As the fiscal year winds down, you may find yourself in the fortunate position of having enjoyed a prosperous year on your ranch or farm or through other business ventures. Now, you're contemplating reinvesting in your property. This is a great position to be in, offering the potential opportunity to offset income for tax purposes and enhance the overall value and marketability of your property. However, this advantageous situation can also be a stressful one. You might be thinking: "What do I do?" "Where should I invest my capital?" "Can I buy that 1952 Topps Mickey Mantle that Matt Henningsen mentioned in his article: 'How to Grow a Sustainable Profit Through Analyzing Ranch Performance'?" Well, the Mantle card will not help you with property value or tax liability, so let's talk about some sensible capital improvements that I've seen firsthand help a ranch or farm property sell for higher.
For the Cattle Ranch…
Corrals and Cattle Facilities: In 2021, I witnessed a sale that underscores the value of upgrading your cattle-handling facilities. A ranch sold quickly and at a much higher price than comparable ranches after an old set of wood corrals for gathering, sorting, and working cattle was replaced by metal pipe corrals. This was a game-changer for this ranch. Ensuring a safe and reliable environment for unloading and loading cattle not only puts ranchers' and investors' minds at ease but also enhances the property's appeal. Don't discount the efficacy of prefabbed panels mounted on sturdy posts; they can yield similar benefits.
Fencing: In the realm of sensible improvements, upgrading fencing is a no-brainer. Well-maintained, straight, and secure fences are a universal preference. In regions like Eastern Oregon, where fences can date back a century, it's crucial to replace them if they no longer serve their purpose. An emerging concern now to consider is wildfire-proofing your fencing. There are some innovative solutions in fencing to preserve functionality post-wildfire, making this investment particularly valuable.
