So what are the trends and factors that will likely affect ranching investment in the 21st century?
Like any business investment, ranching investments can be risky, but that risk is significantly reduced by valuing and adding to a ranch’s land base. The basic premise of any ranch is land. Any ranch that does not have adequate land or farm land is at risk of failure. Investors investing in ranching need to ensure that land is a viable and integral part of the investment portfolio.
Here are the best opportunities for investing in ranching today:
Stronger demand for beef and milk; the current trade disputes with Mexico and China could increase demand and prices and stabilize prices.
Interest rates are still relatively low, which will make loans affordable and increase liquidity.
Ranching investment opportunities exist across the beef supply chain. That means investments in the milk and cheese industries can provide the best opportunities.
Ranches with existing quality cattle and cattle breeding assets will enjoy a healthy return on investment.
Ranches in the Rockies
You can also buy a specialist area ranch, but that will probably take a minimum of $100,000, which is not that difficult to finance. There are a few mountain ranches for sale which have the potential to double-up as ranch lifestyle tourist spots. Plus you need to look for land that can provide a safe, steady profit.
One of the more stable investment opportunities today is ranching. Expect that the trend of large-scale ranching operations will continue, but those investments will be slower moving than in the past. At some point, this trend will shift and investors will focus more on smaller, less capital intensive operations. There will be more and more large-scale cow-calf operations that sell calves directly to large-scale processors and livestock feeders that may offer limited opportunities for small-scale, profitable investments. As a result, expect to see more investors investing in cow-calf and ranching operations with an immediate return, especially in the western United States and on private ranches and ranches.
By investing in ranching today, you can secure a substantial income stream for retirement that will add significantly to your retirement funds.
With the expected increase in demand for fresh, locally grown fruits and vegetables, and as well as drought and floods in the coming decades, the demand for fresh, healthy and locally grown foods will increase. The economic and environmental cost of importing and exporting foods will result in more purchases of locally grown foods, which may increase demand for ranching.
With ranching investments, you can have peace of mind that the ranch will always provide a reliable income stream, while adding to your retirement income portfolio.
With better management and ranch management, you can earn a higher return on your investment. By adding cattle to ranching investments, you can produce more revenue, and you will enjoy lower operating costs.
Those investments could pay off, and you can potentially enjoy a nice return on investment.
Investments in ranching offer an opportunity to earn a substantial return on investment for retirement. Those investments should be evaluated carefully by an investment advisor and an agricultural expert to determine if they are a good investment.