Cattle Inventory Down and Prices up Lead to Large Cattle Ranchland Sales
(PRWEB) April 16, 2015 -- The cattle market has been on a strong upward trend for several years as US cattle numbers have declined and the demand from international export buyers has been very strong. Less than 10 years ago a 500-lb calf was worth $500 to $600/head. Today that same calf will bring $1200 to $1400/head. Consequently, the value of the grass going into making that calf has went up and that influences the price of ranches. Large ranches such as those found in Montana, Nebraska, and Wyoming across the west to Oregon are seeing strong demand from Buyers. “We are seeing interest in large ranches not only from cattlemen interested in expansion but also from investors interested in putting money places it will continue to work and grow for them,” said John Stratman, Broker for Mason & Morse Ranch Company.
The beef industry has continued to improve on the quality of the beef it produces. This has increased demand for the higher end meet cuts such as steaks. Also, the export demand from, places like the Pacific Rim countries have increased as their economy has improved. At the same time the number of cattle and calves in the United States has decreased, causing a strong increase in cattle prices. It takes several years to start building cattle numbers due to the breeding, gestation and production of a beef animal. Cattle prices are expected to stay strong for the foreseeable future.
The prospect for higher beef prices is causing people to look for land whereby they can raise cattle. An example of this is the recent sale of the 61 Bar Ranch, near Rawlins, WY. The 100,000 acre ranch was listed and sold by Mason & Morse Ranch Company in March 2015. The Buyer was a small group of private investors who intend to lease the ranch to a large cattle rancher for a positive investment return. The ranch was rated to carry 900 head of cattle year round.
The Seller, Larry Baker of PBR Properties commented “With the help and knowledge of John Stratman and Kebi Smith of Mason & Morse Ranch Company, we were able to successfully negotiate the right price and terms with both buyer and sellers. We would highly recommend the Mason & Morse Ranch Company team to anyone looking to buy or sell Ranch Real Estate in the west; they will go the extra mile to make something happen!”
The outlook for US cattle prices and ranchland is positive. The strong cattle market will fuel new entries into the industry and the uptrend will likely continue until cattle inventory is greater than the demand. The available supply of ranches is tight and that situation is expected to continue until market forces dictate otherwise.
About Mason & Morse Ranch Company
“Ranches Farm Land Sales” – http://www.ranchland.com, Mason & Morse Ranch Company is a leading provider of ranch, farm, timber and recreational land brokerage & auction services across the United States. Founded in 1998, in the Roaring Fork Valley near Aspen, Colorado, the company specializes in marketing high-value and large acreage properties across the U.S. Combined, Mason & Morse Ranch Company agents offer their clients more than 133 years of combined experience in ranch, farm, timber and recreational real estate sales. Recently recognized by The Land Report as one of America’s Top Brokerages, “Spring Edition, and 2015 Featuring America’s Top Brokerages.”
Mason & Morse Ranch Company – Strategic Partner of United Country Real Estate is separately owned and operated from Mason Morse – Coldwell Banker of Aspen, Colo.
Bart Miller, Mason & Morse Ranch Company, http://www.ranchland.com/, +1 (970) 928-7100, [email protected]
Share this article