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    • Journal of Range Management, Volume 55 (2002)
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    Influence of grazing lease terms on economic optimal stocking rates

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    Author
    May, G. J.
    Jones, R. D.
    Langemeier, M. R.
    Dhuyvetter, K. C.
    Issue Date
    2002-09-01
    Keywords
    leasing
    optimization
    production costs
    equations
    duration
    stocking rate
    grazing intensity
    overgrazing
    beef cattle
    Lease Type
    Lease Length
    Standardized Beta Coefficient
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    Citation
    May, G. J., Jones, R. D., Langemeier, M. R., & Dhuyvetter, K. C. (2002). Influence of grazing lease terms on economic optimal stocking rates. Journal of Range Management, 55(5), 461-468.
    Publisher
    Society for Range Management
    Journal
    Journal of Range Management
    URI
    http://hdl.handle.net/10150/643684
    DOI
    10.2307/4003223
    10.2458/azu_jrm_v55i5_may
    Additional Links
    https://rangelands.org/
    Abstract
    The terms of grazing lease contracts potentially influence a tenant's incentive to preserve the vegetation resource. Annual stocking rate decisions dictate the degree of overgrazing, which can be cumulative over long periods of time. The objective of this study was to identify the impact the tenant's lease length and lease type has on profit maximizing stocking rates. A multi-period nonlinear programming model was developed to identify economically optimal stocking rates each year over a 24-year period. The model was solved under 1-, 4-, 8-, and 12-year leases on a "per ha" and "per head" basis. The relative importance of each lease alternative and other input values in explaining the tenant's optimal stocking rate was ranked based on standardized ordinary least squares coefficient estimates. Lease length and lease type had a minor impact on optimal stocking rates relative to non-lease factors such as livestock prices and production costs. Holding lease length constant, per ha leases generated a 2% higher average stocking rate than per head leases. Optimal stocking rates were inversely related to the length of the lease. Twelve-year leases generated 18 and 13% lower optimal stocking rates than the 1-year per ha and per head leases, respectively. The optimal stocking rate difference between an 8-year and a 12-year lease was negligible, suggesting the 8-year lease would provide a similar incentive to protect vegetation as a lease with a longer planning horizon.
    Type
    text
    Article
    Language
    en
    ISSN
    0022-409X
    ae974a485f413a2113503eed53cd6c53
    10.2307/4003223
    Scopus Count
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    Journal of Range Management, Volume 55, Number 5 (September 2002)

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