Grazing Permits Used for Loans

The loans prevent livestock from being reduced in times of drought, and allow grazing that harms streams and is harmful to certain threatened species

Santa Fe, NM - A report released by two environmental groups has found that ranchers in New Mexico and other Western states have used their federal grazing permits as collateral for more than $1 billion in loans.

Santa Fe-based WildEarth Guardians and the Sagebrush Sea Campaign, in their report released Thursday, claim that these permit-based loans have enabled the finance industry to become a silent player in what the groups call the "subsidized destruction of western public lands."

"The financial industry's pervasive involvement in public lands ranching erects a huge barrier to much-needed reform on our public lands," said Nicole Rosmarino, WildEarth Guardians' conservation director.

Rosmarino claims that the loans prevent livestock from being reduced in times of drought, allow grazing that harms streams and is harmful to certain threatened species like the bull trout.

New Mexico Cattle Growers Association director Caren Cowen argued that the report doesn't tell the full story and that U.S. Bureau of Land Management grazing permits are just a small part of collateral for loans.

"These folks are trying to destabilize the grazing industry by attacking our lenders," Cowan said.

She explained that the loans in question are usually operating loans. People borrow money just like any other legitimate business and pay it back at the end of the year when they sell their calves, she said.

The report, titled Mortgaging Our Natural Heritage, is the result of a Freedom of Information Act lawsuit filed by WildEarth Guardians in 2002. The group said the lawsuit, which sought information related to loans and grazing permits, was settled this year.

Copyright 2006 Albuquerque Journal - Reprinted with permission


 

All active news articles