During the Ranching for Profit School, we focus on the economics of the “operating business” and not the “land investment.” The operating business must rent the land at fair market value from the land investment for the agricultural use. In other words, the cows don’t get to graze the ranch for free. This is a value transfer that must be respected. Honoring that value in your decision making will reveal if the cows are profitable or if your increase in net worth is only coming from land value appreciation.



This separation can lead to some confusion between an enterprise and an entity. There are multiple definitions for both terms, but at the Ranching for Profit School here is our intent:

• Enterprises are different production areas generating value (gross product) and contributing a gross margin to the operation
• Ranch examples would be cow/calf enterprise, stocker enterprise, sheep enterprise, etc
• Farm examples would be corn enterprise, wheat enterprise, alfalfa enterprise, etc
• Entities are separate legal businesses with a distinct purpose
• Tax entities are corporations, partnerships, limited liability companies, trusts, etc

When laying out ranch economics, defining the enterprise mix is the first step. It can generally be answered by asking, what do you produce?

Take a listen to Dave Pratt, CEO Emeritus of Ranch Management Consultants, as he explains how he lays out divisions and enterprises to allocate direct costs and overheads within your business.

Job Wanted

Anywhere

I am seeking a job opportunity where I can apply my previous ranch-raised background, education, and cattle business management experiences, as well as be able to continue to learn and grow in ranching and business. I will be graduating from Texas Christian University in Fort Worth, Texas with a certificate in Ranch Management in May. Before attending TCU, I graduated from California Polytechnic State University in San Luis Obispo, California with a Bachelor of Science in Agricultural Systems Management and applied that degree in management positions on two ranching operations over four years. My work and educational experiences have allowed me to work with a variety of people, animals, and production practices within the cow/calf, purebred, and stocker segments of the beef industry in the West.

I understand how to treat livestock humanely and respectfully, and to maintain a calm demeanor when working around them, including using low stress handling techniques. I am also familiar with running break evens, budgeting, planned grazing practices, livestock recordkeeping, and managing employees. I am a hard and capable worker that enjoys working with livestock, and I am a fast learner that is always trying to expand my knowledge about agriculture, the cattle industry, and running a business. I am detail orientated, highly organized, have good time management skills, good problem solving skills, and willing to pitch in wherever needed.

My experiences, combined with active involvement in a variety of community activities, have provided me with the chance to work with many people to achieve group goals and gain leadership skills. I can be contacted by my email address. 

Kara Porterfield email: kaporterfield95@gmail.com

Ranch Management Consultants | 307-213-6010 | rmc@ranchmanagement.com

1560 Johnston Street Suite A, Wheatland, WY 82201

www.ranchingforprofit.com