Using Ranches for Sale in Colorado for Lucrative Breeding Businesses
After purchasing beautiful ranches in Colorado for sale, investors always have four options: allow the land to appreciate then sell it, start a beef ranch, start a dude ranch, or start a cattle breeding ranch. Although all four are great options, the last might be the best at the moment, as market studies have shown that the US beef industry is enjoying an upsurge.
According to experts, the 2013 export profits of the US beef industry is set to break the all-time record set in 2012. Additionally, countries in the European Union, as well as Russia, have removed certain US beef trade restrictions.
With the US beef industry set to see massive sales in the near future, many people will certainly try to get into it by purchasing working ranches for sale in Colorado from reputable brokerages, such as The Mirr Ranch Group, and establishing a beef ranch. However, smart investors know that, without breeding operations, it will be difficult to meet the worldwide demand for US beef.
As such, many investors are opting to join the US beef industry by establishing cattle breeding operations instead. While the consensus would be to start a beef ranch, breeding operations are projected to make a killing in cattle sales in 2014. Burt Rutherford from Beef Magazine elaborates:
For cow-calf producers, 2014 might go down as the banner year of all time.
Looking at data on cow-calf returns over cash costs from the Livestock Marketing Information Center (LMIC) in Denver, Tonsor says 2004 and 2013 were record years, with cow-calf producers seeing returns between $140 and $150. Those returns were higher than any other year back to 1985.
Now, take a peek at 2014 projections. “Despite how high those years are, expectations for 2014 are for returns to double those two best years,” he says.
How does $305/cow sound? Go ahead and turn cartwheels.
If you are interested in starting a breeding operation, be sure to choose ranch land that has great soil fertility. Additionally, have experts fill any holes in the ground and remove poisonous plants from the land to ensure the safety of your cattle. Lastly, do not stick to raising one or two breeds. Beef ranchers have their own preferences when it comes to cattle breeds, so keeping different ones should be good for business.
(Article Excerpt and Image from 2014 Will Be A Record Year For Calf Prices, And Risk, Beef Magazine, November 21, 2013)