Do You Have Cash on Hand? – Financial Ranch Management 

The majority of Americans think farmers and ranchers are poor and dumb. 2/3 of Americans live in cities where there are no cattle, or farms. The first sentence of this paragraph has some truth to it. Many farmers and ranchers are poor. Why? It all comes down to management. Managing money is harder than managing cattle.
One of the ways you can ensure economic prosperity for your farm/ranch is to be debt free. I’m not saying that every farmer or rancher should be 100% debt free all the time. I would go into debt to buy livestock. Livestock reproduce and can pay for themselves quickly. Buying a $450,000 house is a different story. The house does not provide an income stream to support your family.

If you have some cash on hand (in the bank or under the mattress), you have security. If there is an awful drought, much like the one 80% of the United States is experiencing right now, you can afford to buy hay for your cattle. If you don’t want to do that, sell some cattle and build to your stack of cash. You will also be able to pay for unforeseen emergencies. Maybe the motor on the truck blows or one of your family members is in dire need of financial help. Heck, if none of those things happen, maybe you take your family on a nice vacation.
With a sizable sum of cash, you will have options. The “recession” that we’ve had as of late is a great example of seizing opportunities. You might be in the position to buy some land from a farmer/rancher or city person who cannot afford to make land payments anymore. You are not taking advantage of these people if you offer a fair price. They want to sell, and you happen to be in a position to buy. Simple as that.
What do you think? Do you have cash in the bank?



Chris Stelzer

Chris Stelzer is a published Author, founder of Agricultural Insights and creator of many resources that help family farmers and ranchers grow their businesses. His flagship courses are the Grazing Mastery Program and The Farm Marketing Mastery Program. 

Chris Stelzer

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