Tips for Leading the Family Ranch Forward in 2018 and Beyond

Ranching is one of the oldest family-run industries in the United States, and running a successful ranch will hopefully provide income for the family for generations to come. More and more people have begun to see the value of raising a family on a ranch and the vital life lessons that can be learned. For example, running a ranch will teach people of all ages essential skills such as communication, teamwork, networking, problem-solving, and the good old-fashioned value of hard work.

Every year, the members of the family will sit down together and plan for the next few business cycles. It doesn’t matter if the ranch specializes in agricultural or recreational activities; it is essential to plan and make sure there is a plan, should an unexpected “rainy day” come along. Here are some tips for leading the family ranch forward in 2018 and beyond.

Hard Work

For any established rancher, this is a no-brainer, but for new ranchers, it is critical that you are aware of the sheer amount of work required to run a successful ranch. The best way to manage the workload is to identify the key strengths of family members and the other staff. This will allow you to divide the workload more efficiently.

Budget

One massive mistake many ranchers have made over the years is to assume that good years will be followed by more good years. The temptation, which has caused many problems, is to invest last season’s profits into new assets—machinery, equipment, or buildings. Although all these things are important, it is essential to be realistic about your cash flow.

Improvements are a fact of life on any ranch and can incur significant expenses, but does a brand new tractor have to be one of them? And what about if next year is a poor year in terms of cash flow? It is vitally important that you always consider the medium and long-term consequences of your expenditure, and if that old tractor still works as required, then why replace it? 

The Exchange of Skills and Knowledge Is an Ideal Currency

As mentioned above, you should always plan according to the strengths of your family members and workers. If someone isn’t especially practical but is good with numbers, get them to do the accounting. The same goes for people in the community.

Since the beginning of time, humans have been exchanging goods and services, and this currency is particularly valuable in the ranching industry. Maybe a member of your ranch has a particular skill that another ranch owner might need and vice versa. In this situation, it is well worth creating a spirit of cooperation, which will be mutually beneficial to you both.

Succession Planning

You may be raising a young family on the ranch, but perhaps when your kids grow up, they will prefer to leave the nest and develop different career paths. This is a common situation that families face over the years and must be planned for. If a family member wants to move into a position of leadership, they may need to look outside the ranch to gain the necessary skills to do so.

Open and honest channels of communication will eliminate potential surprises and problems with ownership and leadership in the years to come.