A Comparison of Average Variable Costs of Private vs. Public Land Ranches in Southeastern Montana

Abstract

A study was conducted in southeastern Montana to determine the effects of federal range grazing on cattle ranch average variable operating costs per animal unit. Data were obtained through personal interviews in 1980 with 68 ranches in six southeastern Montana counties. T-tests were used to determine if the average variable costs per animal unit were less on ranches that rely on federal ranges than on ranches that do not. Annual variable costs per animal unit averaged $158 and $144, respectively, for ranches obtaining 0-4% and 5-51% of total forage from federal lands. However, this difference was not statistically significant. Regression analysis did indicate that variable costs per animal unit were significantly affected by the percentage of total ranch income from crop sales.