Key to Successful Ranches

Key to Successful Ranches

David Sparks Ph.D.
David Sparks Ph.D.
While some producers struggle to stay afloat in what seems to be an unprofitable business, there are plenty of ranches defying the odds. At a recent Cattleman’s convention, experts outlined what they believe to be the key components of successful ranches. The term “successful” can be defined as: keeping the land and associated resources in some form of production agriculture. There is really only one trait that makes a successful ranch – and that is stewardship. The people who own or manage successful ranches are stewards or caretakers of the resources entrusted to them. But within that trait, there are at least four components that must be stewarded for long-term success.

 

They are as follows:

 

1. People

You have to have people of integrity, a strong work ethic, and they have to be confident, competent and motivated in what they are doing.

Agriculture is not an easy profession – you know that. The work environment is often adverse, the hours long and the profit margins are often slim. Without people with a passion for the industry, it is difficult to make it go.

“It’s easy to be passionate about ranching when the grass is green, the calves are slick or you’re trailing them on horseback, but how easy is it to be passionate about ranching when you have some of the travesties that have affected folks in the [Texas] Panhandle, Kansas and Oklahoma in the last few [months]?” Machen asked regarding the Starbuck fire that burned close to a million acres and killed several thousand cattle. “Those folks have demonstrated what true passion is.”

 

2. Resources

Stewards of successful ranches know that ranching begins at the soil-water-plant interface. “Ranchers are actually grass farmers that chose to harvest their crop with livestock and wildlife.”

 

3. Finances

Inevitably, it all comes down to profit. Ranchers that do not generate long-term profit diminish their equity and resource base, and eventually cease to be successful (without off-ranch income). The successful ones watch their bottom line, spend wisely, invest cautiously and save when possible.

 

4. Customers

Successful businesses focus and continually refocus on the customer. Whether your customer is an order buyer, a stocker operator, a feedyard or packing plant, ultimately all of your customers are the consumer.

 

 

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