Show Ephraim Stockman Yo To Confab Reuel E. E Christensen of Ephraim Ephraim Ephraim Eph- Eph raim was invited by the US U.S. Forest Service and National to attend a meeting meeting meeting meet meet- ing in Denver on Oct 11 to to review proposed changes in inthe inthe inthe the National Grazing Code and to study the proposed fee structure structure structure ture that pay for grazing grazing grazing graz graz- ing on public lands Mr Christensen said that the Bureau of the Budget feels that Uncle Sam is not getting enough money for its grass After a economic study of ranching ranching ranching ranch ranch- ing operations in western United States on both public and private private private vate I lands it was learned that net income from capital investments investments investments invest invest- ments was less than 3 The controversial part of the economic study was whether the permit had a dollar and cents value If the Federal government government government govern govern- ment takes the position that it does not have a value and cannot be counted as a cost of operation operation operation opera opera- tion the increased fee could become become become be be- come all but and the economic impact would be devastating to rural Utah towns townsand townsand townsand and counties The enclosed correspondence with R. R M. M DeNio head of range manage US U.S. Forest Service in Washington DC D.C. helps explain the situation It is important to inform senators and representatives tives that agricultural persons cannot stand for a fee increase Director R R. R M. M DeNio Division Range Management US U.S. Forest Service Washington DC D.C. Dear Mr DeNio Since returning home from our Denver meeting I have discussed many of the issues raised with our state representatives of the sheep industry It was conceded that such meetings are very helpful to both the Forest Service Service Service ice and the livestock industry in that it allows a free and open discussion of each others other's problems problems problems lems as well as suggestions from each side as to how they can be solved or at least made more workable 1 The I-The The fee It is difficult for forme forme forme me to see how the industry could live with a fee increase Our costs of production now are out of balance with the sale of our wool and lambs This squeeze has persisted since the middle of the Sheep numbers are decreasing decreasing decreasing de de- de- de creasing because the business is not profitable The economic study points this out very clearly when your net return on investment is less than 3 I feel very strongly that since the Forest Service was a party to the permit system and in actual actual actual ac ac- ac- ac practice it has acquired a substantial dollar and cents value that it must be counted as a cost factor in our business In t this is day of so many giveaway giveaway giveaway give give- p away programs by the government government government govern govern- ment it is extremely difficult for the livestock people of the west to understand the position of the federal government more particularly the Bureau of the Budget to want to extract the thelast thelast thelast last few cents of profit from our business It is our hope that the Forest Service and will present a persuasive case to the Bureau of Budget taken from the economic study made on fees and point out that a fee increase is not justified I think the suggestion of a fee committee from the industry to work with the Forest Service to establish fees from year to year is sound Through this committee commit commit- tee the ever changing conditions surrounding the economics of our business could be kept current with the Forest Service and re re- re- re suIt sult in a fair fee 2 The G 7 and G 10 advisor boards I feel strongly that the establishment establishment establishment of the G 10 board is a astep astep astep step in the right direction espe- espe since they will have legal status and can and should help if they are used as one of the first steps taken in appeal pro pro- The industry I think will be glad to work with the Forest Service in getting the G 10 boards established Note The Thye Ganger-Thye Act authorizes the G 10 boards and the G 7 advisory boards which we have on our forest now will eventually be phased out 3 Trespass The modification of this term in your directives will be welcomed welcomed welcomed wel wel- by since much of the trespass is not wilfully done 4 Regions holding meetings with the industry to review and bring up to date their policies and directives You may recall it was my suggestion that these conferences be called by the regional tors This suggestion was endorsed endorsed endorsed en en- by Ed Cliff chief for for- ester Through these meetings I am sure better public relations can and will be achieved As each supervisor establishes policy and directives they should likewise be reviewed and discussed discussed discussed dis dis- dis- dis cussed in a meeting by the livestock livestock livestock live live- stock industry and Forest ice In conclusion may I state that I was impressed with the honest effort of the chief forester yourself yourself yourself your your- self and others as to their firm belief that grazing of livestock on Forest lands was and will be bea a major use of Forest lands I personally want to say that I felt our meeting with you folks in Denver was one of the more profitable meetings I have at at- tended It was organized and conducted on a high plane Very Respectfully Yours REUEL REVEL Mr Christensen received the following reply from Mr DeNio Thank you for your thoughtful letter of November 7 7 It clearly shows that you have given considerable considerable considerable con con- thought and personal attention to the many matters we discussed in Denver The evaluation of the data from our comprehensive ranch economic and grazing fee studies that we discussed in depth at Denver clearly show that much more is involved in grazing fee determinations than a dollar doUar return return return re re- re- re turn to the United States Treasury Treas Treas- ury The economic impacts that we discussed will be presented to Secretary Freeman and the Director of the Bureau of the Budget for their consideration We Ve know too too that many western western west west- ern congressmen are giving this matter thought and tion The fee situation is being given the most comprehensive evaluation evaluation evaluation tion and review possible In addition addition addition ad ad- to discussing it with the Secretary and other Administration tion personnel it will be explored in depth with the Secretary's Multiple Use Advisory Committee Commit Commit- tee when it meets in Washington Washing Washing- ton D DC D.C. C on December 12 13 and 14 14 The House Committee on Interior and Insular Affairs will also be fully informed since Chairman Aspinall has advised us that his Committee will hold hearings shortly after the first of the year We assume these hearings will give all interested parties an opportunity to express their points of vie view I firmly believe as you do that much can be accomplished through meetings at the Regional and Forest level where policy matters are frankly explained and discussed I am sure this message came through loud and clear to all of our regional people Pee peo who were in Denver I too believe our October conference conference conference con con- ference was very fruitful and many benefits c r iI it I will well P per r riI Chief Cliff and 1 ter Iverson get letter and my r Sincerely yoi yot R. R M M. DEN DE N |