To begin ranching you will have to place down ranching nodes in your house. New nodes will be unlocked the higher rank you are.

Node List

Node Drops Rank
Chicken PenChicken FeatherRank 1
Snail PenShail ShellRank 2
Pig PenPig TailRank 3
Cow Pen (Milk)Fresh MilkRank 4
Sheep PenWoolRank 5
Turtle PenTurtle ShellRank 6
Deer PenDeer HideRank 7
Cow Pen (Horns)Cow HornRank 8
Eagle PenEagle FeatherRank 9
Horse PenHorse HoofRank 10
Fox PenFox TailRank 11
Griffin PenGriffin FeatherRank 12
Dragon PenDragon HornRank 13

Rank Rewards

Rank Rewards
Rank 1
Rank 2Copper Chain Mail Gloves, Green Crystal x1
Rank 3Blank Intermediate Music Score (20 Performances), Green Crystal x1
Rank 4Windmill, Green Crystal x1
Rank 5Milkids Apple Earring, Green Crystal x2
Rank 6Barn, Green Crystal x2
Rank 7Fading Savagery Ring (Temporary), Green Crystal x3
Rank 8Milk Crate Wagon, Green Crystal x4
Rank 9Milkids Cow Hat, Green Crystal x5
Rank 10Signpost, Green Crystal x6
Rank 11Fading Savagery Belt (Temporary), Green Crystal x7
Rank 12Storage Tank, Green Crystal x8
Rank 13Milkids White Shirt, Green Crystal x10