Close-Ups
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August 1-15, 1996
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SKML Ranch: Home on the range ain’t what it used to be

Index
Fending for yourself in the computer age
Keeping the wolves at bay
Raising a healthy profit

In the ranching business, accurate inventory tracking and business planning can mean life or death -- literally. Carefully planned and managed grazing patterns, pesticide use, inoculations, and windmill information are all "lifeline" data for the ranch owner. By using Microsoft® Windows® 95 and Office for Windows 95, SKML Ranch has gained a competitive advantage and improved bottom-line business results by:
  • Developing a comprehensive ranch management system
  • Maintaining a running inventory of all aspects of the ranch
  • Reducing redundant processing of data and paper waste
  • Systematically analyzing data and planning for the future

Fending for yourself in the computer age

SKLM Folk SKML Ranch is an 11,840 acre ranch in San Angelo, Texas. The ranch raises angora goats (raised for mohair), meat goats, and commercial cattle. There are well over 1,000 animals on the ranch. Judie Clark, SKML Ranch Manager, is a fourth generation rancher -- her family roots in this business go back to the early 1900s. About four years ago, the death of Judie’s brother left the ranch without a seasoned manager. After a series of unsuccessful hires and poor business results, Judie took over as manager in February, 1995.

At the time, the business was losing money and in dire need of an effective management system. The existing paper and pencil systems simply could not handle the complex and changing conditions of the ranch. Judie invested in a computer and printer and decided her next step would be to purchase cattle tracking software. However, at $600, she couldn’t afford the specialized program. So she decided instead to build her own tracking system.

Judie started with a relatively small test -- to use the tools in Microsoft Works (which came pre-installed on her computer along with Windows 95) to develop a system to track the maintenance and service needs of the 12 windmills on the ranch. After the test proved successful, she purchased the of Microsoft Office suite for Windows 95 programs and developed a complete ranch management database from scratch.

When asked how she developed the database, Judie laughs and says, "trial and error!" She simply set her mind to it and set aside two to three hours each night to make it happen. She experimented with Microsoft Works until she could figured out how to make it work for her needs, turning occasionally to the on-line help when she couldn’t find the solution on her own. It took her approximately one week to put together her tracking systems.

Keeping the wolves at bay

Today, SKML Ranch utilizes many Microsoft technologies to manage the business. A comprehensive spreadsheet Judie created in Microsoft Excel tracks key data about the pastures, the number of animals in each pasture, grazing patterns, pesticide use, births and weights of calves and goats, number of animals killed by predators, animals sold, and the like. Judie enters information into the spreadsheet as events occur and then generates valuable monthly reports. Judie explained, "This was the first time that my mother and our accountant had seen any kind of business report for the ranch." Reports of past performance help Judie plan efficiently and economically for the future.

Judie also is conscientious about the health of the animals and the environmental impact of ranching on the land. For example, she carefully monitors grazing and pesticide use. In the past, the system was subjective and prone to human error. With Microsoft Office-based tracking system Judie accurately monitors existing conditions and plans for the future by analyzing these records.

She also uses Microsoft Excel to keep expense records. She modified the existing templates to meet her business needs and records items such as feed, supplies, medical expenses, veterinarian bills, and equipment expenses. Plus, she scans all of her receipts and records, such as mohair shearing records, into the computer. This alleviates paper clutter and provides instant access to information.

SKML Ranch is also connected to the Internet. Judie relies on MSN®, The Microsoft Network, for instant access to information and other ranchers across the world. For example, she recently corresponded with a rancher in Australia to share tips. She also reads online ranch and agricultural magazines and checks the weather daily. Weather is an important factor for her business. Judie explained, "It’s not very cost effective to schedule six cowboys to work and then have them rained out."

Raising a healthy profit

Judie has been able to track a number of benefits to the bottom-line as a result of her "do-it-yourself" tracking system. For example, the system correctly differentiates between the depreciation of purchased cattle and raised cattle, so that Judie can now identify and monitor these differences and develop appropriate financial schedules.

Microsoft software also greatly assists Judie in meeting immediate and future business goals. Instant access to information allows her to make wise business decisions. She plans to continue to modify her spreadsheets and develop new ones as her business grows and changes. In fact, one of the features she likes best about Microsoft Excel is the ability to easily add new data and modify existing spreadsheets.

"In the ranching business," explained Judie, "it is a big deal to break even and it is a stellar year if you actually make a profit." When asked about the benefits SKML Ranch has realized since creating and implementing its ranch management system, Judie simply states, "This is the first year the ranch will make a profit."

Enough said.

SKML Ranch uses the following Microsoft products:

Microsoft Windows 95
Microsoft Office for Windows 95
Microsoft Works
MSN, The Microsoft Network