Maple Leases are One of the Sweetest Passive Income Ideas Ever

If you’re looking for some interesting passive income ideas, then consider sweetening your pot with maple syrup!
You might be wondering, what do passive income and a short stack have in common?Well, they’re both extremely satisfying, first of all. There’s nothing like some warmed up maple syrup on a fresh stack of pancakes, except for maybe a fat lease check. If you’ve been looking to create passive income from your land, then you have very many options! But none of them are as sweet as a maple lease. Companies who tap maple trees for their sap, are looking for landowners to rent the access to their trees.

What Are the Going Rates for Maple Leases?

A landowner can expect to make anywhere between $0.50 to a $1.00 per tree that the company taps. Lease payments are made to the landowner on an annual basis and of course the lease rates that a landowner would receive are dependent on a few considerations.

What Type of Land do I Need to Take Advantage of this Passive Income Opportunity? 

Obviously, the first criteria is that you have…maple trees. The more maple trees you have on your land the better, in fact you should look to have about 50 to 70 maple species per acre of land. Ideally, companies are looking for property that has significant terrain that slopes down continuously, ideally to some sort of roadway – they’ll need to haul away the syrup at some point! Sloping land that faces south or east are ideal in comparison to north or west facing slopes. Of course, having a few acres of land isn’t enough to entice sugar companies.

The industry faces steep competition from exporting companies as domestic maple syrup companies only comprise 30% of industry production. Canada is the main competition as the majority of maple syrup imported into the U.S. comes from there. Furthermore, depreciation within this industry represents roughly 9% of industry revenue which shows just how much capital companies expend in this industry. So having enough acreage to make it worth the company’s while would put you at a great advantage and one step closer to generating passive income.

The setup for maple syrup harvesting is extensive. Maple tapping involves miles of tubing, vacuum pumps, reverse osmosis, and evaporators that extract the maple syrup efficiently while ensuring that the trees are kept alive.

For this reason, companies prefer to establish large scale operations on large tracts of land for long lease terms. Access roads where large trucks will haul away the extracted syrup will be on and off the property consistently during the harvesting period.

The Hay and Crop Farming Industry is Set to Boom

The best part of maple leasing as one of our passive income ideas is that the industry is growing.  Maple syrup is a product that falls under the Hay and Crop Farming Industry. This industry is set to grow at an annualized rate of .4% over the next few years to 2021. This is due to the fact that consumers are shifting away from high fructose corn syrup and looking for alternative sweetener choices. This industry will continue to benefit from this shift for years to come.

The majority of maple syrup comes from New England, Vermont, New York, and Maine. However, landowners in other states can still benefit from maple harvesting. For example, in 2012 New York passed favorable legislation that encouraged the leasing of private land for harvesting maple syrup. Because of that, in 2015, New York became the nation’s second-ranking producer of maple syrup with the creation of more than 600,000 gallons of syrup.

For states like Ohio, where the majority of trees are privately owned, landowners can list their land as available for farming/agriculture and write in extra details that the property contains a sufficient number of maple trees to be considered a sugarbush.

Your Maple Trees Will Be Even More Valuable if You Sell them for Timber

After a maple tree has been tapped, and has passed the point where they will produce syrup, they can be harvested for lumber. As a result of the tap-holes left from maple syrup extraction, the lumber that is made from the trees has brown patterns. Tap-hole boards can be sold for more money than maple veneer by itself because of the unique look they have.

Maple leases, one of the passive income ideas that just keeps on giving!

The Amount of Money American Landowners Could Make from Maple Leases is Sweet!

Vermont – being the end-all-be-all of maple sugar extraction – sets the industry standard for the rate at which maple trees are tapped and how much syrup is extracted. Mike Farrell, a maple tree expert with Cornell University has made calculations for the maple syrup potential for the entire United States. If states with maple trees were to tap their trees at the same rate that Vermont does, then the US could jump from 11 million maple trees tapped to 65 million. And to Farrell, this number does truly represent the potential. He believes that America has the potential for 2 billion maple tree taps.

If we are going to be conservative with the numbers, then let’s assume landowners would receive $0.50 cents per tap. That would mean American landowners have the potential to generate $1 billion dollars in one year from maple tree leasing. And that’s just for one year! Maple trees have the potential to produce maple syrup for decades making this a sweet way to make money with land.

Landowners Can List Their Property at Landlease.com to take Advantage of This Passive Income Opportunity!

If you’re a landowner who has identified maple trees on your property, there are many good reasons why should consider a sugarbush lease. In fact, Les Ober, the Agriculture and Natural Resources Program Coordinator at Ohio State University, has written a great piece detailing how a landowner can benefit from a maple lease while waiting for their trees to be mature enough to be cut down and sold. At landlease.com you can list your property as select the attribute for farming/agriculture and truly take advantage of one of the sweetest passive income ideas ever made!