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With the decrease, it would cost about $16.20 per animal per month.

The new fee rates take effect on March 1, applying to about 18,000 grazing permits and leases overseen by the BLM, and about 6,500 permits administered by the U.S. Forest Service.

The formula used for calculating the fees was developed the U.S. Congress in the 1978 Public Rangelands Improvement Act, and was keep in operation by a 1986 executive order issued by former President Ronald Reagan.

Under the order, the grazing fee cannot be dropped below $1.35, and any increase or decrease cannot exceed 25 percent.

The fee is established using a base value from 1966 at $1.23 per AUM of HM for livestock grazing in western states.

The fees are then calculated using three factors: private grazing lease rates, beef cattle prices and the cost of livestock production.

Lisa Ogden, a rancher in the Loving area of southern Eddy County said beef prices dropped this year by about one third, and production prices have also increased.

Her ranch sits on about two thirds federal land, and one third state, she said.

“There’s a lot of factors that play into it. When cattle prices are high, fees go down,” Ogden said. “We’re not exporting as much beef. It’s fair. It’s definitely a good thing.”

Ogden said the reduction would especially help larger ranchers and could stabilize the industry as prices grow.

“We’re a small ranch, it won’t be a big savings for us,” she said. “But for bigger ranches, it will be significant. It all depends on your carrying capacity. It depends on your usage.”

She said the reduction in grazing fees could help ranchers survive in trying economic times, and as increased oil and gas production in the area decreased the land available for grazing.

“It’s part of the give and take with the oil and gas,” Ogden said. “That’s why we don’t have as many head of cattle this year as we have in the past. Everything is going up. Every little thing helps to be in the black at the end of the year.”

BLM Deputy Director for Programs and Policy Brian Steed said the decision is example of the BLM working to foster “strong relationships” with the farming and ranching community.

About 50 percent of collected grazing fees deposited in the U.S. Treasury are returned to the Range Betterment fund for “on-the-ground range improvement project read the release.

Portions are also returned to the states for use where the fees were generated.

“The BLM and Forest Service are committed to strong relationships with the ranching community and work closely with permittees to ensure public rangelands remain healthy, productive working landscapes,” Steed said.

Looking forward, Ogden said she hoped a reduction in federal fees could offset losses in the New Mexico ranching industry as the state struggles with long-term drought conditions.

“After such a wet September and October, it would be nice to have that moisture right now,” she said. “They all need a drink of water.”

Dalene Hodnett, spokesperson for the New Mexico Farm and Livestock Bureau said New Mexican ranchers could use the help, amid declining prices and ongoing drought conditions across the state.

“The rate decrease is welcome news for New Mexico’s ranchers. Between low cattle prices and the ongoing drought, ranchers need relief,” she said. “Ranchers are excellent stewards of BLM land, caring for it as if it were their own while providing economic benefits for rural communities.”

States affected by the fee change:

Arizona

California

Colorado

Idaho

Kansas

Montana

Nebraska

Nevada

New Mexico

North Dakota

Oklahoma

Oregon

South Dakota

Utah

Washington

Wyoming

Adrian Hedden can be reached at 575-628-5516, achedden@currentargus.com or @AdrianHedden on Twitter.

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