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What to Understand About Ranching There are many that have wanted to start their own ranches but have failed. There are a lot of dynamics to ranching that you won’t find in other businesses. Here are some things that you should understand before you go buy your ranch.

Why If you have desire to get a ranch or work in the cattle business there needs to be a big why. The reason for this is that when the chips are down, you have to be strong and motivated in order to come out successful.

Try it before you buy it Many people don’t realize that you can actually pasture out someone else’s cattle on someone else’s land. You are basically just paying for leasing the land and then in return you are paid to manage the cattle. This is a good way to start building your skills but also your reputation in the cattle community. This means that you need to be paying your bills on time and fulfilling all of your obligations to the ranchers.

Understand Market Value vs. Productive Value Ranches are usually sold for twice the amount they were bought at because of the potential income they can produce for the buyer. This is called the productive value. Buying a ranch can be a heavy investment and if you don’t do it right you may find yourself unable to amortize your debt in the end.

Land When you are looking for land you need to know what your purposes will be. Will you be doing strictly ranching? Or will there be tourist amenities as well? Some people choose to ranch closer to a national park and plan to get additional income from the land itself in time. Others choose to use any land that has enough water supply and pasture to fit their needs and then start their ranch. Sometimes you can actually buy what the government deems an abused ranch. This is where the range is considered in poor conditions but through good management skills you will be able to increase productivity and value.

Management team You need to understand the animals and what you will need to keep them healthy and happy. You also need the right team to help you with the financial management in the end. Your management team may end up being involved in the buying of equipment. As they buy equipment it is important to note the weather conditions in the area. For instance, in Utah you may want to get a truck shell so you can keep your tools and ranching materials dry in the fall and winter. Buying a ranch takes drive and commitment, but more than that it takes an understanding of the industry itself. People will respect you if you take the time to understand the things and pay attention to details. Some of these details may include the bills that you will end up paying and some of the issues that you will have to address along the way. Ranching is not an easy job but it sure can be rewarding. Photo Credit: Don Graham,

What to Understand About Ranching  

There are a lot of dynamics to ranching that you won’t find in other businesses.

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