Accelerated climate change is a global challenge that is increasingly putting pressure on the sustainability of livestock production systems that heavily depend on rangeland ecosystems. Rangeland management practices have low potential to sequester greenhouse gases. However, mismanagement of rangelands and their conversion into ex-urban, urban, and industrial landscapes can significantly exacerbate the climate change process. Under conditions of more droughts, heat waves, and other extreme weather events, management of risks (climate, biological, financial, political) will probably be more important to the sustainability of ranching than capability to expand output of livestock products in response to rising demand due to population growth. Replacing traditional domestic livestock with a combination of highly adapted livestock and game animals valued for both hunting and meat may be the best strategy on many arid rangelands. Eventually, traditional ranching could become financially unsound across large areas if climate change is not adequately addressed. Rangeland policy, management, and research will need to be heavily focused on the climate change problem.