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Strategic risk management for ranching success

Strategic risk management for ranching success


By Scout Nelson

Ranching, at its core, involves converting sunlight into energy through plants, which is then utilized by livestock to produce goods for human benefit.

While the concept seems straightforward, the process entails numerous production risks, especially in forage growth and livestock management.

Identifying, assessing, addressing, and monitoring risks are critical steps in developing an effective risk management plan for a ranch.

Environmental factors like drought, wildfires, and extreme weather conditions pose significant threats to forage availability and quality, directly impacting livestock health and productivity.

Nebraska ranchers, for example, often face drought conditions that can severely affect their operations. Creating a written plan that includes contingency measures and specific triggers for action is essential.

Websites like https://drought.unl.edu/ranchplan/ provide valuable resources for drafting drought management plans.

The resistance to formal planning is common among ranchers, many of whom prefer to rely on mental notes and flexible strategies.

The benefits of a written risk management plan become evident during crises. It provides a predefined guide to managing unexpected events, reducing stress and improving decision-making during critical periods.

Historical events also play a significant role in shaping current management practices. By acknowledging past experiences with production risks, ranchers can tailor their strategies to better cope with potential future incidents.

Photo Credit: gettyimages-imaginegolf

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Categories: Nebraska, Livestock
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