Thursday, September 25, 1997

Land management strategies can add to property value

By J.T. SMITH / Abilene Reporter-News

Some of the least valuable properties on the Texas market today are the very ones that had "the best known management" back in the 1940s, 50s, and 60s.

Paul Bierschwale of Bierschwale Appraisal Co. in Junction, told those in Abilene for the past week's Brush Sculptor's symposium that "eradication" of brush was the goal during that era.

Many acres of Texas were cleared of brush and trees as landowners took aim at maximum ranching and farming production.

"Some of these lands (eventually) have come back with woody species, but many are still relatively clear of all woody vegetation," Bierschwale noted.

At that time in history -- given ag prices and the sparse demand for rural recreation -- that probably wasn't a bad management decision.

"But from a longterm investment standpoint, those properties without wood vegetation are (now) in the least demand, and command the lowest prices," Bierschwale said.

Somewhere in the middle

The most valuable land is neither dense brush nor barren ground, Bierschwale emphasized. It's a balance of open and wooded.

At least two principles of real estate are at play -- the principle of change and also the principle of unique aspects of each piece of real estate, he said.

"Managers must take stock of the physical characteristics of each property and decide when and where to clear or thin woody plants," Bierschwale said.

Bierschwale suggested remembering these points:

-- Maximum gains in ag productivity can be gained by working areas of deeper soils, while little to no gains may be realized by clearing hillsides or clay banks.

-- Soil erosion always should be a consideration, with woody plants left in correct balance to to help hold topsoil in those times when moisture conditions encourage erosion.

-- Most areas of more shallow soil -- although not good for ag production -- contain a suitable cover to enhance local wildlife populations. These areas should be considered for leaving most brush in its natural state.

-- Opening up low-lying areas, while leaving adequate cover in surrounding areas, enhances wildlife habitat and increases forage production capabilities.

-- Aesthetics and eye appeal can be increased with selective clearing or thinning.

Bierschwale said that when it comes to real estate, the key is balance.

"Cedar or mesquite as far as the eye can see is no more attractive than white walls of a house with no pictures or wallpaper to break the view," Bierschwale said.

Bierschwale said there is an old saying in West Texas that the next drought begins the day following a rain.

Because of this, properties with water resources in West Texas will continue to be in high demand in the real estate market.

But just about any property can be improved.

"Each property has its own unique aspects -- and even a level tract can be developed into an eye-appealing property with proper plannning," Bierschwale said.

But look before you leap

Dr. Robert E. "Bob" Whitson of the Texas A&M Department of Rangeland Ecology and Management, College Station, suggested that property owners look at the big picture before making drastic changes in their land.

"Don't look at what one acre will produce, but the total difference in cash flow," Whitson advised.

Whitson said that ranchers, for example, should look at the total operation -- including their priorities. They should consider what adding another venture on their ranch will mean.

"Where do you want your money and time tied up," Whitson said. "Why talk about adding a new enterprise into your (ranch) mix if you don't have either the time or resources?"

In today's market, the trend definitely is moving toward meticulous and thoughtful changes in the land, rather than the massive clearing operations of years past.