Heterogeneity of Data: Implications for a Variable Federal Grazing Fee

Abstract

Average grazing lease prices as tabulated in the 1985 federal grazing fee review and evaluation study were found to be significantly different between some pricing regions of the study. Comparing the federal study with a New Mexico state land grazing fee study indicated that lease prices were not homogeneous, even within pricing regions. This heterogeneity of data indicates that a variable federal grazing fee structure should be established if welfare of public land ranchers and collecting full market value of public land forage is important. Other factors, such as ease of fee administration and strong political support have been important considerations in setting the current single uniform fee. The current single-fee formula that sets one uniform grazing fee for all western states cannot be statistically defended. If grazing fees were significantly increased using the current single-fee formula, or any other single-fee formula, an inequitable distribution of impacts upon public land ranchers would arise; some would be subsidized while others would likely be damaged.