“Success in the real estate business depends upon establishing credibility and contacts,” says Dean. “We have accomplished this through a combination of professional education, leadership in both the real estate industry and in civic endeavors and the establishment of joint venture partnerships both domestically and abroad. To this extent, we believe our efforts are unmatched among land specialty firms in the Southern U.S. ”
His company owns and manages farmland and commercial properties in four southern states. Throughout his realty career, he has served as the 1997 President of the Mississippi Association of Realtors, a member of the board of directors for both the National Association of Realtors and, currently, the International Real Estate Federation.
He also served as the 2003 National President of the Realtors Land Institute. In the early nineties, he was the first Mississippian to be awarded the Certified International Property Specialist (CIPS) by the National Association of Realtors, a designation that involves the completion of five in-depth courses relating to real estate transactions involving Europe , Asia/Pacific, the Americas and International Financial Analysis.
His business dealings and professional accomplishments have kept him active in both state, national and international markets, but Dean has continued to maintain an active record of civic involvement right here in the Delta. He has served of the Past Chairman of the Mississippi Soil & Water Conservation Commission, Charter Member and Advisory Board Member of the Mississippi World Trade Center , and a Lt. Colonel (Ret.) Mississippi Army National Guard. In the Delta, he is now Chairman of the Washington County Republican Executive Committee, a member of the Greenville and Leland Chambers of Commerce, the Delta Council, and the Rotary Club.
Dean began his farmland real estate career only after receiving first-hand experience in the agribusiness industry as a graduate in Agronomy from Mississippi State University . He followed his time at MSU with fourteen years of work as an owner/operator of a 2000-acre cotton, soybean and rice farm. This background has given him insight into all areas of real estate and the agricultural industry overall as well as helping him be recognized by his peers as the 1998 Land Realtor of America.
Dean has sought out professional development opportunities to help further his business and increase the services that he can provide to his customers. To do so, he joined the Mississippi chapter of the Realtors Land Institute (RLI) and enrolled in the Accredited Land Consultant (ALC) designation program administered through the RLI Land University of the RLI in Chicago . RLI, the foremost North American organization for land professionals, requires that those seeking the ALC designation must successfully complete nine different elements that range from Agricultural Land Brokerage to Land Planning and Subdivision Development.
As his many accomplishments indicate, Dean has gained great insight into the status of the current agricultural real estate markets.
“In the major agricultural regions of the U.S. , which includes the Delta, there is hardly ever an abundance of prime agricultural land on the market,” Dean explains.
Dean goes on to point out that the limited availability of agricultural land is heightened by five key factors which further reduce the supply and drive a markedly higher current demand. One of the factors is that 2003 proved to be one of the most successful farming years on record.
“The success of 2003 restored both confidence and bank accounts in the area,” he says.
The second factor is the re-positioning and balancing of equity assets by investors that continues to occur and brings more first-time owners to agricultural land. Dean also points to the strengthening U.S. economy that is causing more new growth and development near metropolitan areas, leading some sellers of this transitional land to choose Delta farmland for tax deferred exchanges.
Exchange rates, particularly that of the Euro, are also affecting the increasing attractiveness of current farmland values and helping these values become even more alluring to Europeans. And, finally, the value-added impact from recreational hunting and supporting government programs.
“While not wanting to appear overly optimistic, it would appear the market sees opportunity in an agricultural industry that is positioned to rebound,” Dean comments. “The market also sees good value in farmland which continued to hold or gain in value in spite of several low profit years.”
The impressive value of Delta farmland has drawn attention from investors from all over the world. In fact, Dean states that in some years as much as one-third of his company's business has come from international clients. Throughout the years, these clients have come from five European Countries and Japan and Dean feels that the results from each of these transactions has been very positive.
“International investors from developed countries have interest in Delta area farmland for many of the same reasons as domestic investors,” says Dean. “It is still possible to purchase larger tracts of quality farmland at prices where a reasonable rate of return may be achieved. In addition to good soils, available water and lengthy growing season, there is a well-developed agribusiness infrastructure which enhances the relative soundness of such an investment.”
Dean sees the international involvement in the agricultural industry as being a positive factor for agribusiness overall.
“For the most part, international ownership of farmland in the Delta region has proved to be positive for the farming industry. Although a high percentage of the properties owned by international investors is leased back to local producers, there is near uniform insistence upon clean farm environment concepts and environmentally friendly best management practices,” says Dean.
He has also seen that the international investors have been at the forefront in improving their properties through employing such practices as precision land leveling, installing irrigation systems and erecting farm buildings and grain storage. By making these capital improvements to international land investments, Dean points out that the local economy has been positively impacted through the provision of more jobs and sales.
As to whether or not the international interest in buying farmland will continue, Dean states that international involvement in this area is cyclical and is based partially on currency exchange rates and the relative profitability of the agricultural sector.
“These factors are again favorable for some modest increase in international buying activity,” he states.
To respond to the needs of Landmart's domestic and international customers, Dean and his company have continued to focus on professional development.
He says, “Specifically in my niche as an investment grade farmland specialist, our firm is engaged to a growing degree as consultants on issues which may ultimately lead to the purchase, sale or management of a property. Also, as the advantages of farmland ownership have become more widely known, we have experienced an increase in investment buyer representation both domestically and internationally. This broader and more savvy client base has caused us to continually sharpen the saw through specialized training in the land specialty.”
Through continued professional development and commitment to meeting customer needs, Landmart strives to provide the best full service real estate brokerage and management source for buyers and sellers of investment grade farmland in the American South. Investment grade farmland is defined as those properties that may be cash leased to provide returns competitive with other non-residential forms of real estate throughout the American South.
“Our firm focuses the due diligence necessary in identifying and bringing to market the finest agricultural and timberland properties which meet the investment criteria of our individual and institutional clients,” Dean states.
One of the areas of services that Landmart has developed to respond to its customers' needs is Farmland Management.
He explains, “Farmland Management is a small, but growing part of our business with approximately 7,000 acres presently under management. Our management services cater to absentee owners who prefer cash leases to achieve a desired rate of return.”
According to Dean, in order to perform this service, the firm performs the due diligence to identify the best possible lessees for a particular farm. They then structure a multi-year lease and provide on-going observation, consultation, reporting and rent collections.
“Farmland can prove to be one of the most sound and rewarding of equity investments, but the key is getting the right lessee established on a property. As more absentee owners venture into farmland investments, the type management services we provide will be in even more demand,” explains Dean.
Another benefit offered to Landmart's clients is the availability of Asset Management services. Because the company holds a General Securities license, Landmart advises clients who need more balance in their investment portfolios, particularly in the areas of real estate.
The business also has expanded to include Environmental Risk Screening as one of its services.
“Environmental Risk Screening is a service we strictly limit to farmland properties,” Dean says. “It is essentially an overview of a property to discover any ‘red flags' which might lead to the necessity of an environmental audit. By following a lengthy checklist, we can assist both the seller prior to listing with clean up and removal suggestions and also the buyer in discovering potential problems which may need addressing in an offer.”
Dean knows that the future holds challenges for the Delta's agricultural industry. According to him, farmers need for the current Farm Bill to remain in place without significant changes by the Congress. They also need for the Federal Reserve to continue to keep interest rates at their current levels and maintain adequate funding levels for agricultural research. Finally, he points to the need of the Delta to attract a renewable pool of young producers.
The Delta has a marketable resource in its farmland and Dean recognizes the importance of this resource in the Delta's economy and knows how to encourage economic growth in this area.
“Agribusiness is still the driving force in the Delta economy. The economic ‘shot in the arm' from the great crop of 2003 is quite evident. The current rising farmland market is based upon sound factors and rates of return. Bottom line: increasing farmland values bode well for the Delta's economic outlook.” DBJ
