Tag: economics

Enterprise vs Entity

ranch barn

During the Ranching for Profit School, we focus on the economics of the “operating business” and not the “land investment.” The operating business must rent the land at fair market value from the land investment for the agricultural use. In other words, the cows don’t get to graze the ranch for free. This is a […]

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Benchmarks are Overrated

benches

At the Ranching for Profit School, we teach people how to use benchmarks to identify deadwood in their businesses which allows them to find focus areas for managerial leverage. When we finish teaching the benchmark section participants are excited to run their numbers in the RFP format and compare them to the RMC Benchmarks to […]

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Financial Record-Keeping, A Rancher’s Favorite Chore

paperwork

Mentioning that records are a waste of time can usually start an argument, or at least get someone questioning all the hours they have spent keeping detailed records over the years. Honestly though, most records are a waste of time unless they follow Dave’s rules. It is easy to pick on the little red calving […]

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Productive But Not Profitable

cows tractor

North American agriculture could be described in one statement. “Productive but not profitable.” For decades the primary messaging to farmers and ranchers has been to become more productive. You see it everywhere, from the magazines, to the radio ads, to the messaging in our youth development programs. “It’s your responsibility to feed the world. Less […]

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Economic Analysis

economic planning

We recently wrapped up our two day Economics Intensive where alumni of the Ranching for Profit School prepared their economic plan for the coming year. For many of us, if we are left to our own devices, we often put off making an economic plan or get stuck figuring out how to handle a certain […]

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The Power of a Profit Target

Longs Peak

Having a clear target is a powerful thing. A few years ago, I led my son’s scout troop to climb Longs Peak in Colorado. We hit the trail about 2:30 AM and watched the sun rise while sitting above the tree line. As we entered the most difficult stretches, we all struggled at different times. […]

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The Laws Of Economics

My Cousin Vinny is one of my favorite movies. There’s a scene where Vinny, played by Joe Pesci, challenging the witness, asks, “Are we to believe that the laws of physics cease to exist on your stove?” That line, makes me think of some people who market grass finished beef and use grazing practices that […]

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Smart 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 […]

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