In the present times, people are always looking for different business ideas to supplement their economic growth. But before jumping into any business niche, it is important to know the benefits, drawbacks, and competition that come with it. One can face the same kind of dilemma while choosing to own a cattle ranch.
Lately, many people, especially those with a lot of money and time to spend, have been looking for alternative options to invest their money. And, the idea of investing in an animal ranch and selling the goods raised on it may seem exciting to them. Animal ranches can be a viable option to invest in because it is becoming easier to buy them through sellers like Harrigan Land Company.
A cattle ranch’s success depends on its maintenance, production quantity, quality, and many other factors. Thus, before thinking of buying a cattle ranch, it is important to know its pros and cons to stay on the safer side and make the best choice.
- 1 The Pros:
- 2 The Cons:
1. Cattle in Ranches produce better quality dairy and meat.
The cattle kept in ranches are healthier and have a better diet. They have enough area to move around without losing excess weight. The chances of cattle catching diseases on a ranch are also comparatively low. Besides this, better quality meat and dairy can help the owner in garnering a better price for the products.
2. It is a stable business.
Businesses involving ranch are a safer bet as compared to most other businesses. This is due to the fact that the prices of land, as well as cattle, mostly keep rising as time passes by. There is a growing market for cattle-related goods and high demand for land due to the rise in population. This adds to their value.
Even in 2008, with the collapse of the real estate market, one of the few businesses which were the least affected was cattle rearing. Since then, it has shown a positive growth curve with little to no fluctuations. In fact, most ranches and businesses involved with agriculture and animal rearing are stable and productive.
3. As the prices of food rise, the owner’s income increases.
With the rise in inflation, the price of other commodities is bound to rise. When this happens, it can help in the generation of higher income for the ranch owner as the agriculture sector remains stable with a low debt-to-asset ratio and grows in value over time.
4. The ranch can be used for supporting other businesses.
Besides cattle rearing, many people are now using their ranches for other purposes to generate income. Some people use them for making resorts and guest houses or rearing other animals instead of cattle. So, if one might get tired of rearing cattle in the future, they can go with other business ideas for the ranch without regretting its purchase.
1. Choosing land can be time consuming.
One needs to make sure that the land one is buying needs to be fertile and well-suited for grazing cattle. This can be a time-consuming process, and it might not always be easy for a beginner to make a choice. The land chosen should have high agricultural value and should be able to accommodate a certain amount of cattle.
2. It requires high investment early on.
Setting up a ranch is a costly process. One has to invest in the land, setting up infrastructure like stalls, pens, barns, room for storing feed, quarters for staff, and of course, livestock. Other equipment for milking might also be needed to be bought. Besides this, if one is only choosing to buy a ranch without any prior experience, then hiring an experienced herder can be a task, too, especially if your ranch is located far from other settlements.
3. It has high maintenance and functioning costs.
The expenditures do not end once one buys the ranch. The recurring costs of running a ranch are high as one has to spend on the maintenance of the ranch and the cattle. The main areas where one has to spend on a monthly to yearly basis are feed for the cattle, healthcare, vaccination, cleanliness, infrastructure fixing, etc.
4. The work is strenuous.
Unless the owner has other herders working on the ranch, it can be a physically demanding and tiring process for a single person or an inexperienced worker to look after the cattle. A cattle herder is endowed with the task of raising and caring for the cattle. He also has to work for breeding, birthing, branding, milking, and selling the cows. Not only this, he has to look for extra needs of the cattle and might have to work all day long. He has to look after the cattle’s overall health, cleanliness, food needs, etc.
Besides doing this, he should be good at planning and budgeting the costs for raising the cattle so that it can be feasible and not lead to a loss. He needs to keep regular checks on the animal and the ranch. This way, he can find out about any issues that could come up and try to resolve them.
5. It can be difficult for a first-generation rancher.
If one does not have a history of working on a ranch or having had a ranch previously, it can be a bit of a daunting process. This is mainly due to the fact that if one had already worked at a ranch or had first-hand experience of managing it, it becomes easier for them to do so in the future. They would have more knowledge about the type of land, feed, and techniques to use to maintain the ranch. Having prior experience may also help one in acquiring a loan for buying a ranch.
Buying a cattle ranch has its own sets of advantages and disadvantages. Still, if we look at the bigger picture and long-term benefits, then the advantages by far outweigh the disadvantages. Thus, if one is actually looking forward to buying a cattle ranch, it can be a great investment. The buyer has taken into consideration all the pros and cons that come with it and has taken his/her time to look after all the necessary considerations.