State lands grazing leases.

09LSO-0488.L1

                                                         

FISCAL NOTE

The fiscal impact, in the form of decreased revenues for grazing leases as provided for under W.S. 36-5-101 et seq. is indeterminable.

 

The number of grazing leases currently administered by the state is 3,999.  Lease conflicts and associated Board approved lease rates for the years 2005-2007 were analyzed.

 

An analysis of grazing lease rates for 2005-2007 was made for Wyoming from data compiled by the USDA - National Agricultural Statistics Service (NASS). The data reflects average rates for grazing cattle on private, non-irrigated land. Statewide grazing lease averages were determined utilizing the cow-calf unit rates. Verbal conversation with Nancy Hussey (NASS) on 1/15/09 indicated that county specific data was not available.

 

This data was used to compare, by year, state revenues received under the current system in the event of a conflicted lease versus those that would have been received consistent with the system proposed under this bill. A reduction for improvements was applied at a 20 percent rate in calculating the values under this bill. This rate is consistent with the value used in the current formula utilized by the Board in establishing the rental value as required by W.S. 36-5-101(b).

 

An analysis of lease conflicts that occurred in 2008 is also presented. However, private lease rates from 2007 were utilized in the comparison as 2008 data is still being compiled.

Year

No. Lease Conflicts

Reduction in State Revenue Resulting from this bill

2005

6

$3,051.20

2006

4

-0-

2007

2

-0-

2008**

11

$71,647.06

**Ag Statistic Figures are not yet available for 2008 thus 2007 figures were applied to 2008

 

Any reduction in income that may result from this bill would affect the Permanent Land Income Fund that a particular parcel is designated to.  The average distribution percentage to the Permanent Land Income funds (5 year average.) is noted below:

 

Income Miner's Hospital

1.535%

General Fund

11.440%

Game & Fish Operating Fund

0.100%

Common School Land Income

85.993%

Omnibus Land Income Fund

0.574%

Ag College Land Income Fund

0.158%

University Perm Land Inc Fund

0.100%

Montgomery Operating Fund

0.100%

 

The above is presented based upon historical data. Actual values cannot be calculated as it is not possible to determine the number of lease conflicts that will actually received during any one year.

 

Prepared by:   James Arnold, OSLI   Phone: 777-6639