According to a recent article from Forbes.com, the demand for and purchase of western trophy ranches has shown significant increases since the world economic slump began a few years ago. Since August of 2010, four significantly sized, well-known agricultural ranch properties have been sold. Recent sales include the 34,000-acre Hamilton Ranch (listed for $32,500,000), the 62,000-acre N Bar Ranch (listed for $45,000,000), the 16,000-acre Saypo Ranch (listed for $24,000,000) in Montana and the 290,100-acre Bell Ranch in New Mexico which sold in late 2010. All of these ranches have significant characteristics in common – cattle operations, outdoor recreational value and great investment potential. Most of the buyers of the above mentioned ranches made the purchases to continue cattle operations.
Production ranch insiders and global-economic statistics show that the increase in world demand for beef is the most significant indicator for the increased investments in large acreage American working cattle ranches. The Merco Press recently reported that Brazil, the world’s leading exporter of beef, has reached their export capacity putting pressure on U.S. beef producers and providing opportunities for investors to step up to the supply chain. According to the Drovers Cattle Network, the USDA projects growth in U.S. livestock production to continue through 2025+. Projections for the beef export markets are not only based on supply and demand, however. Forecasters look at the continuation of world government policies, trade agreements, economic trends, climate change and weather conditions around the world to determine the future of beef – which is directly tied to the availability of large scale, resource rich, usable agricultural land.