Livestock Grazing on MCWRA Lands

The Agency manages livestock grazing on 16,400 acres of its owned properties. The terms and conditions for grazing on Agency lands are outlined in lease agreements issued to local ranchers.

Currently, the Agency administers eight cattle leases, held by ranchers who graze their cattle for at least part of the year across more than 7,700 acres of suitable forage land. These leases typically have a 7-year term and are made available to the public through a formal solicitation process when they are set to expire.

Overview and Authorizations

Cattle grazing is one of the land management tools the Agency uses to achieve goals such as protecting lands and preserving open space around the Nacimiento (NAC) and San Antonio (SA) Reservoirs. Our grazing program, which began in the 1960s, currently covers a total of 16,400 acres, including approximately 10,300 acres above the high-water mark. The search and selection of available grazing areas is periodically updated, with the most recent update occurring in 2010.

As a water management agency, overseeing the landscapes surrounding both reservoirs is crucial for the conservation of local water resources. The Agency collaborates with ranchers who play an essential role in managing these rangelands.

There are currently eight lease areas in Monterey and San Luis Obispo Counties, each requiring ongoing surveying and property maintenance, including:

The Agency has developed a Grazing Management Plan for the leases, which can be accessed here: Grazing Lands Management Plan Nacitone MCWRA 2008. Both the Agency and the lessee acknowledge and agree that the purpose of entering into the lease is to fulfill the objectives outlined in the Grazing Lands Management Plan.

Cattle Leases and Habitat

The Agency has recently partnered with consultants to develop a comprehensive Habitat Conservation Plan (HCP) for the operations and maintenance of the Agency’s facilities, including all lands owned by the Agency.

In 2030 or later, the Agency may propose a more collaborative approach, where partners within the cattle grazing leases would work together to achieve specific resource, habitat, and operational objectives. This outcome-based grazing model will involve joint efforts with leaseholders, with authorized agreements outlining responsibilities for achieving HCP objectives and monitoring success. The Agency may select demonstration sites within the grazing leases, reflecting a variety of conditions and circumstances. These sites will help inform the development of guidance and best management practices for future grazing leases.

In summary, the HCP will provide a framework for offsetting the impact on covered habitats and species through targeted conservation and management actions. Through the HCP, the Agency and its partners will share responsibility for meeting the plan’s objectives and for monitoring its success. We believe the grazing program can help ensure the sustainability of both ranching operations and reservoir management.

Monterey County Water Resources Agency: Grazing Suitability Review

Fees and Distribution

The Cumulative Grazing Fees represent the total funds collected from local ranchers for livestock leases. The collected funds are allocated annually, with percentages used for supporting activities such as rangeland monitoring, planning, site inspections, surveys, and infrastructure maintenance, and the remaining for lease administration and general property management.

An appraiser recently conducted a market rent study of the grazing plots, which has led to a proposal for potential adjustments to the market rental rates and grazing lease terms on these properties. Under the current structure, the highest bid prevails; however, in the upcoming Request for Proposal (RFP), there may be a need to use the starting appraisal values. These values offer a neutral, market-based assessment of the property's value, ensuring that both the Agency and the lessee are paying or receiving a fair rental rate. This approach will help mitigate potential disputes and promote transparency throughout the lease negotiation process.

Monitoring & Assessment Goals

Ranchers play an active role as stewards of the land, assisting the Agency in a variety of areas such as land management, minimizing trespassing, encroachment and other illegal activity that may occur on Agency lands and promote healthy ecosystems. Grazing is a valuable tool for:

• Reducing wildfire fuels
• Managing invasive grasses
• Preserving native wildlife habitats
• Increasing soil quality

General Management Considerations

The coastal grasslands and valleys within and surrounding the Salinas Valley represent diverse ecosystems. The area around the reservoirs has undergone significant ecological changes, influenced by various disturbances. The Agency’s grazing program is designed to support effective habitat and species management. Our goal is to implement a well-structured grazing program that includes proper infrastructure and comprehensive monitoring plans. To further enhance this, a customized Ranch Plan will be developed for each lease area, with conservation grazing considered as a potential management strategy to maximize benefits and safeguard natural resources. Agency staff collaborates closely with lessees to manage livestock numbers and types, determine grazing durations, and establish location-based restrictions. The Agency remains committed to supporting this vital agricultural opportunity.

Ranch Plans & Grazing Suitability

The purpose of the "Ranch Plans" is to provide an adaptive framework for more effective ranch management. For instance, the plans will help assess whether the number of cattle on the ranch is appropriate for its capacity. Both the Agency and the lessees must better understand the relationship between forage needs (measured in AUM/stocking rates) and carrying capacity (measured in acres/AUM).

The University of California Agriculture and Natural Resources (UC ANR) was involved with the ranch leases in the past, and the Agency is now proposing to update all ranch plans. This update will be done in collaboration with the Natural Resources Conservation Service (NRCS) and UC Extension. The updated plans aim to support the Agency as the land manager and will focus on:

• Improving water quality
• Implementing strategies and accessing resources that promote on-ranch stewardship

Key water quality concerns to address include non-point source pollution, such as pathogens, nutrients, and sediment, as well as the health of riparian and stream areas. The Agency and lessees will collaborate on goal setting and action planning to address operational infrastructure and business needs. The Agency’s priority will be making decisions to preserve, conserve, and restore sensitive areas on the ranches, while improving water quality by adjusting livestock capacity where necessary.

Each lessee will be required to develop a ranch plan that includes four key components:

• Grazing intensity
• Timing of grazing
• Type and number of livestock
• Essential facilities (e.g., fencing, water)

A comprehensive ranch or grazing plan, for either individual properties or leases as a whole, is essential for effective land management. Common issues observed on lease parcels include:

• Uneven grazing, leading to overgrazed or underutilized areas
• Difficult access to reservoirs for livestock
• High thatch levels in ungrazed areas, increasing wildfire risks
• Proliferation of invasive annual grasses in ungrazed areas
• Insufficient water infrastructure for grazing leases
• Trespassing due to inadequate fencing and signage
• The need for cross-fencing to improve pasture management

Key Issues and Recommendations

Monitoring and Reporting: Consistent monitoring ensures that land stewardship goals are met. MCWRA staff regularly inspects sites and addresses issues as they arise.

Ecosystem Management: Grazing aids in removing fire fuels and managing invasive grasses. Ungrazed adjacent lands have higher amounts of dry vegetation and tall grasses, posing wildfire risks.

Lessee Needs: MCWRA collaborates with ranchers to conduct repairs and routine maintenance, such as improving fencing and installing cattle guards.

Residual Dry Matter (RDM) Monitoring

The current lease requires annual monitoring of Residual Dry Matter (RDM) to assess land conditions. According to the lease agreement, "if the General Manager determines that there are fewer than 600 pounds of residual dry matter per acre on any portion of the premises, the number of livestock on that portion may be reduced to zero." To prevent overgrazing, MCWRA plans to implement annual RDM surveys moving forward.

Annual Self-Assessment Form

Lessees are required to complete an annual Ranching Sustainability Self-Assessment form. These Self-Assessments require the lessee fill out information regarding:

• Number of cows, bulls, calves
• Up to date contact information
• Work performed on leased land
• Grazing lease incidents or issues
• Lessee comments or suggestions

The Self Assessment form is available here. 

Annual Evaluation Inspection Report

Agency staff conducts an annual on-site evaluation of the leased premises to assess the status of livestock operations and ensure compliance with lease conditions. The purpose of this inspection is to evaluate suitable forage areas in preparation for the upcoming grazing season.

The grazing leases require annual monitoring of Residual Dry Matter (RDM) levels, which are reported and applied to areas capable of producing a grazable amount of forage. This typically amounts to at least 1,800 pounds per acre during an average growing season. The grazing season runs from November 1 to October 31, with conditions assessed toward the middle or end of the season. This timing ensures that a minimum level of RDM is retained, allowing for sustainable livestock use while protecting the land.

The annual evaluation inspection reports are shared with the lessee and maintained as part of the lease records. These reports help inform the Agency's lease administration and can be used to make necessary adjustments to cattle allotments, if needed.

Lessees are given at least 30 days' notice prior to the scheduled inspection and evaluation. The timing of the inspection and sampling allows the Agency to capture the conditions of the grazing season, ensuring that RDM data assessments are relevant for planning the upcoming cattle operations.

Annual Work Plan

On an annual basis, the lessee shall prepare and finalize a work plan for the forthcoming Lease year no later than November 1^st the Annual Work Plan shall set forth all proposed management activities related to infrastructure maintenance, invasive plant removal, and/or the development of range resources that may be warranted for the conditions and circumstances on the ranch lease.  The range management work shall be in full conformance with the Rangeland Management Plan.

Contact Information / Report Concerns:

If you are interested in leasing MCWRA property, please visit our Current Solicitations / Contracts Opportunities web page for a list of leasing opportunities. 

If you see an animal in distress on MCWRA property, or see cattle loose on property, please don’t hesitate to contact Tom Shepherd, Management Specialist at 831-805-2164.