I will accept the premise that we could disagree on whether there is a subsidy involved here or not. But if I can, let me respectfully disagree on what essentially is simpler for the Federal Government to administer. Here is what happens. We find out what the State rate is, and on Federal lands in those States the Federal Government charges it, versus this share is equal, this is the committee report language, the share is equal to the average rate of return on 6-month Treasury bills. The averages are calculated over a 12-year period corresponding to the normal cattle market cycle, thus stabilizing prospective annual rates of change in the calculated grazing fee. You are essentially setting up a very convoluted formula that is based on a rolling price of beef which has nothing to do with the costs of running the program on Federal lands.
Scott Klug: “I will accept the premise that we could disagree on whether there is a subsidy involved here or not. But if I can, let…”
Editor's note · Context
Discussing the complexities of grazing fee calculations on Federal lands.
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