A Brief Introduction to the Role of a Ranch Management Company
Many prospective buyers have little or no knowledge of running a ranch, but this doesn’t have to be a deal breaker. While it is highly recommended that you learn as much as you can about ranching before considering a purchase, it is possible to hire a team of experienced ranchers to take care of the daily running of the ranch.
For a first-time rancher or investors not planning to work the ranch, hiring a ranch management company can prove to be a sound investment. But, what exactly is the role of a ranch management company?
Access to the Experts
The ranching community is a tight-knit network of people who specialize in different areas, so building relationships with the local community is imperative. However, there may be times when you want to hit the ground running or don’t know where to start. This is where the services of a ranch management company can prove indispensable.
Well-established companies will have spent generations building relationships with the local ranching community and will be able to find the right person for the job. Whether it is a livestock or irrigation expert, a tax specialist, or a ranch manager, the company will get someone on site who will help drive your business forward.
They Know All the Small Print
As Ranch Management Companies have been working in the industry for generations, they will be well aware of the minutiae of state and national tax and conservation projects, as well as mineral and water rights. This area can be particularly challenging to understand for newcomers, but all areas have the potential to affect the value of the property.
When investors start looking for new properties, the management company can advise you on the potential for conservation easements and whether the property has any existing mineral or water rights. Participating in conservation projects can lead to sizeable tax benefits, but each state has precise rules to follow, so having someone on hand to negotiate the small print will be a valuable asset indeed.
Knowledge is Power
Knowledge is one of the keys to success in the ranching industry, and without it, you are likely to make some expensive mistakes. It all starts with being an active member of the local community, which builds up a spirit of cooperation concerning ideas and an extra pair of hands during busy times. Ask any rancher, and they will tell you they would be lost without this community spirit.
However, building relationships takes time, and many investors will want to hit the ground running, which can be difficult if they lack the experience or know-how. This is another area where a ranch management company excels—with their extensive knowledge of modern irrigation, livestock management, and pasture land management just a few areas they can help with.
A management company can help draw up extensive plans to ensure the successful operation of a ranch, whether your primary income stream is cattle, crops, or both.
Help When You Need It Most
The examples above are just a sample of how a ranch management company can help with the successful operation of your ranch. Their knowledge of the industry can be utilized from the moment you start looking at potential sites all the way through to completion and day-to-day ranch operations