Wealth Management: Protecting Profits
SAN ANTONIO, Texas (Feb. 4, 2015) — In ranching, like any business, achieving success or something less hinges on the choices you make. According to rancher Homer Buell, it depends on how you choose to use ranch resources. Buell talked about the choices he and his family have made during a Cattlemen’s College session Feb. 4 during the 2015 Cattle Industry Convention & NCBA Trade Show in San Antonio, Texas.
“Grass is our biggest resource, and we have to manage it well,” stated Homer Buell. “To do a better job we used grazing management software. It was a good move for us.”Buell explained how he and his brother came to share management of Shovel Dot Ranch and grow the north-central Nebraska operation originally established by their great-grandfather. He told how they chose to utilize their most abundant resource, Sandhills rangeland, to produce home-raised yearlings and market them through a well-established local auction market. While their feeder cattle typically are sold during late summer, Buell explained how the yearling enterprise lends marketing flexibility. When forage supplies are limited by drought, choosing to market calves reduced forage demand and allowed cow herd numbers to remain relatively constant.
“Grass is our biggest resource, and we have to manage it well,” stated Buell. “To do a better job we used grazing management software. It was a good move for us.”
Buell said the purchase of computer software to aid financial and managerial accounting was another good investment that helped him and his brother be better businessmen. To become better cattle managers they sought research-based information like that produced at the U.S. Meat Animal Research Center (USMARC) at Clay Center, Neb.
“We have seen unexpected levels of income and profit and had to decide how to use it,” said Buell. “What has worked is investing in assets that will improve profitability, and concentrating on satisfying needs instead of wants.”
Buell said he and his brother also chose to address estate planning early. They divided ownership of land while still operating the business in partnership. That move served them well when the time came to end the partnership so grown children could be brought into each brother’s respective operation.
"269" alt="Homer Buell" />“Grass is our biggest resource, and we have to manage it well,” stated Homer Buell. “To do a better job we used grazing management software. It was a good move for us.”Buell shared his belief in investing in the local community to help keep it viable and attractive to young people. He urged audience members to invest both leadership and money. For the latter, he recommended that ranchers consider donating a small percentage of their estates to their own communities.
Following Buell, Nebraska certified public accountant Larry Kopsa advised cattle producers in the audience to use care when investing their profits. He advised collaboration with a team of advisors to minimize tax burdens and choose wise investments.
“Expenditures should be made to make money and make you more efficient. Don’t overspend on things that just make you happy,” counseled Kopsa.
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