Browsing Journal of Range Management, Volume 40, Number 6 (November 1987) by Subjects
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Demand for Forest Service grazing in ColoradoLinear programming ranch models were constructed for size of ranch and species of livestock operation within 5 regions of Colorado. Options to improve existing ranch resources and regional forage supply were included in each model. Parametric programming was used to derive shadow prices to approximate demand for USFS grazing in Colorado. Demand was derived under 3 livestock price scenarios and 2 herd management assumptions. USFS grazing demand was found to be very sensitive to livestock price changes. Variable herd management maximized profits and was able to capitalize on high livestock prices, increasing herds, thereby increasing the price of USFS forage for any given quantity. With herd size constant, ranches that could not cover variable costs ceased operation and demanded no USFS forage. Higher livestock prices could not induce increased USFS forage demand as with variable herd management. Regional differences in demand were also noted, reflecting differential transportation costs and ranch productivity.