Grazing Lease Program

Subleasing and Pasture Agreements

Arizona Revised Statutes § 37-283 states that “a grazing lessee shall not sublease his lease or sell or lease pasturage to lands included in his lease, without written permission of the State Land Department.”

The distinction between a sublease and a pasture agreement is the degree of control exerted and exercised by the lessee.

With a sublease the lessee passes control of the lease to the sublessee. The sublessee grazes his own livestock on the lessee’s lease. The sublessee cares for his own cattle, maintains the range improvements, and provides the day to day supervision of the premises and the livestock on the lease.

With a pasture agreement the lessee takes another person’s livestock onto his lease and cares for them. The lessee may graze some of his own livestock while caring for another person’s livestock. The lessee is still in full control of his lease, the premises and all livestock. The lessee maintains the range improvements.

Arizona Revised Statutes § 37-283 subjects a grazing sublease to a surcharge of 25% of the annual rental on grazing land, multiplied by the number of animal unit months to be grazed on the subleased State Trust land.