Billionaire landowners like Stan Kroenke profit from heavily discounted federal grazing permits on public lands, while taxpayers foot billions in subsidies. The Trump administration aims to expand these benefits amid concerns over environmental damage and unequal distribution. An analysis reveals that a small group of large operators control most grazing access.
Public lands grazing, established in the 1930s to curb overgrazing after the Dust Bowl, now serves large corporate and wealthy individual operations at a steep discount. Ranchers pay $1.35 per animal unit month, a 93 percent reduction from private land rates, formalized under 1978 laws. In 2024, subsidies beyond forage discounts totaled at least $2.5 billion, covering disaster aid, insurance, and infrastructure for public lands permittees.
The top 10 percent of permit holders dominate, controlling two-thirds of Bureau of Land Management grazing and over half of Forest Service allotments. For instance, Kroenke's Winecup Gamble Ranch in Nevada spans nearly 1 million acres, with more than half public land supporting about 9,000 cattle. He paid roughly $50,000 in fees last year, an 87 percent discount. Previous owners included Reebok CEO Paul Fireman, who claimed $22 million in tax write-offs from 2003 to 2018, and actor Jimmy Stewart. The Bureau of Land Management notes overgrazing has degraded the ranch's land.
The Trump administration's October "Plan to Fortify the American Beef Industry" seeks to amend 1990s-era regulations, opening more of 240 million acres to livestock and boosting subsidies for drought, predators, and insurance. Interior Secretary Doug Burgum described federal lands as America's underused "balance sheet" during his January confirmation. Agency staffing cuts have worsened oversight: BLM rangeland managers dropped 39 percent from 2019 to 2024, plus 9 percent by June 2025, leaving each responsible for 716 square miles on average.
Other beneficiaries include J.R. Simplot Co., which saved $2.4 million on 150,000 animal unit months, and Rupert Murdoch's Beaverhead Ranch, paying under $25,000—a 95 percent discount—on 340,000 acres, two-thirds public. Mining firms like Nevada Gold Mines hold permits for access rights, while utilities such as Southern Nevada Water Authority maintain operations for groundwater. Industry-wide, collections of $21 million fell $284 million short of market rates.
Ranchers like Bill Fales in Colorado argue grazing preserves open spaces for wildlife, supporting $3.3 billion in output and 50,000 jobs, though it represents just 2 percent of U.S. beef. Critics, including Jeff Burgess, call it a "tyranny of the minority," with environmental harm evident in failing allotments. Smaller operators, holding under 4 percent of BLM grazing, rely on subsidies amid consolidation and climate pressures, as noted by ranchers Mike and Danna Camblin. Economist Silvia Secchi proposes reforms like capping large operations and aiding co-ops to better serve the public.