Podcast Summary: Ranch It Up Radio Show
Episode: Custom Grazing Vs. Owning Stocker Cattle – The Risk & Reward
Hosts: Jeff “Tigger” Erhardt & Rebecca “BEC” Wanner
Airdate: January 18, 2026
Episode Overview
This episode dives into the strategic decision for ranchers: whether to pursue custom grazing or to own and graze their own yearlings (stocker cattle). Through a detailed conversation with Jace Doane of Blackleg Ranch in North Dakota, Tigger, BEC, and Jace discuss the pros, cons, financial implications, risk levels, and operational lessons from hands-on experience in both approaches. The hosts and guest center the discussion on maximizing ranch profitability, managing risk, and maintaining quality of rural life in today’s dynamic cattle market.
Key Discussion Points & Insights
1. Timing Your Grazing Strategy
[02:22–03:13]
- BEC argues it's never too early to plan your grazing enterprise, especially since moisture and grass conditions can shift rapidly and impact pasture plans.
- Jace agrees: Due to favorable moisture conditions from the past fall and ongoing precipitation, there’s an optimistic outlook for the next grazing season.
“Now is a great time to actually be strategizing about what could be done.”
— BEC [02:29]
2. Custom Grazing vs. Owning Yearlings – Real-World Experiences
[03:13–05:47]
- Jace explains Blackleg Ranch’s evolution: Originally a cow-calf operation, they added custom grazing for outside cattle as a “risk-free” income source.
- Jace questioned leaving money “on the table” by not buying and running their own yearlings, especially in years like this where markets soared.
- Custom grazing provides a stable, pre-set income, but lacks the chance to capitalize on market upswings — unlike running your own.
“Custom grazing has always been the risk-free…strategy…but we were leaving money on the table […] This year…the market took off and we made exponentially higher than we would have [with] custom grazing.”
— Jace [03:39]
3. Defining “Custom Grazing”
[04:42–05:28]
- Custom grazing is not simply leasing pasture (i.e., just collecting “rent”) — rather, you manage and care for someone else’s cattle for a daily/head fee throughout the season.
- Jace compares it to a feedlot scenario: “It’s more hands-on — you’re managing and caring for them, not just providing grass.”
4. Managing Risk and Opportunity Costs
[05:47–08:29]
- The key management question: “How much risk are you willing to take for potential reward?”
- Jace's Approach: Carefully calculate every cost — grass (including opportunity cost), feed, trucking, insurance, veterinary expenses, etc. — and use those calculations to set a safe break-even price.
- Insurance (LRP): By enrolling in Livestock Risk Protection (LRP), he sets a price floor, limiting downside loss.
“Even though we might own our land, that grass isn’t free. There’s an opportunity cost…So you charge yourself fair market value — probably above fair market value.”
— Jace [06:56]
“As long as you have a live, marketable animal at the end of the year, you should not have any risk because…you’re going to break even while paying for your grass…”
— Jace [07:52]
5. Risk Management Tools: LRP and Puts
[08:29–10:59]
- Risk protection (LRP or options) is essential to safeguard against market crashes.
- Some ranchers fear LRP due to misunderstandings about margin calls; in reality, LRP is subsidized crop insurance that is “set it and forget it” — no margin calls, just an upfront premium.
- LRP is less flexible than puts (can’t exit contract early), but cheaper due to subsidy.
“It's probably just…a little bit of obliviousness to, to how the program works. But since it’s government subsidized, it’s very good...”
— Jace [10:46]
6. Grazing Management and Infrastructure
[13:35–15:52]
- Fencing: Jace describes using electric fence but strongly prefers barbed wire for security, despite higher costs:
“Yearlings are really easy to train on electric fence, but I despise electric fence with a passion.” [13:41] - Water & Pasture Rotation: Environmental factors, like water positioning and grass type, drive management — moving cattle for optimal gain is part science, part learning in real-time.
- Adaptive Management: Jace makes efforts to improve average daily gain; observes how cattle unexpectedly eat certain plants (e.g. cattails) and leverages forced grazing to encourage range diversity.
7. Why Choose Custom Grazing?
[15:52–18:38]
- Risk Mitigation: Custom grazing is ideal for those less ready to accept market risk, lacking capital, or seeking a simpler, stable income.
- Quality of Life: As Jace puts it, “Custom grazing is probably the easiest solution for utilizing your grass…putting money in your pocket…minimize your risk and create a better quality of life.”
- Pride and Ownership: Running your own yearlings brings more pride and reward but higher risk. Custom grazing means managing cattle with someone else’s brand, which, for some, lessens personal satisfaction.
- Family & Labor Dynamics: After losing a long-time hired hand, custom grazing allowed the ranch to continue operations within their labor limits.
“Custom grazing just looked like the easiest way to minimize your risk, create income, and create a better quality of life.”
— Jace [18:27]
Notable Quotes & Memorable Moments
-
“If you have all your bases covered, there’s a lot of ways to mitigate risk…As long as you have a live, marketable animal at the end of the year, you should not have any risk.”
— Jace [06:45–07:52] -
“Risk versus reward — it comes down to an individual basis, how much risk are we willing to put out there based on the price of those cattle?”
— BEC [05:57] -
On pride in ownership:
“If I look out on my land and I see a whole bunch of cattle that I don’t own, they have somebody else’s brand on...that doesn’t give me a lot of pride...”
— Jace [17:20] -
“Custom grazing is just the best way to probably minimize your risk. Honestly, land rent would be the easiest solution because…they run them cattle and that’s that.”
— Jace [17:46]
Timestamps for Important Segments
- 00:02: Episode intro; topic overview — Custom Grazing vs. Own Grazing
- 02:22: Why plan grazing strategies now
- 03:13: Blackleg Ranch’s experience with both custom and own yearling grazing
- 04:42: Definition and practicalities of custom grazing
- 05:47: Income diversification and the risk/reward equation
- 06:42: Calculating opportunity cost and setting up for break-even or profit
- 08:29: Risk management tools — LRP & insurance
- 13:35: Fencing preferences & adaptive pasture management
- 15:52: Why custom grazing makes sense for some operations
- 17:20: The pride/family/labor factor in deciding grazing strategies
Takeaways for Ranchers & Listeners
- Custom grazing is optimal for those prioritizing stable cash flow and low risk, especially in times of limited labor or capital constraints.
- Grazing your own yearlings offers bigger upside potential but comes with market risk.
- Careful cost analysis, risk mitigation (LRP), and understanding your ranch’s priorities — profit, risk, workload, and pride of ownership — are essential before choosing a strategy.
- Environmental monitoring and infrastructure (fencing, water, pasture type) are core to both approaches.
For further questions or to connect with Jace Doane or the hosts, listeners are encouraged to contact Ranch It Up via their hotline or email.