Beef cattle are the most profitable livestock to raise. They require good pasture, hay, fresh water, vaccinations and room to roam.
Economics of Ranching
The size of the ranch impacts income. Large ranches make more money from the price per cow. Overall profit margins per cattle head range 24-33%. Profits vary based on product, ranch size, demand and pricing. On average, ranchers make $60,000-$70,000 a year. Top ranchers can make over $100,000 a year. In 2016, the profit per acre was $3.10, up from $2.16 in 2013 after the drought.
Income and profit fluctuates from year to year due to shifting overhead costs, government subsidies and public policies regulating the beef industry. The location of the ranch is another major factor that can impact profitability. Ranches located in areas with favorable climates and access to markets tend to be more profitable than those located in more remote areas.
Rewards of Ranching
Cattle ranching is demanding yet rewarding, requiring dedication, expertise and adaptability. Despite challenges, the passion for working with livestock and contributing to agriculture make it a fulfilling career.