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8 Ranching tips from an old-timer

F

Faster horses

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Joined
Feb 11, 2005
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30,475
Location
NE WY at the foot of the Big Horn mountains
This is so worth sharing--so I am. :D

http://www.beefmagazine.com/ranch-management/young-ranchers-listen-8-tips-old-timer-how-succeed-ranching?NL=BEEF-02&Issue=BEEF-02_20171116_BEEF-02_303&sfvc4enews=42&cl=article_5_4&utm_rid=CPG02000000653415&utm_campaign=22435&utm_medium=email&elq2=1b82e823016d4849939d041f7aaecdeb
 
I thought so too. Lots of wisdom there.
I know when we were starting out and had bought our first place after leasing for 10 years; it was small. A wise Basque lady friend told me, "they say you can't make it there, but you can. When you make a little more, you spend a little more; when you make a little less, you spend a little less". Obviously, I never forgot it.

We used a lot of old machinery. :D Didn't hurt us a bit; might have made us more appreciative.
 
Very good.

I might add that it is good business to change banks and insurance companies periodically. The place you are moving to will buy you away with cheaper rates or service charges for the same loans or coverage. You then have a few years before they feel comfortable enough to start taking advantage of you.
 
gcreekrch said:
Very good.

I might add that it is good business to change banks and insurance companies periodically. The place you are moving to will buy you away with cheaper rates or service charges for the same loans or coverage. You then have a few years before they feel comfortable enough to start taking advantage of you.
Click to expand...

I'm noticing this with my bank now seams they want to micro manage. I just ignore them payments not due for 3 months and I haven't sold any calves not much to talk about in my opinion.
 
This sentence from the article made me think of a few more established places that didn't, or almost didn't, make it because they didn't follow this advice.
When he was a young man, Mori loved to rodeo. But he sacrificed that expensive hobby in order to fully pursue building his own ranch. "My life's dream has always been to be a rancher, and that's why I quit," he said.
Click to expand...
 
I like running my old equipment. It seems like its more reliable then some of this new stuff. In saying that I don't farm land to farm land I just put up hay and rejuvenate a piece here and there so I am not dependent on a lot of iron.
 
Denny said:
gcreekrch said:
Very good.

I might add that it is good business to change banks and insurance companies periodically. The place you are moving to will buy you away with cheaper rates or service charges for the same loans or coverage. You then have a few years before they feel comfortable enough to start taking advantage of you.
Click to expand...

I'm noticing this with my bank now seams they want to micro manage. I just ignore them payments not due for 3 months and I haven't sold any calves not much to talk about in my opinion.
Click to expand...

Have you ever noticed that many of the people working in banks and/or lending institutions tried to ranch and farm and couldn't make it? :D But they'll give you management advice all day long.
 
ive been working a job for 35 yrs , I make good money for my area and for the most part enjoy it. I Did not persue my dream of farming in the 80's because of all the negative advise from my family (farmers) and the struggles I saw working on the farms as a child. I continued to work nights and weekends for family until 15 yrs ago when I bought a portion of my grandfathers place. from there I have invested (cash) into equipment and livestock . I purchased an ajoining property last summer and have picked up 2 more rental properties this fall. I don't know where I would have been if I had done it different but I can assure you I am still fortunate and blessed with how it has all worked out. I plan to expand a little more this year but I am limited because there are just not enough days in the week or hrs in the day to do much more than I do now without help. SOme call it a hobby but When you invest 40+ hours a week in it after 60hrs on the other job I invite anyone that thinks its a hobby to give me one week and take every step I do. I personally believe the small farmer has to be more efficient because inputs can not be spread out over more head to lessen the cost. I also only use the profit to expand and grow. This may change as Im looking at a couple options thru my lender. The article expresses sacrifice and to me it means a lot because of how I have sacrificed my time and body over the years I have a nice place and a lifestyle most are envious of even tho its not extravagant.
 
FH:
"Have you ever noticed that many of the people working in banks and/or lending institutions tried to ranch and farm and couldn't make it? :D But they'll give you management advice all day long."

Well, some get into ag banking. Some get into selling real estate and try to specialize in ranching. Some get into equipment sales.

And you know what? With 'most', It ain't really all that bad----cheapest way to learn from a mistake is learning from the other guy's---and both other deals I mentioned it is nice to work with somebody with some knowledge.
 
littlejoe said:
FH:
"Have you ever noticed that many of the people working in banks and/or lending institutions tried to ranch and farm and couldn't make it? :D But they'll give you management advice all day long."

Well, some get into ag banking. Some get into selling real estate and try to specialize in ranching. Some get into equipment sales.

And you know what? With 'most', It ain't really all that bad----cheapest way to learn from a mistake is learning from the other guy's---and both other deals I mentioned it is nice to work with somebody with some knowledge.
Click to expand...

The way it sounds is some of the mover and shakers in our area have given our young bankers a crash course in poor decisions hence were all going to pay for it.
 
I'm blessed My banker grew up on ranch, his trade became banking in big city, came home to FIL ranch in big open, left there when his Dad died to help Mom--and got bank job in little home town.

their portfolio was way long on T-bills, etc--rated A+---his theory was it was ag money, small town money, ought to be invested at home.

A very hi quality guy, some mentoring, some networking, info/price sharing---much trust and lotsa (mutual, I hope!) respect.
 
We have banked with the same bank since 1974. They know us and we know them. It's not a big bank, but independently owned. They have been a HUGE help us. Their theory is "we loan money to people we know will pay us back."
That has worked very, very well for them. I would hate to have to find another bank. I know there are other good ones out there, but we have a long history with this one, so we will continue to bank there.
 

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