Posts Tagged Colorado Department of Agriculture

Bringing Ranchers and Investors Together to Buy and Preserve Working Ranches

Through this New Ranch Partnership, the rancher is able to own and operate a large working ranch, while significantly reducing his capital costs and operating expenses. At the same time, the recreational investor obtains ownership to a beautiful working ranch with full access to the ranch’s recreational amenities. While every transaction is unique, the underlying premise for the New Ranch Partnership is to provide an opportunity to preserve the working ranches of the west, while expanding the ranch’s value through developing and managing the recreational ecosystem within the ranch.

Ft Collins, CO (PRWEB) November 16, 2008 — Ranching in the American West has a long and storied history. Most of today’s ranches can be traced back to the days of homesteading, when settlers and sodbusters carved out a living through hard work and perseverance. These brave men and women were the backbone of western expansion and their agriculture products became the staple of American Industry. In return for their efforts, these pioneers received full ownership to some of the most beautiful land in the West.

With the 20th century industrialization and urbanization of America, the western rancher became an obsolete icon, relegated to the background while still expected to provide enough beef and food crops to fuel the fast growing American population. At the same time, the ranching homesteads of the early pioneers were fast becoming the most desirable locations for new home subdivisions and wealthy mountain retreats.

Today, the increasing demand for these pristine 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 those who own a Colorado ranch must work off the farm to make ends meet, with 39% working more than 200 days off the farm.

So, who is the next generation of ranch owner? A recent study by the University of Colorado analyzed ranch sales in ten Montana and Wyoming counties from 1990 to 2001. Just 26% of those who bought large parcels (400+ acres) were traditional ranchers. Nearly 40% were “amenity” buyers — millionaire out-of-towners who don’t rely on the ranch to make a living. The rest were real estate investors, part-time ranchers, developers and others. Many of these amenity buyers are looking to enjoy the ranching lifestyle and recreational access of their ranch property, but do not have the time, experience or desire to maintain the agriculture 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 for preserving the western ranching heritage. Ranch Partners works with ranchers, investors and recreational buyers to identify properties that can serve as a sustainable agriculture business and a recreational ranch investment. Then, using the “Tenants in Common” form of real estate ownership, the ranch is purchased together by the rancher and investor, with each buyer receiving a deeded 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 his capital costs and operating expenses. At the same time, the recreational investor obtains ownership to a beautiful working ranch with full access to the ranch’s recreational amenities. While every transaction is unique, the underlying premise for the New Ranch Partnership is to provide an opportunity to preserve the working ranches of the west, while expanding the ranch’s value through developing and managing the recreational ecosystem within the ranch.

Whether you are a rancher with a desire to own and manage your own ranch, a high net worth individual looking to invest in real estate with above market appreciation potential, or an avid outdoorsman looking for your own private refuge to hunt, fish and enjoy, the New Ranch Partnership is for you.

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