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Federal Grazing Reform And Avoidable Risk

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  • McCluskey, Jill J.
  • Rausser, Gordon C.

Abstract

Recent rangeland reform attempts have increased ranchers' uncertainty of retaining grazing permits on federal land. This uncertainty is analyzed with a model of grazing on federal land. Ranchers facing this uncertainty will behave differently than if they were guaranteed the renewal of grazing permits at constant real grazing fees. It is shown that the socially optimal outcome may be achieved by adding avoidable risk through targeted rangeland reform. Rangeland reform attempts that create unavoidable risk can make both ranchers and environmental groups worse off.

Suggested Citation

  • McCluskey, Jill J. & Rausser, Gordon C., 1999. "Federal Grazing Reform And Avoidable Risk," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 24(1), pages 1-15, July.
    • Handle: RePEc:ags:jlaare:30875
    DOI: 10.22004/ag.econ.30875
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    References listed on IDEAS

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    2. Lorraine M. Egan & Myles J. Watts, 1998. "Some Costs of Incomplete Property Rights with Regard to Federal Grazing Permits," Land Economics, University of Wisconsin Press, vol. 74(2), pages 171-185.
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    7. Ray G. Huffaker & James E. Wilen & B. Delworth Gardner, 1989. "Multiple Use Benefits on Public Rangelands: An Incentive-Based Fee System," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 71(3), pages 670-678.
    8. Myles J. Watts & Jeffrey T. LaFrance, 1994. "Cows, Cowboys, and Controversy: The Grazing Fee Issue," Monash Economics Working Papers archive-24, Monash University, Department of Economics.
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    10. Johnson, Ronald N. & Watts, Myles J., 1989. "Contractual stipulations, resource use, and interest groups: Implications from federal grazing contracts," Journal of Environmental Economics and Management, Elsevier, vol. 16(1), pages 87-96, January.
    11. Clarke, Harry R. & Reed, William J., 1994. "Consumption/pollution tradeoffs in an environment vulnerable to pollution-related catastrophic collapse," Journal of Economic Dynamics and Control, Elsevier, vol. 18(5), pages 991-1010, September.
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    Cited by:

    1. Batabyal, Amitrajeet A. & Biswas, Basudeb & Godfrey, E. Bruce, 2003. "A Dynamic And Stochastic Perspective On The Role Of Time In Range Management," 2003 Annual meeting, July 27-30, Montreal, Canada 22149, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Costello, Christopher J. & Kaffine, Daniel, 2008. "Natural resource use with limited-tenure property rights," Journal of Environmental Economics and Management, Elsevier, vol. 55(1), pages 20-36, January.

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    Agricultural and Food Policy;

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