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Why Grazing Permits Have Economic Value


  • Rimbey, Neil R.
  • Torell, L. Allen
  • Tanaka, John A.


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.

Suggested Citation

  • Rimbey, Neil R. & Torell, L. Allen & Tanaka, John A., 2007. "Why Grazing Permits Have Economic Value," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 32(01), April.
  • Handle: RePEc:ags:jlaare:8604

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    References listed on IDEAS

    1. repec:oup:revage:v:28:y:2006:i:2:p:240-253. is not listed on IDEAS
    2. JunJie Wu & Bruce A. Babcock & P. G. Lakshminarayan, 1996. "Impacts of Agricultural Practices and Policies on Potential Nitrate Water Pollution in the Midwest and Northern Plains of the United States," Center for Agricultural and Rural Development (CARD) Publications 96-wp148, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    3. Daniel R. Petrolia & Prasanna H. Gowda, 2006. "Missing the Boat: Midwest Farm Drainage and Gulf of Mexico Hypoxia," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 28(2), pages 240-253.
    4. Ribaudo, Marc O. & Heimlich, Ralph & Claassen, Roger & Peters, Mark, 2001. "Least-cost management of nonpoint source pollution: source reduction versus interception strategies for controlling nitrogen loss in the Mississippi Basin," Ecological Economics, Elsevier, vol. 37(2), pages 183-197, May.
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