Wičhóthi Káğa Business Start-up and Development Center
Story Map of Land-based Business Opportunities for the Oglala Oyáte
What is a story map?
A story map is a web application that combines interactive maps with multimedia content and text to tell stories about the world.
About this story map
What opportunities exist for developing businesses in *Oglala Lakota Country?
This story map attempts to answer this question by looking at four aspects of business development as they pertain to one of the most important resources of the Oglala Oyáte - our land.
- The land base
- Agriculture and conservation
- Renewable energy
- Short-term rental market
*Throughout the storymap, Oglala Lakota Country is used in lieu of the Pine Ridge Reservation. Oglala Oyáte refers to our people or nation. Oglala Sioux Tribe refers to our government or the federal designation of our tribe. Thus, federally we are members of the Oglala Sioux Tribe.
How does the land tenure system in Oglala Lakota Country support or hinder business development?
Land tenure is an institution (i.e., rules invented by societies to regulate behavior. Rules of tenure define how property rights to land are allocated within societies. They define how access is granted to rights to use, control, and transfer land, as well as associated responsibilities and restraints.
The unique history of land tenure on Native American Reservations has created both challenges and opportunities for business development in Oglala Lakota Country and challenges as they exist for the land base of the Oglala Oyáte. Checker-boarded land ownership and undivided interests create a bureaucratic nightmare for native entrepreneurs seeking to acquire land for their businesses. However, the lack of regulation, low costs, and availability of land lower the costs associated with starting-up and running a business in Oglala Lakota Country. What about the abundant agricultural resources? Wind and solar potential?
In the following section we will explore maps and data to better understand the various opportunities and challenges that exist as it relates to the land base in Oglala Lakota Country
Map Instructions
>> Scrolling down changes map theme to illustrate text in this box. Click "+" or "-" to zoom map. The "home" icon returns to original setting.
The land base
Oglala Lakota Country consists of approximately 2.8 million acres of land encompassing the entirety of Oglala Lakota and Bennett counties and the southern portion of Jackson County.
Land tenure
Allotted Trust are lands that were allotted under the 1887 General Allotment Act and are now held in Trust by the federal government for individual Native Americans. Allotted lands can only be bought and sold by members of the Oglala Sioux Tribe;
Tribal Trust lands are held in trust by the federal government for the Oglala Sioux Tribe and can only be bought and sold by members of the Oglala Sioux Tribe;
Fee Simple lands have had their trust protections removed through forced fee-patents or by request of native landowner. All fee lands in Oglala Lakota Country are still within the jurisdiction of the Oglala Sioux Tribe but are not held in trust by the federal government and can be bought and sold by both tribal members and non-members.
Tribal Reserve lands were set aside for use by the Tribal Government for schools and government use.
Government lands are those owned by the Federal Government.
As a member of the Oglala Sioux Tribe, how do I obtain land to start my business?
There are actually several options available to you. They include:
- Utilizing lands legally allotted to you
- Leasing land from the Oglala Sioux Tribe
- Purchasing or leasing fee lands
Utilizing your allotted lands
This map displays allotted trust lands in Oglala Lakota Country. Please contact OST Land Office for the most up-to-date information.
Utilizing your own lands can be difficult
While many tribal members inherited lands they are oftentimes scattered in different tracts and are undivided, meaning there is shared ownership with other land owners, in some cases this can be tens, hundreds or even thousands of other land owners.
Furthermore, if land is being leased as part of a grazing unit or farm pasture then permission must be granted from the Oglala Sioux Tribe and BIA to remove it from the leasing unit.
Learn about the options available to you to utilize your lands Village Earth's "Pine Ridge Allottee Land Planning Map Book" is a great resource.
- Land exchanges
- Gift deeds
- Partitions
- Majority consent
- Etc.
Leasing land from the Oglala Sioux Tribe Land Office.
This map shows lands held in trust by the Federal Government for the Oglala Sioux Tribe.
The Tribe/BIA will lease land for businesses and homesites. Applications can be obtained from the Oglala Sioux Tribe Land office located in Pine Ridge.
Purchasing Fee Lands in Oglala Lakota Country
This map displays fee lands in Oglala Lakota Country
Fee lands in Oglala Lakota Country can be bought and sold by anyone.
Deeds are recorded with their respective county assessor's office and are available upon request.
You can view digitized versions of the 2017 county platte maps from Oglala Lakota, Bennett and Jackson Counties Pine Ridge Land Information System (PRLIS).
Digitized county platte map of Oglala Lakota County from PRLIS
Location, location, location!
What are the three most important things to consider when purchasing commercial real estate?
This map shows fee lands that are located on or near major roads. This map does not show which lands are currently for sale, but it does show which lands are in Fee Simple status. Fee Simple lands can be purchased and owned by an individual or organization, if they are for sale. Additionally, there is process to acquire fee lands where the current owner has become delinquent on their taxes.
Purchasing Tax Forfeited Land
This map shows fee lands within Oglala Lakota County where the taxes are delinquent. By paying the taxes for three years (also referred to as a tax certificates) it then becomes possible to acquire the land during a regularly scheduled auction.
According to the Oglala Lakota County website "The purchase of a tax certificate does not constitute purchase of the land. Purchasing the tax certificate is equivalent to paying the taxes and fees on a property, if you then pay the taxes on that property for the required number of years (3 years in town, 4 years for rural) you may then take legal action to acquire the land. If during that time the current landowner wishes to buy back the tax certificate they may due so by paying back the purchase price of the certificate plus interest."
What opportunities exist for utilizing the land base for agriculture or conservation?
Nearly 85% of the land in Oglala Lakota Country is suitable for agriculture. The majority, 75% is classified as grassland and most of it is utilized for cattle and bison ranching. Nearly 9% is utilized as harvested cropland.
Land cover types in Oglala Lakota Country?
This map displays the National Land Cover Database for Oglala Lakota Country.
See the pie chart below for a breakdown of the different land classifications in Oglala Lakota Country the percent of total land area they occupy.
Leasing land from the Tribe/BIA
This map shows the agricultural lands available for lease from the Oglala Sioux Tribe. To inquire about available agricultural leases go to the BIA Realty Office in Pine Ridge.
Conservation Reserve Program
Another revenue source for land is the USDA's Conservation Reserve Program. According to the USDA, "CRP is a land conservation program administered by FSA. In exchange for a yearly rental payment, farmers enrolled in the program agree to remove environmentally sensitive land from agricultural production and plant species that will improve environmental health and quality.
Contracts for land enrolled in CRP are 10-15 years in length. The long-term goal of the program is to re-establish valuable land cover to help improve water quality, prevent soil erosion, and reduce loss of wildlife habitat. with the possibility for re-enrollment at the end of the term."
The average rate a landowner receives for CRP land in counties that overlap in Oglala Lakota Country is $32.00 per acre per year.
To learn more about CRP download the USDA's CRP Factsheet
What is the potential for utilizing renewable energies in Oglala Lakota Country?
Whereas tribal lands account for 5.8% of US contiguous territory, the average utility-scale for renewable energy (here including wind, solar photovoltaics (PV) and concentrating solar power (CSP), woody biomass, biogas, geothermal, and hydropower) amounts to 6.5% of national technical potential, namely an approximate 12% higher potential yield of renewable energy on tribal land than on the rest of the contiguous United States. For all tribal land, hydropower constitutes the most significant resource and geothermal energy the least significant (Milbrandt, Heimiller, and Schwabe, 2013). For Oglala Lakota Country, wind and solar energy have the greatest potential.
The following maps illustrate at the potential for wind and solar energy development in Oglala Lakota Country.
Regional renewable energy projects
This map displays current utility-scale renewable energy projects in the region from the National Renewable Energy Laboratory Biofuels Atlas .
Click on the "lightbulb" icon for more information about each project.
Solar
This data provides the DNI, or direct normal irradiance, which is a commonly used measure for assessing solar potential. It is estimated as a mean kilowatt-hours per square meter per day (kWh/m2/day) from 1998 to 2017 at a 10-km horizontal spatial resolution.
Milbrandt et. al. (2018) identifies Pine Ridge as the 9th highest ranked reservation for solar potential with a Capacity of 185,258 Megawatts. According to SEIA.org "The current national average (through 2018) of homes powered by a MW of solar is 190."
Wind
Wind represents a very viable option for Pine Ridge. Milbrandt et. al (2018) ranked Pine Ridge as the 8 th reservation for wind installations capacity:
These estimates show, for each of the 48 states and the contiguous U.S., the land area with a gross capacity factor (GCF) of 35% and greater. The calculated area illustrates wind energy potential that could be possible from development of the “available” land area after exclusions. The “Potential Installed Capacity” shows the potential megawatts (MW) of rated capacity that could be installed on the available land area, and the “Annual Generation” shows annual wind energy generation in gigawatt-hours (GWh) that could be produced from the installed capacity.
Utility-scale applications typically use wind speeds at wind turbine hub heights of 80 m above the surface, as demonstrated in the Wind Technologies Market Report (U.S. Department of Energy, 2018) .
Is there a market for short-term rentals like AirBnb, VRBO or Hipcamp in Oglala Lakota Country?
The rapid expansion of the short-term rental market and Airbnb "experiences" has created an opportunity for residents on the Oglala Lakota Country to host tourists from around the globe for very little up-front investment. Entry into this burgeoning market requires little more than a .25 acres of land.
To explore the market potential for short-term rentals we looked at 2018 data from the website AirDNA.com which tracks the short-term rental market for Airbnb and VRBO, the two most popular short-term rental services. We also searched for data on Hipcamp but since it is relatively new service there was not enough data to utilize. However, Hipcamp shows a great deal of promise since all you need to start generating income is space on your land for someone to park their car and set-up a tent.
While the site had no data for listings on the Oglala Lakota Country we identified 16 nearby markets with data. Of the 16 markets, only one was in Nebraska, near Chadron. The following 15 were all in South Dakota near the Black Hills; they include Hermosa, Rapid City, Sturgis, Box Elder, Keystone, Piedmont, Black Hawk, Custer, Hot Springs, Edgemont, Spearfish, Belle Fourche, Whitewood, Nemo, Lead and Chadron, NE. One market, Hermosa, extends into Oglala Lakota Country (near Red Shirt) but this does not necessarily mean that there area any active listings within this area.
Scroll down to see the data!
Number of active rentals
For these 16 markets there was a total of 1394 active listings.
Zoom-in on map to see total rentals for specific markets.
Take-away: Currently, there is very little competition in Oglala Lakota Country which creates opportunities for new entrants into the marketplace.
Rental demand
How much demand is there for short-term rentals relative to the top 2000 global Airbnb markets?
The average demand for these 16 markets is 69 out of 100.
Zoom-in on map to see score for specific markets.
Take-away: The proximity to the Black Hills, the Badlands, and Oglala Lakota Country's own unique appeal means there's potentially unmet demand in Oglala Lakota Country.
Occupancy rate
During the last twelve months, what percentage of days were booked?
The average occupancy rate in 2019 for the 16 area markets was 51%.
Zoom-in to rates for specific markets.
Take-away: The short-term rentals in the region, on average, are occupied 186 days each year, that translates to a significant source of revenue.
Average daily rental rate
What are people charging daily for their short-term rentals? The average in 2019 for the 16 market area was $224 per night.
Zoom-in to see rates for specific markets.
Take-away: The average daily rental rate is $224 per night, that would suggest customers are looking for spaces that can accommodate several people at once.
Average monthly income
What are people making each month from their short-term rentals?
The average monthly income in 2019 was $2,298.
Take-away: The average monthly income for short term rentals is $2,298 which translates to approximately $27k per year.
Is there a market for Airbnb Experiences?
What are Airbnb Experiences?
Airbnb experinces are "One-of-a-kind activities hosted by locals" including things like:
- Horseback rides
- Arts and craft classes
- Tours of local natural areas or historic sites
- Cooking classes
- etc.
Take-away: Airbnb Experiences provide a great opportunity for individuals, families and communities in Oglala Lakota Country to utilize their deep local knowledge, unique ways of knowing and lifeways to provide one-of-a-kind experiences to guests.
See area experiences in window to the right >>
Airbnb's quality standards for experiences
"Everyone who hosts an experience on Airbnb must demonstrate high levels of expertise and the ability to connect with guests. The experience itself must give guests insider access to places or things they couldn’t find on their own.
Every experience submitted to Airbnb is reviewed to make sure it meets these three quality standards: expertise, insider access, and connection. Once published, an experience must continue upholding these standards to ensure that it meets guests’ expectations.
- Expertise: Hosts are knowledgeable and deeply passionate about what they do. They go beyond the surface with personal stories and context that bring the experience to life.
- Insider access: Hosts unlock places or activities that the average traveler wouldn’t likely discover on their own. They invite guests to actively participate in the activity, community or culture.
- Connection: Hosts are dedicated to creating meaningful human connections. They go out of their way to make guests feel welcome and recognized. Guests come as strangers and leave as friends."
Learn more about these quality standards in Airbnb's blog post about the 3 pillars of a quality experience .
