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DNR Grazing Lands Study Proposed Final Report

This report explores the financial aspects and overall impacts of the grazing program on Washington State Trust Lands, including revenues, expenditures, costs, and benefits. It provides a comprehensive analysis of the program's legal and policy environment, as well as recommendations for future management options.

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DNR Grazing Lands Study Proposed Final Report

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  1. DNR Grazing Lands StudyProposed Final Report Joint Legislative Audit & Review Committee Linda Byers September 14, 2005

  2. State Trust Lands Used for Grazing • Washington owns some 850,000 acres of trust lands used for grazing • About half used primarily for grazing • About half are forested lands with grazing secondary • In the 2004 Capital Budget, Legislature asked JLARC to look into the question “Does the grazing program make money for the trust beneficiaries?”

  3. Grazing Study Has 3 Major Parts • An overview of the grazing program’s special legal and policy environment; • A narrow look at grazing program revenues and expenditures; and • A broader look at the costs and benefits associated with the grazing program.

  4. Grazing Program Legal/Policy Environment • Two key points to remember: • The Legislature is the trustee of these and all of the state trust lands; the Legislature has selected the Department of Natural Resources to be the trust land manager. • The Challenge: The Legislature and DNR must consider current revenues for beneficiaries from the land and protecting and enhancing the land to generate revenues in the future. Report pages 5-8

  5. A Narrow Look at Grazing Program Revenues and Expenditures • Total revenues average $590,000/yr from more than 1,200 grazing leases and permits; • 75% of revenues distributed to the beneficiaries (averaging $440,000/year) • 25% of revenues deposited into DNR’s pooled management account; • The grazing program draws more money from the pooled management account to manage the program than it puts in ($370,000/yr avg expenditures vs $149,000/yr avg deposits) • In four state comparison, Washington’s fees generally higher Report pages 9-17

  6. Recreation Regional Jobs Ranching Jobs Land Stewardship Open Space Tradition Looking More Broadly:Grazing Program Costs & Benefits • Development of a flexible benefit cost model • Policymakers can adjust assumptions and choose which layers to include • Physical condition of the land is not quantified in the model Revenue/ Expenditures Report pages 19-26

  7. Report’s Recommendation DNR should retain and use the benefit cost model created in this study to examine grazing lands policy and management options as needed. Since the June JLARC Meeting • DNR and OFM have concurred • Member letter to JLARC about intent to pursue grazing lands condition assessment Report pages 29-30

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