Generating Revenue

School trust lands generate revenue through three primary asset classes: minerals, timberlands, and real estate. Revenue sources include mineral leases and royalty payments, timber sales, commercial leases, easements, land sales, and other real estate transactions.

Revenues generated from school trust lands, after deductions authorized by law, are deposited into the Permanent School Fund. The fund’s principal is invested, and investment earnings are distributed to Minnesota’s public schools.

Generating gross revenue does not necessarily result in net revenue for deposit into the fund. Management and operating costs can reduce or eliminate the amount ultimately available for deposit.

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Minerals

School trust minerals revenue is generated primarily through mineral leases and royalty payments.

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Timberlands

School trust forestry revenue is generated primarily through the sale of timber harvested from school trust lands.

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Real Estate

School trust real estate revenue is generated through leases, easements, utility licenses, campground fees, land sales, and other real estate transactions.