The public lands grazing system was modernized in the 1930s in response to the rampant use of natural resources that led to the Dust Bowl — the massive dust storms triggered by poor agricultural practices, including overgrazing. Today, the system focuses on subsidizing the continued grazing of these lands.
The BLM and Forest Service, the two largest federal land management agencies, oversee most of the system. Combined, the agencies charged ranchers $21 million in grazing fees in 2024. Our analysis found that to be about a 93% discount, on average, compared with the market rate for forage on private land. We also found that, in 2024 alone, the federal government poured at least $2.5 billion into subsidy programs that public lands ranchers can access. Such subsidies include disaster assistance after droughts and floods as well as compensation for livestock lost to predators.
A small number of wealthy individuals and corporations manage most livestock on public lands. Roughly two-thirds of the grazing on BLM acreage is controlled by just 10% of ranchers, our analysis found. And on Forest Service land, the top 10% of permittees control more than 50% of grazing. Among the largest ranchers are billionaires like Stan Kroenke and Rupert Murdoch, as well as mining companies and public utilities. The financial benefits of holding permits to graze herds on public lands extend beyond cattle sales. Even hobby ranches can qualify for property tax breaks in many areas; ranching business expenses can be deducted from federal taxes; and private property associated with grazing permits is a stable long-term investment. (Representatives of Kroenke did not respond to requests for comment, and Murdoch’s representative declined to comment.)
The administration released a “plan to fortify the American Beef Industry” in October that instructed the BLM and Forest Service to amend grazing regulations for the first time since the 1990s. The plan suggested that taxpayers further support ranching by increasing subsidies for drought and wildfire relief, livestock killed by predators and government-backed insurance. The White House referred questions to the U.S. Department of Agriculture, which said in a statement, “Livestock grazing is not only a federally and statutorily recognized appropriate land use, but a proven land management tool, one that reduces invasive species and wildfire risk, enhances ecosystem health, and supports rural stewardship.” Roughly 18,000 permittees graze livestock on BLM or Forest Service land, most of them small operations. These ranchers say they need government support and cheaper grazing fees to avoid insolvency.