Bureau of Land Management Permit-Loans

For at least 75 years, federal grazing permittees, with the aid of lending institutions and the tacit complicity of the federal government, have collateralized their publicly owned grazing permits along with their ranches and livestock to finance their private grazing operations on public lands. Both the Bureau of Land Management and Forest Service sanction the use of federal grazing permits as collateral for private bank loans.

Information obtained from the BLM indicates that the total amount of loans assumed by federal grazing permittees and secured in part with BLM grazing permits in the eleven western states is $1.1 billion. In some cases BLM grazing permits secure up to ninety-five percent of the value of a loan. The permit-based loans on national forests total $450 million.

The use of publicly owned grazing permits as collateral for private loans is akin to offering the Statue of Liberty as collateral for private debt. The practice also prevents much-needed grazing reform on public lands. Not surprisingly, since the finance industry has loaned $1.5 billion dollars on federal grazing permits, they use their considerable clout in Washington, D.C. to oppose any public land grazing reforms that may threaten their investment.

Media Release: $1.1 Billion in Bank Loans to Public Lands Ranchers Guaranteed with Bureau of Land Management Grazing Permits
	June 15, 2006 Financial institutions have issued approximately 1,700 loans totaling more than $1.1 billion to western public lands ranchers who use Bureau of Land Management grazing permits as collateral for their debts. ....More....