id_2209.13-2012-7 Page 1 of 15 FOREST SERVICE MANUAL NORTHERN REGION (REGION 1) MISSOULA, MT FSH 2209.13 – GRAZING PERMIT ADMINISTRATION HANDBOOK CHAPTER 80 – GRAZING FEES Interim Directive No.: 2209.13-2012 -7 Effective Date: July 6, 2012 Duration: This interim directive expires on January 6, 2014. Approved: FAYE L. KRUEGER Regional Forester Date Approved: 07/03/2012 Posting Instructions: Interim directives are numbered consecutively by Handbook number and calendar year. Post by document at the end of the chapter. Retain this transmittal as the first page(s) of this document. The last interim directive was 2209.13-2012-6 to chapter 70. New Document(s): id_2209.13-2012-7 15 Pages Superseded Document(s) by Issuance Number and Effective Date id_2209.13-2010-7, 11/08/2010 16 Pages Digest: 81.22 – Provides background information on the animal-unit equivalency between different classes of animals, but clarifies that grazing fees are still charged on the head-month basis nevertheless. 81.3 – Clarifies time requirements for issuance of Bills for Collection. Explains that correspondence between the authorized officer and the permit holder is still a requirement in years when nonuse for personal convenience has been approved. Provides clarification that allowing grazing fees to be paid in installments is not normally allowed except on National Grasslands where grazing agreements have been issued to authorized grazing associations. Such practices are not encouraged on National Forests. R1 INTERIM DIRECTIVE EFFECTIVE DATE: 07/06/2012 DURATION: This interim directive expires on 01/06/2014 id_2209.13-2012-7 Page 2 of 15 FSH 2209.13 – GRAZING PERMIT ADMINISTRATION HANDBOOK CHAPTER 80 – GRAZING FEES Table of Contents 81 – GRAZING FEES ..................................................................................................... 3 81.1 – Payment of Grazing Fees ................................................................................................. 3 81.2 - Unit of Charge .................................................................................................................. 3 81.21 – Grazing Fees for Partial Months ................................................................................ 3 81.22 – Animal Equivalency Ratio ......................................................................................... 4 81.23 – Lambing, Calving, Kidding ....................................................................................... 5 81.24 – Livestock Without Offspring ..................................................................................... 5 81.25 – Grazing Fee Year ....................................................................................................... 5 81.3 – Bills for Collection........................................................................................................... 5 81.4 – Unpaid Bill for Collection ............................................................................................... 5 81.41 – Fee for Grazing When Bill for Collection is Unpaid ................................................. 6 81.42 – Interest Charges ......................................................................................................... 6 81.43 – Penalty........................................................................................................................ 6 81.44 – Administrative Costs .................................................................................................. 6 81.45 – Permit Suspension or Cancellation for Unpaid Bill for Collection ........................... 6 81.5 - Refunds and Credits ......................................................................................................... 6 81.6 – Increased Use Requests ................................................................................................... 7 81.7 – Excess or Unauthorized Livestock Use ........................................................................... 7 81.8 – Local Agreements with the Bureau of Land Management .............................................. 7 82 – GRAZING FEE SYSTEMS ...................................................................................... 7 83 – GRAZING FEES FOR NATIONAL FORESTS IN THE SIXTEEN CONTIGUOUS WESTERN STATES AND NATIONAL GRASSLANDS IN CALIFORNIA, IDAHO, AND OREGON ....................................................................................... 8 83.1 - Grazing Fee Formula ........................................................................................................ 8 83.2 – Use of Grazing Fees for Rangeland Improvements under the Range Betterment Fund (RBF) .............................................................................................................................. 9 83.3 - Annual Grazing Fees ........................................................................................................ 9 84 – GRAZING FEES FOR NATIONAL GRASSLANDS AND LAND UTILIZATION PROJECTS EXCEPT IN CALIFORNIA, IDAHO, AND OREGON ....................... 9 84.1 - Grazing Fee Formula ........................................................................................................ 9 84.2 - Fee Reductions for Authorized Land Use Practice Expenditures .................................. 10 84.21 – Administrative Costs and Conservation Practices ................................................... 11 84.22 – Conservation Practice Approval Criteria ................................................................. 12 84.23 – Fee Reduction Criteria ............................................................................................. 12 84.3 - Annual Grazing Fees ...................................................................................................... 15 85 – GRAZING FEES FOR NATIONAL FORESTS IN the EASTERN UNITED STATES - RESERVED...................................................................................................... 15 86 - ANNUAL RATES AND COMPETITIVE BID ADJUSTMENT FACTORS .............. 15 87 – GRAZING WITHOUT CHARGE............................................................................ 15 R1 INTERIM DIRECTIVE EFFECTIVE DATE: 07/06/2012 DURATION: This interim directive expires on 01/06/2014 id_2209.13-2012-7 Page 3 of 15 FSH 2209.13 – GRAZING PERMIT ADMINISTRATION HANDBOOK CHAPTER 80 – GRAZING FEES 81 – GRAZING FEES 81.1 – Payment of Grazing Fees Except in those limited situations where free grazing is expressly approved by the authorized officer (sec. 87), charge a fee for grazing by domestic livestock on National Forest System lands or other lands under Forest Service control. 81.2 - Unit of Charge Charge grazing fees for each head month of grazing by a mature animal. For purposes of determining the grazing fee, an animal is classified as “mature” as soon as it reaches six months of age. A “mature” animal is one that is weaned, at least 6 months old upon entry onto National Forest System lands, or will become 12 months old during the permitted period of use. 81.21 – Grazing Fees for Partial Months Where permits authorize grazing for less than a full head month, divide the number of days of authorized grazing by the number of days in the month and multiply by the monthly grazing fee to determine the grazing fee for the partial month. Follow computation directions given in exhibits 01 and 02 to this section. 81.21- Exhibit 01 Computation of Head Months for Which Payment Is Due To compute the number of head months for which payment is due: 1. Determine the days of the year (numbered 1 to 365) for the on-and off-dates; 2. Subtract the on-date day from the off-date day; 3. Add 1 day (to include the on-date day of use); and 4. Divide this number by 30.416667 to determine the head months for which payment is due. (Note: the divisor 30.416667 is the result of dividing the number of days in a year (365) by the number of months in a year (12)). Example: Season of use is June 6 through October 10; the number of animals (head) is 125. Off-date October 10 calendar day: Minus on-date June 6 calendar day: Subtotal: Plus 1 day of use for on-date of June 6: 283 -157 126 + 1 127 R1 INTERIM DIRECTIVE EFFECTIVE DATE: 07/06/2012 DURATION: This interim directive expires on 01/06/2014 id_2209.13-2012-7 Page 4 of 15 FSH 2209.13 – GRAZING PERMIT ADMINISTRATION HANDBOOK CHAPTER 80 – GRAZING FEES 81.21- Exhibit 01--Continued 127 30.416667 = 4.175 x 125 head = 522 head months (521.875 rounded up*) The total number of head months (522 in this example) is then multiplied by the grazing fee for that year for that type of livestock. *Fractional values of head months should be rounded up when they are greater than, or equal to, .5, or rounded down when they are less than .5. 81.21 - Exhibit 02 Fractional Equivalents of Head Months Use these instructions only when the on and off dates occur in the same month (less than 1 month total permitted use). Calculate the fraction of the month using the number of permitted animals multiplied by the actual days of permitted use divided by the actual number of days in the month. Example: Season of use is February 12 through February 28; the number of animals (head) is 125: February 12 through February 28 = 17 days 17 days 28 = .607142 .607142 x 125 (number of animals) = 76 Head Months (75.892750 rounded up*) *Fractional values of head months should be rounded up when they are greater than, or equal to .5, and rounded down when they are less than .5. 81.22 – Animal Equivalency Ratio For fee purposes, five adult sheep or goats are equivalent to one cow, bull, steer, heifer, horse, mule, or bison. However, the fee to be charged is on the head-month basis, and the annual headmonth rate for sheep/goats is different than (one-fifth of) the head-month rate for cattle/horses. R1 INTERIM DIRECTIVE EFFECTIVE DATE: 07/06/2012 DURATION: This interim directive expires on 01/06/2014 id_2209.13-2012-7 Page 5 of 15 FSH 2209.13 – GRAZING PERMIT ADMINISTRATION HANDBOOK CHAPTER 80 – GRAZING FEES 81.23 – Lambing, Calving, Kidding Do not assess additional charges for lambing, calving, or kidding on National Forest System lands. 81.24 – Livestock without Offspring The absence of lambs, calves, kids, or colts in a band or herd does not qualify for reductions in the grazing fee. 81.25 – Grazing Fee Year The grazing fee year shall begin on the first day of March and end on the last day of the following February. 81.3 – Bills for Collection Bills for collection are generally sent to the permittee at least 35 days before the permitted on date. The bill includes the total number of livestock permitted, the kind and class of livestock permitted, the permitted season of use, the allotment(s) designated for permitted grazing, the total grazing fee, and the due date for payment (which should be at least 5 days prior to the permitted on date to provide time to verify that the bill has been paid prior to entry on the allotment). In addition, and where applicable, bills for collection may identify the kind and type of authorized nonuse in the “Remarks” section; however, the authorized officer must still inform the permittee, in writing, annually of the year of nonuse and the requirement for restocking after approved nonuse is exhausted. See section 17. Subject to the express written approval of the authorized officer, grazing fees may be paid in installments provided that the payments are made prior to the grazing use covered by the installment. Regional Foresters may specify the minimum amounts that will be billed in installment payments. This provision is normally only allowed on National Grasslands operating with grazing agreements issued to grazing associations. It is not encouraged and seldom used on National Forests. 81.4 – Unpaid Bill for Collection The Bill for Collection is classified as a “delinquent debt” if the grazing fees are not paid by the due date specified therein. Livestock may not be placed on the permitted allotment(s) until the grazing fees in the Bill for Collection are paid. In addition, failure to pay the grazing fees on or before the due date in the Bill for Collection may result in charges for unauthorized use, interest, R1 INTERIM DIRECTIVE EFFECTIVE DATE: 07/06/2012 DURATION: This interim directive expires on 01/06/2014 id_2209.13-2012-7 Page 6 of 15 FSH 2209.13 – GRAZING PERMIT ADMINISTRATION HANDBOOK CHAPTER 80 – GRAZING FEES penalties, and administrative costs (see FSH 6509.11h, ch. 20), and action to suspend or cancel the permit (ch. 10). 81.41 – Fee for Grazing When Bill for Collection is Unpaid The fee for any grazing that occurs after the due date in the Bill for Collection and before the payment of the Bill for Collection shall be assessed at the unauthorized use rate. See section 81.7 below. 81.42 – Interest Charges The authorized officer shall also assess interest charges for unpaid bills for collection beginning the day after the due date. However, if the grazing fees are paid within 30 days of the due date, the authorized officer shall waive the interest charge. 81.43 – Penalty The authorized officer shall assess a penalty of six percent per year for grazing fees that are more than 90 days past due. 81.44 – Administrative Costs The authorized officer shall also assess a charge for reasonable administrative costs incurred by the Forest Service to process a delinquent debt until the Bill for Collection is paid. 81.45 – Permit Suspension or Cancellation for Unpaid Bill for Collection In addition to the fees and charges outlined above, the authorized officer may take action to suspend or cancel a term grazing permit, in whole or in part, based on the permittee’s failure to pay the grazing fees on or before the due date in a Bill for Collection. See chapter 10. 81.5 - Refunds and Credits Requests for refunds of grazing fees paid or credits towards the payment of the following year’s grazing fees must be made in writing and approved by the authorized officer and may be available in limited situations where the total amount of grazing by the permittee’s livestock during a grazing season was less than the amount assessed in the Bill for Collection. Refund/credit requests of less than $100 will be processed as credits against the grazing fee for the next authorized grazing season. Refunds or credits may be approved only if the permittee delays placing permitted livestock on the designated allotment(s) at the beginning of the grazing season, places fewer permitted livestock on the designated allotment(s) than authorized by the permit, or removes permitted livestock from the designated allotment(s) prior to the end of the permitted grazing season at the request of the authorized officer. However, requests for refunds or credits may only be approved when the basis for the request is related to the condition of R1 INTERIM DIRECTIVE EFFECTIVE DATE: 07/06/2012 DURATION: This interim directive expires on 01/06/2014 id_2209.13-2012-7 Page 7 of 15 FSH 2209.13 – GRAZING PERMIT ADMINISTRATION HANDBOOK CHAPTER 80 – GRAZING FEES National Forest System rangeland resources; for example, the forage was not ready for grazing at the beginning of the grazing season or the utilization level was reached prior to the end of the grazing season. Requests for refunds or credits which are based on the permittee convenience or business motivations of the permittee shall be denied. 81.6 – Increased Use Requests All extensions of the authorized season of use must be paid. Permittee requests to increase the amount of permitted use to take advantage of additional forage must be made in writing and submitted to the authorized officer sufficiently in advance of the time when the increased use is sought. The authorized officer may approve such a request (but is under no obligation to do so) in a Bill for Collection, provided that the approval conforms to applicable law, regulation, and direction in the forest, grassland, or allotment management plans. The fee for increased use shall be paid prior to the beginning of the period of increased use. 81.7 – Excess or Unauthorized Livestock Use Assess fees at the unauthorized use rate for excess or unauthorized livestock use. Charge the unauthorized use rate for any livestock use that exceeds the amount of use authorized by the permit or occurs at times or places that are not authorized by the permit; for example, grazing before the permitted on date or after the permitted off date, or that are to be rested. The unauthorized use rate is based on the full commercial value of leased forage, unadjusted for differential operating costs for grazing National Forest System lands and leased private rangelands. The unauthorized use rate does not consider permittee contributions towards rangeland improvements. See FSM 2205 for definitions of “unauthorized livestock” and “excess livestock.” 81.8 – Local Agreements with the Bureau of Land Management Where allotments include lands under the jurisdiction of both the Forest Service and the Bureau of Land Management, the agency responsible for administering grazing shall collect the grazing fees. The administering agency shall credit grazing fees to each agency based on the carrying capacity established for each agency’s land. 82 – GRAZING FEE SYSTEMS The system used to determine the fee charged for grazing on National Forest System lands differs depending on whether the permitted grazing occurs on: (1) National Forests in the sixteen contiguous western states; (2) National Grasslands and land utilization projects; or (3) on National Forests in the Eastern United States. R1 INTERIM DIRECTIVE EFFECTIVE DATE: 07/06/2012 DURATION: This interim directive expires on 01/06/2014 id_2209.13-2012-7 Page 8 of 15 FSH 2209.13 – GRAZING PERMIT ADMINISTRATION HANDBOOK CHAPTER 80 – GRAZING FEES 83 – GRAZING FEES FOR NATIONAL FORESTS IN THE SIXTEEN CONTIGUOUS WESTERN STATES AND NATIONAL GRASSLANDS IN CALIFORNIA, IDAHO, AND OREGON Grazing fees are calculated in accordance with Executive Order 12548 issued February 14, 1986 (E.O. 12548). E.O. 12548 specifies that the fee for livestock grazing on National Forests in the sixteen contiguous western states and National Grasslands in California, Idaho, and Oregon must not be less than $1.35 per animal unit month in any grazing fee year. In addition, E.O. 12548 provides that the grazing fee in any given year may not be more than 25 percent higher or lower than the previous year’s fee. The “sixteen contiguous western states” are defined in the Federal Land Policy and Management Act (FLPMA) and include Arizona, California, Colorado, Idaho, Kansas, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Utah, Washington, and Wyoming. 83.1 - Grazing Fee Formula GF = BV x FVI + (BCPI - PPI) 100 Where: GF = Grazing fee charged by the Forest Service to the permittee. BV = Fair market base value of $1.23. The $1.23 base value was established in a 1977 study by the Secretaries of Agriculture and the Interior and is based on an analysis of data in the 1966 Western Livestock Grazing Survey. Items considered in the development of the base value included costs associated with grazing on public lands versus costs associated with grazing on private lands. Among the items considered as costs were: lost animals; association fees; veterinary fees; moving livestock to and from grazing areas; herding; salt; feed; water; horses; permittee travel to and from grazing areas; fence maintenance; water development maintenance; and development depreciation. FVI = Forage Value Index (annually computed from data supplied by the U.S. Department of Agriculture (USDA), National Agricultural Statistics Service (NASS)). The FVI, an index of annually surveyed private grazing land lease rates, 1964-1968 = 100. BCPI = Beef Cattle Price Index (Source: NASS). The BCPI, an index of USDA annually reported prices of beef cattle over 500 pounds, 1964-1968 = 100. PPI = Prices Paid Index (Source: NASS). The PPI, indexed prices that livestock producers pay for selected production items, 1964-1968 = 100. R1 INTERIM DIRECTIVE EFFECTIVE DATE: 07/06/2012 DURATION: This interim directive expires on 01/06/2014 id_2209.13-2012-7 Page 9 of 15 FSH 2209.13 – GRAZING PERMIT ADMINISTRATION HANDBOOK CHAPTER 80 – GRAZING FEES 83.2 – Use of Grazing Fees for Rangeland Improvements under the Range Betterment Fund (RBF) Under FLPMA, each year the RBF is scheduled to receive 50 percent of the amounts paid into the Treasury as grazing fees, or $10 million, whichever is greater. This money is used to finance on-the-ground rangeland rehabilitation, protection, and improvement projects on the Forest or Region from which the grazing fees originated. See generally FSM 2240 for information on RBF allocations, authorized and prohibited expenditures, and funding priorities. 83.3 - Annual Grazing Fees See section 86 for current rate. 84 – GRAZING FEES FOR NATIONAL GRASSLANDS AND LAND UTILIZATION PROJECTS EXCEPT IN CALIFORNIA, IDAHO, AND OREGON Forest Service regulations require the fee for National Grasslands and land utilization projects to be established under concepts and principles similar to those used for National Forests in the sixteen contiguous western states. Therefore, the formula used to calculate the annual fee for grazing on National Grasslands and land utilization projects in all states other than California, Idaho, and Oregon is the same as the formula used to calculate the grazing fee for National Forests in the 16 contiguous western states except that the base value, beef cattle price index, and prices paid index are calculated based on information from only those states in which the affected grasslands or land utilization projects are located. The fee for grazing on National Grasslands in California, Idaho, and Oregon are is the same as the fee for grazing on National Forests in the sixteen contiguous western states. See section 83 above. As on National Forests in the sixteen contiguous western states, the grazing fee on National Grasslands and land utilization projects will not be less than $1.35 per head month in any year and the grazing fee in any one year will not be more than 25 percent higher or lower than the previous year’s grazing fee. 84.1 - Grazing Fee Formula GF = BVNG x FVI + (BCPI - PPI) 100 Then subtract the LUP from the grazing fees due to determine actual fee due to the treasury. Where: GF = Grazing fee charged by the Forest Service to the permittee. R1 INTERIM DIRECTIVE EFFECTIVE DATE: 07/06/2012 DURATION: This interim directive expires on 01/06/2014 id_2209.13-2012-7 Page 10 of 15 FSH 2209.13 – GRAZING PERMIT ADMINISTRATION HANDBOOK CHAPTER 80 – GRAZING FEES BVNG = Stands for Base Value National Grasslands which is the fair market base value of $1.33. This figure is derived from the 1966 Western Livestock Grazing Survey data as follows: Base Value for National Forest Cost Differences, National Forest = Base Value for National Grassland Cost Differences, National Grassland $1.23 = BVNG $1.60 $1.73 $1.60 x BVNG = $2.13 BVNG = $1.33 FVI = Forage Value Index (annually computed from data supplied by the U.S. Department of Agriculture (USDA), National Agricultural Statistics Service (NASS)). The FVI, an index of annually surveyed private grazing land lease rates, 1964-1968 = 100. BCPI = Beef Cattle Price Index (Source: NASS). The BCPI, an index of USDA annually reported prices of beef cattle over 500 pounds, 1964-1968 = 100. PPI = Prices Paid Index (Source: NASS). The PPI, indexed prices that livestock producers pay for selected production items, 1964-1968 = 100. LUP = Land Use Practices. Fee reduction for conservation practices (and administrative activities where grazing associations administer grazing activities of their members under a grazing agreement). Fees may be reduced by 50 percent where only conservation practices are involved; by 75 percent where a combination of conservation practices and administrative activities are involved. 84.2 - Fee Reductions for Authorized Land Use Practice Expenditures The authorized officer may reduce the fee assessed for grazing on National Grasslands and land utilization projects covered by this section in consideration of expenditures incurred by the permittee to carry out certain authorized land use practices. These land use practices include conservation practices and, in some circumstances, administrative activities as well. Fee reductions for administrative activities are only available to grazing associations for routine costs incurred by the association to administer the livestock grazing activities of its members under a grazing agreement issued by the Forest Service. Fees may be reduced by up to 50 percent where only conservation practice expenditures are involved; fees may be reduced by up to 75 percent where conservation practice and administrative activity expenditures are involved except as provided for in 84.21(2). R1 INTERIM DIRECTIVE EFFECTIVE DATE: 07/06/2012 DURATION: This interim directive expires on 01/06/2014 id_2209.13-2012-7 Page 11 of 15 FSH 2209.13 – GRAZING PERMIT ADMINISTRATION HANDBOOK CHAPTER 80 – GRAZING FEES 84.21 – Administrative Costs and Conservation Practices In order to determine the grazing fee on lands covered by a grazing agreement, the value for grazing on National Grasslands may be reduced by up to 75 percent to reflect expenses incurred by the grazing association (or by up to 50 percent to reflect expenses incurred by a direct permittee) to carry out required land use practices, including: 1. Administrative Costs. Administrative costs are costs that would otherwise be borne by the Forest Service if it were directly administering the grazing permits of the Association members and may include routine administrative and clerical expenses incurred by the Association related to activities like issuance of grazing permits, collection of grazing fees, monitoring livestock use, enforcement of permit terms and conditions, and record keeping. Administrative costs must be approved by the authorized officer in advance and may include, but are not limited to, expenses incurred by the Association for salaries and benefits, payroll taxes, postage, copying, depreciation, office space, utilities, legal and accountant fees, and directors’ expenses related to administering the Agreement. Administrative costs may not include any expenses (including attorney fees) related to legal or administrative challenges against the Forest Service. Association costs for memberships in, dues for, or contributions to advocacy groups are also not allowed administrative expenses. 2. Conservation Practices. Conservation practices are structural and non-structural rangeland treatments and improvements on National Forest System lands that are approved in advance by the authorized officer and are necessary to properly administer a grazing agreement or grazing permit. Conservation practices shall always be designed and implemented to protect and, where applicable, enhance other resource values and uses. Examples of conservation practices include fences, water developments, vegetation manipulation, land exchanges, watershed protection, wildlife habitat improvement, and studies to determine rangeland health and stocking rates. The total amount of expenses allowed for both conservation practices and administrative costs will normally not exceed 75% of the grazing value. Conservation practices may be less than 50% of the grazing value, but will normally not exceed 50% of the grazing value with the balance of the up to 75% of the grazing value allowed for administrative costs. No less than 25% of the fee should normally be returned to the United States Treasury annually, a portion of which is distributed to counties where the fees were collected to assist with funding schools and roads. In the rare case where the authorized officer decides to allow greater than the 50 percent of the value to be used for conservation practices that year, and/or greater than 75 percent of the value for a combination of conservation practices and administrative costs, the approval and rationale for doing so should be documented in a letter to the association (see Section 24.3). R1 INTERIM DIRECTIVE EFFECTIVE DATE: 07/06/2012 DURATION: This interim directive expires on 01/06/2014 id_2209.13-2012-7 Page 12 of 15 FSH 2209.13 – GRAZING PERMIT ADMINISTRATION HANDBOOK CHAPTER 80 – GRAZING FEES For grazing permits issued directly by the Forest Service to individuals on National Grasslands, fee reductions for conservation practices may be applied to an individual permit or across an administrative area, such as an entire National Grassland or Ranger District. No fee reduction for administrative costs will be allowed for grazing permits issued directly by the Forest Service to individuals. 84.22 – Conservation Practice Approval Criteria Prior to approving a conservation practice for a fee reduction, the authorized officer must: 1. Ensure that conservation practices are located on National Grasslands, Land Utilization Projects, or lands over which the United States holds an easement. 2. Ensure that the primary purpose of the conservation practice is to improve resource conditions related to permitted livestock grazing activities on the National Grasslands covered by the grazing agreement. 3. Identify whether the conservation practice meets resource management objectives as set forth in the applicable forest or grassland plan, AMP, or project decision. 4. Ensure that the development and implementation of the conservation practice is conducted in compliance with applicable federal laws and regulations. 5. Ensure that the costs incurred by the member or permittee in developing or implementing the conservation practice would otherwise be borne by the Forest Service. 6. Determine whether the conservation practice is cost effective. 7. Ensure that title to the conservation practice is in the name of the United States. 8. Ensure that water rights that may be associated with the conservation practice are filed in the name of the United States. 84.23 – Fee Reduction Criteria In order to qualify for a reduction in the grazing fee based on approved land use practices, expenditures incurred for those practices shall be documented in writing and verified by the authorized officer. Fee reductions are not available for land use practices where the grazing agreement covers National Forest lands. In those cases, structural and non-structural range improvements are funded under the Range Betterment Fund. See section 83.2. R1 INTERIM DIRECTIVE EFFECTIVE DATE: 07/06/2012 DURATION: This interim directive expires on 01/06/2014 id_2209.13-2012-7 Page 13 of 15 FSH 2209.13 – GRAZING PERMIT ADMINISTRATION HANDBOOK CHAPTER 80 – GRAZING FEES Fee reductions are authorized under the Title III of the Bankhead Jones Farm Tenant Act and a 1950 Comptroller General’s opinion which is set forth at exhibit 01. 84.2 - Exhibit 01 COMPTROLLER GENERAL OF THE UNITED STATES WASHINGTON 23 B-77467 November 8, 1950 The Honorable The Secretary of Agriculture My dear Mr. Secretary: Reference is made to letter of October 24, 1950, from the Assistant Secretary in response to request of August 24, 1950, for your views with respect to the practice of the Soil Conservation Service of leasing lands covered by Title III of the Bankhead-Jones Farm Tenant Act at reduced rentals in return for the performance by the permittees or lessees of improvements, and so forth to the lands, thus resulting in what appeared to be an augmentation of your Department's annual appropriation for "Land Utilization and Retirement of Marginal Land," and resulting, also, in what appeared to be a diversion of funds otherwise payable to the county or counties in which such lands are situated. The letter of October 24, cites particularly as authority for such practice the provisions of section 32(c) of the act, supra, 7 U.S. Code 1011(c), which authorizes the Secretary "To sell, exchange, lease, or otherwise dispose of, with or without a consideration, any property so acquired, under such terms and conditions as he deems will best accomplish the purposes of sections 1010-1013 of this title." The said letter indicates that the condition of the land determines whether certain land use practices--it being understood that fencing and the providing of water tanks properly may be classified as land use practices--are to be imposed upon permittees or lessees, and that the fees or rentals are established in relation to the value of the use of the land as it may be used under the required land use practices. In that connection, it is pointed out that the lands which can be used under the act without the necessity of imposing additional land use practices have a greater value than lands which, because of their condition, require the imposition of special land use practices upon permittees or lessees at their own expense. Considering the broad purpose of Title III of the Bankhead-Jones Farm Tenant Act, and especially the authority vested in the Secretary by section 32(c) thereof to lease lands, with or without consideration, under such terms and conditions as will best accomplish the purpose of the act, no further question will be raised by this office with respect to what had appeared to be R1 INTERIM DIRECTIVE EFFECTIVE DATE: 07/06/2012 DURATION: This interim directive expires on 01/06/2014 id_2209.13-2012-7 Page 14 of 15 FSH 2209.13 – GRAZING PERMIT ADMINISTRATION HANDBOOK CHAPTER 80 – GRAZING FEES 84.2 - Exhibit 01--Continued an augmentation of funds resulting from the leasing practices referred to in Office letter of August 24, 1950. Moreover, in view of the foregoing, it now appears that no diversion of funds otherwise payable to the counties in which the lands are situated would result from the above-mentioned leasing practices. Section 33 of the act, 7 U.S. Code 1012, requires that 25 per centum of the "net revenues received by the Secretary" from the use of the land shall be paid to the county or counties in which the land is held by the Secretary. As stated in your Department's letter, it seems obvious that said section 33 requires payments to counties of no more than 25 percent of what the Secretary actually receives. Accordingly, no further objection will be interposed by this Office in that respect. Sincerely yours, /s/ Lindsay C. Warren Comptroller General Of the United States R1 INTERIM DIRECTIVE EFFECTIVE DATE: 07/06/2012 DURATION: This interim directive expires on 01/06/2014 id_2209.13-2012-7 Page 15 of 15 FSH 2209.13 – GRAZING PERMIT ADMINISTRATION HANDBOOK CHAPTER 80 – GRAZING FEES 84.3 - Annual Grazing Fees See FSM 2238.6 for current rate. The interim directive is normally issued in February for each year and provides for the current fee schedule. 85 – GRAZING FEES FOR NATIONAL FORESTS IN THE EASTERN UNITED STATES - RESERVED 86 - ANNUAL RATES AND COMPETITIVE BID ADJUSTMENT FACTORS Base rates and competitive bid adjustment factors are issued annually by interim directive to this code. The base grazing values established for grazing permits under this section shall be annually adjusted through a hay price index, by respective subregions. The hay price index means the weighted, average selling price of “other” baled hay computed by the National Agricultural Statistics Service (NASS) of USDA. Base this index on three-year average hay prices and reflect the annual percentage change in the cost of alternative livestock feed. 87 – GRAZING WITHOUT CHARGE Subject to the express written approval of the authorized officer, a permittee may not be required to pay a fee for certain types of grazing authorized under a temporary grazing or livestock use permit. Specifically, fees may not be charged where the purpose of grazing is vegetation management or if the grazing activity is part of a scientific study or research activity. Under these circumstances, it is within the authorized officer’s discretion to decide whether a grazing fee should be assessed. In addition, do not charge fees to Indian tribes who hold permits to graze on National Forest System lands that were ceded in a treaty with the United States subject to the reservation of grazing rights. See chapter 50.