The Casual Cattle Conversations Podcast: Making Ranches Investible for Your Family

Making Ranches Investible for Your Family

Ranches need to be investible, whether that investment is monetary from outside sources or even the next generation returning. The good news, knowing if the ranch is investible and making it investible can be accomplished with simple strategies.

Chris Rawley is a co-founder of Harvest Returns and works with producers to help make their operations investible. Harvest Returns was established in 2016 and has deployed roughly 20 million dollars in the ranching space via outside investors and other funding routes.

“I don't know of very many ranches these days that don't operate without some kind of outside funding, whether that's just debt, operating loans, or potentially outside investors,” shares Rawley.

Ranching isn’t a cheap business to start or expand at any point but especially not when market prices are high. From simple operating notes to investors, outside funding plays an important role in the industry.

When asked what the number one trait of an investible operation is Rawley’s response is simple, “We've seen all sides of many businesses and those we consider investible all have a solid plan.”

Rawley isn’t referring to planning how to raise and graze cattle. He’s talking about the bigger picture of yes animal husbandry and land stewardship, but also knowing the balance sheet, profit and loss, marketing plans, goals and how outside funds will be paid back.

“If it's an equity investment where people are actually taking part ownership of your operation, then how are you going to distribute that money back to them at some point?” asks Rawley. “Have a plan whether it's through annual distributions, buy outs or selling out.”...



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