Ranching in the American West has a long and storied history. Most of today’s ranches date back to the days of family farming, when homesteaders and landowners made a living through hard work and perseverance. These brave men and women were the backbone of Western expansion and their agricultural products became the staple of American industry. In exchange for their efforts, these pioneers received full ownership of some of the most beautiful land in the West.
With the industrialization and urbanization of the United States in the 20th century, the Western stockman became an obsolete icon, relegated to the background while he was expected to provide enough meat and food crops to feed the rapidly growing American population. At the same time, the cattle ranches of early pioneers were fast becoming the most desirable locations for new housing subdivisions and wealthy mountain lodges.
Today, the increasing demand for these untouched valleys is driving land prices out of reach to make farming and ranching a profitable business. The Colorado Department of Agriculture reports that 57% of Colorado ranch owners must work off-farm to make ends meet, and 39% work more than 200 days off-farm.
So who is the next generation of ranch owners? A recent study from the University of Colorado looked at ranch sales in ten counties in Montana and Wyoming between 1990 and 2001. Only 26% of those who purchased large parcels (over 400 acres) were traditional ranchers. Nearly 40% were “amenity” buyers: millionaire outsiders who don’t depend on the ranch for a living. The rest were real estate investors, part-time ranchers, developers and others. Many of these service buyers are looking to enjoy the ranching lifestyle and recreational access to their ranch property, but do not have the time, experience or desire to maintain the farming operation.
While these conflicting trends appear to be driving a wedge into the future of working farms and ranches, Ranch Partners Real Estate sees this as an opportunity to create a new partnership to preserve the ranching heritage of the West. Ranch Partners works with ranchers, investors, and recreational buyers to identify properties that can serve as a sustainable agriculture business and recreational ranch investment. Then, using the “tenants in common” form of real estate ownership, the ranch is purchased together by the rancher and the investor, with each buyer receiving title to an equal and undivided interest in the ranch.
Through this New Ranch Partnership, the rancher is able to own and operate a large working ranch, while significantly reducing their capital costs and operating expenses. At the same time, the recreational investor gains ownership of a beautiful working ranch with full access to the ranch’s recreational amenities. While each transaction is unique, the underlying premise of the New Ranch Partnership is to provide an opportunity to preserve the working ranches of the West, while expanding ranch value through development and management of the recreational ecosystem within the ranch.
Whether you are a rancher with a desire to own and run your own ranch, a high net worth individual looking to invest in real estate with above-market appreciation potential, or an avid outdoorsman seeking your own private retreat to hunt, fish and play, New Ranch Partnership is for you.