Why Grazing Permits Have Economic Value

Rimbey, Neil R., Torell, L. Allen, Tanaka, John A., Journal of Agricultural and Resource Economics

Grazing permit value supposedly arises as a cost advantage for permit holders. Yet, ranches are overpriced relative to income earning potential. Hedonic models for New Mexico and the Great Basin were used to evaluate permit value. We found less than 16% of the marginal value of grazing permits in New Mexico can be attributed to livestock production, and for Great Basin ranches, estimates indicate none of the value can be assigned to livestock production. Deeded and public land acreages make the ranch bigger and it is the acreage, not the cattle grazing it, that adds the most to ranchland value.

Key words: amenity owners, grazing fees, hedonic model, land value, public land …

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Publication information: Article title: Why Grazing Permits Have Economic Value. Contributors: Rimbey, Neil R. - Author, Torell, L. Allen - Author, Tanaka, John A. - Author. Journal title: Journal of Agricultural and Resource Economics. Volume: 32. Issue: 1 Publication date: April 2007. Page number: 20+. © Western Agricultural Economics Association Dec 2008. Provided by ProQuest LLC. All Rights Reserved.

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