All About the Benefits of Owning A Ranch

Why do people buy ranches? Many people buy them for profit. Certainly, someone with the right knowledge and technical know-how can make money from the livestock or fishery a ranch produces. Proper ranch management is said to the key to a profitable ranch operation. Furthermore, ranches are subject to attractive tax incentives. As a ranch owner, you can donate your property into a conservation easement, and promise to not develop it. Doing this can give you significant tax deductions.

Investment experts, however, caution potential ranch owners about the income-generating capability of ranches. As with any other agricultural enterprise, the profitability of cattle and other ranch produce depends largely on market conditions. Also, while very attractive properties, ranches are not as easy to sell as other agricultural lands. Some financial experts categorize ranches as an alternative investment, that is, it requires a fairly large amount of capital that may yield profits only after a considerable period. Others see them as inflation hedges. A number of present ranch owners are also exploring other revenue-generating ventures such as opening their properties for recreation, or engaging their land in carbon trading projects.

However, experts are one in saying that the true benefits of owning a ranch come from its non-financial rewards: the satisfaction of owning acres of scenic property and wide open spaces that soothe the soul, a rural lifestyle of “living off the land”, and the prestige one gets in the community from being a ranch-owner.


Posted on July 31, 2013, in Business and tagged , , . Bookmark the permalink. Leave a comment.

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