Grazing Rates
Nearly all 2.8 million acres of Colorado trust land is leased for agriculture, primarily grazing. Our Board reviews and sets grazing rates every three years to ensure they remain fair, transparent, and aligned with market conditions while meeting the State Land Board’s fiduciary responsibility to generate revenue for trust beneficiaries, including Colorado public schools.
In 2023, the Board directed staff to review the grazing rate-setting process. In response, staff convened a Grazing Rates Roundtable made up of State Land Board staff and external stakeholders. This group evaluated the existing survey-based approach and recommended refinements to improve consistency, predictability, and responsiveness to market conditions. The revised grazing rate process was approved by the Board at its September 11, 2025 public meeting. The new rates go into effective on July 1, 2026. Check here for additional information and updates.
How rates are calculated
Under the updated process, statewide grazing lease rates are calculated using a formula that reflects:
- A rolling three-year average of national cattle prices,
- A rolling three-year average of national corn prices, and
- A lease demand modifier set by the Board.
Annual rate changes are capped at 15% per year, with any amount above that cap carried forward to future years to reduce volatility.
We are simplifying the Tier system to two tiers instead of four, and using a state-wide model instead of a regional model.
The Benefits
Transparency:
By using a commodity-based formula, you’ll be able to see what factors are influencing the grazing rate on an annual basis.
Fairness:
By moving away from the industry survey model and toward the market-based formula, there will be less bias and more consistency in the factors that determine the annual rate.
Predictability:
We can count on market data every year to inform the grazing rate, and by setting a 15 percent cap on annual rate changes, lessees can predict with greater clarity what the maximum rate could be.
We recognize that grazing rates are an important part of your operation, and we are committed to providing clear communication and advance notice. If you have questions about the rate-setting process or how the changes may affect your lease, please contact your District Office or visit the State Land Board website for additional resources.
Additional Resources
- View the current rates, effective July 1, 2023.
- View the previous grazing rates, effective through June 30, 2023.
- View the methodology for determining grazing rates, documented in the Board’s Grazing Rates Policy (300-004)
- View the animal unit months (AUM) equivalent table.
Questions & Answers
Standard minimum State Land Board grazing rates are reviewed and established by the Board at least every three years. Board Policy 300-004 establishes the criteria by which State Land Board grazing rates are set. The policy states that, “The lease rate review process includes a survey of private grazing rates in Colorado, conducted by NASS, CSU, or another qualified reviewer.” The practice of using private grazing rates as the basis for State Land Board grazing rates was adopted in 1996 after consultation with industry groups and in particular with the Colorado Cattlemen’s Association. The January 2023 and February 2023 Board packets provide detailed information about this process.