the value of a guarantee, he says. “If ranch owners use a contrac-


tor to complete a job and there is a problem, there is also a direct way to get the problem fi xed,” he says. Of course, this requires a clear, written contract signed before the project begins.


What are the opportunity costs of doing it myself? Every ranch management deci-


sion carries an opportunity cost, but nowhere is it more evident than in the decision regarding hiring labor or DIY. “Generally, people can do what-


ever they set their minds to, but just because you can do it doesn’t mean that you should do it,” Homeyer says. “It is important to consider what you may be giving up by de- ciding to tackle a project yourself.”


Editor’s Note: This is the tenth in a 12-part series focusing on using partial budgets to answer questions in a technique commonly known as “penciling it out.” Because Texas and Oklahoma are so diverse and each ranch is unique, the series was not designed to provide a 1-size-fi ts- all answer. Instead it was created to help producers become familiar with a handy tool that can be used to strengthen the bottom line. The series has been developed in col- laboration with Carl Homeyer, state ag economist for the USDA Natu- ral Resources Conservation Service (NRCS), Temple. Homeyer earned his bachelor’s degree in Range Sci- ence and his master’s degree in land economics and real estate from Texas A&M University. Before joining the NRCS in 2009, Homeyer operated his family’s Burleson County ranch, which also includes broiler houses, while owning and running several small businesses.


tscra.org October 2013 The Cattleman 69


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