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 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,

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over stressing existing resources. November 15 slipped by with no lease documents presented for signatures.

Early rains followed by unusually cold fall temperatures began to cause real deterioration of resources and excessive supplemental feed requirements. Every day, I called and complained, I went to head offices and raised hell with a lot of fellow employees. Christmas and New Year’s Day soon passed and then Valentine’s day. By March 1st, documents had not yet been prepared. The situation can be described simply as a complete disaster, could have been avoided with communication and if the agency had even an inkling of the dynamics of the grazing business. Trust and communication are the key tools necessary for successful lease relationships.

Conversely, the rancher/tenant must understand the landowner’s goals and priorities. If the landlord/owner is a public agency, likely species habitat management, water quantity and quality yield and public users (e.g. hikers, birders) are the greatest priorities. As the rancher/tenant, it is our responsibility to understand the biology and habitat management and enhancements that the landlord expects. It is our responsibility to help educate the landlord representatives and visiting public as to the ecological benefits of a managed grazing program and the nutritional benefits of beef to a healthy lifestyle. If we are reluctant to play this role, or consider all of the ecological concerns, then there are leases that will not work.

When a landlord offers a lease, there must be transparency established as to their expectations. The lease must be a “no-surprise” agreement. Provision for potential changes to lease terms, season of use,

Resources have been developed by UC Cooperative Extension livestock and natural resources advisors across the state and specialists with UC Rangelands that ranchers can access at http://rangelands.ucdavis.edu/. 40 California Cattleman September2020 stocking rate and class of livestock to be grazed should be established in writing. Any management changes must be based upon an extraordinary change of conditions such as severe drought or wildfire forage loss. It is the responsibility of the rancher to provide the landowner with an operating plan. Any changes should be made together by the tenant and landowner and be based upon an analysis of conditions and an allowance for a reasonable time frame for achieving the changes – implementing “Adaptive Management.” Many times we have heard Dr. Lynn Huntsinger, Ph.D. Wildland Resource Science at UC Berkeley tell land owners, both public and private, that cattle cannot just be “put on the shelf ” until needed. It is essential that landowners understand that changes to a lease can carry major implications for ranchers.

While the publication, A Guide to Livestock Leases for Annual Rangelands (Barry et al, 2020) is written from the perspective of a landowner seeking a grazing tenant, it is useful in outlining commonalities in successful lease agreements. Often times as producers grazing leased land, we are, unfortunately, interacting with individual landowners or organizations with little livestock grazing experience especially as it pertains basic livestock management practices. Yes, we’re busy when we’re gathering cows, putting supplement out or avoiding another jaded conversation, but we believe it is in our best interest to take advantage of these interactions that may provide positive and educational experiences for these folks. We have an opportunity to educate the public recreating on the public lands we graze and increase the awareness of the intricacies of livestock husbandry when implementing a grazing program on public or private leased land. Some simple acts that may help convey our message may look like an invitation to a branding, or BBQ afterwards, or even sharing photos taken at the ranch of cattle grazing or anything that could spark good conversation or be used on the organizations’ website. In our experiences as both the lessee and the lessor, taking this time to explain what we’re doing and why it matters goes a long way in building a functional relationship.

In conclusion, we can’t stress enough the value to invest time to achieve trust and develop long term relationships with your landlords. Additionally, as ranchers we need to continue to educate ourselves on sustainable grazing practices, healthy beef and the vast ecological values of managed grazing so we can communication these facts to landowners and public lands managers. We agree that it is a two-way street, both landlord and tenant must strive to understand how the land resources may be managed to meet their combined goals. These key tools will aid in successful lease opportunities for the next generation.

Carissa and Vic Rivers, Rivers Red Angus have been leasing Save Mount Diablo’s Curry Canyon Ranch since 2013. Save Mount Diablo and Rivers Red Angus have worked with the local Natural Resources Conservation Service and Resource Conservation District on several projects aimed at protecting and enhancing natural resources for numerous plant and bird species, along with the California Red Legged frog, California Tiger Salamander, Alameda whipsnake and the Pacific Pond turtle. They have also completed projects specifically benefiting cattle production such as livestock water systems and instillation of new fencing has helped improve livestock distribution.