The memorable 1988 television commercial for the Oldsmobile Cutlass Supreme

Ask Lem: Who Are Today’s Ranch Buyers?

While it’s been more than a dozen years since General Motors stopped manufacturing the Oldsmobile, many of us still remember its iconic 1988 commercial for the Cutlass Supreme:
 
A sporty-red Cutlass is speeding down a gravel road, coughing up a storm of dust as it weaves around mountainous curves. Quickly, the car merges onto a paved highway, barreling past an 18-wheeler as the driver shifts into high gear. The announcer introduces the all new Cutlass Supreme, featuring 4-wheel disc brakes, a multi-port fuel-injected V-6 engine, 4-wheel independent suspension, and “aerodynamic styling even the wind can’t resist.”
 
As the Cutlass blows past a 1940’s-era roadside service station, literally blowing the elderly attendant out of his rocking chair, the announcer emotes: “This is not your father’s Oldsmobile.”
 
That slogan and the commercial come to mind every time I’m asked the question, who are today’s ranch buyers.

Ask Lem: Who Are Today’s Ranch Buyers?

​By Lem Lewis
The Ranch Broker
 
While it’s been more than a dozen years since General Motors stopped manufacturing the Oldsmobile, many of us still remember its iconic 1988 commercial for the Cutlass Supreme:
 
A sporty-red Cutlass is speeding down a gravel road, coughing up a storm of dust as it weaves around mountainous curves. Quickly, the car merges onto a paved highway, barreling past an 18-wheeler as the driver shifts into high gear. The announcer introduces the all new Cutlass Supreme, featuring 4-wheel disc brakes, a multi-port fuel-injected V-6 engine, 4-wheel independent suspension, and “aerodynamic styling even the wind can’t resist.”
 
As the Cutlass blows past a 1940’s-era roadside service station, literally blowing the elderly attendant out of his rocking chair, the announcer emotes: “This is not your father’s Oldsmobile.”
 
That slogan and the commercial come to mind every time I’m asked the question, who are today’s ranch buyers.
 
A New Generation of Ranchers

As a fourth-generation rancher, I can tell you that I love and value the ranching lifestyle and all of its traditions.
 
But today’s buyers are generally not the buyers of yesteryear. They are a new generation, with a different initial take on ranching.
 
[I’ll let you in on a secret here, if you promise to keep it between us. As I’m about to explain, people buy ranch properties for a variety of reasons that never occurred to my father, grandfather, and great-grandfather. But once they become owners, many of today’s buyers discover an “inner-rancher” they never knew existed.]
 
With some exceptions, when generations past purchased a ranch, it was their intention to work the property – raising cattle or crops, or both. Yes, many ranchers – including those who still hold independent properties – also desired the ranching lifestyle, but that was a fringe benefit. Ranching was intended primarily for agricultural income.
 
Today’s buyers often have other goals in mind. Many ranch buyers are younger, successful business people and entrepreneurs who have built wealth in other industries or professions.
 
They look to ranching primarily as a real estate investment play, or for leisure and recreational purposes, such as hunting.  Some buyers aim to buy property and maintain it as a wildlife preserve.
 
Not long ago, as part of my new RANCHCAST audio program, I interviewed Dr. Charles E. Gilliland, the noted research economist with the Real Estate Center at Texas A&M University. Dr. Gilliland is one of the nation’s leading experts on the ranch economy.
 
Today's Ranching Economics

Dr. Gilliland told me that he and his colleagues see a “significant” number of Texas ranch properties that were previously used for cattle and agriculture converting to properties used primarily for recreation and wildlife preservation. 
 
Dr. Gilliland added that while the Real Estate Center does not have hard numbers on the specific rate of ranch land conversions, “It’s a changing world out there in the countryside.”
 
In my own interactions with ranch buyers and sellers, I have observed that very few first-time buyers intend to use their land primarily for agricultural income. The economics of doing so just don’t add up these days, with the contemporary costs of buying and maintaining ranch land making it difficult to earn a profit in the traditional ways that our parents and ancestors did.
 
That is all the more the case for ranch lands that are located in proximity to urban areas – where ranch land is being valued these days for its likely use in residential and commercial development.
 
So, today’s ranch buyers are not the ranch buyers of our parents’ generation. Times change, as do tastes.
 
The Oldsmobile may no longer be in production, but car buyers and lovers still covet many of the features – speed, style, and performance – that made it so popular in its day.
 
Ranching, too, is evolving.
 
Today’s owners are different, as are the methods they employ to derive and enjoy maximum value from their properties.
 
But those of us who love the land, cherish the lifestyle, and embrace its values, share a unique bond with every generation of ranchers who’ve come before us and who will inherit our legacy in the decades to come.

If you have questions about buying or selling a ranch, please don’t hesitate to contact me. The more you know, the greater your chance of acquiring the right property and maximizing both your investment and enjoyment.

I’ve designed a series of short videos, “Ask Lem,” that address common questions I hear from both ranch buyers and sellers. You’ll find them here [http://www.theranchbroker.com/ask-lem-faq.html]

For more detailed answers, I’m always just a phone call away – 210-275-3551. It would be my pleasure to speak with you and share my experiences in buying and selling great Texas properties. Live water ranches and large acreage transactions are my specialties.
 
And be sure to stay tuned for upcoming editions of my new audio program, RANCHCAST, which will debut in January 2017.  Hear a full episode featuring Dr. Charles E. Gilliland now: http://tinyurl.com/RANCHCAST-01