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Grazing Fee Decreases For 2019 Agricultural Leases

on March 11, 2019 - 4:57pm

State Land Office News:

SANTA FE – The State Land Office (SLO), in accordance with NMAC, has updated the fee assessed to ranchers and farmers who lease state trust land for livestock grazing.

The amount is determined annually using a formula that accounts for various factors such as private grazing land lease rates, beef cattle prices, and the cost of livestock production. The formula has been used to determine rental rates for livestock grazing since 1988.

“I’m happy to announce this decrease in fees to all 2019 agricultural leases of our state trust land. This is an important part of our business because we lease approximately 8.8 million acres to ranchers and farmers in New Mexico for livestock grazing. All of our leases represent a strong partnership and a dedication to supporting the agricultural roots of our state,” Commissioner Garcia Richard said.

The new rental fee for 2018-2019 translates to an average rate of $5.56 per animal unit month (AUM). This is a decrease of 1.79 percent from last year. The calculation of the fee was third party verified and confirmed by Dr. Nick Ashcroft to assure accuracy. Dr. Ashcroft is a Senior Analyst at New Mexico State University’s Linebery Policy Center for Natural Resource Management.

“By collecting reasonable fees from ranchers and farmers using state trust land, they are helping us meet our responsibility to fund our schools, hospitals and colleges,” Garcia Richard added.

Oil, gas, and mineral production, ranching and farming, and commercial development on State Trust Lands support public schools, seven universities, New Mexico Military Institute, New Mexico School for the Deaf, New Mexico School for the Blind and Visually Impaired, three hospitals, correctional facilities, water conservation projects, and public building construction and repair.  In fiscal year 2018, the State Land Office collected $852 million from lease payments, oil and gas lease sale earnings, rights-of-way, permits, interest, fees, and oil, gas, and mineral royalties.