Ranchers will find ways to increase the profitability of their businesses at a Ranching for Profit Workshop, Monday, March 25, 2013.

According to Ranch Management Consultants’ Dave Pratt, who teaches the internationally acclaimed Ranching for Profit School, input costs have increased five times faster than cattle prices. Land values have risen even faster.

“Many ranches which use practices that were profitable just 20 years ago lose money in today’s environment,” says Pratt. “Most farms and ranches are structured to fail and survive only through internal subsidies like inherited wealth, appreciating land values, and off farm income. In contrast, many Ranching for Profit School alumni earn a healthy profit without these personal subsidies.”

The workshop will focus on applying business, economic and financial principles to ranches.

“Knowing how to raise livestock isn’t the same thing as knowing how to run a business that raises livestock,” Pratt advises.

Pratt will discuss why working in your business involves working on your business first. He will explain three “secrets” for increasing profit and share proven profitability benchmarks participants have used successfully to improve their ranching businesses.

Pratt says that a sustainable business must earn a profit, and adds that a ranch that doesn’t produce a profit and that doesn’t pay a decent wage to all employees (including family members) is a hobby, not a business. Most ranches are very expensive hobbies subsidized with free family labor and off-farm income. He and his company help clients transform their ranches into profitable businesses.

Sponsored by AgriLand Farm Credit, the workshop will be held at the Texas Freshwater Fisheries Center (http://www.tpwd.state.tx.us/spdest/visitorcenters/tffc/visit/facilityrental/) in Athens, Texas, in the Hart-Morris Conference Center. Workshop hours are 9:00 a.m. to 2:00 p.m., and lunch will be provided. Pre-registration is required, and attendance is limited to the first 25 respondents. For more information, contact Jan Wiley at (903) 675-9388 or jwiley@agriland.com.