Texas & Oklahoma Land Brokerage Company, Southern Plains Land Co. determines Ranch Values by price per animal unit, which is the number of acres it takes to support one cow/calf pair, five goats or sheep, 1.67 yearling cattle or one half of a horse for twelve months.
“Regardless of where ranches are for sale, the value of it is typically based on the cost per animal unit, rather than per acre.”, says co-owner of Southern Plains Land Co., Kalin Flournoy. “Folks nearly always ask us how many cows will it run before they ask anything else of a ranch for sale in Oklahoma or Texas.”, said Flournoy.
“The better the land and rainfall, the higher the price per acre will generally be; however, the lower the cost of the animal unit.”, said Flournoy. “Today, Oklahoma and East Texas Ranches will generally cost $8,000 per animal unit if unimproved (absent home, barns, etc.) and $10,000 if fully improved.” Says Flournoy. “A $1,500 per acre Oklahoma or Texas Ranch for sale will likely cost half per animal unit of what a $400 per acre ranch for sale west of Texas would. The key factor is price per animal unit.” Expressed Flournoy
“A buyer looking for an Oklahoma or Texas ranch for sale still ought to exercise great caution, though. The stocking capacity on many ranches for sale can be highly exaggerated. There are sellers that are just as bad as some ranch brokerages about exaggerating the stocking capacity of a ranch for sale. Southeast Oklahoma and Northeast Texas are quite prone to such exaggerated animal units. I’ve seen brokers and sellers get quite unscrupulous in quoting stocking capacity claims there.” said Flournoy.
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