The Valuation of Undeveloped Land: A Reconciliation of Methods

Abstract

This paper investigates the value and proposes a public policy regarding government grazing leases. It is found that federal grazing leases have little impact upon the value of ranches. It is speculated that state leases are valued more highly than federal grazing leases because of the higher level of certainty of future availability and reasonable leasing fees. Based on these findings, this paper recommends a change in the classification of multiple use and possible divesting of much of the BLM lands. In addition, it is recommended that the federal government should set grazing rates no higher than their fair market value and attempt to reduce the uncertainty regarding future availability.