The Golden Rule

The question asked most frequently in our office is, “how has the ranch market held up amongst COVID 19 and so much political and social unrest?” I can only speak for my office and the Realtors Land Institute Brokers of Colorado. Record breaking, explosive, feverish are all adjectives spoken as sales and activity are off the charts. Ranch inventories are dwindling, and new unseen opportunities are hitting the market. It’s a great time to get in, and for that seller considering listing their place, you need to strike while the iron is hot.

Robust markets have their challenges as ranches change hands, new ownership takes over and the transition of new staff or the assimilation of current staff begins. Many times, we find our work begins after closing as we get called to consult through the transition. Management concerns are real as most owners have heard this story: A man once purchased a luxury yacht with full staff. Each year the owner would spend a month on his yacht and the balance of the time the staff cared for the vessel, enjoying this lap of luxury for 11 months. As time went on, the owner came for holiday but found the staff was a bit tart and prickly. He would make simple requests which were met with the undertone of humble descent. You know, a fake smile, cold and empty. On a walk around the yacht, the owner overheard staff members discussing when he would leave and “get off their boat.” You see the staff had forgotten the most important statement in their job description, The Golden Rule, “The guy with the gold makes the rules!!”

Understanding an owner’s objectives can vary greatly. The Golden Rule always applies as the owner’s definition of right and wrong is what drives the management philosophy. Articulating a clear goal of the ranch management objective is key to harmonious ranch ownership. Recently, I had a long conversation with a ranch owner who loved to hunt. He purchased a ranch with the objective to be fiscally conservative, while enhancing habitat for the best wildlife experience. This objective was met by implementing a strong habitat reclamation project, and to help cover expenses, a few paid hunters were booked to generate carrying cost. Hunting season arrived and the owner had a fair experience at best. His chosen hunting dates unfortunately came with a full moon and days of hot temperature. The animals just did not show up as they ate all night and bedded during the day. When the paid hunters came in, things changed. The moon was just right, temperatures dropped, and they experienced great success as animals were in great supply. The idea of being fiscally conservative was out the door as the landowner hit a conflict of objectives head on. It became abundantly clear that the owner’s desire for prioritized exclusive hunting outweighed the revenue of a few paid hunts.

Monitoring management objectives combined with good communication, and a staff that works with a servant’s heart, is the key to success of any ranch operation. We have found over the years that a healthy ranch environment creates a bit of utopia. It is the place you cannot wait to get to and hate to leave. It is a team pulling in the same direction with common goals, where pride is left outside and no matter what, the whole ranch wins. Unfortunately, we have seen the flipside as well. When an owner becomes busy, unengaged, or staff begins to manage outside the owner’s philosophy, the ranch takes on a life of its own. It is never comfortable when the tail wags the dog. Consequently, heads roll and/or ranches sell because it’s just not fun anymore.

Priorities of management are key to decipher in a healthy ranch operation. Having a strong Accredited Land Consultant can be essential. Sound advice with a seasoned expert will not only help with a transaction, but as importantly, the transition.

Over the last three years, I have had the privilege to author numerous articles for the LAND Magazine as the President of the Colorado Realtors Land Institute. My tenure is coming to an end, and with all the controversy in the world, I feel it is incumbent upon me to speak from my heart. We live in the greatest country in the world, where God created all men of all color equal. Our greatest privilege in this county is the right to vote, and November 3rd it is critical to hear from each of you. Blessing, God Bless America. Buy Land.

JOSEPH (JOEY) C. BURNS, ALC Eagle Land Brokerage Owner/Broker RLI Colorado Chapter President