Jackson Hole: Home On The Range

Ranch Lifestyle Common For Jackson Hole Real Estate Owners

When Tony Royal bought the Spotted Horse Ranch south of Jackson, Wyoming, in 1998, the ex-banker from Atlanta was looking for a place where his family, friends and business associates could gather. But in acquiring the 43-acre guest ranch bisected by the Hoback River, Royal and his partner wound up becoming conservation stewards. They have improved fish habitat and installed a catch-and-release policy, changes that have spurred a dramatic increase in the native trout population.

Now, in addition to treating guests to prime fishing, hunting, hiking and horseback riding, Royal takes added satisfaction in seeing bald eagles snatching fish from his ponds. A conservation philosophy “has to be a part” of the decision to buy a Western ranch, says Royal. He and his family were swayed by “the wonderful ethic you find in this valley,” he says. ”It’s something you don’t often find in other parts of the country – a love for the outdoors, the scenery, the beautiful atmosphere.”

Royal’s experience reflects a shift the ranching industry has seen in the last 30 years, from raising livestock as a livelihood to running cattle as a lifestyle. Ranch buyers, once focused on the bottom line of how many head an acre could support, now reap a return on the long-term appreciation of the property. The potential for recreation and conservation outweighs the productivity of the land. The Spotted Horse Ranch is small by Western ranching standards but is huge for Jackson Hole area properties.

In Nevada, where arid land supports few cattle or horses, 10,000 acres is the average size. But because 97 percent of the land in Teton County, Wyoming, is public land managed by the federal government, finding a parcel large enough for ranching can be difficult.

What makes a ranch? Greg Fay, owner of Fay Ranches, a brokerage based in Bozeman, Montana, jokes that a ranch in Jackson Hole could be three acres. “To some degree, the definition of a ranch is in the mind of the person who made the purchase,” Fay says. While Western ranches generally have an agricultural component, Fay says, today that takes a back seat to trout streams, trails and wildlife habitat. Ranches afford buyers space and security - two increasingly precious commodities in our society. Since Sept. 11, 2001, “there has been more of a sense of wanting to escape, to get a little insulation from the coasts and any perceived threat there,” Fay says.

Ranches now on the market in Wyoming, Idaho and Montana offer plenty of insulation. The Bullis Creek Ranch near Livingston, Montana, covers 9,200 acres and is home to three spring creeks. Peace of mind comes with a price; the property is listed for $21 million. Closer to Jackson Hole, the 1,100-acre Upper Green River Ranch near Pinedale borders state and federal public land and is listed for $4.9 million. The 11,000-acre Rome Hill Ranch on the western slope of the Big Horn Mountains near Ten Sleep, Wyoming, provides an endless expanse of meadows and mesas at a price of $10 million.

While the real estate does not come cheap, Western ranch buyers can take solace in the old adage that no more of it is being built. The economic slowdown of 2001-02 brought down Western ranch prices by as much as 20 percent, meaning the opportunity is ripe for finding good value. Even when the recent price drop is factored in, over the last 15 or 20 years ranch properties have appreciated at the rate of 5 percent to 15 percent a year, says one Montana broker. Americans’ unquenching desire for privacy will only drive up demand for the remaining open spaces in the West.

To help city folks make the transition to cow pokes, some brokerages have their own ranch management companies to handle acquisition of livestock, construction of facilities, habitat enhancement and hiring of employees. Other brokers will offer advice and steer clients to the appropriate contractors. This expertise allows Western ranch buyers thousands of miles away to know their property is well taken care of.

While ranching has lost its luster as a profit-generating enterprise, there are economic incentives for prospective ranch buyers to consider. Conservation easements allow landowners to receive tax breaks in exchange for giving up development rights; on a $1 million ranch, that could mean an income tax savings of $160,000. Agricultural subsidies provide additional financial benefits. Conservation easements have proven to be an effective tool in land preservation. “Regardless of their philosophical stance, once we educate their accountant, [ranch buyers] are usually pretty quickly on board with the conservation easement concept,” says owner-broker Fay.

Ranchers today face fewer hardships than their forbearers. Advances in technology and a shift to a more service-based economy in and around Jackson Hole have allowed people to escape the crowding of the cities and make a living on the open range. With the Internet, cell phones, faxes and FedEx, professionals can do business just about anywhere – even within walking distance of some of America's most pristine public lands. The payoff of ranching may fluctuate, but the romance never wanes.

“It’s an emotional buy,” says Fay. When he takes a client to a ranch, he will watch and read the reaction. “A person walks out on a ranch, and it just feels right to them,” he says. “It’s what they’ve always envisioned." //