Short-Term Lease Program
November 10, 2000

The Short-Term Lease Program currently managed by the Department of Game, Fish and Parks will be the model for the supplementary short-term lease program proposed for operation by the South Dakota Parks and Wildlife Foundation. The intent of establishing a program that mirrors the GFP program is not to duplicate or compete with the efforts of the Department but to supplement funding for the program should a large number of leases become available or lean years occur, and provide leasing opportunities for landowner/operators that are unwilling to cooperate with state agencies. In either case, the Department would provide management of the leased acres and the Foundation would act as the support group or intermediary, as necessary.

The current pilot project for the Short-Term Lease Program is the Ferguson (Oasis) Ranch lease in Haakon County, South Dakota. The ranch is 7,814.44 acres of cropland, grassland and some Conservation Reserve Program ground. The current lease negotiated by the Department is for six years but generally they would rather establish 10 or 15 year leases. The total annual cost for the lease is $48,000, or just over $6.14 per acre.

Specific conditions of the lease include:

• The area is open to public access year around for hunting and fishing.

• The Department cooperated in ranch management to increase production of game and non-game wildlife.

• The operator has agreed to cut grazing load by 50%.

• The operator cannot change farming practices without Department consent.

• The Department may designate and fence off critical wildlife habitat areas with the operator’s concurrence.

• The Department may, with the operators consent, plant wildlife habitat such as trees, food plots, native grasses and dense nesting cover.

This newly developed program offers the opportunity for landowners/operators to enter into short-term leasing arrangements that have the potential to benefit wildlife habitat, public access, grazing management and local economic conditions. Landowners/ operators should be more willing to accept this type of short-term arrangement since it will allow them to design programs that are more adaptable to changing economic conditions. (Perpetual leases reduce flexibility). Also, the risk is minimal since they are guaranteed an annual income while they "try the program on for size." And finally, sportsmen and women benefit from increased public access and wildlife habitat.

Given the enthusiasm for the program by landowners and the Department, it is recommended that the Parks and Wildlife Foundation establish an special endowment in the amount of $1,000,000 from which $50,000 per year will be provided to the Short-Term Lease Program. Any earnings balance would revert to the special endowment, the Foundation Endowment or transfer to the Maintenance Fund for annual program maintenance. The special endowment would be established from capital campaign receipts, license fees or grants.