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The Commons
Blocking Market Approach to Grazing
Posted by Jonathan H. Adler  ·   1 December 2005  ·  Federal Lands and Parks

The Grand Canyon Trust turned to he marketplace in its efforts to improve the condition of federal grazing lands. Rather than seek additional regulatory controls on the use of federal land, they began buying grazing permits from ranchers who were willing to sell. Over the past several years, the Trust has spent over $1 million buying grazing permits on some 400,000 acres. It seemed like a win-win solution -- the Trust reduced grazing, ranchers got paid -- but some ranchers were not so happy about it. As the New York Times reports:

The deals seemed to suit all concerned, until a group of local officials decided that they were bad for the local economy and a threat to the ancestral tradition of living off the land. The group set out to end this latest, uncharacteristically civil chapter in the fraught history of cattlemen, environmentalists and dueling visions of the West's future.

Michael E. Noel, a former Bureau of Land Management employee who now is a Republican state representative from southern Utah, led the charge to roll back agreements the trust had forged. Mr. Noel said the loss of the grazing allotments would hurt ranching, which would in turn deprive the area's young people of the character-building chance to work on the land.

"Yes, it's a free market to buy and sell," Mr. Noel said recently. "But if you buy it, you use it."

By retiring the lands, he said, the trust is reneging on an implicit agreement, and "if we allow that to occur, we go down the path of eliminating all grazing on public lands."

Perhaps so, but this is a change being brought about by the marketplace, rather than government fiat. That's how markets work. If a given land-use is less desirable, the land will be purchased and devoted to higher valued uses. In the past, this meant that much land was devoted to grazing and resource extraction. Yet as the nation gets wealthier, people are willing to spend more money to purchase enviornmental amenities on tha same lands -- if the government lets it happen. Mr. Noel is seeking to put a legal halt to the Trust's efforts.

Unfortunately, the opposition from some (including some opposition within the Bush Administration to such approaches) may kill these efforts

Bill Hedden, the executive director of the Grand Canyon Trust . . . had hoped to create a situation with no losers. Ranchers could consolidate their herds in more congenial settings. Federal officials could bar grazing during a drought without bankrupting ranchers. The trust, dedicated to preserving the Colorado plateau, could show its financial supporters results.

Besides, he said, the land in question is marginal economically and at risk environmentally. . . . But given the resistance of local officials, Mr. Hedden is shelving the strategies he used here.

Without serious political support behind the Trust's efforts -- and legal reforms that make such market approaches more viable, they will disappear. That would be a shame, as the Trust's efforts are a good example of how the voluntary purchase of property rights (in this case, the grazing permits) can advance environmental values. It also illustrates how policies that are pro-resource use can be anti-market -- in this case by "protecting" ranching communities from the marketplace by preventing voluntary exchange.

Comments
  1. I spoke of free market solutions in reference to a Nov. 26th NYT editorial, though less eloquently, here:

    http://ponderingdilettante.blogspot.com/2005/11/privatizing-federal-lands.html

    Glad I found you!

    Posted by: PD at December 1, 2005 05:40 PM
  2. "would in turn deprive the area's young people of the character-building chance to work on the land."

    Sorry to say, that chance is declining rapidly, as well it should. More and more farm or ranch land has to come out of production annually because of our astounding year-to-year growth in agriculture productivity.

    The same forces that want to protect ranching communities are the ones demanding agriculture subsidies to protect farming as a lifestyle. The nation cannot afford to subsidize uneconomical lifestyles.

    Posted by: Jake at December 1, 2005 08:02 PM
  3. The Grand Canyon Trust should be applauded for working to improve the condition of federal lands by working with cattlemen instead of working against them. The real problem doesn’t seem to be that local politicians are working against the trust, but rather that the Taylor Grazing Act prohibits what the Grand Canyon Trust wants to do.

    As I understand it, the Taylor Grazing Act doesn’t create grazing rights, but rather grazing permits. These permits can be altered by the Department of Interior to reduce or prohibit the grazing of livestock during times of drought and emergency. But if there is no drought or emergency, a permitee must use the permit to graze livestock or the permit will be lost. The Grand Canyon trust must therefore graze some livestock on their permitted lands, or would violate the law and lose their permits.

    The law shouldn’t work this way, but as I understand it, it does. My problem with what the Grand Canyon Trust is doing is that it violates the law. The Taylor Grazing Act needs to be amended to allow the market to function. It is the only fair way to treat the both the cattlemen and people or groups like the Grand Canyon Trust.

    Posted by: Daniel at December 1, 2005 11:49 PM
  4. It seems to me that much of the debate here would be resolved if the government sold the land as fee simple to owners to use in highest (and perhaps multiple) value, rather than just renting grazing rights (or mineral rights, or ...)

    Posted by: Tom Tanton at December 3, 2005 10:13 AM