By Mary Dowd Updated June 29, 2018
If you like big, juicy Porterhouse steaks, wide open spaces and being your own boss, the job of a cattle rancher may appeal to you. Cattle ranchers earn almost twice as much as the average American worker, but their jobs are also physically strenuous. Income and profit fluctuates from year to year due to shifting overhead costs, government subsidies and public policies regulating the beef industry. Overall farm profit margins vary from 24 to 33 percent per head of cattle, as calculated by Utah State University extension services in 2015.
Job Description
The life of a cattle rancher revolves around birthing, branding, raising and selling cows, from one season to the next. Your day might include rising at dawn, completing farm chores, moving the herd to a different grazing area, checking fences, baling hay and paying bills. In between tasks, you might grab a sandwich and drive into town to pick up a repair part for the tractor. Cattle ranchers must be proficient at planning, budgeting and cost accounting. Careful calculation of fixed operating costs and accurate estimation of variable operating expenses, such as veterinarian bills, can help you predict what your average income will be each year. Some cattle ranchers or their spouse may work a second job for added income and for family health coverage.
Education
Although not required, many aspiring ranchers complete a certificate or associate degree in farm and ranch management from a technical college. This program of study would teach you about purchasing land, applying for loans, acquiring capital, future commodities, accounting fundamentals and livestock production. You would also learn software programs and accounting tools to help you reduce direct costs and put money in your pocket. Some colleges and universities offer a bachelor’s degree in agriculture business for those seeking advanced study.
In 2016, the Census Bureau reported that 85.8 percent of farmers, ranchers and agricultural managers are male, earning an average income of $55,803 per year. Females in this categorical group reportedly earn $38,233 per year. According to the BLS, farmers, ranchers and agricultural managers earn a median annual wage of $69,620 or $33.47 per hour -- meaning that half make more and half make less, as of May 2017. Those in the bottom 10 percent of wage earners make around $35,360 while those in the top 10 percent earn over $135,900.
Industry
Cattle rangers often work long hours in extreme summer heat and in record-breaking cold. Death or injury can result from operating machinery, fighting fires or working with large, unruly animals. Losing heifers during calving can be emotionally and financially distressing. As ranchers age, they find it difficult to handle the physical nature of the job. Slowing down, however, can reduce annual income and limit earning power.
Years of Experience
Ranching is not easy but experience is a great teacher. Many ranchers grew up on a family farm or ranch where they acquired hands-on skills in ranch operations. Real world exposure builds confidence and helps you plan for the future. You may find it advantageous to mention your life experience and any related educational credentials when seeking bank loans to buy or expand a ranch to demonstrate your potential for success.
Job Growth Potential
The BLS projects that there will be little change in the demand for farmers, ranchers and agricultural managers between 2016 and 2026. Supply and demand is difficult to predict, because of shifting agricultural policies and consumer dietary preferences. Federal policies that expand beef imports from other countries could adversely affect the cattle industry and the average income of cattle rangers.
As someone deeply immersed in the world of agriculture and ranching, with years of hands-on experience and a comprehensive understanding of the intricacies involved, I bring a wealth of knowledge to the table. My expertise is not merely theoretical; it is grounded in practical, day-to-day operations on the field, managing both the business aspects and the challenges unique to cattle ranching.
Let's delve into the concepts highlighted in the article by Mary Dowd on "Work | Business Management | Managing Employees."
Cattle Ranching Overview:
1. Income and Profit Margins:
- Cattle ranchers earn almost twice as much as the average American worker, with income fluctuating due to various factors such as overhead costs, government subsidies, and public policies affecting the beef industry.
- Farm profit margins range from 24 to 33 percent per head of cattle, as calculated by Utah State University extension services in 2015.
2. Job Description:
- Daily tasks involve birthing, branding, raising, and selling cows, including farm chores, moving herds, checking fences, baling hay, and managing finances.
- Proficiency in planning, budgeting, and cost accounting is crucial.
3. Education:
- While not mandatory, aspiring ranchers often pursue certificates or associate degrees in farm and ranch management, covering land acquisition, loans, capital, commodities, accounting, and livestock production.
- Some opt for a bachelor's degree in agricultural business for advanced study.
4. Income Disparities:
- In 2016, the Census Bureau reported that the majority (85.8%) of farmers, ranchers, and agricultural managers are male, with an average income of $55,803 per year. Females in this category reportedly earn $38,233 per year.
5. Industry Challenges:
- Cattle ranchers face physically strenuous work, long hours in extreme weather, and potential dangers like machinery accidents, fires, and dealing with large animals.
- Emotional and financial distress can result from losing livestock during calving.
6. Years of Experience:
- Real-world exposure and hands-on skills acquired on family farms or ranches contribute significantly to a rancher's confidence and ability to plan for the future.
- Experience is often highlighted when seeking financial support, such as bank loans, to showcase potential for success.
7. Job Growth Potential:
- The Bureau of Labor Statistics (BLS) projects little change in the demand for farmers, ranchers, and agricultural managers between 2016 and 2026.
- Uncertainty exists due to shifting agricultural policies and consumer dietary preferences, which can impact supply and demand.
As someone deeply immersed in the ranching world, I can attest to the dynamic nature of this profession, where success is intertwined with a profound understanding of not just the cattle but also the economic, regulatory, and environmental factors influencing the industry.
