Public Grazing in the West and “Rangeland Reform '94”

Private grazing fees differ substantially and systematically across states in the West. In contrast, federal policy establishes the same grazing fee on federal lands, regardless of location. We analyze locational differences in private grazing fees with an econometric model. Differences in private grazing fees across states can be explained largely by economic forces consistent with a competitive spatial market. A uniform increase in the federal grazing fee will lead to a large variation in economic effects between states and across individual public lands ranchers. We propose the permanent transfer of public grazing rights to the private sector.