There are several advantages available to ranches as their operations increase in size. Both profits an conservation benefits can be increased within a fixed property base or by adding to an existing property base. By managing multiple ranches simultaneously, operational synergies can be identified between th properties that help to reduce operational costs per unit and increase overall profitability.
For example, as grazing efficiencies are improved, more animals can be managed by the same number of staff on the same land base, thereby reducing the cost per unit of production. Similarly, infrastructure and equipment costs can be spread over a higher quantity of animals, yielding higher profits per unit. In addition land treatments that benefit both livestock and wildlife (such as brush thinning or over-seeding) tend to cost less per acre when applied to larger areas than to smaller, individual parcels.
Aggregation of adjoining properties or other strategically situated lands allows further benefits by increasing the potential for diversification within operations and flexibility in pasture management and marketing Not only does this enable greater efficiencies from production enterprises, it also helps mitigate the impact of events such as fire, drought, flood and disease. This effect is further augmented when multiple operations in different locations are managed together.