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Livestock grazing in riparian areas is an important management issue on both private and public lands. A study was initiated in northeastern Oregon to evaluate the economic and ecological impacts of different cattle management practices on riparian areas. The effect of off-stream water and salt on livestock distribution and subsequent impact on riparian use, water quality, and livestock production was evaluated. A multi-period bioeconomic linear programming model is used to evaluate the long-term economic feasibility of this management practice with a riparian utilization restriction of 35% for a 300 cow-calf operation. The utilization restriction resulted in economically optimal herd sizes 10% smaller than the baseline herd size. With the management practice, cattle were distributed more evenly, consumed more upland forage before maximum riparian utilization was reached, and gained more weight. The economic impacts of these outcomes were increased with expected annual net returns to the ranch for the project ranging between $4,500 and $11,000 depending on cattle prices and precipitation levels. Properly functioning riparian systems are vital to the health of watersheds and provide an important forage and habitat resource for livestock and wildlife. Recent concerns about water quality and wildlife and fisheries habitat have focused attention on livestock management practices occurring within these areas. The impacts of livestock on riparian systems have been identified (Kauffman and Krueger 1984) and specialized management strategies such as rest rotation, late season grazing and riparian corridor fencing have been developed. However, economic assessments of these management alternatives are often lacking (Skovlin 1984, Armour et al. 1991). When economic analyses are undertaken, projects are often found to not be economically justified (Nielsen 1984, Workman 1986). There is a critical need at this time for economically feasible riparian grazing management strategies that achieve environmental goals. Bioeconomic models are one method that can be used for evaluating management options. They can combine biological Financial support was provided by the USDA Sustainable Agriculture Research and Extension (SARE) program and the Blue Mountains Natural Resources Institute, La Grande, Ore. Oregon State University Extension and Experiment Station Technical Paper Number 11958. Manuscript accepted 16 Nov. 02. Resumen El apacentamiento de ganado en areas riberenas es un importante problema de manejo en terrenos publicos y privados. Se inicio un estudio en el noreste de Oregon para evaluar los impactos economicos y economcos de diferentes practicas de manejo de ganado en areas riberenas. Se evaluo el efecto de la disponibilidad de agua y sal lejos de la corriente en la distribucion del ganado y los impactos subsecuentes en el use del area riberena, la calidad del agua y la produccion del ganado. Se use un modelo de programacion lineal de multiperiodos bioeconomicos para evaluar la factibilidad economica a largo plazo de esta practica de manejo con una restriccion de utilizacion del area riberena del 35 % para una operacion de 300 pares de vacabecerro. La restriccion de utilizacion resulto en tamanos de hato economicamente optimos 10% menores que el tamano base del hato. Con la practica de manejo el ganado se distribuyo mas uniformemente y consumio mas forraje de las areas tierras arriba antes de alcanzar la maxima utilizacion del area riberena y gang mas peso. Los impactos economicos de estos resultados fueron incrementos del retorno neto anual esperado del rancho en un rango de $ 4,500 a $ 11,000 dolares dependiendo de los precios y niveles de precipitation. dynamics with economic behavior to help determine an optimal bioeconomic strategy. Standiford and Howitt (1992) developed such a model to evaluate ranch enterprises on California rangelands by incorporating tree canopy, forage and livestock dynamics. Dynamic models have also been developed by Pope and McB ryde (1984) and Torell et al. (1991) to determine the intertemporal influence of stocking rates on current and future forage and livestock production. In this paper, a bioeconomic linear programming model is developed to determine the economic impacts of a grazing management strategy on a 300-head cow-calf ranch. The strategy under evaluation is the placement of an alternative water source and trace mineralized salt in the upper portion of pastures which is designed to influence cattle distribution between riparian and upland areas. A field test of the dispersion project was conducted and the data were used in the development of the bioeconomic model. The purpose of the economic analysis is to compare the optimal (profit maximizing) net returns of a ranch operating with and without off-stream water and salt under varying crop year precipitation levels and market prices (states of nature). 418 JOURNAL OF RANGE MANAGEMENT 56(5) September 2003 Table 1. Variable names, definitions, and values used in the ranch model.

Economic implications of off-stream water developments to improve riparian grazing