Undergraduate research suggests grazing permits more valuable during drought years

By Lisa Rose Woodworth

January 30, 2008 | Public grazing permits for Utah's ranchers are more valuable during drought years, according to a research project that began more than a decade ago at USU. These findings were "shown off" Jan. 24 on Capitol Hill, by the only undergraduate involved in this study.

Tierra Fackrell was among 66 other student researchers from USU and the University of Utah who presented their findings to legislators and faculty at the "Research on Capitol Hill" annual event. Joyce Kinkead, USU associate vice president of research, said that it was a great event where students were able to talk with their home-district legislators. Even Fackrell said she was able to meet hers.

Fackrell has been researching the marginal value of public grazing permits for Utah ranchers for last two years with Dr. Donald Snyder, professor in the college of agriculture. In the study, they used three innovative ranches of differing sizes during four 11-year modules. Fackrell imputed fluctuations in cattle-price and precipitation into the linear program, LINDO. The resulting graphs showed the value of a permit to ranchers for varying circumstances.

From these graphs, Fackrell and Snyder concluded that the value of the permit is generally much lower than the price paid by the rancher for the land use. Ranchers not only pay a permit fee, but also costs for fencing and water improvements, averaging about $12 per permit in Utah. The important finding was the value finally exceeds cost to the rancher only during years of low precipitation.

"The most surprising finding in this study was how pronounced the effects were on drought years," Snyder said. "We thought that price would be the driving force behind forage values, but it ends up being precipitation conditions – a surprise to all of us."

This research began with Dr. Layne Coppock and his graduate students in the 1990s. He was looking for the social aspects of innovative ranches. Snyder jumped on board in 1998 to evaluate the economic implications of innovations such as improved plant varieties. Fackrell then joined in as the first undergraduate research fellow on the project. Fackrell said that the findings she and Snyder have made are new. Past research has focused on the cattle-price factor before, but this research proves that precipitation levels have the greatest influence on the value of a public land permit, not cattle-prices as originally thought.

The study applies to real life scenarios, said Fackrell. As permit price is pressuring to rise, this study shows exactly what the most profitable situation is for different conditions. Fackrell pointed out that the marginal value of a public grazing permit to a Utah rancher is much lower than the actual cost they will pay in all scenarios expect for during drought years. She said this explains the trend of 50 percent of permits not being used.

Snyder said that these findings are only "part of a piece" and he will continue researching. Fackrell said that Snyder has encouraged her to pursue a master’s degree, enabling her to continue with this research.

Fackrell is a currently a senior majoring in agribusiness. With dreams of becoming a surgeon, she began a college career in the pre-vet major because it would have required less schooling than the medical route. She quickly learned that this was not her field of interest and soon changed her major to agribusiness, with no prior agriculture background.

The research she has done on public grazing permits is not a topic she brings up with friends; she even described her work as "nerdy." She said that this course her life has taken was not always intended, which is evident by the part-time job she has as a hairdresser.

Fackrell said she has endured endless teasing from her family since taking an aptitude test in 8th grade that forecast her as a "used tractor salesman." As she is nearing spring graduation, she has already been offered an internship at Greenline equipment, a tractor sales company for John Deere. She laughed at the irony and suggested that life predestined her.

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