Caption: Amendment of one AUM compensation
rate value used by the department to assess grazing fees.
Order No.: DSL 5-2011
Filed with Sec. of
Certified to be
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%.
(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
language]; (added language).
Rules Coordinator: Elizabeth Bolden—(503) 986-5239
(1) The annual compensation for livestock forage is the
(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
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
(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
(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.
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
Notes 1.) This online version of the OREGON BULLETIN is provided for convenience of reference and enhanced access. The official, record copy of this publication is contained in the original Administrative Orders and Rulemaking Notices filed with the Secretary of State, Archives Division. Discrepancies, if any, are satisfied in favor of the original versions. Use the OAR Revision Cumulative Index found in the Oregon Bulletin to access a numerical list of rulemaking actions after November 15, 2011.