BROOKINGS, S.D. - Completing a ranch inventory is the first step in the strategic planning process, but it also helps provide a current overview of the operation, explained Sean Kelly, SDSU Extension Range Management Field Specialist.
"During times of belt-tightening, it's imperative to make sure all the resources of the ranch are being utilized as efficiently as possible," Kelly said.
Kelly suggested that a ranches' inventory be divided into four categories of resources available to the ranch operation:
1. Natural Resources;
2. Financial Resources;
3. Human Resources; and
4. Physical Resources.
"A thorough ranch inventory should allow someone not familiar with the operation to have a good working knowledge of all the resources available to effectively manage the ranch," Kelly said. "Gather all documents, maps and records that provide a clearer picture of the operation."
Kelly encourages ranch managers to complete a balance sheet and provide a summary of collateral for loans or operating notes. "This will assist with future decisions as finances are used for diversification or to help determine if the operation can accommodate a son or daughter returning to the ranch," Kelly said.
ADVERTISEMENT
Make time this winter
Slower winter months ahead on the ranch, are an excellent time to work on a ranch inventory.
"The first attempt will be the most challenging and time consuming. However, once a record keeping system is in place, conducting a yearly ranch inventory will be more thorough and useful" Kelly explained.
He added that having a list of all available resources to ranch will allow a ranch manager complete a SWOT analysis (strengths, weaknesses, opportunities and threats).
SWOT is the second step in the strategic planning process, which will be covered in future articles on iGrow.org.
For details on how to complete a ranch inventory, visit iGrow.org.
