Checkerboard Cattle Company

Checkerboard, Montana
$9,150,000- SOLD!

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This is a well-improved mountain cattle ranch of evergreen forests, aspen groves, cottonwood river bottoms and grasslands spanning the North Fork of the Musselshell River. Its 9,000± deeded acres stretch from the Castle Mountains to the Little Belts bordering the National Forest for many miles. The ranch takes in three miles of river and 15 miles of tributary streams. It supports a 600-animal-unit cattle operation that runs on deeded lands and tens of thousands of acres of mostly adjacent federal and state leased lands. Wildlife abounds, and includes elk, mule deer, whitetail deer, occasional moose, black bear, mountain lion and antelope. Brown, rainbow and brook trout are distributed throughout the river, miles of tributary streams and four reservoirs.

The Checkerboard Cattle Company ranch is located approximately 23 miles east of White Sulphur Springs on US Highway 12. The “one bar town” of Checkerboard is contiguous to the ranch and the small town of Martinsdale is 11 miles to the east. Billings is 123 miles to the east, and Bozeman is about 108 miles to the southwest. Bozeman’s Gallatin Field and Billings Logan Airport both offer good commercial service on United, Northwest, Delta, Frontier, Allegiant and Horizon airlines. White Sulphur Springs has a paved airstrip, which will handle most private jets.

Historically the North Fork of the Musselshell River was a major passage-way and hunting grounds of the Plains Indians. It holds evidence of Indian life and activity in great abundance. Teepee rings on the banks of rivers, pictographs in caves, and many buffalo jumps have been discovered. In the late 1800s those of European descent began to populate the Musselshell River Valley.

In this part of Montana life, fast pace and stress caused by high population densities are not to be found. How you treat your neighbors is more important than who you are or where you are from. Your word is more important than your money. Newcomers generally are warmly received when considerate of these values. The neighboring properties – other than the town of Checkerboard – tend to be large ranches which have traditionally been tightly held. In fact this is a part of Montana that is dominated by large ranch holdings that tend to pass down through the generations. This area is well north of the usual travel routes that focus on Yellowstone Park and its surroundings, and therefore does not attract much tourist traffic. Nevertheless, it is well known locally due to its wonderful fly-fishing, elk, deer and antelope populations, huge foothill and mountain vistas, wonderful grazing land and its many smaller, more user-friendly mountain ranges such as the Castles, the Big and Little Belts, and the Crazies.

The nearby community of Martinsdale is a locally well-known gathering place that has a colorful bar and an authentic turn-of-the-century hotel and restaurant called the Crazy Mountain Inn. White Sulphur Springs is the closest “full service” town. It is the county seat and boasts a cross section of motels, banks, a grocery and sporting goods stores, a medical clinic, etc. It is also a “jumping off point” for people taking the famous five-day float trip on the Smith River, which rises a short distance northwest of the ranch. Downhill skiing is available within a one-hour drive of the property at Showdown Ski Resort. Snowmobiling is popular on the 365 miles of groomed trails in the 200 square-mile Lewis and Clark National Forest that adjoin the ranch, as is cross-country skiing on 50 kilometers of groomed trails.

The Checkerboard Cattle Company ranch lies in a strong precipitation area between the north end of the Castle Mountains and the south side of the Little Belt Mountains. Total precipitation is in the range of 14 to 18 inches per annum. Due to its altitude, the growing season is 90 days on average. Temperatures at this altitude in central Montana are pretty close to ideal with summer highs in the 80s but with cool nights and evenings. The fall and spring tend to have unstable conditions, and can be either extremely pleasant, or have occasional periods of cold weather and wind. The area gets good snowfall in the winter. Typical accumulated snow depth on the meadows in January and February is in the range of 10 to 20 inches.

The Checkerboard Cattle Company ranch sits in a river-valley setting with mountains all around. The landscape is wonderfully big, natural and open. The ranch lies generally on the eastern side of a high divide separating four major stream drainages. This is the headwaters of the easterly flowing Musselshell River which is just over the hill from the headwaters of the westerly flowing Smith River. The Shields River and Sixteen Mile Creek flow southerly and westerly respectively a short distance to the southwest of the ranch. These streams offer some of the finest fly-fishing in Montana.

The Checkerboard Cattle Company is bordered on the north and south by eight miles of the Lewis and Clark National Forest. The ranch consists of a wonderful diversity of terrain that is both pleasing and user-friendly for both humans and livestock — not to mention wildlife. Elevation ranges from 5,000 feet along the river to 5,900 on various mountain-tops within its deeded boundaries. This span of land takes in willow-lined river bottom meadows, rolling grasslands, Douglas fir and ponderosa pine timbered hillsides and mile after mile of river and creek — some 20 miles of stream frontage. Excluding the river there are 13 creeks of varying sizes that each form their own small valley creating a wonderfully varied topography. This combination of cover and water has created ideal conditions for livestock and wildlife alike.

The main headquarters lie along the highway on the North Fork of the Musselshell with a small portion of the ranch lying north of the river. The bulk of the ranch lies south of the Musselshell and encompasses a series of fairly significant drainages that flow out of the National Forest on the south and through the ranch into the river. The most significant of these drainages is Flagstaff Creek which includes two major reservoirs and many of the ranch hay meadows. This creek also has great potential to be further developed into a spring creek-type fishery. The reservoirs are hotly sought after fisheries themselves. The other drainages are smaller and more intimate and each has its own unique character. While the ranch is crossed by a paved highway and a short access road to the National Forest on the west and northeast ends, its very size assures one of an incredible amount of privacy.

The headquarters compound is located near the river, convenient yet removed from the highway.

The main house was originally constructed in 1917. It has been extensively remodeled since, most recently in 2006, when a new furnace, carpeting, paint and trim were added. It received four new windows in 2009. It is a 1,416 square foot wood-frame one-story house that includes three bedrooms, one full bath and one half-bath. It is heated by a new Lennox propane-fueled forced-air central system and a wood-burning stove.

The guest house was originally built in 1940 and has been extensively remodeled. A new furnace was added in 2006 and eight new windows in 2009. This one-story home is of wood-frame construction with a basement. It has 1,020 square feet on the main floor with two bedrooms and one full bath on the main floor and one bedroom and a half-bath in the basement. It too is heated by a new Lennox propane-fueled forced-air central system and a wood-burning stove.

The bunkhouse was originally constructed in 1950 and remodeled as recently as 2009, when a new kitchen was added and the wood floors refinished. It is also of wood-frame construction, one story with central heat and a wood-burning stove. It has two bedrooms and one half-bath in 576 square feet of floor area.

Domestic water for all three of these buildings is from two springs that are so pure that, when tested, they were rated as some of the best the analyst had ever analyzed. These springs feed into a 1,000-gallon holding tank and then are pressure fed into the houses.

The headquarters is also home to the main working facilities. Two buildings stand out — a classic red horse barn and the machinery shop. The barn was originally built in 1917, added to in 1938, and remodeled in 1991 and 1995. It includes a haymow, is of wood-frame construction and consists of 2,048 square feet. The steel shop was built in 1990 and is 5,000 square feet, with 2,000 square feet of it having a concrete floor, insulation and heat. Two detached garages and four 4-sided pole-frame wooden sheds were built in 1960 and range in size from 320 to 7,056 square feet. One functions as a calving shed. There is also a 330 square foot granary built in 1960.

A separate group of working improvements is just upriver from the headquarters. It consists of an 11-stall calving shed. Further up the river is found the main cattle- handling corrals with a hydraulic squeeze chute, holding pens and a 20,000 pound livestock scale. The corrals were remodeled in 2006 using Temple Grandin and Bud Williams design features. A third calving shed is also located along the river at the confluence with Flagstaff Creek.
Of significant recreational import are three rustic mountain cabins. Each is located in the southern part of the ranch. The Daniels Cabin is built of logs and located on the western end along Checkerboard Creek. While its drinking water has to be brought in, it does have electricity in its two rooms. Plumbing is provided by an outhouse.

The Flagstaff Cabin is also built of logs and is located along the creek of its namesake. It originally was used as a winter camp for the sheep herds. It was remodeled in the late 1980s and consists of one room. It has propane lights and a wood-burning stove, and drinking water must also be brought along here. While the most rustic, it is set in a most private and panoramic spot near the upper lake.

The crown jewel of the ranch is the extremely private mountain valley on the far southern edge of the ranch below Whetstone Ridge. Here, in this little corner of “heaven,” sits the three- room Pierce Cabin with its own spring for drinking water. It has no electricity but does have propane light, wood heat and an outhouse. It is an ideal rustic getaway.

The Checkerboard Cattle Company is a fully integrated cattle ranch. With its 59 pastures and 30 stock tanks, it has all of the elements necessary for its current use as a commercial cow/calf operation. Alternatively the ranch could be efficiently run exclusively with yearling cattle. About 600 head of cattle are kept on the ranch year round, including cows, replacement heifers and bulls, plus a few horses. Another ungulate, 24 head of bison, are also raised on a separate 90-acre pasture, with very little winter feed. The bison yearlings are then harvested on the ranch by direct sale to a waiting list of devoted local fans. The Angus bred calves are born in April-May. By late spring the range grasses green up and the cattle start the grazing season on the ranch’s deeded lands. The management of the range on the ranch has been painstakingly planned, monitored and executed over the last 35 years. Twenty-nine monitoring plots have been analyzed and documented supporting its claim to some 5,000 AUM’s of grazing on the deeded lands. The ever-present weeds faced by virtually all ranches have been diligently attacked over the years, to the point that there now exist only a few spots of knapweed, no leafy spurge and some hounds tongue and burdock.

During late spring and summer the irrigation water flows across the hay lands. A single cutting of the alfalfa, smooth brome, orchard grass and white clover hay is sufficient to feed the herd though the winter. In a progressive twist, the current management practice of the ranch is to leave a portion of the hay swathed in windrows and lying in the meadows for grazing in winter. This reduces the costs of bailing, stacking and feeding hay. This practice reduces the need to feed baled hay to only ¾ ton for the average winter. By late June, 430 pairs plus bulls begin a three-month long session of grazing on the ranch’s adjoining National Forest leased lands. High quality feeder calves are sold each fall through a USDA program for premium beef cattle known as NHTC beef certification program (non-hormone treated cattle).

It would be an understatement to say that the Checkerboard Cattle Company ranch has extensive water resources. This feature sets it apart from many Montana ranches. As mentioned earlier, the ranch actually has some 20 miles of flowing surface water in 13 different creeks and the river. In addition to that there are five reservoirs of varying sizes. Upper Flagstaff Lake is over 14 acres in surface area. Each of these is utilized for irrigating crops, watering livestock or fishing. From these waters the ranch has recorded 99 water rights with the Montana Department of Natural Resources and Conservation. Twenty-one are for irrigation purposes. These rights add up to 39 cubic feet-per-second (1,560 miners’ inches) with priority dates reaching back to 1882. There are filed rights from the North Fork of the Musselshell River, Sourdough Creek, Checkerboard Creek, Flagstaff Creek, Brooks Creek, Stohr Creek, Spring Creek, and the E. Fork. of Spring Creek as well as unnamed tributaries of the North Fork of the Musselshell, Sourdough and Flagstaff Creeks. It is applied to the hay fields by flood method. The irrigated lands lie along the Musselshell River, Spring Creek, and Flagstaff Creek. The ranch also owns 200 shares (200 acre-feet) in the Upper Musselshell Water Users Association, a private water company, which built the nearby Bair Reservoir on the N. Fork of the Musselshell. The ranch irrigates approximately 425 acres of hay from these many sources.

There is one so-called “wet” well on the ranch. It is for watering livestock on 12 of the southeastern pastures. It is located near the river, 16 feet deep and constructed of a vertically installed perforated culvert. A 5-hp pump lifts water from here to a 14,000-gallon tank located on a high ridge east of Sheep Creek. From it, two and a half miles of pipeline carry water to six stock tanks.

Montana is well known for having wonderful fish and wildlife resources in general. The Checkerboard Cattle Company ranch in particular is wonderfully well endowed in this regard. The ranch is an ideal combination of wildlife feed, cover and trout- filled water. Its diverse landscape of grassy meadows, draws and treed hillsides are interspersed with hayfields. Consequently the ranch is home to a variety of animals and birds. There are mule and whitetail deer, elk, antelope, black bear, raptors, song birds, waterfowl, cranes, herons and more.

Many miles of river, streams and numerous springs, together with good precipitation and soils, and a history of progressive resource management have created lush habitat. Brown trout up to over 20 inches offer sport in the ranch’s approximately three miles of river meadow meander. This stretch of the river is a tail-water of the Bair Reservoir, just a few miles upstream. Out of this and through the ranch flow up to 55,000 acre-feet of water in a controlled release throughout the summer. The river typically consists of shallow runs, deep pools and undercut banks. The pools naturally occur at every oxbow turn in the meadow, of which there are dozens. Three to four miles of the spring-fed Flagstaff Creek flow in the winter and spring at up to around five cfs, and then, most unusually and beneficially for trout, the flow can increase to some 15 cfs in the late summer and fall due to late spring-water releases from the porous limestone substrata. In Flagstaff Creek, above its confluence with the river and below the upper reservoir, brown trout live and spawn. In the upper reservoir and above, browns are cut off (by the dam) and rainbow and brook trout live and spawn. Above upper Flagstaff Lake shocking reports indicate that there are over 500 trout over six inches in size per mile. Around 70 years ago the State of Montana raised wild trout in a hatchery here. Rainbow and brook trout reach well over 20 inches in the upper Flagstaff Reservoir. This lake is 14 surface acres and up to 24 feet deep, holding 214 acre-feet of nutrient rich, fresh-water shrimp-infested trout waters, portions of which never freeze.

One and one-half pound rainbows are the norm but
five-pounders have been caught, as have 24-inch brookies.

The day of this writing, six brookies were caught in the upper reservoir and five were over 20 inches in length. Of the five reservoirs on the ranch, two more, Serb and Shangri-La, also hold trout.

The lack of wolves and grizzlies has not hurt the ranch’s population of ungulates. Elk, mule and whitetail deer, antelope, together with coyote, black bear, mountain lion, bobcat and the occasional moose call the ranch home. Year-round there are about 30 antelope resident on the ranch. The elk, on the other hand, summer at about 80 in number and then swell to between 200 and 500 during the fall.

The hunting on the ranch has been private for 40 years. Currently the ranch is leased for big game hunting for the 2009 season. Within the terms of this lease the owner has rights to two weeks. As of this writing there are no commitments for future leases. However, this is expected to change should a sale not have occurred close to the end of the year. In the past the leasing outfitter has typically guided two to six clients per week for the 12-week season. As a testament to the quantity and quality, up to 19 elk were harvested each of the past three years; one-third of them were bulls with the historic largest being in the 370 class.
As for birds, over 80 species of birds have been documented on the ranch. Small but stable populations of three types of grouse make the ranch home — franklin, ruffed and sharptail – as well as some Hungarian partridge. The ranch managers have lived on the ranch for 35 years and have never seen a venomous snake.

Montana is well known for having wonderful fish and wildlife resources in general. The Checkerboard Cattle Company ranch in particular is wonderfully well endowed in this regard. The ranch is an ideal combination of wildlife feed, cover and trout- filled water. Its diverse landscape of grassy meadows, draws and treed hillsides are interspersed with hayfields. Consequently the ranch is home to a variety of animals and birds. There are mule and whitetail deer, elk, antelope, black bear, raptors, song birds, waterfowl, cranes, herons and more.

Many miles of river, streams and numerous springs, together with good precipitation and soils, and a history of progressive resource management have created lush habitat. Brown trout up to over 20 inches offer sport in the ranch¡¯s approximately three miles of river meadow meander. This stretch of the river is a tail-water of the Bair Reservoir, just a few miles upstream. Out of this and through the ranch flow up to 55,000 acre-feet of water in a controlled release throughout the summer. The river typically consists of shallow runs, deep pools and undercut banks. The pools naturally occur at every oxbow turn in the meadow, of which there are dozens. Three to four miles of the spring-fed Flagstaff Creek flow in the winter and spring at up to around five cfs, and then, most unusually and beneficially for trout, the flow can increase to some 15 cfs in the late summer and fall due to late spring-water releases from the porous limestone substrata. In Flagstaff Creek, above its confluence with the river and below the upper reservoir, brown trout live and spawn. In the upper reservoir and above, browns are cut off (by the dam) and rainbow and brook trout live and spawn. Above upper Flagstaff Lake shocking reports indicate that there are over 500 trout over six inches in size per mile. Around 70 years ago the State of Montana raised wild trout in a hatchery here. Rainbow and brook trout reach well over 20 inches in the upper Flagstaff Reservoir. This lake is 14 surface acres and up to 24 feet deep, holding 214 acre-feet of nutrient rich, fresh-water shrimp-infested trout waters, portions of which never freeze. One and one-half pound rainbows are the norm but five-pounders have been caught, as have 24-inch brookies.

The day of this writing, six brookies were caught in the upper reservoir and five were over 20 inches in length. Of the five reservoirs on the ranch, two more, Serb and Shangri-La, also hold trout.

9,000± deeded

Tillable Irrigated      425± acres
Improved Pasture      300± acres
Timber 1,922± acres
Native Rangeland 6,353± acres

Total Deeded 9,000± acres

*Note: These acreage breakdown figures are based on County Assessor records and the ranch managers. There are differences the owner is in the process of rectifying; therefore, they must be verified before relying upon them.
Leased: 22,550± acres

US Forest Grazing Permit 21,690± acres

2,062 AUM’s in four allotments — three are private, two adjoin the ranch, and the Whitetail allotment is located nine miles northwest of the ranch; one is shared with two neighbors and is an easy one mile cattle drive from the ranch. These are 10-year leases expiring/renewable in 2010.

Montana State Grazing Lease  620± acres

212 AUM’s of grazing. This is a 10-year lease, expiring/renewable in 2014.

Bureau of Land Management 280± Acres
137 AUM’s of grazing. This is a 10-year lease, expiring/renewable in 2014.

Total Leased 22,590± acres

Total Deeded and Leased Acres 31,590± acres

All of the owner¡¯s interest in the mineral rights under the ranch will transfer to the new owner with the sale. The seller owns all of the mineral interest under 74% of the deeded lands. The USA owns 23% and various individuals own 3%. No part of the deeded lands of the entire ranch are leased for minerals exploration or development.

All of the owner’s interest in the mineral rights under the ranch will transfer to the new owner with the sale. The seller owns all of the mineral interest under 74% of the deeded lands. The USA owns 23% and various individuals own 3%. No part of the deeded lands of the entire ranch are leased for minerals exploration or development.

The property taxes are approximately $9,330 annually.

MANAGEMENT SERVICES – Hall and Hall’s Management Division has a very clear mission – To represent the owner and to ensure that his or her experience is a positive one. Services are customized to suit the owner’s needs. They often begin with the recruiting and hiring of a suitable ranch manager or caretaker and are followed by the development of a management or operating plan along with appropriate budgets. Ongoing services include bill paying, ranch oversight, and consulting services as needed. Even the most sophisticated and experienced ranch owners appreciate the value of a management firm representing them and providing advice on local area practices and costs. Wes Oja and Jerome Chvilicek at (406) 656-7500 begin_of_the_skype_highlighting              (406) 656-7500      end_of_the_skype_highlighting begin_of_the_skype_highlighting              (406) 656-7500      end_of_the_skype_highlighting or Randy Clavel at (303) 861-8282 are available to describe and discuss these services in detail and welcome your call.

RESOURCE ENHANCEMENT SERVICES – Increasingly the value of a ranch is measured by the quality of each and every one of its resources. Coincidentally the enhancement of a ranch’s resources also increases the pleasure that one derives from the ownership of a ranch. Our management services have included the assessment of everything from wildlife habitat to bird habitat to water resources and fisheries and the subsequent oversight of the process involved with the enhancement of these resources. Wes Oja or Jerome Chvilicek at (406) 656-7500 are available to describe and discuss these services in detail and welcome your call.

SPECIALIZED LENDING - Over the past 59 years Hall and Hall has created a legacy by efficiently providing capital to the intermountain west. In addition to traditional farm and ranch loans, we specialize in understanding the unique aspects of placing loans on ranches where value may be influenced by recreational features, location and improvements and repayment may come from outside sources. Our extensive experience and strong relationships with our lenders allows us to quickly tell you whether we can provide the required financing.

Competitive Pricing ● Flexible Terms ● Efficient Processing
In-House Appraisals ● Common Sense Underwriting
Dave Roddy ● (406) 656-7500
Mike Hall, Judy Chirila, or Randy Clavel ● (303) 861-8282
Monte Lyons ● (806) 698-6882