Welcome to our Online Newsletter! Every month you'll find the latest thoughts and goings on right here. We hope to share some of the little things we learn about life and ranching along the way. In the end, we are hoping that all these "little things" add up in a really big way, and maybe make a difference to everyone.

I became very interested in this concept a couple of years ago because of it's financial and environmental implications. It doesn't involve any chemicals, or mechanical (machinery) inputs which also saves money. Last fall I had two sandhill plum bushes encroaching on a fence line. This pasture had 27 head of bulls in it. When I fed my trace mineral salt blocks, they were placed in the center of each bush. The bushes were about three to four feet tall and covered an area of about 50 feet each. The stalks were three to four inches around. Within forty-five days, most of the stalks were broken off at one foot or less in height. And the bush was thinned out by 60 to 70%.

My interest was not to kill the plant, just to slow it down and keep it from spreading. I accomplished my goal without any extra cost, and no chemicals. The Longhorn breed is one of the most effective animals for animal impact in the bovine species because of it's natural habits such as horn polishing, staying in a herd and heartiness.

The old folks are usually right. I am 33 years old right now. A few years back, like the rest of my peers, I came to realize my parents were more correct on several issues than I would have liked to admit. Now as I have a few more years behind me, I respect the older generation more and more. In regard to our cattle business, I am also listening harder to what they have been saying for years, to which my ears were inattentive.

Some years ago, technology and science not being "advanced" as it is today, our grandfathers relied on what they observed around them. Many old wives tales do seem to have some merit, although no one at the time knew the exact reason behind it. Without weather forecasts and years of scientific databases, these people learned from trial and error.

These days we are too busy trying to manipulate the things around us into our ideas, we have lost the art of observing, or even listening to the old observers.

I will give you an example in particular on our ranch. We have raised alfalfa hay for years. Nearly every year, we are plagued with weevils and are forced to use chemicals on the first cutting of hay to save the whole crop for the year. We felt we had no other choice. An old gentleman told me several times that if I were to graze that alfalfa field the first cutting, there would be no weevils. "The cows stomp them into the ground." Uh huh, right, I thought. It sounded very unscientific to me. For the past two years we have grazed our alfalfa. Guess what? No weevils. The neighbor 200 yards away had weevils and was forced to spray. Did the cows tromp those nasty bugs in the ground? I don't know the scientific basis behind our observation, although I am sure an entomologist might have some insights for me. This realization has saved us money and been healthy for the environment on our ranch.

I used this word the other day to describe some cattle. Then I thought that maybe I didn't understand the concept of it and looked it up in the dictionary. The definitions given were: 1. The state of being healthy, properly fed, and comfortable 2. Organized efforts to improve living conditions for needy persons 3. On Welfare, receiving public financial aid, because of hardship or need.

I was right! I did not understand the meaning of welfare. In the speech I delivered, the word welfare was directed toward the cattle industry. I said, "We have put our cattle on welfare by hand feeding them, building barns for them to live and calve in, using trailers and trucks to transport them, and using nutritionists to choose their diets and veterinarians to care for them. In doing all the "right" things we have taken away their ability to selectively forage, build immunity to disease and parasites, resist the weather, and build heartiness enabling them to travel for food and water."

Welfare? Just admit it. The cattle industry has become like the welfare rolls. We are using money in both instances to make things better. We are doing away with self-worth, self-confidence, self-discipline, self-preservation, self-respect and self-sustainability, whether it is humans or animals.   -   Joe Moore

Oh the joy of the phrase, it's tax deductible! A tax-deductible item can be an emotional sale. How many times have you boasted a purchase by proclaiming those words? How many times have you justified a purchase by uttering those words?

We all know that anything to lower taxes brings a pleasant feeling, but is every tax-deductible item actually profitable in the long run? Many times in my tax business, I have seen a person fall into the trap of trying desperately to get ahead of the IRS. While Congress has made many legal ways to avoid taxes, some of these are not always advantageous.

Jane E. Workinhard was a hard working employee. She saw that her employer could deduct a portion of his vehicle and other things, which she saw as perks. Many books are written on the subject of getting into business to lower the burden of Uncle Sam. There are also many seminars available especially around February to April. All the articles, books and seminars are very factual, but here comes Jane's downfall. Jane researches and buys a business. She buys a new vehicle. Her husband and kids are paid to work in the business, but doesn't put these monies back into the business when necessity calls for it. All of these actions are done in the name of tax deductibility. At tax time, Kate is anxious. How much tax does she owe and how much has she avoided? Her tax preparer has grave news. "Kate," he says, "Your business shows a loss this year. Your taxes are lower because your income was less. Your business does not appear to be profitable. How is your cash flow in the coming year; will you be able to pay all your note payments?" Kate hears the word loss and equates it with tax savings. She probably didn't even hear the tax preparer's concern. In an effort to lower taxes, she lost much more money on her investment than she saved in tax savings. She would have been better off to spend less on the extra tax deductions and look at profit first. Instead of cutting her cost of 15% on taxes per year, she cut into her equity.

I do not mean to imply that all extra hard work or your own business venture is foolish. I simply want to illustrate that justifying expenses because they are tax deductible is clearly emotional and not always advantageous to the business. Yes, we need to be smart and take advantage of available tax breaks, but tax planning with an overall view of the business assets, liabilities and cash flow is by far the best. Let me close with a true experience as food for thought.

I met with a client last week and asked him where the records of his charitable deductions were as I could only find $94.00 worth. He answered by saying the rest was given in cold hard cash in the offering plate at church. I said I could only take the $94 off and next year he should consider using checks or getting receipts. He replied, "I give cash at church because I give from my heart. I never want to give because I know it is tax deductible. The minute I give because I can take it off on my taxes, I'm giving for the wrong reason. It is a thing between me and God."

I applaud the client's concept of giving. I ask of you, wouldn't we be better off if we spent money on our own business when it is necessary and in conjunction with tax savings rather than justifying it by tax implications? I am going to change the client's quote as though he were talking about his business.

I never spend anything that doesn't make economic and financial sense. I never want to spend solely because it gives me a tax deduction. The minute I spend only because I can take it off on my taxes, I am spending for the wrong reason. It is a thing that is between me and success of my business.   --   Think about it.