Management: Putting it all Together

The Rules of Hard Times Economics
by Walt Davis

  1. Expenses always rise to meet the level of disposable income. Now is the time to reassess the difference between "we need" and "we want".
  2. Maximum production is seldom if ever as profitable as some lesser level of production due to the laws of diminishing returns and marginal reaction.
  3. Ranching is not the business of producing livestock but rather the business of converting solar energy into biological energy and thus into money.

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Drought
by Walt Davis

Droughts are a regular occurrence for most ranching operations. Ranches tend to be located in areas of natural grassland and one of the formative factors for grasslands is erratic moisture availability. The frequency and severity of droughts varies according to location and this information should be considered when formulating management plans. If drought is recognized as a normal occurrence, then plans may be made to reduce its’ impact upon the operation and upon the soil-plant-animal complex on which the operation depends. The following is an attempt to analyze what occurs during and after drought and to point out management strategies that are useful in alleviating its’ effects.

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