PROGRESSIVE PRODUCER
BASICS OF BUILDING FUNCTIONAL GRAZING LEASES: ADAPTING FOR THE NEXT GENERATION by Tim Koopmann and Carissa Koopmann Rivers As fourth and fifth generation ranchers where our family has been on the same ranch since 1918, it’s easy to assume that the ranching heritage will continue without a hitch through the fifth and into the sixth generation. No matter how hard we as the ranching industry try to make this a reality, unfortunately, it just is not a given. It’s not a simple choice anymore when the time comes to seek an outside career or stay home and merge into management of the family operation. Today, we have much more to take into consideration and a unique set of challenges, especially in California. Many families struggle to keep the interest of the next generation on the ranch, but what about those multigenerational ranches where everyone wants to be involved, but the operation just plain cannot support more family members and their families? It’s such a proud moment to realize that each kid and their kids want to be part of our legacy and want to remain on the ranch as a viable member of the team, but there’s no room physically or financially. Then what? We have some options which likely include seeking outside grazing leases. Grazing leases on public or private ground are common practice to fulfill the cattle business reverie. The first step is finding an available lease, second step is securing that lease and the final step is stocking it with livestock. Easy enough, right? For some, maybe, but not everyone. It’s not always enough to be the best cattleman or operator around or the person who can sweet talk the most challenging landlord. We can have one or both of these characteristics and land a grazing lease, but we need to be able to communicate successfully and build a trusting relationship with the landlord in order to maintain the lease long enough for it to pencil out. This is especially true when considering capital improvements and time invested in the property. Finding and securing a lease opportunity that fits
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can seem like finding that needle in the haystack. Once you secure a lease, there are many conversations and responsibilities to sort through with the landowner to create a manageable agreement and successful, long-term lease experience. The most successful lease relationships require mutual trust. Trust is established when two way communication is clear and timely and the landlord understands that the cattle enterprise is a business with a reasonable expectation of profit. Part of communication is being clear about the need of longer-term leases to provide stability and allow business planning strategies that benefit the natural resources and production goals of all parties. The landlord should understand the basic essentials of annual beef cattle operations in California and should have an understanding of the business expenses and challenges that are incurred. Reflecting back, years ago as a landowner representative for a public land agency, we (myself and the public land agency) had engaged in the process of acquiring tenants for two parcels totaling 16,000 acres. The selection process was rigorous and very time consuming as a new process for the agency. Screening the applicants, interviewing, parcel walk throughs and credit reference checks through multiple levels of bureaucracy consumed eleven months. Tenant selections were finally determined in early October. The new tenants were notified at that time, giving them a couple of months to increase their capital base and obtain cattle for the new lease. The stated goal of the agency to the new tenants was for all documents to be executed and occupation allowed by November 15. As expected, the new tenants began an orderly business expansion plan. Additional equipment, supplements, vet supplies and labor were arranged. Most importantly, bred cows and pairs were accumulated (700+/-). The ranchers stockpiled the cattle on their existing lands, ...CONTINUED ON PAGE 40
