Oregon Bulletin

January 1, 2012


Department of State Lands
Chapter 141

Rule Caption: Amendment of one AUM compensation rate value used by the department to assess grazing fees.

Adm. Order No.: DSL 5-2011

Filed with Sec. of State: 12-13-2011

Certified to be Effective: 12-13-11

Notice Publication Date: 10-1-2011

Rules Amended: 141-110-0080

Subject: In 1994, the department developed a grazing fee formula that uses a number of values, including calf prices, weight gains, average mortality rates and an assigned state share. A 2004 Secretary of State’s audit of the rangeland program recommended re-evaluation of the grazing fee formula/factors to ensure the department was meeting its fiduciary responsibilities. A Grazing Fee Advisory Committee concluded work in November of 2008, and their recommendations as adopted by the State Land Board are currently being implemented in a series of progressive adjustments to the grazing rates. All of the values in the current formula are now set with the exception of the calf prices, which have been based on monthly prices listed in the Oregon Agri-Facts publication by USDA NASS (National Agricultural Statistics Service). As of March 2011, NASS is no longer collecting and publishing the Oregon specific data. Range staff compared the relationship between the two prices and determined the Oregon price had averaged a little less than 90% of the national price over the past ten years. The differential has ranged from a low of 86% to a high of 94%.

      141-110-0080 (3) (d) Average weighted calf price (P) shall be based on [USDA Oregon agriculture] (90% of the USDA National) price data indicating the average [statewide] sales price of calves for the preceding one year period based on an October through September year.

      [Deleted language]; (added language).

Rules Coordinator: Elizabeth Bolden—(503) 986-5239



(1) The annual compensation for livestock forage is the greatest of:

(a) $250;

(b) $4.25 per AUM; or

(c) The carrying capacity of the leasehold in AUMs multiplied by the annual AUM rate (expressed in dollars per AUM). The Department will establish the carrying capacity for each leasehold, which will be periodically reviewed. For those leaseholds that have highly variable annual forage production, their carrying capacity may be determined based on reliable actual grazing use records for a given year. As a result, the annual rental rate may vary from year to year for such leaseholds.

(2) Each year the Department will calculate the annual AUM compensation rate using the following formula:

AUM Compensation Rate = G x CC x S x P

G = Animal gain per month

CC = Marketable calf crop

S = State share

P = Average weighted calf price

(3) For the purpose of determining the base AUM compensation rate, the following formula factors shall be used:

(a) Pounds of gain per animal unit month (G) shall be fixed at 30 pounds through 2009, increasing on January 1, 2010 to 35 pounds.

(b) Marketable calf crop (CC) shall be fixed at 80 percent.

(c) State share of calf gain (S) shall be fixed at 20 percent through 2010, increasing on January 1, 2011 to 22.5 percent, then increasing on January 1, 2012 to 25 percent.

(d) Average weighted calf price (P) shall be based on 90% of the USDA National price data indicating the average sales price of calves for the preceding one year period based on an October through September year.

(4) The compensation due to the Department for a livestock trailing permit will be based on the total number of animals crossing the state land in a single “round trip” per year as follows:

(a) For 500 animal units or less the required compensation is $150;

(b) For 501 to 999 animal units the required compensation is $250; and

(c) For 1,000 or more animal units the required compensation is $350.

(5) In addition to any other remedies available, the Department will impose the legal rate of interest and any applicable late fees on unpaid balances owed the Department pursuant to ORS 82.010.

(6) Unless otherwise authorized by the Department, annual compensation due must be paid to the Department each year within 30 calendar days of the date of the Department’s billing notice.

Stat. Auth.: ORS 274.045, 273.051 & 273.805 - 273.825

Stats. Implemented: ORS 273.805, 273.815 & 273.825

Hist.: LB 4-1994, f. & cert. ef. 8-2-94; DSL 1-1999, f. & cert. ef. 3-2-99; DSL 7-2009, f. & cert. ef. 10-20-09; DSL 5-2011, f. & cert. ef. 12-13-11

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