Federal Grazing Fee
The Federal grazing fee, which applies to Federal lands in 16 Western states on public lands managed by the BLM and the U.S. Forest Service, is adjusted annually and is calculated by using a formula originally set by Congress in the Public Rangelands Improvement Act of 1978. Under this formula, as modified and extended by a presidential Executive Order issued in 1986, the grazing fee cannot fall below $1.35 per animal unit month (AUM); also, any fee increase or decrease cannot exceed 25 percent of the previous year’s level. (An AUM is the amount of forage needed to sustain one cow and her calf, one horse, or five sheep or goats for a month.) The grazing fee for 2014 is $1.35 per AUM, the same level as it was in 2013.
The Federal grazing fee is computed by using a 1966 base value of $1.23 per AUM for livestock grazing on public lands in Western states. The figure is then adjusted each year according to three factors – current private grazing land lease rates, beef cattle prices, and the cost of livestock production. In effect, the fee rises, falls, or stays the same based on market conditions, with livestock operators paying more when conditions are better and less when conditions have declined.