Wouldn increasing the grazing fee to market value be a better deal for taxpayers?
No, because the massive cost of the federal grazing program would still not be covered even if the federal government did charge fair market value for public lands grazing. The federal grazing fee is generally $1.43/AUM (the amount of forage to feed a cow and calf for one month). For most federal lands, only a small fraction of this fee is returned to the federal treasury (National Forests: 25%; BLM, within “Section 3” grazing districts: 37.5%; BLM, outside grazing districts (“Section 15”): 0%). The average fee for forage on private lands in eleven western states is $11.10 per AUM. Public lands ranchers often argue that the forage on federal lands is worth less than on private lands, as the latter are often more productive for grazing. However, the average fee for forage on state lands in the West (excluding Texas), which are generally comparable to federal lands, is $12.30 per AUM. Even if Congress increased the grazing fee or instituted a competitive bidding process to achieve $12.30
