No one should have a business foisted upon them at a young age. I lost my daddy when I was 16. My daddy owned a ranch in central New Mexico and, as his only child, I inherited it. In my eyes, I saw the ranch as something that had to be preserved for my dad’s descendants. Thus, I had a responsibility to hold on to the ranch for my children and their children. Thus, it had to remain a viable business.
The Ranching Business Provides Food and Headaches
The ranching business is full of pitfalls. The price of beef cattle rises and falls dramatically and usually at the polar opposite of feed prices. One thing I learned early was the ranch was too small to make a living wage on it. However, it would bring in enough to support itself and to fill by propane for heating our home each year. It also provided us with beef for the freezer and an area to grow fruits and vegetables. One of the hardest things was learning who I could trust to make big decisions on. I learned early on that family was not the best resources for good decision making.
Types of Ranching Business
There are many areas of the ranching business that a person can focus on. Many people buy yearling cattle and put them on pasture for the summer before selling them in the fall. There are also dairy operations and feedlots. My father preferred a cow/calf operation as do I. There is something special about helping a new calf come into the world and watching it grow throughout the summer. A cow/calf operation has its drawbacks including having to tend to the herd year around. There are chores that must be done no matter what the season or the weather. It is definitely something a person has to love in order to be successful at it.
Advantages of a Ranching Business
One of the biggest advantages to running a ranching business is the tax breaks. The animals themselves can be tax deductible as is their food and any improvements you do to the property. Over the years, we have built barns, traded old cows for new cows, bought registered bulls and bought equipment to tend to the animals. It is definitely a labor of love and not one for making yourself rich. We have found that income from work is usually offset by losses on the ranch and that keeps our income taxes very low.
It would have been much simpler to sell the ranch and to enjoy life on the proceeds especially as a teenager and a young woman who had not had the chance to explore the world. However, I believe my daddy would be proud of what I have accomplished and the fact that I have held onto his legacy for his grandkids.