Ranching businesspeople offer their experience with planning in an environment full of risk.
C
all it “putting a pencil to it — to the 10th power.” Or think of that dreaded exercise that takes you away from why you’re in this business — saddling up, the joy of working cattle, breathing fresh air or still shedding a tear over a newborn calf.
The ranch business plan is essential to any successful opera-
tion. There are hundreds of thousands, even millions of dollars in play through numerous input costs, good production manage- ment to keep calving rates high, and being able to work around a drought, wildfi re or other disaster. Pat Bagley, Ph.D., former professor and head of agricultural
sciences at Texas A&M University and now dean of the Tennessee Tech University College of Agricultural and Human Sciences, says a written ranch business plan outlines the goals for your cattle business and keeps you focused. It should include long- and short-term goals along with specifi c methods for achievement. “Review the plan periodically and make adjustments to the
operation and the plan as required,” he says. “Include budgetary information: equipment purchases, fencing and structure costs and maintenance, and costs to purchase and maintain cattle.