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Preliminary research indicates Raramuri Criollo cattle may range significantly further and forage in areas where traditional breeds rarely venture. These small-frame animals are well adapted to harsh environments and maintain productivity with minimal inputs and supplementation. The objective of this research was to compare the economics of range-fed beef production with Raramuri Criollo cattle versus production of Hereford X Angus (H x A) cattle typically found on Chihuahuan Desert ranches. Enterprise budgets were developed for a 150 AUY ranch using production and cost data for herds maintained at the USDA Jornada Experimental Range near Las Cruces, NM. Based on limited studies about differences in forage requirements, animal foraging behavior, grazing distribution and forage use, we assumed the Criollo herd could be maintained at 180 AUY, a 20% increase. With 2009-2013 average real beef prices, net returns from Raramuri Criollo cattle production was found to be 30% higher than H x A production ($22,085 versus $16,978). The assumed 20% increase in stocking rate was a major factor in the net return increase. Total cash costs were estimated to be 64% less for Criollo production ($265/AUY versus $411/AUY). Notable cost differences included supplemental feed costs ($42/AUY versus $128/AUY) and veterinary, medicine and vaccine expenses ($6/AUY versus $28/AUY). The major factor favoring Criollo production was a strong demand for breeding animals with all Criollo heifers sold as bred heifers in the budget comparison. A limitation for Raramuri Criollo production was the extended period required to produce marketable range-fed animals. The typical cow/calf ranch sells calves after 8 months, requiring about 1.35 AUY/mature cow. By comparison, Criollo steers graze for 30 months and heifers for 24 months before sale. The smaller Criollo animals have a reduced forage requirement but the extended grazing period increases the total forage requirement to about 2 AUY/mature cow.