Distinctly Montana Magazine

The Kalfell ranch in 1930 First, how do you define "ranch?" What qualities does a ranch have that buyers are looking for? Frank & Michelle: Our definition of a small ranch would be one with enough land and resources to support at least 20+ head of livestock (cattle, sheep, horses, etc.). Quality working ranch properties require a mix of good soils, irrigation rights, climate, and other factors to be attractive to the market. Water rights are highly scrutinized by Buyers to assure adequacy and reliability. The appurtenance of mineral rights is also an important consideration. Other factors include proximity to markets, schools, and other social, commercial, and institutional amenities. Raich: I define the "agricultural ranch" as a parcel of property larger than 40 acres that is self-sustaining by raising crops or livestock. I define a "recreational ranch" as a parcel of This book covers the history of the ranch from 1930, showing the problems and solutions that the Kalfell family found. Well written by Mike Bugenstein and published by Farcountry Press in Helena, the book provides a close look at ranching in relation to agricultural, economic, and legal details that dedicated ranchers face. Has excellent historical illustrations too. property greater than 40 acres which has privacy, wildlife populations, live water resources, and perhaps direct access to wilderness, NFS or BLM lands. What has changed most about the buying and selling of ranches over the past five years? Jane Iten: There has been more movement in the "commodities" type of ranches where profit yield is important; for instance, eastern Montana has experienced steady sales. Also, the ranch market in general has weathered this recession because the people buying ranches can wait out a down period. You don't see "repo's" of ranches as with residential. Todd: Five years ago more buyers were looking for the rec- reational aspects. Now with the downturn in the economy and the upturn in commodity market, agricultural properties are in strong demand & ag properties have continued to appreciate over the past five years. Raich: I'd add that the transaction process has changed dramatically in the past five years. Today there is much greater emphasis on the buyer's due diligence process (mineral rights, water rights, environmental assessments, easements, boundaries, etc.). This process has become more extensive and its outcome has a strong influence on whether the transaction will close or not. Thus, the "AS IS/ WHERE IS" deal really no longer exists. Janssen: Yes, buyers are far better educated. The Internet has made it possible to access a lot of information. The same ranch today 50 D I ST I NCT LY M ONTANA • SU M M E R 2013

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