16 



QUESTIONS AND ANSWERS 

 LIVESTOCK AREA PERMIT (SPECIAL USE PASTURE) FEES 



Q 1. WHEN DID THE CHANGE IN FEES OCCUR? 



ANS The Forest Service Policy for the last 20+ years has been to use 



the minimum 5% of the land value for most agricultural uses. In 

 a Regional Office memo to all Forest Supervisors dated August 25. 

 1992, we were directed to use a rate of 5^ multiplied times the 

 value of the land described in the permit for livestock use 

 permits. The 3% rate supported in the letter was no change from 

 the appropriate rate that should have been charged. The August 

 letter was meant to provide the market basis for the ^% rate to 

 be applied to agricultural uses (and, likewise, T% for 

 non-agricultural uses). 



Another memo from the Regional Office to the Black Hills National 

 Forest Supervisor, dated March I7, 1993. once again directed that 

 fees for special use pastures shall be based on 3% of land value. 



The Black Hills National Forest issued a Forest Supplement, 2720 

 in April, 1993 requiring fees to be adjusted based upon land 

 value. 



Q 2. WHY DIDN'T THE FEES CHANGE 20 YEARS AGO? 



ANS National Policy was in place but it was poorly communicated and 



not fully understood at the Forest level. As a result, fees 

 charged have been much lower that they should have been. 



Q 3. HOW WERE THE DISTRICT PER ACRE VALUES DERIVED? 



ANS Over 300 market data transactions (comparable sales) that have 



occurred in and around the Black Hills were reviewed. Those 

 sales that were considered reflective of typical land values 

 within each district were then categorized by land size. 

 Categories were (1) up to ten acres in size, (2) 10 to ^0 acres, 

 (3) '•0 to 300 acres and ('4) over 3OO acres. 



All transactions considered occurred within the last five years. 

 No attempt was made to classify individual ownerships as to 

 highest and best use as the vast majority of the Black Hills land 

 uses are for rural residential/recreational use or livestock 

 grazing. 



