Tag: income

What 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 […]

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What 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 […]

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Game 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 […]

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Survival of the Fittest & Natural Selection

Nature has a strict culling policy. If bulls and bucks don’t breed, or if does and cows don’t wean fawns and calves, their genes aren’t passed on. Survival of the fittest. Most commercial ranchers select for fitness too. If a cow is open or dry, she’s culled. If she’s got a bad udder or isn’t […]

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You Can’t Retire From Ranching

How is the next generation ever supposed to step up if the current generation can’t step down or at least step aside? The short answer is they can’t. It’s one reason managerial authority on many ranches skips a generation. More calamitous, it’s a major reason why young people don’t stay in ranching and multi-generational ranches […]

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What 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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Monuments to Tax Avoidance

We have our end of the year tax appointment next Monday. That reminded me of a ranch I visited a few years ago. The owner’s son showed me around. As we pulled out of the yard we passed a big aerator they’d bought to crush sagebrush. If you aren’t familiar with aerators, the drum is […]

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Scraping By

I received the following email from a young rancher last week: Dave, I am a young rancher and have grown my herd to over 100 cows over the last four years. In addition to my own operation I earn additional income working for my Dad on his place. I owe $15,000 of my cattle loan, have […]

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It Doesn’t Matter What They Want

Earlier today someone called me asking for advice regarding a bid he was about to make for a property he wanted to rent. The property could support 200 cows from May to October and the term of the lease would be 10 years. He hoped that I would have some knowledge about rents in his […]

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The Value of Gain & Grass

Wally Olson is a rancher from Vinita, Oklahoma. He has a profitable cattle trading enterprise based on the Sell/Buy marketing principles popularized by Bud Williams. At the foundation of Wally’s operation is an understanding of the value of grass and the value of gain.  Wally is quick to point out that he doesn’t limit his […]

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