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How To Buy A Cattle Ranch?

how to buy a cattle ranch

As we mentioned previously in a blog post of ours, there are a number of things you need to consider before you decide to purchase a ranch.

In this post we will focus on cattle ranches in particular and give you some tips on what you should look out for when searching for your dream cattle ranch.

Make sure the land is ok

If you are planning on grazing grass fed beef, the quality of the soil will play a huge factor.
By knowing what type of soil is on the ranch you will be able to better understand the forage production capability of that particular ranch. This is important because a ranch that is able to produce more forage for consumption by cattle could be much more valuable to a livestock producer.

Water testing

The water resources that are available on the ranch is a key factor to consider if you are looking to have cattle on your ranch. You should look into the water rights of the ranch as well as the quality of the water. Your cattle shouldn’t have to travel too far on your ranch in order to get the water that they need.

What infrastructure is in place

It’s vital that you check what infrastructure is in place on the cattle ranch before you put down any money. Some of the necessary infrastructure could be piping, water tanks, and fencing to name a few. It’s also important not only to check that there is some infrastructure in place but also that it is up to scratch and not faulty in any way. If you were to later discover after purchase that the pipes or fencing were old and broken this could end up costing you a couple thousand dollars!

Check tax status

When you buy a ranch it should come with some tax exemptions. You may be eligible to qualify for some standard tax deductions for business expenses, for example for livestock feed and employee benefits. You could also be eligible for deductions for land conservation costs. There may
also be some government grants on offer that you can achieve from maintaining and improving your cattle ranch.

Look at your financing options

Are you going to be utilising a lender or a bank? It’s always easiest when buying in cash but obviously this may not be an option for everyone out there. Always be careful to pay attention to the interest rates on a loan if you do decide to go down this route.

If you have any questions or would like to know more about how to buy a cattle ranch, please get in touch at the bottom of this page.
With over 60 years of experience in ranch real estate in Northern California, we pride ourselves on being ranch real estate experts and always provide exceptional service to our valued customers.

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