Profit – What is it Anyway?
At the Ranching for Profit School since we talk about profit, we believe we better define it. We ask the participants at the school to come up with a definition of profit, they usually respond with something like Income – Expenses = Profit. Let’s play with that definition some and see how it works. If […]
Read MoreAdding a New Enterprise
We are in the final days of our 2021 winter Executive Link meetings where Ranching for Profit alumni form peer advisory boards and look into each other’s businesses for strategic level advice. One issue that frequently comes up is the evaluation of adding a new enterprise to the operation. The operator is often excited about […]
Read MoreGet Better Before Getting Bigger
Our busy season of conducting Ranching for Profit Schools has just begun. Last week, I had the pleasure of dropping in on the school in Abilene, TX and meeting some outstanding participants. It is always an honor to be trusted enough to be invited to help a business discover a new path forward that will […]
Read MoreHealthy Land, Happy Families and Profitable Businesses: Stan Parsons’ Legacy
Hazel Parsons emailed me last Wednesday that her husband, Stan, died earlier that day from Covid-19 related pneumonia. I sat staring at the email, absorbing the news and trying to imagine what my life would have been like had I not met Stan. I first heard of Stan Parsons when I was an undergrad […]
Read More4 Strategies to Improve Gross Margin per Unit
As a student in my very first Ranching For Profit School I was told to make sure I was shooting at the right target before taking aim. That’s common sense. But it’s not commonly practiced. Livestock producers are great marksmen, but they are often shooting at the wrong target. The target most producers aim at […]
Read MoreThe 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 […]
Read MoreMonuments 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 […]
Read MoreScraping 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 […]
Read MoreThe WOTB Test
Most people blame things beyond our control like the weather, government regulation, low commodity prices and increasing costs for their failure to make a healthy profit. These are the things most often discussed at producer meetings and in the coffee shop. These are also things we can do little about. Making them the scapegoats for […]
Read MoreTwo Legacies
Legacy is a powerful concept. Perhaps that is because we see our legacy as a form of immortality. In some families it has survived generations now long gone. Many people I work with feel a deep obligation to carry on the family’s legacy. A family’s legacy can be rich with meaning and a powerful source […]
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