Motivation of Colorado ranchers with federal grazing allotments

Abstract

Net returns to investment on western ranches are often low or negative. Ranchers who graze cattle on federal range during the summer in Colorado were sampled to determine their willingness to sell their ranches and to determine which factors were important in their decision to ranch. Cluster analysis was used to classify the ranchers into 4 groups. Willingness to sell the ranch was the most important factor in classifying groups. Approximately 75% of the federal permittees would not consider selling their ranches in the current market while over half responded that rate of return on investment was of little or no importance in their decision to be in the cattle business. The groups also differed with respect to the importance of being near family and friends, and labor and asset mobility.