Ranch for sale Montana – An Analysis

Cattle and sheep producers from other regions of the United States often wonder how land in eastern Montana compares in productive value. This discussion will familiarize the reader of what can be expected regarding carrying capacities and forage production on ranches in eastern Montana. Obviously, there are many reasons a buyer may have when looking for Montana land to purchase. When looking at smaller tracts of land, some put emphasis on improvements such as a nice home to live in, some want to be near the forest, and some want to live along a river. For others, remoteness is appealing, and a private place to hunt is popular, too. However, at the end of the day, buyers looking for a working cattle ranch are interested in how many cattle the unit will run and what can be expected for a net return on their investment.Visit this website:venturewestranches.com.

That said, a quick way to evaluate the value of a working ranch would be cost per animal unit. To understand this concept, a prospective buyer or investor needs to understand what an animal unit is? Simply put, it is the capacity to supply all forage needs for a mother cow and her offspring over a twelve month period. Regardless of how many acres it takes to accomplish this, this cost per animal unit (AU) provides a basis for comparison to other regions and other operations and may be used in converting acreage values.

Lenders and appraisers tend to get hung up on value per acre in the process of comparing properties to other sales and sometimes lose sight of adjustments in value in relation to production capacity. Utilizing a cost per animal unit will allow one to quickly determine a net return and narrow down the better investments. The important point in evaluating a ranch by this method is to determine what the true carrying capacity of the ranch really is. One of the most often reported unsatisfactory experiences of buyers interviewed is being mislead by sellers or realtors as to how many cattle the ranch they purchased would run. Buyers are encouraged to research potential purchases for themselves and not be mislead by overzealous realtors, especially those who do not reside in the area, have ranching knowledge or truly “know” the land they are selling.

Now that you have been prefaced on “animal units”, you may be curious to know how many acres it takes to support a cow annually in southeastern Montana. To answer that, one must understand the various characteristics and conditions that affect carrying capacities in the region such as the diversity in soils, moisture, vegetation, and topography.