Charging fees for grazing private livestock on federal lands is a long-standing but contentious
practice. Generally, livestock producers who use federal lands want to keep fees low, while
conservation groups and others believe fees should be increased. The formula for determining the
grazing fee for lands managed by the Bureau of Land Management (BLM) and the Forest Service
(FS) uses a base value adjusted annually by the lease rates for grazing on private lands, beef cattle
prices, and the cost of livestock production. Currently, the BLM and FS are charging a grazing fee
of $1.35 per animal unit month (AUM). For fee purposes, an AUM is defined as a month’s use
and occupancy of the range by one animal unit. The fee is in effect through February 28, 2013.
The collected fees are divided among the Treasury, states, and federal agencies. Fee reform was
attempted but not adopted in the 1990s. Issues for the 112th Congress include instances of grazing
without paying fees, efforts to retire certain grazing permits (H.R. 3432), and legislation to
automatically renew expired grazing permits until the renewal process is completed (S. 1129 and
H.R. 4234 (for further action on H.R. 4234 see H.R. 2578)). This report will be updated as
needed.