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FEATURES
Published by the KING RANCH ® INSTITUTE FOR RANCH MANAGEMENT
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Wagon Tracks
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A Shared Commitment to Lifelong Learning
“Fewer Stockmen and Better Stockmanship” By Dr. Rick Machen
The 10-year partnership between KRIRM and Texas Farm Credit continues to serve the ranching industry By Ashley Patterson
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New Students Selected
Trio Anticipate Enhancing Their Skills Through KRIRM Program By Kindra Gordon
2017 Symposium to Discuss Succession Planning By Ashley Patterson
Cover Photo “Trailing the Herd” By: Todd Klassy www.toddklassy.com
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Texas A&M University-Kingsville 700 University Blvd., MSC 137 Kingsville, TX 78363 361-593-5401 361-593-5404 fax krirm@tamuk.edu http://krirm.tamuk.edu Clay P. Mathis, Ph.D., Robert J. Kleberg, Jr. & Helen C. Kleberg Endowed Director Ashley Patterson, Editor
MANAGEMENT COUNCIL Chair: James H. Clement, Jr., King Ranch, Inc. Caroline Alexander Forgason, Robert J. Kleberg, Jr. & Helen C. Kleberg Foundation Gus T. Canales, A.T. Canales Ranches Dave DeLaney, King Ranch, Inc. Bob McCan, McFaddin Enterprises Erik Jacobsen, AgReserves, Inc. Neal Wilkins, Ph.D., East Foundation Dave Hewitt, Ph.D., Caesar Kleberg Wildlife Research Institute Shad Nelson, Ph.D., Texas A&M University-Kingsville
“ Fewer Stockmen and Better Stockmanship” By Dr. Rick Machen, Paul C. Genho Endowed Chair in Ranch Management Conversations among cattlemen commonly center on recurring topics – weather, pasture conditions, cattle markets and family updates. If time permits, conversation turns to the perennial challenges of ranch management: infrastructure maintenance, grazing management, genetics and replacement selection, managing overhead costs, reducing depreciation, and recruiting and retaining employees. Ranching is a long hours, labor intensive, sometimes harsh environment business. Admittedly, the same could be said of other businesses, but often their pay is on a different scale. Ranch employees generally do not sign on with the intention of becoming wealthy. They ranch because it satisfies their passion for the land, livestock, and lifestyle. The tone of the conversation described above usually takes a somber tone when talk turns to ranch labor. The availability of people with a strong work ethic, passion for ranching and a true rural lifestyle seems to be dwindling. Profit-driven ranches stretch overhead expenses over as many cows and enterprises as possible. Labor is typically among the three largest contributors to overhead. So consider this contrast: labor availability versus time and effort required to accomplish assigned tasks. Over which does ranch management have the greatest control? Surely it is tasks, time and effort. Between number of tasks and time and effort required, which is easiest to manipulate? Tasks are what they are – pasture rotations, checking water availability and fences, bull turnout and pick up, gatherings, palpation, branding, sorting, weaning and shipping. As
systems-minded managers look for labor-reducing leverage among these duties, those that require one person to accomplish offer none. Leverage is found among those that often require all ranch hands plus the neighbors and maybe some day help. Low stress handling and effective stockmanship have been proven to require fewer people and less time to complete when compared to other approaches to handling livestock. For example, after implementing rotational grazing and low stress handling, one couple now gathers 435 cows from 15,000 South Texas brushcovered acres. The previous approach involving a helicopter and six men on horseback, took longer and typically resulted in a less than a complete gather. In a recent roundtable conversation with KRIRM graduate students, nationally known stockman and educator Curt Pate summed it up this way: “In the future, we will expect fewer stockmen to be responsible for more cattle (distributing overhead costs over more cattle). Low stress handling and sound stockmanship will be vital. People with these skills will be worth more and should be paid accordingly.” Labor availability and skills will be among the most pressing concerns for the future of our ranching industry. Successful ranch managers will continually look for production system alterations that yield a requirement for fewer man hours. Open mindedness and willingness to adapt will be key in finding success.
“Labor availability and skills will be among the most pressing concerns for the future of our ranching industry.”
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The 10-year partnership between KRIRM and Texas Farm Credit continues to serve the ranching industry By Ashley Patterson
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ounded in 2003 with the mission to educate the next generation of ranch managers through a master’s program in ranch management, the King Ranch® Institute for Ranch Management (KRIRM) is leading the way through its systems-approach education and leadership development. Realizing the impact KRIRM would have on the ranching industry through the education of its graduate students, the program began offering a series of lectureships and symposia to further the mission and outreach of KRIRM. These events offer first-class educational opportunities to ranching stakeholders, providing resources to empower ranchers and landowners to deal with the industry’s ever-changing, complex issues. The first symposium was held in 2004, a year after KRIRM began. For four years the events succeeded in their mission of educating ranchers, but it was because of a generous financial donation from Texas Farm Credit in 2008 that the events became poised to offer an even greater impact.
Donation Provides Advanced Learning Opportunities for Ranching Industry
Texas Farm Credit finances agricultural operations, rural land and homes, and offers pasture and livestock insurance as well. Headquartered in Robstown, it serves 100 Texas counties and has lending offices in Athens, Bandera, Beaumont, Bonham, Brenham, Clarksville, Fairfield, Gainesville, Hebbronville, 4 I Fall 2017 I KRIRM
Nacogdoches, Paris, Pleasanton, Raymondville, Robstown, San Antonio, Sulphur Springs, The Woodlands, Tyler, Uvalde and Weslaco. The company’s business model is driven by the concept that it is more than a lender, it’s a relationship. Texas Farm Credit has its customer’s best interests in mind as a customer-owned cooperative and part of the nationwide Farm Credit System established in 1916. Much like KRIRM’s mission, Texas Farm Credit is dedicated to serving the farming and ranching industries for the betterment of agriculture. “The partnership with Texas Farm Credit exemplifies how two diverse organizations with common interests can work together for the benefit of our ranching industry,” said KRIRM director Clay Mathis, Ph.D. This donation culminated the lectureship series and symposia into the Texas Farm Credit Certificate in Advanced Ranch Management, a program that recognizes individuals for the completion of KRIRM events. More importantly, ranchers who earn this certificate are recognized for their dedication to lifelong learning, taking the knowledge they learn and using it to improve their ranching operation and in turn, the ranching industry. Since the first certificate was awarded in 2008, a total of 114 individuals from 13 states and Mexico have earned their certificate in advanced ranch management. Texas Farm Credit Chief Executive Office Mark Miller says that a partnership
of this kind offers a number of mutual benefits to the organizations and the industry as a whole. “We are positively impacting the industry that we serve by providing relevant and timely educational opportunities,” said Miller. “Those education opportunities not only foster the transfer of knowledge from one generation to the next, but they also help ensure the success of the agricultural businesses that both of our organizations serve today.” A broad range of topics are covered in the lectureships and symposia, including systems thinking, managerial accounting, equine management, prescribed burning, grazing management, genetic technology in beef cattle, strategic planning and more. Continuing education is important in an industry that continues to become more complex, explains Mathis. “The complexity of ranching is increasing, and we should only expect that the skills of the most successful ranch managers in the years ahead will include an ability to make great decisions in a very complex business environment,” says Mathis. “The most successful managers in agriculture are continual learners; they are always honing their skill set to do better.” To earn the certificate in advanced ranch management, individuals must attend four lectureships and two symposia within a three-year period. Those interested in completing the certificate program have a number of events to choose from; five to seven events are offered across the country each year. The annual highlight event for KRIRM is the Holt Cat® Symposium on Excellence in Ranch Management held every October. To date, KRIRM has hosted 80 events, yielding more than 4,791 individual registrations from 39 states and seven countries.
Expanding Outreach and Looking Forward
Throughout the past decade, the partnership with Texas Farm Credit allowed KRIRM to take the education offering to the next level, providing participants with an unmatched learning experience. From world-renowned instructors to conducting the trainings at one of the world’s largest outdoor laboratory on King Ranch, the resources provided from Texas Farm Credit has been invaluable to the success of the educational offering at KRIRM. But it was within the past year that KRIRM was able to take the outreach program a step further. Until 2016, all lectureships were held in Kingsville, Texas. With the intent to reach ranching stakeholders at more central ranching locations in the U.S., KRIRM hosted several out-of-state events in the past year with two more on the 2018 schedule. Mathis explains that the support from Texas Farm Credit has made this expansion over the last 10 years possible, which has also broadened the network of the KRIRM graduate students. “As an educational and service entity, KRIRM has continued to broaden our outreach across the United States,
having an increasing positive impact on the ranching industry and our graduate students,” said Mathis. Mathis continues to express his appreciation for the gracious and continued support from Texas Farm Credit and looks forward to the future success of the partnership. In turn, Texas Farm Credit looks forward to the continued growth and development of the relationship noting that education is the foundation to success in all areas. “As the sponsor of the certificate program, we are able to contribute toward the overall health and stability of an industry that we love, appreciate, and support,” explained Miller. To learn more about how to get started in the certificate program, visit krirm.tamuk.edu/certificateprogram or call 361-593-5401. Visit texasfcs.com to learn more about the financial opportunities provided by Texas Farm Credit.
Ranching industry stakeholders can attend a number of lectureships and symposia that will count toward the certificate in advanced ranch management. Many events offer technical training, such as the equine management pictured above.
The 2016 certifcate recipients pictured at the 13th annual symposium. To date, 114 individuals from 13 states and Mexico have earned their Texas Farm Credit Certificate in Advanced Ranch Management. KRIRM I Fall 2017 I 5
From left to right: incoming KRIRM graduate students John Olsen, Joe Glascock and Chance Muehlstein; and second-year students Justin Staley, Hank Willemsma, and Candace Weeda.
Trio Anticipate Enhancing Their Skills Through KRIRM Program By Kindra Gordon
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all signals the “back-to-school” season, and among those returning to the classroom setting are three new King Ranch® Institute for Ranch Management (KRIRM) graduate students. Chance Muehlstein, John Olsen, and Joe Glascock have been selected as the incoming class of 2019. The trio share extensive ranch management backgrounds as well as a common desire to build their skills to be applied in the industry for the future. Of his desire to pursue the KRIRM program, Muehlstein says, “The Institute’s reputation throughout the industry is unmatched. I know I will receive the most focused training for the all-important business and leadership aspects of ranch management at KRIRM.” Likewise, Glascock is looking forward to the opportunities to network with others in the ranching industry and enhance his communication, business and financial skills. He notes that he has always found value in the mantra: “surround yourself with those who have the skill set you want to attain.” He anticipates KRIRM will provide that setting. As a fifth generation rancher, Olsen also expresses a continual desire to better himself and a thirst for knowledge. Olsen is eager to immerse himself in learning more about systems thinking and making ranch management decisions from a holistic approach. Following, each of the students share more about their past experiences and future career goals:
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Chance Muehlstein
Raised in the Texas Hill Country, Muehlstein attributes his passion for agriculture and wildlife to time spent on his grandparent’s commercial cattle ranch and his involvement in hunting and showing livestock. A milestone moment for Muehlstein came at the age of 12 when he caught a calf in the San Antonio Rodeo calf scramble. His scramble “certificate” allowed him to purchase his first 4-H show heifer, which also began a transition in the cow herd toward raising show quality calves for Muehlstein, his siblings, and cousins. Through participation in 4-H and FFA, Muehlstein spent his youth showing market hogs and cattle, and serving in many leadership roles, including the 2007 Texas 4-H Council where he met his future wife, Lesa. Also impactful on Muehlstein’s career pursuit were summers during high school and college years spent working for local ranchers. As a result, he says, “I became more interested in both cattle and wildlife ranch management as a career.” Muehlstein attended Texas A&M University, graduating in May 2011 with a Bachelor of Science in Animal Science with a Beef Cattle production emphasis. Upon graduation he moved to Rush, Colorado, in the role of assistant ranch manager on The Brett Gray Ranch, a 50,000-acre ranch leased from the Colorado State Land Board and managed by Round River Resource Management. The operation employs holistic management practices to run a year-round 300-head cow-calf herd and summer stocker calf herd.
In 2013, a desire to move back to Texas prompted Muehlstein to accept a position with the South Texas Division of Collier Farms Beefmasters in 2013. He assisted in managing all aspects of their purebred and commercial Beefmaster herds. In 2014, Muehlstein came full circle and accepted a position as the Beef Cattle Center Manager at Texas A&M, a facility that supports the teaching, research and Extension efforts of the Texas A&M Department of Animal Science through the caretaking and development of a growing teaching herd. Muehlstein shares that ever since graduating from Texas A&M it has been a goal to eventually attend KRIRM. He acknowledges the support of his wife, who shares his passion for feeding the world’s growing population through conservation of natural resources, and says he looks forward to continuing his education and the opportunities that lie ahead.
John Olsen came to KRIRM from Eh Ranch, LLC in Nebraska. Pictured above are cattle grazing on native range.
Joe Glascock working pairs on JD Ranch in Carlin, Nevada, with his daughter on her pony, Apache.
Specifically, Muehlsein is focused on growing his leadership and business management skills. Upon completion of the KRIRM program, Muehlstein says, “I hope to manage a large, diverse ranch in Texas that promotes both effective use and conservation of our natural resources.”
John Olsen
Olsen’s ranching roots run five generations deep. Kesko Ranch, a diversified cow-calf, hay, and turkey operation in central Utah was started in 1867 by his great-greatgrandfather. It was there—alongside his six brothers and two sisters—that Olsen credits learning the values of honesty, hard work, and the importance of family and God. Olsen always recognized education to be important and believed it would be an asset to his success as a rancher. He attended Brigham Young University – Idaho, and while attending school, he met and married his wife, Kayna. Today, the couple has three energetic children: Conner 5, Ellie 3, and Lucy 1. During college and summer breaks, Olsen spent time working on Kesko Ranch, and he also completed an internship with Cooper Farms, a vertically integrated turkey company located in Ft. Recovery, Ohio. He graduated in December 2012 with a bachelor’s in animal science. Upon graduation, Olsen and his family moved back to Kesko Ranch where he took on an active role in the day-today management. Additionally, he bought his own cowherd and became a co-owner with his father on their two-millionpound turkey operation. However, over time Olsen and his family realized expansion opportunities in the area were limited, and with a desire to continue ranching full-time, Olsen accepted a position in the Southern Panhandle of Nebraska at Eh Ranch LLC, a family-owned diversified farming and cattle operation. Olsen’s role included managing the cattle side of the operation, which included a cow-calf enterprise, backgrounding and marketing of calves, and heifer development. Through that experience, Olsen valued the opportunity to gain further managerial experience, increase his ranching knowledge, and in turn make beneficial improvements to the ranch. It also seeded Olsen’s interest in expanding his ranch management knowledge and led him to apply to
Chance Muehlstein addresses the Australian National Meats Team about the U.S. beef industry at the Beef Cattle Center.
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By Ashley Patterson
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t is a situation that happens all too often in the ranching industry. Families live and work on the ranch, devoting their entire life to what has sustained them throughout generations. But the conversation of succession planning goes unspoken until it’s too late. Succession planning is an important discussion in many industries, and especially within family-owned ranching enterprises. Succession planning should be on every ranch owner and manager’s mind—it is the process of mapping out a thoughtful and successful transition in leadership of a family enterprise from one generation to the next. Families that are successful in sustaining their enterprise over multiple generations understand that succession planning is a proactive process that must be undertaken well before it is forced upon the family by a trigger event, such as a serious health crisis or death in the family. As the average age of ranchers is tipping the scale at 58 years, the topic is becoming increasingly important. The 8 I Fall 2017 I KRIRM
14th Annual Holt Cat® Symposium on Excellence in Ranch Management will discuss Succession Planning: Transitioning Ranch Ownership and Management to provide ranchers, managers, and landowners with the resources to begin the discussions within their operations. Hosted by the King Ranch® Institute for Ranch Management (KRIRM), the symposium will be held in Kingsville, Texas, Oct. 26-27, 2017. Presentations will provide detailed processes on the different areas on succession planning, including transferring assets, establishing a shared ranch vision, and more. KRIRM Director and Endowed Chair in Ranch Management Clay Mathis, Ph.D. explains that succession planning involves not only transitioning assets, but also leadership and management, which is equally significant in the success and health of a business. “The value of ranch assets has increased dramatically in the past two decades, as has the complexity of operating an agricultural business,” says Mathis. “It is important to
successfully transition ranch assets to the next generation, as well as pass on the ranch business leadership and management.” Both younger and older generations of ranchers, owners, and managers will benefit from the symposium presentations, which will help them understand each other’s wishes for the business. “In the ranch transition process, it is important that the older generation understands what the younger The symposium keynote address will be presented by farm and ranch succession generation wants, and planning expert Dick Wittman. likewise that the younger generation be aware of the desires of the older generation,” explains Mathis. “Only when the desires of both generations is on the table and understood, can a successful transition process begin.” The keynote address to kick off the symposium will be presented by farm and ranch succession planning expert Dick Wittman. He will discuss how to identify critical conversations that need to take place, stakeholders who need to take part in the process, and core issues where alignment of expectations is essential to move forward. Techniques for taking inventory of current business governance, ownership and managerial structures will be addressed. Wittman will differentiate estate planning from succession planning, and discuss how to prepare for the succession process. Guidance will also be provided on assembling the right team of advisors who will be essential to the successful implementation of the plan.
A speaker panel will conclude each day’s presentations, allowing attendess to interact with speakers and ask additional questions.
Succession planning is a process that involves transitioning leadership in a family enterprise. Ranching enterprises should be proactive in this planning to ensure the ranch’s sustainability and legacy.
Next, Margaret Vaughan of MCV Consulting will detail the phases in the succession process by providing instruction on how to initiate the succession planning conversation, create a shared ranch vision for the future, and formalize the ranch decision making model and governance. The agenda also includes guidance by attorney James Decker on estate planning and the transfer of assets to the next generation. Presentations will wrap up with representatives from Padlock Ranch, McFaddin Enterprises, King Ranch, and R.A. Brown Ranch who will explain how each of these successful operations have remained in the family through the generations. Each session will conclude with a panel-style question and answer session for attendees to interact with speakers. “We want attendees at this year’s symposium to take away a clear understanding of what all is involved in a solid succession plan, and most importantly we want attendees to leave with the courage to begin the conversation that will start a successful generational transfer,” says Mathis. Included in the $150 registration is a steak dinner on Thursday, October 26th—during which the Texas Farm Credit Certificate in Advanced Ranch Management awards will be presented—and an in-depth tour of King Ranch that concludes the symposium on Friday, October 27th. To register, download the agenda, and learn more about hotel and travel information, visit krirm.tamuk.edu/symposium. KRIRM I Fall 2017 I 9
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Commit to Lifelong Learning
KRIRM. Olsen also credits KRIRM graduate Tyrell Anderson (now managing the Blue Creek Ranch in Nebraska) for encouraging him to apply. “I look forward to sharing ideas and learning from others through KRIRM,” says Olsen. His goal is to become a ranch manager with the ability to strengthen the ranches and ranching communities. Olsen also looks forward to sharing this experience with his family.
Joe Glascock
Photo By Kelli Brown
Upcoming Events September 22-23, 2017
Managerial Accounting for Ranchers; Kingsville, TX
October 26-27, 2017
14th Annual Holt Cat® Symposium on Excellence in Ranch Management; Kingsville, TX
January 10-12, 2018
GIS Technology for Ranchers; Kingsville, TX
February 22-23, 2018
Application of Advanced Genetic Technology in Beef Cattle; Kissimmee, FL
Visit krirm.tamuk.edu, or follow us on Facebook, Twitter, and Instagram to learn more about our upcoming events and program. 10 I Fall 2017 I KRIRM
Joe Glascock’s history is expansive—from traditional ranch experience, to a ten-year role with a federal land agency, to teaching ranch roping clinics abroad. His youth was spent growing up on traditional cow-calf operations and working on several large Great Basin ranches across Oregon, Nevada and Idaho during and after his college years. He graduated with a bachelor’s degree in animal science from Oregon State University in 1994. After several years of working on ranches, Glascock returned to college and received a master’s in rangeland ecology and watershed management from the University of Wyoming in 2001. Following graduation, he took a role working with the Bureau of Land Management (BLM) in southeastern Oregon overseeing management of nearly one million acres of public land. Another BLM project included Glascock spearheading a land restoration project that encompassed approximately 300,000 acres of public and private land. After 10 years working with BLM, Glascock returned to ranching and held various positions in Oregon and Nevada, from day work to cowboss to assistant ranch manager. Along the way, he developed an affinity and skill for ranch roping and has taught several clinics, including trips to teach in New Zealand. Glascock’s skill was also highlighted in a 2007 issue of Western Horseman magazine. In 2015, he joined the Nevada Cattlemen’s Association as the Beef Quality Assurance Coordinator, which afforded opportunities to work with producers to improve cattle handling efforts. Glascock also represented Nevada in 2016 at the Young Cattleman’s Conference in Washington D.C., Even with his many irons in the fire, Glascock maintains ranching roots in Oregon where he owns property and runs his own cows on leased land. He has been married for twelve years and the couple has five children. Glascock attended a KRIRM lectureship in the past, which gave him the desire to pursue the master’s in ranch management degree. “I attended the Systems Thinking lectureship, and I was very impressed with the high quality faculty and the mission of the program,” he says. “I knew from that moment that I wanted to be part of the program.” While a KRIRM student, Glascock says he looks forward to gaining new business skills to complement his previous experiences, focusing on his ultimate goal to manage a large, complex traditional ranching operation.
Photo by Jessica Deering
14th Annual Holt Cat® Symposium on Excellence in Ranch Management
Succession Planning Transitioning Ranch Ownership and Management
Thursday, October 26
Trade Show open from 11:00 AM to 5:30 PM 11:00 1:00 1:10
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REGISTRATION & TRADE SHOW Welcome/Introductions Keynote: Taking Inventory and Positioning Your Ranch Business for Effective Succession Phase I: Initiating the Conversation and Creating the Shared Vision for the Future BREAK & TRADE SHOW Phase II: Creating the Leadership Succession and Transition Plan Transferring Assets: Estate Planning Speaker Panel Discussion Social Hour at Caesar Kleberg Wildlife Research Center Dinner at Caesar Kleberg Wildlife Research Center Recognition & Texas Farm Credit Certificate Awards
Friday, October 27
Trade Show open from 7:00 AM to 1:00 PM 7:00 8:00 8:30
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COFFEE & TRADE SHOW Family Perspective: McFaddin Enterprises Phase III: Executing the Transition and Evaluating Success Ranch Manager’s Perspective: Board Relations and Family Member Successions, Padlock Ranch BREAK & TRADE SHOW R.A. Brown Ranch Transition Story and Wrap-Up Speaker Panel Discussion LUNCH King Ranch Tour Adjourn
Visit krirm.tamuk.edu/symposium for a detailed agenda, speaker biographies, travel and lodging information, and to register.
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NON PROFIT ORG U.S. POSTAGE PAID 700 University Blvd, MSC 137 Kingsville, Texas 78363
Save the Dates! 2018 Lectureship Schedule Now Available
2018 Lectureships At-a-Glance
View more details and register at krirm.tamuk.edu/lectureships
GIS Technology for Ranchers January 10-12, 2018; Kingsville, Texas Application of Advanced Genetic Technology in Beef Cattle February 22-23, 2018; Kissimmee, Florida Proud Partners with: Richard Mifflin Kleberg, Jr. Family Lectureship on Grazing Management March 13-16, 2018; Ardmore, Oklahoma Proud Partners with: Richard Mifflin Kleberg, Jr. Family Lectureship on Equine Management May 14-16, 2018; Kingsville, Texas John B. Armstrong Lectureship on Systems Thinking August 13-16, 2018; Kingsville, Texas Managing Farm and Ranch Employees Lectureship September 21-22, 2018; Kingsville, Texas