How do I assess the corrals, chutes and handling equipment on a cattle ranch?
Walk the working facilities while cattle are not in them, then ask to see them used. Test gates, latches, flooring and the squeeze chute, check the scale, and ask the seller what has been repaired or replaced and what still needs doing.
Start with the layout. Good handling facilities let a small crew move animals calmly from pen to alley to chute without much pushing. Look for broken boards, rusted hinges, loose posts, slippery footing and any gate that sticks. Operate the squeeze chute yourself, and check the head gate, the sides and the scale. A chute that has been patched often is telling you something.
Ask the seller how the facilities work in practice. Who built them, how old they are and which parts get the most wear? Ask what repairs were made recently and what the seller would fix next. Ask about injuries, to people or animals, and how the facilities handled calving, sorting and shipping.
Consider bringing an experienced stockman or a fencing contractor to see what you may miss. Ask whether the equipment is included in the sale, since some pieces may be owned by someone else or leased. If replacement looks necessary, ask your accountant how to budget for it and talk to a lender about equipment financing. Ask too about loading ramps and any portable panels, which are easy to overlook but costly to replace, and note how pens drain after rain.
Key takeaways
- Operate the chute, gates and scale yourself, not just look at them.
- Ask which parts have been repaired and what needs doing next.
- Confirm in writing which equipment is included in the sale.
Related reading
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- Expert answerHow do I tell if a ranch for sale is a working cattle business or just land?
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- GuideBuying a grain elevator and handling facility in Canada
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Due diligence
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentEquipment valuation: How to do it
- 02Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 03Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
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