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EO 12548Executive OrderReagan · R Quiet signal

Executive Order 12548

Grazing Fees

This executive order establishes a permanent mathematical formula for calculating fees that ranchers pay to graze livestock on federal public rangelands, using a base rate adjusted annually by forage values, beef prices, and production costs, with annual changes capped at 25% and a minimum fee of $1.35 per animal unit month.

51 FR 5985
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Impact dates

  1. Annual fee computation and adjustment (recurring yearly obligation)

  2. EO effective immediately

Key directives

  • Secretaries of Agriculture and Interior directed to establish grazing fees using prescribed formula
  • Annual fee equals $1.23 base × [(Forage Value Index + Combined Index) / 100]
  • Combined Index = Beef Cattle Price Index minus Prices Paid Index
  • Annual fee change limited to ±25% of previous year's fee
  • Fee floor of $1.35 per animal unit month
  • Statistical Reporting Service designated as data source for all indices
  • Existing PRIA Section 6(a) administrative rules continue where consistent

Who is ordered

Timeline

Immediate

  • EO effective immediately upon signing
  • existing PRIA rules and practices continue in force
  • new formula supersedes prior Section 6(a) administration

Near term (90d)

  • Secretaries of Agriculture and Interior to implement annual fee calculations using new formula
  • Statistical Reporting Service to begin supplying required index data

Long term

  • ongoing annual fee adjustments under capped formula
  • potential structural underpricing of grazing fees relative to market rates
  • long-term rangeland fiscal and environmental management implications

Risks & tensions

  • Formula may perpetuate below-market grazing rates: $1.23 base (1966) and $1.35 floor may not reflect true market or environmental costs
  • 25% annual cap creates ratchet effect limiting fee recovery even if market conditions warrant larger adjustments
  • Dependency on Statistical Reporting Service data creates single-point vulnerability; agency reorganizations could disrupt index computation
  • Tension between rancher economic interests and environmental advocates seeking higher fees to reflect rangeland degradation costs
  • Congressional oversight tension: EO formula may constrain legislative control over federal land pricing policy
Executive Order 12548: Grazing Fees · Executive Orders