I have experienced that ranching life. For years, I have enjoyed the freedom that comes with being on a horse and making an inspection of the land you own and the herd you graze.
But I have also lived through the BSE crisis of 2003, which saw cattle prices so low sale prices would not even cover shipping costs.
As such, I feel I can easily relate to ranchers and provide — with confidence — guidance and advice on marketing and purchasing of ranches.
Too often cattle ranches are asset rich and cash flow poor, with the big pay day coming only when the ranch is sold. A new rancher would do well to structure his ranching operation to optimize profit and not to do what has been done traditionally — buying land, improvements, farm equipment and cattle in order to be self sufficient.
Smart ranchers know, however, that only land and cattle provide income. Equipment and improvements only represent expenses.
The trick to making a profit in ranching is to increase income and reduce expenses.
A course I would recommend ranchers to take is called “Ranching For Profit” by Dave Pratt. This course helps the rancher focus on making his ranching business profitable through self assessment and analysis. In further posts, I will touch on other detailed aspects of ranching.
For now I wish you the best of luck in your new ranching endeavour and enjoy the adventure. I know I did.
Feel free to contact me at your convenience if you’re interested in purchasing a ranch or have one of your own to sell.