Despite projecting an image of rugged independence, western public land ranchers are propped up by cheap grazing fees and a host of federal subsidies, which amount to $500 million per year. Arid land ranching only appears economically viable because citizens taxes pay for these federal subsidies.
Wing-tipped Welfare Cowboys Ride the Range

The real grazing fee

Public Land fees are one-fifth the going lease rates on private lands. Grazing fees are so pitifully low that taxpayers annually contribute over $70 million to cover the shortfall between fee revenues and range program operating costs.

Killing the predators

Other costs such as eradication of predators through the federal Animal Damage Control [Wildlife Services] program are ill-conceived. Over $38 million, nearly as much as the government spent to protect endangered species, was spent in 1994 to kill thousands of coyotes, mountain lions, bears, and wolves. Although ADC claims to be changing its focus, it killed 783,584 animals in 1994.

The arid Southwest cannot support grazing

In the arid Southwest, drought is common, yet the Department of Agriculture doles out $150 million annually through its emergency feed program to keep ranchers afloat, allowing ranchers to graze cattle on land that is too arid to support grazing. In New Mexico, the average payment to individuals is more than $3,000 per year. Other USDA assistance programs that support subsidized grazing, such as brush control, insect control, and flood relief add even more cost.
Economic Backbone or Boondoggle?

Range improvements are short-sighted

Taxpayer funded fences, stock tanks, ponds, and cattle guards, as well as chaining, seeding and herbicide spraying projects are increasingly promoted by federal land management agencies as a solution to overgrazing. But the costs far out weigh the temporary benefits. Recently the Forest Service spent $238,000 on just one allotment in Arizona to fence streams and move cattle to uplands.