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In order to study the problem of balance between ranch and range one should first have a clear understanding of the following self evident principles:
1. A balanced cattle ranch and range operating unit involves the use by livestock of the forage produced on both deeded and public lands in a manner conducive to forage conservation and a profitable enterprise. The degree of balance depends upon how the working parts of the complete unit, namely, acreage and production of owned lands, size of grazing privilege and avvailable forage on public lands, length of grazing season, and numbers of livestock, are fitted together and used. When these working parts fitted together and used in a parctical way conducivve to a long-time profitable enterprise of fair investment valuation, the ranching unit may be considered balanced.
2. The difference between receipts and operating costs (excluding interest and prinipal payments) represents earning power blance, upon wich depends the ability to pay interest and retire principal.