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Some of the disadvantages of ground leases include the possibility of property loss, loss of higher income due to market changes if rent increases arent built into the agreement, and tax drawbacks, such as depreciation and other expenses that cant offset income.
What We Manage Nationally. The Bureau of Land Management administers more surface land (245 million acres or one-tenth of Americas land base) and more subsurface mineral estate (700 million acres) than any other government agency in the United States.
Rents: Annual rental rates for a competitive lease is $3.00 per acre (or fraction thereof) in the first 2 years; $5.00 per acre for lease years 3 through 8; and $15.00 per acre each year thereafter.
What Is A BLM Public Land Lease? The Bureau of Land Management, or BLM, allows the public to use some public lands for a number of purposes, and ranching is a common one. The BLM currently manages livestock grazing on approximately 155 million acres in the United States.
The agency manages the federal governments nearly 700 million acres (2,800,000 km2) of subsurface mineral estate located beneath federal, state and private lands severed from their surface rights by the Homestead Act of 1862.
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Cost for a grazing lease on public lands varies between state and federal entities. BLM and USFS both base their costs on $1.35 per AUM or Head Month (see explanations below) while state leases typically are more expensive.
The BLM issues leases and permits for the public to use, occupy or develop public lands for a variety of purposes. Examples include commercial filming and photography, advertising displays, crop harvesting, residential occupancy, recreation facilities, construction equipment storage, assembly yards and well pumps.

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