Fair Value Grazing Fees

The formula for determining the grazing fee for lands managed by the Bureau of Land Management (BLM) and the Forest Service (FS) uses a base value that is adjusted annually by the lease rates for grazing on private lands, beef cattle prices, and the cost of livestock production. By law, the grazing fee per animal unit month (AUM) may not fall below $1.35, a rate far lower than most states and private land owners. For fee purposes, an AUM is defined as a month’s use and occupancy of the range by one animal unit. The collected fees are divided among the Treasury, states, and federal agencies. Although the AUM was raised to $1.69 in 2015 and $2.11 in 2016, the fee is still far below a fair market value.