Tuesday, November 22, 2011

Land board increases grazing fees for state leases

The Montana Land Board on Monday agreed to increase the amount it charges ranchers for grazing on state land, but only after it reduced the proposed increase amid criticism from ranchers. Ranchers argued that the increase of more than 50 percent, which will be phased in over five years, is still too high. The land board, made up of five statewide elected officials including the governor, voted Monday. It made several changes to the proposed increase, which came after a study commissioned by the board found the state was charging far less than market value. The board argued that the sizable increase was needed because the amount had not been adjusted for inflation in years. The rates would affect about 4 million acres of state land — and nearly 5,000 ranchers who lease the land from the state. Agency director Mary Sexton said that every $1 increase in the average $6.50 price per animal unit currently charged would raise an extra $1 million a year. The land board agreed to increase that amount to $10.19 over five years, which will raise roughly an additional $3 million when fully implemented...more

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