Abstract
The process of determining grazing fee levels for use of public lands has been highly controversial. Moreover, it has often been asserted that increases in grazing fees on federal lands will have no effect on stocking. Yet, environmental groups have advocated higher fees. In this paper we show that stocking does respond to changes in the grazing fee and the debate between environmental groups and livestock owners is not simply a question of distributional equity. Fees affect resource allocation and have become a focal point for both interest groups. The importance of the contractual stipulations between ranchers and the federal government to that outcome is demonstrated.
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