Yellowstone, Texas Traffic, and Fighting for Your Land: My Take on Ranching Realities and Estate Planning

I’m rolling straight from my recent Texas trip into a chat about “Yellowstone” (yes, the TV show) and all the things it unexpectedly gets right about ranching, estate taxes, and running your operation like a real business.

Yellowstone’s Big Estate Planning Woes

If you haven’t been watching “Yellowstone,” or you plan on bingeing it later, here’s your spoiler alert: Kevin Costner’s character dies (he’s the ranch owner/father for those who haven’t watched), and the family’s left to figure out how to pay the estate taxes on all that land. Suddenly, they’re considering selling off their cattle and horses just to keep the ranch afloat. They are worried about how they are going to pay capital gains, amongst all the loans they have to pay off.

And you know what? This hits painfully close to home for most farmers and ranchers who don’t do proper estate planning. Now, in this show, he died unexpectedly so he had loans on everything, again like most people. Some of the older generation at least has retired and has things paid for but we still end up in the same boat of wondering how we are going to pay the taxes or buy out siblings.

The “Don’t Lose Your Legacy” Lesson

• Proper estate planning is not optional. If you want your kids to keep the farm or ranch, set it up so Uncle Sam doesn’t take the lion’s share when you pass.
• Avoid short-term thinking when it comes to taxes. Borrowing to avoid one good year’s tax bill could saddle you with payments for years to come. Let’s not put our families in a bind.
• Have Life Insurance so when you do pass there is money there to take care of loans, taxes and then some. It’s not about leaving your heirs rich, it’s about leaving them enough so they don’t have to have a fire sell or do something like the Yellowstone ranch.

Run Your Ranch Like a Business, Folks

One of the show’s main characters, Rip, mentions you’re lucky if you make a profit one out of every five years in ranching. Then Beth reminds him that’s not how you run a business. And she’s absolutely right! Sure, agriculture can be feast or famine. But there are plenty of folks who make money year after year because they run their operation like a proper business.

This hits home for a lot of farmers and ranchers:

• Diversification Matters – Consider new revenue streams, smarter marketing, or even contracting livestock. Don’t rely on one good year to float the next four.
• Buy Wisely – If you’re only profitable in one out of five years, maybe don’t run out and purchase a fancy new piece of equipment just to dodge taxes. That payment still comes due every year, even in the bad year.
• Plan for the Downs – If down years are inevitable, build up reserves or use financial tools (like Infinite Banking) so you’re not scrambling to stay afloat. You know it’s inevitable, there will be bad years.

Creative Selling Strategies to Combat Capital Gains

Another highlight from the episode: Casey suggests that if you sell your car for a dollar, you only pay taxes on that dollar. In the show, they consider drastically undervaluing the ranch to reduce capital gains taxes. While I’m not advocating you sell your land for a dollar, there is a kernel of truth here: you can structure sales to minimize tax impact.

One example I often share: If you’re owner-financing your property sale, you could lower the purchase price but increase the interest rate. Interest income is taxed differently than capital gains—and you’re avoiding Social Security and Medicare taxes. Or consider a rent-to-own model. The point is that you have options beyond the typical “sell for market value and pay a big chunk in capital gains.”

Education Is the Ultimate Weapon

Look, the more you know, the harder you are to sway. Whether it’s about estate planning, tax strategies, or pipeline proposals, knowledge is power and the majority of people are scared to learn a darn thing.

• Estate Plan Early: If you’re in ranching or farming, you need to start planning yesterday. Don’t leave your family in the hands of the courts. Many of you hate attorney’s but those very same people may save the farm you work so hard to keep.
• Infinite Banking Concepts: If you’re tired of the bank controlling your operation and asking permission then this may be an option for you to become your own banker.

“Hey, Taylor Sheridan, Call Me!”

In one part of the show, there’s a comment about how they can’t get life insurance. Let me just say, if Taylor Sheridan (the show’s creator) needs a real-life advisor on that topic, I’m happy to help! Because, let’s be honest, life insurance is possible for ranchers, and his comment was absolutely wrong! In fact, it’s a necessary tool to keep those ranches going.

Wrapping It All Up

So that’s my take on “Yellowstone.”. Yes, it’s entertainment—complete with drama, murder, and cussing but behind all the theatrics, Taylor Sheridan sprinkles in some big truths about real-world ranching and the challenges that go with it.

Ready to Talk More?

Grab your book, read it, and then schedule your appointment with me or John. Nothing will change if nothing changes. It’s time to put on your business owner hat and turn the operation into a business.

Until next time,
Mary Jo

P.S. If you haven’t joined our Facebook community yet, hop on over to Farming Without the Bank to keep the conversation going. We’re all about smashing financial myths and making sure your operation thrives, year in and year out.