Identify new management practices for better profitability

The ideals of increased soil health, lower input costs, higher grazing capacity, more wildlife on the land and healthier livestock in your herd make regenerative ranching an attractive proposition.  But as appealing as these benefits sound, making changes to achieve them requires careful financial planning.

“Those are the headlines that get our attention,” says Dan Childs, ag economist and senior regenerative ranching advisor at Noble Research Institute. “But the key question is, how do we get there without mortgaging the farm?”

Childs recommends starting with a thorough evaluation of your financial health, beginning with profit-and-loss statements and balance sheets. While these are often only pulled out to satisfy loan requirements, Childs encourages ranchers to use them as powerful tools in their decision-making process. With these insights, ranchers can explore adjustments – such as reducing feed costs or herd size – to see how even small changes might affect their bottom line.

He also emphasizes examining three key budget items where overspending can undermine profitability: tax-heavy assets, supplemental feed costs and replacement females. Childs cautions that carrying unnecessary fixed assets like tractors and hay balers can be costly unless essential. For most, renting or hiring these resources is more cost-effective. Cutting down on supplemental feed and reassessing replacement heifer programs can also help ranchers operate more leanly and sustainably.

If managing these financial details seems overwhelming, Childs recommends ranchers consider attending Noble Profitability Essentials. This 2-day, in-person course offers ranchers hands-on guidance in creating enterprise accounting and cash-flow budgets, helping them plan financially sound steps toward regenerative management practices. Through interactive exercises, participants gain insights to improve profitability and resilience. The course also includes one-on-one consultation, access to the Noble Learning Center and tools tailored to address ranchers’ unique challenges.

“Noble Profitability Essentials helped me identify my enterprises and make management decisions much easier with clear, concise data that can help make my operation more profitable and sustainable,” says Jennifer Hernandez, a recent course participant. “The first thing I’m going to do is identify my enterprises and value them out to see which ones actually are profitable and make sense to continue on, and where the challenges or concerns lie.”

The first Noble Profitability Essentials course of 2025 will take place in McKinney, Texas, Jan. 28-29, in the Throckmorton Room at the Local Yocal Bar & Grill.

Discover more about the course and register here. Get $50 off by enrolling before Dec. 30. For additional profitability insights from Childs, don’t miss the article Calculating Change in the upcoming issue of Legacy magazine. Subscribe here.

Noble Research Institute and Certified Angus Beef Release Land Stewardship, Aimed at Promoting Healthy Lands and Better Beef

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