How Much Can You Afford To Spend On Feed?
A midwestern University specialist recently wrote a column for a leading beef industry magazine claiming that winter feeding is the biggest expense in most cow/calf enterprises. That may be true in most cow/calf enterprises, but I doubt it’s true for any of the most profitable cow/calf enterprises. The specialist offered suggestions to “reduce feed costs […]
Read MoreA True Story About A Real Manager
About 15 years ago I met an absentee owner who was responsible for a family ranch that was losing money. It had lost between $200,000-$300,000 year after year for a long time. Over those years she’d made several threats to the two managers that if things didn’t turn around, the family would have to sell […]
Read More5 Keys to Quality Cattle
A popular industry magazine found its way to my desk this week. An article that described five essential “wisdoms” for producing quality cattle piqued my curiosity. According to the author, the first key is “Be fanatic about animal health.” Key number two is “Pay the extra money for a good bull and build a reputation for […]
Read MoreWhat is Sweat Worth?
Most family ranches are subsidized with free, or underpaid, family labor. Sometimes the difference between what family members get and what it would cost to hire someone else to do the work they do is made up with the promise or expectation of sweat equity. But sweat is not a recognized form of currency and […]
Read MoreWhat Are You Worth?
I often ask audiences at schools and workshops if anyone pays themselves what it would cost to replace themselves. Very few hands go up and those that do are usually attached to the arms of Ranching For Profit School grads. Many justify not paying themselves a fair wage claiming that their ranch isn’t profitable enough […]
Read MoreGame Changer?
Income – costs = profit, right? The answer is “sort of.” It’s a little more complicated than that because we need to adjust for inventory changes, consider non-cash costs like depreciation and non-cash income like retained heifer calves. But over the long haul, for the most part, income – costs = profit. The obvious conclusion […]
Read MoreLow Hanging Fruit
Someone called me asking if I was available to do some consulting. I explained that even though our name is Ranch Management Consultants, we actually do very little consulting. After folks have been to the Ranching For Profit School they may need some coaching, but they usually don’t need consulting. When we consult, we only […]
Read MoreSmart Debt
A lot of people tell me that they want to be “debt free.” They are tired of making big interest payments on land, livestock, machinery and their operating note. They have had too many sleepless nights worrying about making the next payment. They believe that if they didn’t have to borrow money they would be […]
Read MoreFree Money Can Be Expensive
Letting government programs dictate your management and set priorities can be costly. The most obvious example is probably the emergency feed program. In drought impacted areas, this program incentivizes ranchers not to destock. The result has been severe overstocking during drought, when the impacts of bad management are intensified. Even programs like EQUIP (Environmental […]
Read MoreWhat Would You Do With $1,000,000?
In a recent Three Secrets For Increasing Profit® workshop I asked participants how much profit they want to make. It is an important question because you can’t hit a target that doesn’t exist and it’s impossible to build an intelligent plan unless you have measurable goals. But it’s an unfair question too. It’s unfair because […]
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