You Don't Owe Your Kid A Job

We don' often think of our cows as our employees, and whether they should have a job description, or if we should continue their employment.  Likewise, we often assume that our children should work on the ranch until they inherit it.  Here is a provocative article about employing family and ranch succession.  I was a farm consultant in Solano and Yolo Counties when Dave was a Farm Advisor (county agent) there many years ago.  His California Grazing Academy, developed with Roger Ingram, has provided some inspiration for our Lost Rivers Grazing Academy.  Dave currently runs the Ranching for Profit schools...Chad

by Dave Pratt, Ranch Management Consultants, Inc. (reproduced with permission.)
http://www.ranchmanagement.com/index.html
Additional contact information at the end of the article.

How do you select employees for your ranch? If your ranch is like most ranches your candidate pool consists of your gene pool. That may work for the royal family, but if you want to make a profit, it's no way to pick an employee.


It is one thing for your kids to work in your business when they are young, but it is a different story when they are adults. We don't owe our adult children a living. Furthermore, bringing unqualified family members into the ranch isn't good for the kids, it isn't good for us, and it certainly isn't good for the business.

It isn't good for our kids because we set them up for failure. Most of our kids never acquire the business skills needed to run a business. Knowing how to raise cattle isn't the same as knowing how to run a business that raises cattle. One reason the depression rate in agriculture is so high is that most ranchers never acquire the skills to build and manage a profitable business.

It isn't good for us because, just when we bring junior into the business (usually after high school or college) we've entered our own managerial prime. This can lead to conflict or resentment.

It isn't good for business either. According to data from farm succession specialist Doug Sippel, nearly 20% of heirs fail to keep the ranches they inherit because they simply lack the necessary management skills to run a profitable business. We have them do what they are good at, but unfortunately that usually isn't what needs to be done.

In our Executive Link program, many of our members who have tackled succession issues start by working together with their kids to identify the skills the business needs to make the farm successful. They build a career development plan mapping a path for developing these skills. It often includes working for someone else for 5-10 years to gain knowledge and experience. In some cases, rather than carving out room for the kids, the kids are expected to launch a new income generating enterprise themselves. This is a sure fire way to test their entrepreneurial talent.

Please understand, I am all for keeping the ranch in the family, but wouldn't it be better if our kids are people we would hire even if they weren't related to us?

Dave Pratt
Ranch Management Consultants, Inc.
953 Linden Ave, Fairfield, CA 94533
Phone: 707-429-2292
Fax: 707-429-2100
Email: rmc@ranchmanagement.com
Website: http://www.ranchmanagement.com/index.html