and programming victories. I say “we” because I mean it. In politics you need a team approach now more than ever. I hope people see value in the teams I have helped build to address the challenges of the agriculture, food, and forestry community.
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L A N D C O N F E R E N C E
Q: How did working in the farm and cattle business prepare you for political life?
Q: You refer to politics as a contact sport. What does that mean?
We raise beef cattle, but I have always said “I work for people (farmers) who work for a living.” There is a difference. While I live on the 69-acre farm I grew up on, production agriculture never provided the primary source of income for my family. Mind you, our annual goal is to make money but that is defined as generating the revenue necessary to pay the tax and fertilizer bill, and maybe squeeze out a week at the beach in the summer. What we do we do correctly. We will return nine sim-angus replacement heifers to the herd this year, the finest we have ever raised. My daughter and son-in-law have an online beef business, Texga Farms (www.texgafarms.com). The business is “red hot.” We plan to finish 90+- steers for them in Commerce this year.
My experience is that the surname of the ruling family of policy and politics in America is “Somebody.” Why? Because all of us keep that person busy with requests. “Somebody should do something about….” “Somebody should stand up…” Somebody should lead….”
As for preparation, growing up in an agricultural environment instilled in me a work ethic, critical thinking/problem solving skills, and a stewardship mindset. If properly invested, these assets can generate a pretty decent return over time.
Q: As Commissioner of Agriculture for the State of Georgia you crafted and implemented disaster relief efforts for Georgia farm families in the aftermath of Hurricane Michael, one of our nation’s most devastating weather events. What was the greatest challenge leading that effort? The greatest challenge was starting from scratch. Congress wanted to help. The Trump Administration wanted to help. But there was no framework at USDA for a multi-commodity/multi-peril disaster response. We were leery of waiting on USDA. Our Congressional Delegation asked, “could you design a program if we block grant the funds to the state?” I said, “absolutely.” Then politics delayed action unfortunately for roughly 18 months. When we implemented the first-of-a-kind program for Hurricane Micheal, our team equitably and expeditiously provided $171 million in disaster assistance to over 1800 Georgia producers in a matter of 15 weeks. At the state level we were able to move more quickly. Four days after the storm, the Governor’s Chief of Staff asked for ideas for a state response. With the House Appropriations Chairman, I designed a low interest loan program on the back of a napkin. Over the next three months the legislature funded $75 million for the SAFETY 21 (Securing Agriculture Forestry and the Environment for the 21st Century) Program. We instituted the program and funded loans for 276 farmers in a period of three months. By 2026, all loans will be repaid with a very low default rate and the proceeds will be available for future agricultural real estate loans across the state.
Can just “Anyone” (that’s “Somebody’s cousin”) step up and help? Of course, with preparation. But why would the growing number of “Anyone’s” hesitate? Politics is a contact sport. It always has been. The good ‘ole days of the Founders included harsh partisan pamphlets and, if you were not careful, trips to the “field of honor.” Now, we retreat to the public microphone, podcast, or the field of 140 characters and in milliseconds fire our shots. A "hand in hand" form of dialogue would serve everyone well. Toss in a dash of listening before speaking, and five gallons of courtesy, and relationships in the policy arena would improve from the grassroots up.
Q: You’ll be joining us in March at RLI’s National Land Conference as our Opening Keynote speaker to share the lessons you’ve learned from public service. Without giving away the stories we’ll hear from you at the conference, what’s one thing you want people to know or do when they leave your talk? I believe the three most foundational, yet rarely used words in family, business, or political leadership are: “Please, forgive me.” “I am sorry” is a sorry, insufficient substitute. It simply means you got caught. The request for professional or personal forgiveness is transactional. It requires a response. If it is not granted, the one who requested it is relieved from ongoing dread. The request reveals vulnerability. Honest vulnerability promotes trust. Any task can be accomplished, any foe defeated, and any obstacle overcome if members of a team trust each other. To attend Gary Black’s Opening Keynote, register for NLC24 at rliland.com/nlc.
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N AT I O N A L L A N D C O N F E R E N C E 2 0 2 4 C O N F E R E N C E
RLI APEX Production Awards Dinner Sponsored by The Land Report
L A N D
TUESDAY, MARCH 12, 6:30 P.M. ET Recognizing Industry Excellence This elegant evening is a highlight of the National Land Conference as we recognize the highest performing land professionals in the country for their accomplishments. Those who apply to the APEX Awards Program will have their ticket included in their application. Anyone who is not applying to the program and wishes to attend the dinner must purchase their own dinner ticket. This year’s APEX Awards will be expanded to include recognition for Regional Brokers of the Year across 10 U.S. regions in eight categories of land sales. If you haven’t applied for an APEX award in the past, consider applying this year! Top APEX award winners receive special recognition nationwide in addition to being recognized at the National Land Conference. The REALTORS® Land Institute and The Land Report partner to ensure you receive maximum exposure for this prestigious award. For details, visit rliland.com/events.
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This Year’s NLC Speakers L A N D
BREAKOUT SESSION SPEAKERS
Real Estate Fraud Elizabeth J. Wysong Berg, National Agency Vice President for Education & Training, Fidelity National Financial OPENING KEYNOTE SPEAKER
Gary Black Author, Speaker, 16th Commissioner of Agriculture for the State of Georgia Topic: We Get to Do This – Five Lessons from Public Service Learn more about Gary’s perspective on life, real estate, and politics in his profile piece on pages 20-21 of this issue of Terra Firma.
Pond Management Bobby Brooks, Owner Operator at The Sporting Club at the Farm Retirement and Estate Planning Discipline Advisors Campfire Chat Kasey Mock, Mock Ranches
Trends in Horse Properties K. Amy Lawyer, PhD, Department Chair, Equine Administration, Equine Industry Program, University of Louisville School of Equine Foreign Investors in Land Sales Mark Goodwin Artificial Intelligence David Whitaker, ALC, Whitaker Marketing Group
GENERAL SESSION SPEAKERS
DC Update • Inside the Beltway Russell Riggs, NAR Senior Policy Director/ RLI Legislative Liaison Panel Discussion: Farm Bill Update facilitated by Russell Riggs with invited expert panelists.
Thank you to our 2024 Partners Platinum
Women in Land Real Estate Renee Harvey, ALC, Century 21 Harvey Properties; Karen Foster, ALC, Lopp Real Estate Brokers; Hallie Myhre, Ranch and Resort Realty; Allison Worrell, Worrell Land Services, LLC
C O N F E R E N C E
ChatGPT Christina Asbury, ALC, Coldwell Banker Seacoast Advantage
Thank you to our attendees, partners and speakers who make this event a huge success!
Bronze
A D D I T I O N A L PA RT N E R S
We are frequently adding new partners and NLC24 exhibitors. Check the 2024 Partners page at rliland.com/nlc for updates. If you'd like to be an RLI 2024 Partner, please contact our Programming and Events Manager, Melissa Lutz at mlutz@rliland.com.
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L A N D U ® E D U C A T I O N
New Delivery Methods and Content Updates Increase Collaboration and Rigor of LANDU® Courses
A
s technology and the real estate business rapidly change, it’s more important than ever to invest in the toptier education program at RLI’s Land University (LANDU®). Our ALC designation courses are undergoing updates to ensure our course content and delivery methods meet the needs of today’s learners.
RLI’s new Learning and Development Manager, Anne Leigh McAllister-Elmore, MSID, MAEd, is overseeing the curriculum redesign while our education team collaborates with subject matter experts to develop content that is relevant to today’s land real estate professionals.
Visit rliland.com/learn to see upcoming courses and webinars at LANDU®.
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L A N D U ® E D U C A T I O N
What is LANDU®? RLI’s Land University, or LANDU®, is more than our national, in-person education event. LANDU® encompasses many types of land-specific learning opportunities and formats. Learners can build ongoing expertise through: Virtual, InstructorLed Training, or VILT
These national online courses fulfill education requirements toward the Accredited Land Consultant (ALC) designation.
In-person Chapter Courses
These courses also apply toward the ALC education requirements. They are held across the country at RLI Chapters. Each class lasts approximately two to three days.
Bootcamp
Multi-day, in-person training held each summer with courses in a fastpaced, accelerated format. Learners can take one or up to six courses to fulfill the education requirements for the ALC Designation in one place, over the course of an expanded week.
Webinars
One-hour, expert-led sessions are a fast way to learn about current issues and discover new tools to use in your daily business. Free to RLI members.
A Revised Land Investment Analysis Course is Coming in Early 2024 The Land Investment Analysis course, a required ALC designation course, is the first to be updated. Learners will benefit from: » A restructure of existing content that allows more opportunities to check for understanding, provide effective feedback, and ensure transfer of learning. » A more user-friendly, organized online learning environment. The course will move from PowerPoint slides to the Articulate 360 platform. » More opportunities for learners to share experiences with each other and collaborate with instructors to increase understanding. » A revised final exam that reflects course updates. » Fewer excel workbooks needed in and out of the classroom.
Thank you to our Land Investment Analysis Instructors who invested their valuable time in improving the course at a live meeting with RLI staff this fall in Chicago: Ben Crosby, ALC, CCIM, Randy Hertz, MBA, ALC, Phil McGinnis, ALC, CCIM, and Raborn Taylor, ALC, CCIM
In addition to the course updates, the Education Team will host an Instructor Training Forum at the National Land Conference on March 9, 2024. As part of RLI’s commitment to ensuring our instructors are the best in the business, RLI is hosting a professional development forum exclusively for our LANDU® Instructors at NLC24. In this forum, our expert instructors will have the opportunity to collaborate with each other to share best practices in instruction, gain strategies for working with adult learners, and receive training on new educational technologies to be incorporated into the existing curricula at RLI.
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L A N D U ® E D U C A T I O N
Train to be an expert in land.
LANDU® Education Bootcamp Savannah, GA 2024 LANDU® Education Bootcamp is coming to the Savannah Area REALTORS® Association in Savannah, GA from May 30–June 7, 2024. Registration will open April 1, 2024. Learners may register for one or up to six courses. LANDU® Education Bootcamp is a multi-day, in-person land education event. It offers land professionals the opportunity to network with their peers and greatly enhance their expertise by taking all six courses needed to earn the Accredited Land Consultant (ALC) Designation in one place, at one time. Thank you to the RLI Georgia Chapter for working with RLI's education team to put on Bootcamp. We appreciate your support and look forward to a fantastic event! Learn more: rliland.com/Bootcamp
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L A N D U ® E D U C A T I O N
The REALTORS® Land Institute’s Land Education Foundation (LEF) provides financial scholarship grants to land professionals who seek assistance in obtaining a land-based education, including the pursuit of the elite ALC designation through RLI’s LANDU® Education Program. In 2023, LEF granted $17,120 in scholarship money to help 33 learners with their land education, including two members who are part of RLI's Military Transition Program.
"I earned my Accredited Land Consultant designation this year and owe a significant part of this achievement to the Land Education Foundation. Their investment in my education has not only enriched my knowledge but has also opened doors to future opportunities. I am grateful for the Land Education Foundation's support, and I am excited to contribute to the field and carry forward the values of professionalism, ethics, and expertise that the ALC designation represents."
Thank You to Our 2023 LEF Board of Trustees Fred Helper, ALC • Chair Johnny McAllister, ALC • Vice-Chair A. Lloyd Thomas, ALC • Secretary/Treasurer Minor Taylor, ALC • Immediate Past Chair Randy Hertz, ALC | Caleb McDow, ALC | Flo Sayre, ALC Tom Smith, ALC | Bob Turner, ALC | Chuck Wingert, ALC Aubrie Kobernus, MBA, RCE • CEO
Upcoming 2024 Courses Build expertise and confidence in a wide range of topics and specialties within the land industry. Our course calendar is frequently updated with new virtual and inperson Chapter courses. Visit the calendar at rliland.com/learn/upcoming-courses.
— Jennifer Shupe, ALC and LEF Scholarship Recipient
New LANDU® Education Instructor Congratulations to Koby Rickertsen, ALC for being approved as new LANDU® instructors! Our LANDU® instructors are subject matter experts whose daily work in land real estate gives them the perspective and experience to help learners be the best in the business. They embody the networking, camaraderie, and expertise that RLI members are known for. Koby Rickertsen, ALC is now approved to teach Subdivision Development, Agricultural Land, and Land 101.
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L A N D U ® E D U C A T I O N
Call for LANDU® Instructors
LANDU® Instructors are ambassadors for the REALTORS® Land Institute, LANDU® Education Program, and the overall land real estate industry. They are experts in their field, dedicating time and energy to help others become the best of the best. 1. Be an active land or commercial real estate agent who currently holds the ALC Designation or another NAR Commercial affiliate designation as a member in good standing of their respective organization; OR be considered a subject matter expert on a particular topic who is involved with land or commercial real estate in some professional capacity (i.e. technology, lawyer, accountant, construction, developer, etc.) but does not hold an active real estate license. 2. Have experience in instructing or lecturing adult professionals, whether at a college, a professional program, or as a panel member or speaker at a symposium, seminar, lecture or convention.
For a complete list of RLI LANDU® instructors, check out: rliland.com/instructors
“Being on the RLI faculty is a great opportunity to be seen as an industry expert, provides networking opportunities with other land agents, and offers me a chance to expand my knowledge base by interacting with program participants. As an RLI instructor, I have an opportunity to give back to the Institute and the land brokerage industry, while being compensated for my time. I am happy I joined the RLI Faculty. I believe the courses are valuable, and the experience is rewarding both personally and professionally. I invite you to join us as I believe you, too, will share the same rewarding experiences.” – Phil McGinnis, ALC, LANDU® Instructor
What it means to be a LANDU® instructor
3. Be proficient in the use of webinar platforms (Zoom) and Microsoft PowerPoint, Excel, and Word, etc.
Have questions or want to learn more? Interested applicants may contact Amanda Morrone, Education Manager, at amorrone@rliland. com or 312.329.8441.
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“After seven years as an active RLI member, I saw the way my business thrived as a result of my professional connections with RLI contacts across the country. When I was asked to consider being an instructor for the organization, I immediately knew that it was a way for me to give back to both the organization and my peers. The networking that has come from being an instructor is fabulous. It is fun and enjoyable being able to be in front of students that choose to be in a class, as opposed to those that are required to be.” – Justin Osborn, ALC, LANDU® Instructor
And They're Off! Winning Sites to See at NLC2024 By Anne Leigh McAllister-Elmore, MSID, MAEd, RLI Learning & Development Manager
" As a Louisville Cardinal, it is my pleasure to welcome everyone with a big, “hey y’all,” to the Derby City. Rooted in Bourbon Country, Louisville is the home to the Kentucky Derby, the Urban Bourbon Trail, Slugger Baseball Bats, the Hot Brown, and the Greatest of All Time (Muhammed Ali). I hope everyone has a great experience making memories at the National Land Conference in the heart of the Bluegrass State." —Anne Leigh McAllister-Elmore, MSID, MAEd, RLI Learning and Development Manager
Win with Kentucky Bourbon Stamp Your Virtual Passport on the Urban Bourbon Trail®—bars and restaurants to highlight a variety of bourbon. Download the app for more information on the Urban Bourbon Trail and check-in at each location to track your progress on your passport. bourboncountry.com/things-to-do/urbanbourbon-trail/ Visit the Evan Williams Bourbon Experience®—relive the history of bourbon according to Evan Williams. Take a tour and end your experience with a classy bourbon tasting. Reserve your tickets today: evanwilliams.com. Run out of the gate to the Official Starting Point of the Kentucky Bourbon Trail—learn about how bourbon impacts The Spirit of Kentucky® by visiting the exhibition at the Frazier History Museum. fraziermuseum.org/
The Evan Williams Bourbon Experience®
Place Your Bet on Great Sites Kentucky Derby Museum at Churchill Downs—experience Derby Day year round and the unbridled spirit of the Kentucky Derby. derbymuseum.org Louisville Slugger Museum—located on Main Street, baseball fans can watch how the iconic Louisville Slugger Bat is made. sluggermuseum.com Muhammed Ali Center—located on Sixth Street, visit the destination to learn about the Greatest of All Time, his legacy, and Core Principles (confidence, conviction, dedication, giving, respect, and spirituality). alicenter.org
Louisville Slugger Museum and Factory
Show Your Love for Louisville Restaurants The historic Brown Hotel—where the iconic Hot Brown started brownhotel.com Jack Fry’s steakhouse—a memorable fine dining experience jackfrys.com Vincenzo’s Italian—family-owned classy dining vincenzositalianrestaurant.com River House—seafood with a Southern twist and a great view riverhouselouisville.com Feast BBQ—local BBQ known for their brisket and smoked wings feastbbq.com Guacamole Modern Mexican—fun atmosphere and great margaritas guacamolemodernmexican.com
The Muhammed Ali Center Louisville photography courtesy of Louisville Tourism
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Ten Global Trends with Implications for Legislation and Regulation 30
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The Counselors of Real Estate recently released a report on the top ten global trends impacting all sectors of real estate. All of these will have legislative and regulatory implications as Washington tries to navigate these common denominators for people, goods, and money. >> 1.
Political Unrest & Global Economic Health In a market where there is no shortage of geopolitical, economic and real estate market risks, the focus is close to home with turbulence in the economy, capital markets and the office market. One thing that hasn’t changed is the mixed economic signals in the economy, which contributes to an overarching uncertainty on where things are headed.
2. Occupiers, Obsolescence and Devaluation The future of hybrid work is still playing out with flexibility, agility, productivity and space reduction. What is clear is that the pandemic created permanent shifts in where work is done that is taking a toll on both the office sector and central business districts. At the peak of the pandemic, 62% of all office workers were working remotely. That percentage has flipped back the other way. According to WFH Research, 58% of workers are now fully back in the office, while 29% are working hybrid schedules and 13% are fully work-from-home. As the future of hybrid work unfolds, the near-term focus is centering on calibrating hybrid schedules and setting new expectations for work that needs to be done in person.
3. The Global Housing Shortage People need to live somewhere. This drives significant investment into all types of for-sale and for-rent real estate. The U.S. continues to face an overwhelming housing shortage that has resulted from decades of underbuilding. A study conducted by Rosen Consulting on behalf of the National Association of REALTORS®, found a cumulative housing shortage of 5.5 million units between 2001-2020 due to chronic underbuilding. The supply-demand gap could be as high as 6.8 million when accounting for the cumulative effect of properties removed from the market.
4. The Convergence of Real Estate and AI Artificial intelligence awakens. You can now ask a bot a question, and it can quickly mine massive amounts of data to provide an answer. The key issues now are what is the function and purpose of AI for the real estate industry? Access to real-time data is critical to investors in a dynamic market as they decide what properties they want to acquire, exit or hold. They need to act quickly and embrace AI as it integrates alternative data into industry analytics.
READ ON »
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5. The Labor Shortage Subject Every economic sector is reporting difficulties in finding skilled, willing and able workers. Despite some signs of softening in the wake of Fed rate hikes, the labor market remains incredibly strong. The biggest factor contributing to the labor shortage is the aging population of baby boomers that are moving out of the workforce. Employers are struggling to not only find workers to fill jobs, but also keep up with a dynamic labor market that is moving at a fast pace.
6. Migration’s Impact on Real Estate People were packing up and moving before anyone had even heard of COVID-19. Although that great migration shift has been fueled by the pandemic and remote work, the fundamental driver behind that shift is simple affordability. As the West Coast and Northeast became expensive for housing and cost of living, people started to look at alternatives. The rise of remote work has accelerated that migration with people who now have greater flexibility to work from anywhere.
7. Economy, Interest Rates and Inflation The recent era of “free money” ended abruptly following a blistering pace of Fed rate hikes. The federal funds rate is now at its highest level since 2007, and owners, investors and developers across the commercial real estate market are feeling the effects of higher capital costs. Higher interest rates coupled with tighter liquidity in the wake of major bank failures have taken a toll on the real estate transaction market, with sales activity that has dropped sharply and buyers and sellers both trying to come to terms with a reset on property values.
For more information on issues impacting land and real estate, visit the RLI blog and Advocacy page at rliland.com.
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8. Supply Chain, Logistics and U.S. Onshoring Container ships that stacked up outside of the California coastline during the pandemic galvanized action to build more resilient, efficient supply chains, which for many, was already underway. Supply chains that were once anchored on the West Coast with goods that moving East-West are now moving North-South and centered on the Gulf Coast. The seeds of that shift were planted a decade ago with the expansion of the Panama Canal, and that transformation blossomed due to the COVID supply chain disruptions.
9. Markets Need a Pricing Reset for Values to Normalize Basic math tells us that if the cost of capital increases, cap rates and property values should decrease. However, the pricing reset the market has been waiting for has been slow to materialize. The reality is that CRE markets have hit peak prices for the cycle and are starting to decline due to higher interest rates, and in some sectors, slower growth. Sellers are holding out for values at or close to what was achievable prior to the interest rate explosion. Meanwhile, buyers believe values are much lower based on higher capital costs.
10. A Fork in the Road: Finding “a Third Way” to Advance America’s Infrastructure The problems—and staggering costs to repair and upgrade— America’s aging infrastructure are well documented. Inspired from the great public works projects of the 1900s that made the U.S. a global leader, the tremendous need for new and improved infrastructure is now being met with what could be once in a generation legislation that is allocating substantial funding towards infrastructure spending as part of the Bipartisan Infrastructure Law and the Inflation Reduction Act. The funding will bring needed improvements and create jobs. At the same time, it is unclear if this investment will be sufficient to sustain U.S. prosperity through the 21st century.
Russell Riggs is RLI’s Advocacy Liaison for the National Association of REALTORS® and Director of Environmental and Sustainability Policy for NAR. He holds a bachelor’s in political science from Virginia Commonwealth University, a master’s in public policy from Tufts University, and a master’s in public administration from New York University.
RLI members qualify for access to health plans RLI RLImembers membersqualify qualifyfor foraccess accesstotohealth healthplans plans through our partnership with Land Broker Co-op! through throughour ourpartnership partnershipwith withLand LandBroker BrokerCo-op! Co-op!
Chat Your Way to Copy that Connects By Kat Szymanski, RLI Marketing Manager
C
hat in the context of real estate might have you thinking of client meetings, negotiations with another agent, or sharing stories over drinks with other land brokers at National Land Conference. Today, it could just as easily refer to the artificial intelligence tool, ChatGPT. Whether tools like ChatGPT are unfamiliar, or you use artificial intelligence tools daily, here’s what RLI members say about AI’s role in real estate, how they use it in their business, and tips to help you get the most out of these tools.
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Artificial Intelligence and Real Estate “It is important that Farmland brokers recognize and utilize artificial intelligence in the future. Our #1 job as Farmland brokers is to market our client’s assets to the largest audience, yielding the most successful outcome. Artificial intelligence, whether we like it or not will help us to serve our clients better as it continues to get better.” —David Whitaker, alc Artificial intelligence is impacting every sector of business. Now is the time to get more comfortable with the technology so it can make your job easier (it won’t replace your job, but it will replace how you tackle time consuming tasks).
On a recent episode of the Voices of Land podcast, Rebecca Frantz, alc shared, "I was naive to AI at first, I didn't want to consider it. But I'm learning, like all things, it's a great tool to use when it's balanced with other things. It's a matter of how we approach it. I'm using it from a marketing standpoint, to push ideas forward."
Top Ways Land Professionals Use ChatGPT There are a few top ways land professionals say they use artificial intelligence in their business. Its application extends far beyond text to images and video, but if you’re looking for a quick start, try using a simple tool like ChatGPT to help you with: 1. Property Descriptions: Generating listing descriptions is a popular use of language-based AI tools. It can shorten the time you spend on this task but beware that ChatGPT can be formulaic. Your descriptions may start to sound similar. Or worse, the word choice of the AI is inauthentic or inaccurate.
"It's a great tool if it's used properly. It's funny, you can pick it out right away. As soon as a new listing comes on the market where I'm at, I see words like 'exquisite' and 'stunning' and 'oasis'. Words are being used to describe properties that are not those things. You can tell the agent has put it into ChatGPT, taken the description it spits out, and they don't edit it." —Justin Osborn, alc 2. Social Media Posts: ChatGPT can generate copy for your social media posts and customize it for different channels. Sites like Plannable.io have ideas for social media prompts that will speed up your content creation. You can even use AI to help you create a monthly social media plan. Simply search Google or YouTube for tutorials.
“I put ChatGPT to work for creating social media content and posts. This can be as straightforward as rephrasing a post or turning a property description into engaging social media text or ads,” says Christina Asbury, alc.
3. Email Communications: Christina says one of her favorite AI tools is ChatGPT for Gmail. It’s a free Chrome extension that works within Gmail to leverage AI to quickly generate email content. Christina says it helps her create emails that sound more conversational or more professional (sometimes even less aggressive!). The tool can also create multiple variations of the subject line giving you options. It also gives real-time readability statistics and spam checks. Most people don’t read, they skim. Use readability stats to improve ease of scanning. Spam checks can help you avoid “spammy” copy or subject lines that land your message in the recipient’s junk folder.
Create Content that Sells (and keeps you out of trouble) While tools like ChatGPT are time savers, don’t skip the important step of human input and oversight. You’ll have more effective, genuine content that connects with your audience when you slow down and spend the extra time learning how to create the right prompts and editing any copy generated by the AI tool. Beyond wanting “good” content, you also want content that avoids trouble. Artificial intelligence isn’t perfect. It can be inaccurate and misleading. Do your homework! 1. Be specific. Give detailed instructions when you type into the chat bar. Tell it the length and tone of the copy. If you’re using it for social posts, tell it which channel you’re posting on. If you’re using it for property descriptions, tell it if there are words you want to avoid. If you want to get better at chat prompts, the Internet is full of ideas and tools for effective AI prompts. 2. Customize it. Give details about the audience you are trying to reach. You can take a listing description and customize it for multiple audiences. 3. Regenerate it. If what ChatGPT produces the first time isn’t quite right, ask it to regenerate the content. ChatGPT does this with one click. Try regenerating two to three times. Pull phrases or words from different iterations to get the copy that best suits your needs. 4. Review and revise it. Even after you regenerate, take a close look at what ChatGPT or any other AI tool gives you. Is it authentic? Does it sound like you? Tweak it to make it your own. 5. Remember the REALTOR® Code of Ethics. Do your descriptions comply with Fair Housing? Are they accurate? Do they violate any copyrights? If you’re looking for more guidance on AI and the Code visit nar.realtor and search for “Artificial Intelligence in Real Estate”. If you haven’t tried ChatGPT yet, or want to get better at it, now is the time to dive in. If you’re stumped on how to craft a compelling property description, what to say on your LinkedIn post, or how to make a complicated email to a client more readable, give tools like ChatGPT or AI extensions for Chrome a try.
As RLI member Rebecca Frantz says, "It's all about how we use it. Continue to be cautious because it's so new, but it's something all agents need to dive into in 2024.”
Want to learn more? Attend NLC24 in Louisville this March for education sessions on AI and ChatGPT.
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Bottoms Up: How a Kentucky Rye Initiative Benefits Bourbon, Farmers, and the Environment by Kat Szymanski, RLI Marketing Manager
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T
he Bluegrass State of Kentucky has long been known for its rich heritage of bourbon, horse racing, and agriculture. As we look to gather in Louisville, a.k.a. Bourbon City, for the National Land Conference this spring, what better way to get more connected to our host state than to explore emerging trends in these areas. Rye farming and bourbon are a natural fit.
Modern Rye Production Techniques and the Environment
Kentucky isn’t a typical region for rye farming. Northern climates are better suited to growing the grain. However, thanks to a partnership between farmers, researchers, and a distiller, the state’s bourbon heritage could be a boon for the economy and the environment. The Kentucky Distiller’s Association, Brown-Forman (distillers of Woodford Reserve), and the University of Kentucky shared the story of a multi-year initiative and research project that has encouraged the local production of rye, promoted modern growing techniques to improve soil and water quality, all while preserving the distinct flavor of Kentucky bourbon.
According to Dr. Lee, having rye for grain in the crop rotation allows fields to be covered for 11 to 12 months of the year instead of having fields go fallow. Rye for grain has a fibrous root system—the roots grow 6 ft deep—that resists erosion and captures nutrients in the soil. The deep root system combined with no-tillage and minimum tillage systems improve soil structure, water infiltration, and lead to more productive soils. It’s a formula that protects fields in winter, resulting in benefits to the land and the ecology.
Why Rye? For a whiskey to be considered a “bourbon” at least 51% of the grain mash must come from corn. Distillers then choose additional grains, such as rye or barley for the remainder of the recipe. Over the past few decades, corn and soybeans have been the predominant crops grown in Kentucky. Rye was typically sourced from other countries such as Poland and Germany where the climate is well-suited to growing the grain. “Rye improvement over the last 100 years has taken place in northern Germany, Poland and parts of the Northern Great Plains in the US and Canada. During that same time, other crops were greatly improved in Kentucky. Now, rye has to ‘catch up’ to those crops for farmers to choose to grow it,” says Dr. Chad Lee, Professor at the University of Kentucky and Director of the Grain and Forage Center of Excellence. According to Elizabeth McCall from Brown-Forman, this lack of local rye production caused the distiller to wonder how they could encourage Kentucky farmers to grow rye so they could source it locally rather than rely on imports. With grant money from First American Farmland Trust, a four-year study with four Kentucky farmers and the University of Kentucky was launched to answer two primary questions: (1) could farmers produce rye for commercial use? (2) could it be used for making Kentucky bourbon without sacrificing flavor?
The first step was to develop rye hybrids suitable for Kentucky’s climate. The rye hybrids developed in Germany which have a shorter height greatly increasing yields, are suited to latitudes north of Minneapolis, Minnesota. Genetics needed to be developed for regions that are warmer and more damp like Kentucky. “We have learned that we need to manage rye in Kentucky differently than our friends in Germany. We have different rotations, we use mostly no-till systems, and we have different pests (especially fungi) than Germany,” says Dr. Lee.
“About 30 to 40% of the corn acres are planted to wheat for grain every fall. Another 10% or so of acres are planted to cover crops in the fall. All of those fields are protected during the winter. Rye for grain should help us cover even more acres,” says Dr. Lee. “Most farmers growing rye are using satellite guidance on equipment and section controls to more effectively apply crop nutrients and pest management needs.” The USDA recently reported findings from a rye study in Iowa where “establishing a winter rye cover crop between corn-soybean rotations in tile-drained fields (meaning, those using a system of underground drainage pipes to remove excess water) reduced nitrate levels in drainage water by more than 45 percent compared to rye-free fields”.1 This is important because nitrates that go unused by crop plants can contaminate water sources and reduce oxygen in the water which can kill or ward off fish and aquatic life. Similarly, Kentucky farmers are trying to incorporate rye for grain into their sustainable farming practices by growing rye for grain in rotation with corn and soybeans mostly on no-till fields.
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From Cover Crop to Money Maker
Beyond Kentucky
The win-win for the rye growing initiative is for Kentucky farmers to see the environmental benefits of growing rye, as well as the benefits to their pocketbook, says McCall. So far, farmers in their study have experienced positive results that range from water retention in the soil to carbon sequestration, a unique characteristic of rye. Rye also introduces nitrogen into the soil which means that less fertilization is required for the crop that’s planted after the rye. McCall says farmers are experiencing better yields for crops like corn that were planted after the rye.
Other organizations beyond Kentucky’s initiative are involved in similar work to partner with farmers to improve rye crop growing techniques in states like Wisconsin and Ohio. The Agricultural Research Service's National Laboratory for Agriculture and the Environment is studying rye's role in the "sustainable intensification of agriculture." They see the research as critical to helping meet food demand without overtaxing the land.1
The use of locally grown rye helps reduce the distiller’s dependence on imported grains, further reducing the environmental impact of transporting the product from overseas. In addition to distilling, rye has commercial uses for baking. The potential to create an open source, non-proprietary seed, opens the doors for even more profitability. Farmers could sell it as a cover crop seed if it doesn’t meet standards for baking and distilling.
Dr. Lee says other parts of the United States can benefit from the notillage, strip tillage, and minimum tillage systems used with cover crops or winter grain crops like rye to prevent soil erosion and protect the health of the land. The next time you tip back a glass of Kentucky’s finest brown water, toast the researchers, distillers, and farmers who are working together to create a more sustainable, domestically grown rye product that protects the health of the land, and, of course, protects the fine taste we’ve come to expect from Kentucky bourbon.
While it’s too early to understand the full economic benefits, the initiative is focused on helping farmers create an end product that people and businesses want. “Farmers aren’t used to working with distillers,” says McCall. “We’re still figuring out that part of the supply chain. How to help farmers get the rye to market for distillers to use.”
Kat Szymanski serves as RLI’s Marketing Manager. She joined RLI in July 2022.
Passing the Taste Test After improving growing techniques, is the all-important research into how Kentucky varieties of rye impact the flavor of the bourbon. European rye has a plump kernel which is grassy and muted in character. Kentucky rye has a fruitier, more floral tone, a flavor that appears in the unaged distillate. These differences in flavor become muted during the barrel aging process so the use of local rye varieties is promising for Kentucky bourbon distillers. McCall says Woodford Reserve continues to explore the flavor differences across four growing regions in the state. They are doubtful the grains from the four regions will produce much difference in flavor. This testing is an ongoing part of their research.
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Resources If you’d like to learn more about the American Farmland Trust’s and the University of Kentucky’s work on rye cover crops, visit https://farmland.org/ project/kentucky-commercial-ryecover-crop-initiative/. To learn more about the Brown family and Brown-Forman’s work on renewing wood, water, and grain ecosystems, visit the Dendrifund at dendrifund.org.
A special thank you to Elizabeth McCall, CSS, Master Distiller, Woodford Reserve and Dr. Chad Lee, Professor at the University of Kentucky and Director of the Grain and Forage Center of Excellence for their willingness to be interviewed and contribute to this article. Source: https://www.ars.usda. gov/news-events/news/researchnews/2023/rye-the-right-crop-fornabbing-nitrates-capturing-carbonand-generating-bioenergy/ 1
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FARM TRANSI — only 30% of farms ever make it past the second generation — only 12% of these farms make it past the third generation — only 3% of these farms make it past the fourth generation
H
ave you ever found yourself sitting across the table from a client as they apologize for their situation? “This must be the worst family fight you’ve seen” or “I am sorry for my sibling’s behavior. We didn’t realize our parent’s estate left the land this way”. I know I have found myself in this situation. With a soft smile on my face, I remind people that they aren’t the first family to have a disagreement and they won’t be the last. Especially in today’s world, with fewer of the next generation coming back to the land. Every five years Iowa State University releases the “Iowa Farmland Ownership and Tenure Survey”. The most recent survey in 2022, stated that over 80% of the land is owned by someone not planning to sell. It also states that over 66% of the farmland in Iowa was owned by people over the age of 65. This tells us that there will be a record transfer of wealth and land in the next 10 to 15 years. It’s being called the “Great Wealth Transfer” which will play a significant role in transition planning with baby boomers currently holding over $84.4 trillion in assets.
In the most recent Iowa Farmland Ownership and Tenure Survey (2022), it stated that over 80% of the land is owned by someone not planning to sell. It also states that over 66% of the farmland in Iowa was owned by people over the age of 65.
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Have the Right People Involved It will be critical for your clients to have a “team” of specialists who can bring knowledge and experience to make the best decisions for the future of their land. Decide who should be involved: 1.
Who is their attorney?
2.
Who is their CPA or accountant?
3.
Who is their financial lender and/or advisor?
4.
Are there other specialists that might be needed down the road?
Example, if the kids live out of state but have intentions of keeping the land in the family is there a farm management company you have connections to and/or have developed a plan with for when that day comes. Is there someone who specializes in these conversations around transition planning that can guide your clients through steps they should consider next? Transition planning is going to become more popular than it has been in the past. The value of these assets today is tremendous and have continued to steadily increase over the years. Having the right members on your team is going to be critical to make sure all the boxes have been checked to pass these assets on to the next generation if you choose to do so. Ron Hanson, former University of Nebraska Ag Economist, and specialist on transition planning shared this stat. “Of all the challenges you face, passing the farm to the next generation will likely be the biggest. According to estate planning service Agri Legacy only 30% of farms ever make it past the second generation; only 12% of these farms make it past the third generation; and only 3% of these farms make it past the fourth generation.”
TION PLANNING Have a Plan and a Vision
Transition planning can be overwhelming, time consuming, and emotional. There are many obstacles that landowners don’t want to think about as a reality someday. Whether you come from a generational farm or ranch or you are the real estate agent that was asked by a client for some guidance, here are a few practical steps to get started. 1.
2.
3.
4.
Do you have a vision? Take some time to reflect on your goals, desires, and work through your thoughts on what will benefit your family the most. Share your vision with the next generation. There are various ways this may look as each family has different dynamics. Is it best to have a group discussion or one-on-one meetings with the kids and their spouses? Ask yourself, would you rather answer the next generation’s questions yourself or have your attorney? Remember, for a lot of farm and ranch families the land is part of a legacy. Are there going to be different tax implications for the way you set up your transition plan? This is where it becomes so important to have specialists on your team who can make sure your desires and goals line up with what is in writing. Monitor your transition plan/vision. Desires and goals can change with time. I would encourage you to periodically check in and make adjustments as needed.
Consider these steps when thinking about your own operation or talking with a client. Ask them if they have a vision and allow them to really reflect on the future. If you have the opportunity to be part of these conversations, it is a gift and legacy you’re playing a role in. If you would like to dive deeper into the topic of transition planning, here are a few resources to get you started: 1.
Ron Hanson, passingonthefarm.com
2.
Ohio State University Agricultural & Resource Law Program: bit.ly/osu_farmtransition
3.
Iowa State University Center for Agriculture Law & Taxation: bit.ly/iastate_farmtransition
4.
The National Agricultural Law Center: bit.ly/aglaw_farmtransition
5.
Farm Bureau Financial Services: bit.ly/fbfs_farmtransition
Rebecca Frantz, ALC grew up in Johnson County, Iowa on her family’s century farm. Her passion for Midwest land, diligent work ethic, and life experiences have led her to where she is today with Hertz Farm Management serving clients in the eastern central part of Iowa.
Sources: https://www.farmprogress.com/commentary/top-takeaways-from-farm-transition-planners https://www.farmprogress.com/business/farm-transitions-how-to-avoid-succession-planning-train-wrecks https://www.forbes.com/sites/jackkelly/2023/08/09/the-great-wealth-transfer-from-baby-boomers-tomillennials-will-impact-the-job-market-and-economy/?sh=3914b5c33e4a
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TRANSACTION TAKEOVER:
How to Prevent Wire Fraud By Jim Miller, General Counsel for Investment Property Exchange Services, Inc.
W
ire fraud is a growing problem for everybody involved in real estate transactions. Specifically, Business Email Compromise (BEC) is the most prevalent fraud scheme targeting businesses today. Here’s how the fraudsters operate, common red flags to look for, and what you can do to identify potential problems to protect your business and your clients.
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BEC is also known as phishing. Frequently a fraudster poses as somebody else (possibly a known person, a potential client, or a business associate) to gather sensitive information and/or install malware onto your computer. Once they hack into somebody’s email, they usually “wait in the background of a transaction”. Software is often used to scan the content of emails and alert to an upcoming transfer of money. Just before money is to be transferred, they “come out of the shadows” and attempt to divert the money to an account under their control. It is very important to remember that names on caller ID can be spoofed. BEC has been reported in all 50 of the United States and in 177 countries. Real estate agents, title companies, law firms, sellers, and buyers (in real estate transactions) are among the most targeted for wire fraud. Although your email and computer system may be secure, somebody else’s in the transaction may not be. It only takes one person in the transaction to be hacked to introduce a risk of loss that can affect everybody! Wire fraud is a fast-growing problem and has been described as “modern day bank robbery”. However, it is much more lucrative, and the criminals are less likely to be caught. According to the FBIs Internet Crime Complaint Center (iC3), between 2018 and 2022, there were 3.26 million fraud complaints in the United States and losses of $27.6 Billion. Since some businesses are afraid of reputational damage the actual losses may be higher than what has been reported. The FBI indicates that it receives over 2,000 fraud complaints per day. As a result of this growing threat, to protect your business and your clients, be suspicious and on high alert. Whenever the movement of money is involved, assume that somebody’s email has been hacked and that you may be communicating with a fraudster! A wire fraud causes numerous damages to you and your clients in addition to a loss of money. As mentioned above, the fraud may cause reputational damage to a business. There is also a considerable impact on efficiency. A lot of time and emotional energy can be expended trying to get the money back, checking computer systems, changing passwords, etc. Even though tactics change, there are a few common “red flags” that you should be aware of: » Multiple or changed wiring instructions. Wiring instructions are rarely changed because business bank accounts are not frequently changed. Some bogus reasons that have been given for changed wiring instructions may include: “the account has been closed” or “the account has been placed on hold by the bank and is not effective at this time”. » Bad Grammar and Spelling Errors. Many (but not all) fraudsters are foreign and may misspell words, use a word or phrase incorrectly or not as commonly spelled or spoken in American English. For example, “authorisation (British) vs. “authorization” (American). » Unusual Wire Recipient. Generally, deposits and closing funds are wired to accounts in the name of a settlement attorney, an escrow or title company or the real estate agent holding earnest money. Any other payee on the account should be considered a red flag.
» Changed or spoofed email address. The changes may be subtle and missed if somebody is in a rush. For example, instead of John.Baker@TheTitleCompany.com the email address might be changed to JohnBakerTheTitleCompany@gmail.com or there could be a very subtle change to the name such as John.Baller@ yahoo.com to John.BaIler@yahoo.com (the first “L” is actually a capital “I”). However, sometimes the fraudsters hack into the actual email account and send emails from it. This makes detection more difficult and can create a false sense of security. » Does the communication make sense in the context of the transaction? For example, is the “settlement agent” asking for a wire so they can send a check for the closing? As mentioned above, one common red flag is the use of bad grammar and/or spelling errors. However, the use of artificial intelligence (AI) by fraudsters is changing that. We have seen fraudsters use AI to create well written documents with few or no mistakes. This makes detection more difficult. We have also noticed over the years that the fraudsters techniques continue to improve, making detection more difficult. In addition, fraudsters are inserting themselves very early in transactions making it more difficult to know what a reliable email address or phone number is. So, what can you do? Be cautious if the person on the other end of the emails wants to rush things. Fraudsters want to create an urgency and cause you to rush because that increases the chance you will miss “red flags”. For this reason, it has been noticed that many attempts take place on Fridays and at the end of the month because of the increased transactional volume. » Just send information to the persons who need it. Be cautious with “reply to all”. The more people that are on an email string the greater the chance that your email goes to a fraudster. » Be cautious before clicking on a hyperlink sent by an unknown person and “hover” over the link. » Keep all software patches on and all systems updated. » Above all else, listen to your intuition! If something doesn’t “feel right” slow down and have somebody else look at it. Your business and your clients rely on your full attention. Our best defense remains using “old school” communication by calling somebody at a known reliable number. But never call the number on the email; if the email is fraudulent, the number may have been changed! If you discover you are the victim of a fraudulent incident, immediately contact your financial institution to request a recall of funds. The longer you wait the more likely the funds will be lost forever! As soon as possible, file a complaint with the iC3 at www.ic3.gov. You can also obtain internet crime prevention tips and crime schemes at the iC3 website. Jim Miller is General Counsel for Investment Property Exchange Services, Inc. (IPX1031). IPX1031, a Qualified Intermediary, is a national leader in 1031 tax-deferred exchange transactions and a wholly owned subsidiary of Fidelity National Financial, Inc. For questions or more information, call (888) 7711031 or visit the website at www.ipx1031.com.
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S T O R Y M Y
L A N D
Tuning into the Land: An Unconventional Path from Music to Land Real Estate by Stephen JB Davis
M
y land story really starts in Arkansas in the 1920s where my maternal grandparents were born and eventually met. My grandfather was one of 11 siblings. My grandmother was one of ten. Both families, like many back then, were agrarian out of necessity—raising hogs and chickens, and growing fruits, vegetables, and grains. I was born several decades later, of course, but it was with my grandfather, AC McDaniel, that I first had a home in Detroit, MI. My grandmother had passed shortly before I was born. The life they built, however modest, was decidedly agrarian amid an urban landscape. And those ways— harvesting food, preparing it, preserving it, even the cuts of meat we ate—all created an indelible curiosity in me for the “outside.”
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Many years later, as I was graduating high school, I had the opportunity to go to Friendship, Arkansas to visit the land on which my late grandmother was raised. It was not lost on me how special it was to be on land still owned by my family. Being on the very property that literally sustained my grandmother was life changing. It would take more time for my vision to become clear, but I knew with certainty that land was the destination. I started my college education at the University of Michigan as a music and music education student. I graduated with those degrees but couldn’t shake my obsession with nature. During my college years I started exploring the outdoors more; in ways that I wasn’t able as a child. I even attempted to replace my second area of focus from the music education program to a new one in environmental studies. In the end I graduated with high honors, went to grad school for music, and eventually began a full-time career teaching and performing music that would last a little over five years.
M Y L A N D S T O R Y
Stephen's home in Lexington, Kentucky.
Two years after I got married, my husband and I decided to move to Kentucky to be closer to his family. From college to this point, I’d been exploring the outdoors all over the country for fun and as a fitness model from New Mexico to New York to the Smokey Mountains. But Kentucky is where my land obsession finally coalesced into a tangible reality, and quickly! We purchased a 13-acre property in The Horse Capital of the World, which is Lexington, KY. I pivoted into real estate some months later with very little direction on how to bring my outdoor passions together with this new profession. I quite literally ran into a land agent at my former brokerage within my first three months of being in real estate. He ushered me through my first deal and introduced me to RLI. It has been a relentless pursuit for more knowledge, experience, and time outside ever since. As I’ve become more a part of Kentucky’s agricultural and recreational fabric, I’ve grown to understand just how unique Central Kentucky is and the state as a whole. It is agriculturally rich not only in its equine industry but produces beef cattle, hay, corn, and soybeans at remarkable levels. Recreationally it offers more running water ways than 48 of the country’s states, carving rich landscapes of plains, rolling hills and the Appalachian Mountains. We offer some of the best hiking, rock climbing, elk hunting, and fishing on this side of the Mississippi. And it delights me to work in both land categories, often helping even native Kentuckians discover the diversity of possibilities that lie on and beneath our soils.
I volunteer my time to conserve some of the natural beauty and agricultural value here with a land trust called Bluegrass Land Conservancy. In the last two years I’ve started to round out my outdoor skills by learning to fish and hunt (fly fishing and upland birds are my favorite). Then there’s the daily privilege I have of tending to the dream in my own backyard, gardening each year and managing the trees and wildlife on my property. As I write this story, I’m in the midst of preparing for a trip to the Patagonia region of Chile that I’ll take in less than 48 hours. I think about the joy I had running in overgrown vacant lots of my Detroit neighborhoods, playing in woods with my younger brother, and wondering in college how I would ever answer the loud call of the natural world. However circuitous, I’m so glad of the path I’ve traveled to get here. Without it, I don’t think I would have developed my endless appetite for the knowledge necessary to succeed in the business in which I find myself. My relationship with land has necessitated curiosity, openness, and courage. And because of these things, I am filled with gratitude each day to not just know land but to love it. Stephen JB Davis is a REALTOR® and land specialist with Christie's International Real Estate Bluegrass in Lexington, KY. Stephen loves to help people realize their real estate goals, spanning residential, recreational, and agricultural properties. He is fueled by a passion for land and the outdoors.
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