The problem has been building for decades, and the seriousness reached a new peak this year.
The average age of ranchers rose from 56 in 2002 to 58 in 2012, according to the Beef Producers of America, and experts are concerned that the next generation of producers isn’t stepping in to take the place of older ranchers.
Only 26 percent of the current ranching population is in its first decade of operation.
The industry is looking for a large influx of young producers. However, there are major obstacles scaring off the younger generation.
The simplest way to gain ownership of a ranch is through inheritance. Many ranches have been in the family for generations, passed from father to son.
Kevin Moore, an associate professor of agricultural economics at the University of Missouri, teaches a class to help smooth out this process called “Returning to the farm.”
This class teaches students to make a solid business plan with the help of experienced faculty. The survival business skills taught in the class are designed to help young producers manage the financial necessities of running the family operation.
The class also requires students to have an open dialogue with older producers as plans are made to restructure the family business, whether transferring an operation or expanding to include the next generation. Moore holds workshops as part of the class to facilitate those kinds of discussions.
“Students have said one of the most valuable parts of this class is that it opens the channels of communication in a family, especially on sensitive topics like estate planning,” says Moore.
This combination of essential business skills and an open communication forum is designed to help young producers have a practical experience preparing them for the future.
Those who aren’t lucky enough to have this kind of guidance still face the same issues.
Zack Hunnicut, a chairman in the American Farm Bureau’s Young Farmers and Ranchers Committee, runs a family operation in Nebraska with his father and brother.
It took some planning for Hunnicut and his young family to return to the farm after graduation. To ease the transition, he advises,
“Talk about as many potential issues as you can ahead of time. Don’t be afraid to bring it up. Discuss who has what responsibilities and write it down so you have something concrete to refer to.”
Not everyone has a family ranch to return to. In fact the USDA shows that while most established operations in the U.S. were attained either through inheritance or through purchasing from a relative, the majority of newer operations were bought.
One of the most obvious challenges facing any would-be rancher taking this route is the tremendous start-up costs. This industry takes a great deal of capital to operate, especially in the early stages.
In the past 40 years, the national average price of rural land has risen from $179 per acre to more than $2,600, according to the USDA. Other prices, including the price of feed and stock, echo this sharp upward trend.
Getting a loan large enough to begin a business can be a daunting process, even with the current favorable interest rates.
Programs like “Pasture to Plate,” run by local 4-H clubs in Hood County, Texas, can help youth prepare for it.
The program allows youth to go through the process of getting a loan from the bank to purchase animals for their summer projects.
Such programs can give the next generation greater confidence in starting an operation, but it is still a difficult process.
Another option for acquiring start-up capital comes through the government and other lending organizations.
Programs such as USDA’s Farm Service Agency, the Farm Credit System and the Transition Incentive Program lend billions of dollars to beginning operations each year.
In fact, in 2011 alone, the FCS made more than 60,000 loans averaging more than $150,000 each to beginning operators.
However, large loans mean large payments.
The first five years will make or break a new rancher. Moore says, “The financial risk today is so high, it takes a very savvy, well-positioned business to make it.”
Besides the financial concerns, cultural factors may also be to blame for the move away from the farm.
For a generation that grew up in front of electronic media, the hardworking lifestyle of agriculture is losing out to offices and suburbs.
Brady Chandler, a 32-year-old rancher from Lipan, Texas, says, “This is a seven-days-a-week job, and cows don’t exactly acknowledge holidays and birthdays. It’s not for everybody, but I love seeing all my hard work pay off.”
Although many hesitate to pursue such a consuming profession, to many others the challenges and drawbacks are more than worth it.
Andy Kellom, 33, a feedlot manager in Montana, says, “There’s no other business I’d want to be in even with the challenges. That’s the story the beef industry needs to continue to tell. It’s a great way of life, a great way to raise a family.”
So what is in store for the future farm and ranch industry? For those willing to overcome the obstacles, demand can only increase as the population grows.
Hunnicut says, “Agriculture will always be around. People need to eat, and that’s job security. The future is bright in agriculture.” 
Illustration by Fredric Ridenour.
