Operator Vetting Criteria
Only the top quartile of commercial livestock producers qualify to list projects on Rodeo Capital. Our rigorous 5-stage due diligence evaluates financial strength, operational integrity, and land tenure.
Mandatory Underwriting Checklist
- Minimum 5 consecutive years of profitable commercial livestock production history
- Verifiable bank and feed credit references with clean lien status on collateral
- Title deed or multi-year recorded lease agreements guaranteeing forage access
- Clean regulatory compliance with state brand inspection and animal health agencies
1. Historical Financial & Balance Sheet Audit
Our agricultural credit analysts review 3 years of audited or CPA-reviewed financial statements, tax returns, and operating notes. We verify that the ranch maintains adequate working liquidity and that debt-service coverage ratios (DSCR) exceed 1.35x under normalized livestock prices.
2. Operational Track Record Analysis
Prospective operators must submit 5-year historical production logs documenting:
- •Average Daily Gain (ADG) track record across varying rainfall cycles.
- •Historical herd mortality rates (must average below 2.0% for cattle, 3.5% for small ruminants).
- •Market execution history with reputable packers, auction barns, or backgrounders.
- •Feed conversion efficiency data across pasture and supplement regimens.
3. Legal Land Tenure & Water Rights
We conduct title searches on all deeded headquarters acreage and examine all underlying pasture lease agreements to guarantee that grazing rights are secure for the full duration of the syndication term. Redundant, verified water sources (solar wells, municipal tap, or perennial creeks) are mandatory.
4. Criminal & Regulatory Background Review
All principals, farm managers, and key partners undergo comprehensive background checks verifying absence of securities violations, animal cruelty citations, fraud convictions, or state brand disputes.
Explore Projects Built on These Standards
Inspect deal sheets, scale schedules, and mortality binders on live syndications.