60 



from riparian areas unless absolutely no other alternative is available. Grazing 

 management and riparian management are compatible when ranchers and forest 

 personnel work together. 



GRAZING FEES 



There is much controversy over what the federal grazing fee should be. Reasona- 

 ble and predictable fees are essential for ranchers to maintain long-term financing 

 for their operations. Cattle prices have been good for the last 5 years, but most fore- 

 casts indicate an increase in cattle supply in the next few years and a downturn in 

 prices. This will affect the rancher's ability to pay fees. The bottom line is — every 

 dollar the fee goes up is a dollar the rancher does not have to spend in the local 

 economy. 



WILDERNESS 



Wilderness designation allows for very little management. In the Black Hills, 

 without timber management, Ponderosa Pine becomes the dominant species, chok- 

 ing out the understory, leaving very little forage for livestock or wildlife. Wilderness 

 designation also restricts the ability to use modern tools to maintain fences, water 

 developments, and to use motorized vehicles to reach improvements, check livestock, 

 put out salt and minerals, etc. In addition, no new improvements could be imple- 

 mented to improve proper livestock use of an allotment. This combination of de- 

 creased forage, increased cost of operation and other management limitations would 

 make it very difficult and, in many cases, impossible for ranchers to continue to run 

 cattle in these areas. We do not feel that any sites in the Black Hills really qualify 

 as wilderness, as most areas already have some roads, fences or water development. 



SUMMARY 



Base ranch units in the Black Hills are closely tied with their forest permits. Base 

 ranch units provide winter range for wildlife and many people hunt on private 

 property. Without forest grazing permits, many foothills ranches would no longer be 

 viable economic units. Loss of grazing permits would accelerate the sale of base 

 ranch units and many would be subdivided. These units would be lost from agricul- 

 tural production and wildlife habitat and hunting would be lost as well. The Black 

 Hills Forest Plan must maintain multiple use. A good multiple use plan should sta- 

 bilize and, if possible, increase forage available for livestock as well as wildlife. Per- 

 mits need to continue to be issued for 10 year periods. These actions are necessary 

 to provide a stable environment in which the rancher may operate so he can obtain 

 financing and maintain economic viability. Ranchers will then be able to remain 

 solid tax-paying citizens, contributing to the economic health and well-being of the 

 communities around them. 



Senator Pressler. Thank you very much. 



I would Hke to ask Dave Meredith or any of the other witnesses 

 for their comments on the need for assistance in obtaining bonding. 

 Especially what are the rules on bonding? Also as a spokesman for 

 timber-related small businesses, what should the allowable sale 

 quantity, the ASQ, be? 



Mr. Meredith. The ASQ needs to be the highest number the 

 forest will stand. In other words, whatever the Forest Service feels 

 in their plan. The ASQ needs to be as high as the forest will allow 

 without endangering anything. Personally, I feel that it should be 

 somewhere around that 120 million board feet. We have survived 

 off of that for many, many, many years, and I think we can contin- 

 ue that if managed properly. 



Your other question was? 



Senator Pressler. On the bonding issue. 



Mr. Meredith. Current financial requirements by the Forest 

 Service concerning bonding — and this has to do with the turmoil 

 the forest industry is in right now. Bonding companies are reluc- 

 tant to issue bonds to sawmills, private loggers, what have you, be- 

 cause of the turmoil in the forest industry. They're currently re- 



