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Grazing fee

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Grazing fee

A grazing fee is a charge, usually on a monthly basis, for grazing a specific kind of livestock.

Australia

In New South Wales, Australia, maximum grazing fees have been set by regulation at $1.00 per head of large stock or per 10 (or less) head of small stock per day; lower fees may be set by individual authorities.[1] Agistment on private land in Queensland, Australia, has sometimes been at rates of $5 per head per week when demand is high.[2]

United States

In the United States, grazing fees are generally charged per AUM (animal unit month). (Some additional fee or fees may be charged in various jurisdictions, e.g. per application.) On US federal grazing land, the grazing fee for 2012 (as for 2011) is $1.35 per AUM.[3] Over several decades, the fees charged on US federal rangelands have generally been substantially lower than rates charged on private lands in the US.[4] In 2006, the grazing fee on Oregon state lands was $5.60 per AUM.[5]

Calculation formulas

Various formulas are used for calculating grazing fees on public lands. Some examples are:

  • For federal rangelands of the United States,
the grazing fee "equals the $1.23 base established by the 1966 Western Livestock Grazing Survey multiplied by the result of the Forage Value Index (computed annually from data supplied by the Statistical Reporting Service) added to the Combined Index (Beef Cattle Price Index minus the Prices Paid Index) and divided by 100; provided, that the annual increase or decrease in such fee for any given year shall be limited to not more than plus or minus 25 percent of the previous year's fee, and provided further, that the fee shall not be less than $1.35 per animal unit month."[6] Apart from the $1.35 floor, which took effect on February 14, 1986,[6] this is the same as the fee calculation that applied for the grazing years 1979 through 1985.[7]
  • For lands of the state of Oregon,
the grazing fee is the greatest of a) $250; (b) $4.25 per AUM; or (c) The carrying capacity of the leasehold in AUMs multiplied by the annual AUM rate (expressed in dollars per AUM). The annual AUM compensation rate equals G x CC x S x P, where G is animal gain per month (set at 35 pounds, since January 1, 2010), CC is marketable calf crop (fixed at 80 percent), S is state share of calf gain (set at 25 percent on January 1, 2012), and P is calf price (90 % of the USDA national price data indicating average sale price for the preceding one year period based on an October through September year).[8]
  • For a grazing license or permit on Crown land in the province of British Columbia,
the grazing fee per authorized AUM is "93% of the average gross sales revenue per kilogram for live beef cattle marketed during the immediately preceding 3 years through the B.C. Livestock Producers Cooperative Association.".[9]

References

  1. ^ Rural Lands Protection Regulation 2010. Regulatory impact statement. Government of New South Wales, Industry and Investment. 11 May 2010.
  2. ^ Regulatory impact statement. Stock route network management regulation 2009. August, 2009. Queensland Department of Environment and Resource Management.
  3. ^ http://www.blm.gov/wo/st/en/prog/grazing.1.html
  4. ^ Torell, L. A., N. R. Rimbey, L. W. Van Tassell, J. A. Tanaka, and E. T. Bartlett. 2003. An evaluation of the federal grazing fee formula. J. Range. Manage. 56: 577-584.
  5. ^ http://cms.oregon.gov/DSL/SLB/docs/06june_lbmin.pdf
  6. ^ a b United States Executive Order No. 12548, Feb. 14, 1986, 51 F.R. 5985, Grazing Fees.
  7. ^ United States Code, 43 USC Chapter 37. Public Rangelands Improvement. Section 1905.
  8. ^ Oregon Administrative Rules 141-110-0080 http://arcweb.sos.state.or.us/pages/rules/oars_100/oar_141/141_110.html
  9. ^ British Columbia Reg. 115/2005, Range Regulation.
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