H2-A SHEEPHERDERS 

COMPENSATION 

METHODOLOY

October 9, 2014

Julie Stepanek Shiflett, PhD

Juniper Economic Consulting, Inc.

julie@juniperconsulting.org

Mountain Plains Agricultural Service

info@mpaswy.com

Western Range Association

http://westernrange.org/blog/

American Sheep Industry Association

www.sheepusa.org
2

Abstract

The sheep industry proposes a new sheepherder compensation methodology with annual 

updating mechanism. Mountain Plains Agricultural Service, Western Range Association and the 

American Sheep Industry Association (H2A Committee) convened to develop a new sheepherder 

wage compensation formula. At issue is a dissatisfaction with how sheepherder wages are 

determined. Specifically, the dependence upon an antiquated wage survey and the lack of an 

updating mechanism. 

The proposed herder compensation starts with a national base wage –calculated one time, using 

the federal minimum wage – and deducts the value of board which is defined as the U.S. 

Department of Agriculture (USDA) Liberal Food Plan. The liberal food plan was chosen as it 

reflects a diet of herders: a mature male with a high-protein diet. It is also most in line with 

findings from a 2010 Colorado Wool Growers Association survey of sheep ranchers. The resulting 

herder compensation is the federal minimum wage less the USDA-reported cost of meals and 

includes the provision of room. Any state wage rate established through an overruling state wage 

methodology shall not be subject to the base wage rate increases defined in these special 

procedures.

The herder compensation calculation is two-tiered. First, the federal minimum wage of $7.25 per 

hour multiplied by 173.33 hours per month yields a base wage of $1256.64 per month. Second, 

the provision of meals is based upon the USDA Food Plan cost which is $447.72 per month on 

August 2014. The difference is the herder compensation: $808.92 per month.

Following this one time conversion to a national base wage, herder compensation will adjust to 

market conditions based upon two mechanisms. The industry first proposes to adjust the base 

wage in accordance to changes in the Bureau of Labor Employment Cost Index (ECI) with a 2-

percent cap. Second, the value of meals is also adjusted annually, based upon changes in the 

USDA Liberal Food Plan cost of meals. The industry also proposes to ensure that herder 

compensation is not adversely affected in the annual adjustment and therefore recommends 

regulation against negative adjustments. I.e. if the ECI adjustment is less than the Food Plan cost 

adjustment, the wage would not adjust.
3

Table of Contents

Calculating Herder Compensation.................................................................................................. 4

Background.................................................................................................................................. 4

Establishing a Sheepherder Base Wage ...................................................................................... 5

Board Deduction ......................................................................................................................... 5

The Oregon Case...................................................................................................................... 5

USDA Food Plans Board Deduction............................................................................................. 6

Annual Herder Compensation Adjustments................................................................................... 8

Conclusion..................................................................................................................................... 10

References .................................................................................................................................... 11

Appendix A – Real Wage Cost Estimate to Sheep Ranchers......................................................... 12

List of Tables and Figures

Table 1 USDA Food Plan Costs....................................................................................................... 7

Table 2 Proposed Herder Compensation with USDA Food Plan Deduction.................................. 8

Figure 1 Annual Percent Change in ECI...................................................................................................9
4

Calculating Herder Compensation

The sheep industry is afforded an opportunity to provide recommendations to the process of 

defining a new herder wage methodology that sets wages and necessary annual adjustments. 

This charge is a privilege and a burden, for the options are many. After deliberating a multitude 

of alternatives, the industry has come to a consensus. The resulting wage determination 

methodology is transparent, tied to federally-reported indices and easy to understand and 

update. 

Background

In the Department of Labor, June 14, 2011 “Attachment A: Special Procedures: Labor

Certification Process for Applications for Sheepherding and Goatherding Occupations under the

H-2A Program,” special provisions were established. In establishing the prevailing wage rate for

sheepherding and/or goatherding, the Department used findings from prevailing wage surveys 

conducted by SESAs in accordance with the procedures in the ETA Handbook No. 385, and

consistent with the wage setting procedures historically applied to sheepherder occupations in 

the Western states.

At issue in this note is that the use of prevailing wage surveys is no longer appropriate in defining 

H2-A sheepherder wages due to declining number of sheepherders and the inability for prevailing 

wage surveys to meet sample size thresholds. The resulting concern is that sheepherder wages 

are stagnant, for there is not a valid updating mechanism. It therefore became quickly apparent 

that herder wages determination must be revisited. 

At the crux of a new wage discussion for H2-A sheepherders is that sheep herding requirements 

are unique as are the costs that sheepherder employers face. It is therefore justified that H2-A 

sheepherder compensation can be uniquely determined. 

Sheep ranchers face costs that other agricultural employers hiring H2-A workers do not face. The 

sheep rancher must incur transport costs to hire workers with unique talents from countries as 

far away as Peru. Second, the sheep rancher must incur the costs to transport food to often 

distant and remote areas where herders work and live. The sheep rancher must also maintain 

housing in remote areas of our country, also incurring a significant transport cost. 

Employer room and board compensation are two additional factors that are up for discussion in 

this period of flux. Historically, and by law, the employer provides room and board free of charge. 

From the special procedures: “The employer must state in its job order that sufficient housing 

will be provided at no cost to H-2A workers. In addition, “based on long standing practice in the 

industry, the employer must provide its U.S. and H-2A workers free of charge either three 

prepared meals a day, when workers are in camp, or free and convenient cooking facilities and 

provision of food for the workers to prepare their own meals while in camp or on the range.”
5

The herder wage established in a court settlement in 1994 in Oregon provides legal precedence 

for deducting board – not room -- in calculating herder wages. It is thus proposed in this note 

that only board, not room, be deducted in the herder compensation calculation. 

Deducting the cost of meals is also justified due to precedence established in other industries. 

Many other unique occupations such as cruise lines workers, tipped employees or a dormitory 

manager can receive a base pay that is lower than the federal minimum wage established in the 

Fair Labor Standards Act. While the actual pay is lower than the federal minimum wage, the 

benefit of tips or room and/or board bring the real wage value up the federal minimum wage. 

This note will outline how herder compensation will be determined. First, a base wage is 

determined. Second, the value of meals will be deducted. Lastly, the base wage less the value of 

meals yields the proposed sheepherder compensation. This report will also propose how the 

herder wage compensation will be updated annually to keep in line with market conditions. 

Establishing a Sheepherder Base Wage

One national sheepherder wage is proposed using the federal minimum wage of $7.25 per hour 

in 2014. At 173.33 hours per month, this equates to a $1,256.64 per month base wage. This one 

base wage accurately reflects compensation for herders across state lines doing similar work. 

Board Deduction 

In establishing a new wage determination, the sheep industry can deduct meal expenses 

currently borne by sheep ranchers. There is legal precedence from Oregon to deduct meals in 

calculating herder compensation. Room, however, will not be deducted. The industry has 

historically provided herder’sroom at no cost to the herder. Further, there is no legal precedence 

to deduct the value of room from herder wages.

The Oregon Case

There is already legal precedence for deducting board from the herder wage determination. 

Most western states utilize the prevailing wage survey to define H2-A sheepherder wages with 

the exception of Oregon. In Oregon, the break came out of a lawsuit in the early-1990s. 

In Oregon the sheepherder H2-A wage was determined by a court settlement.1In 1994, Western

Range Association (and its members) and plaintiff Arturo Zapata (represented by Oregon Legal

Services Corp) settled an employment contract that established a minimum sheepherder wage.

At the time, the salary increase to $650 per month was retroactive to October 1, 1992. Current 

revisions to the established base wage rate are tied to changes in Oregon’s minimum wage.

 

1 Prior to July 2011, the Oregon sheepherder wage was $1,211.55 after board was deducted. New wages 

established in July 2011, Oregon’s wage rate was set to $1227.67 plus room and board.
6

Not only was the herder wage tied to the state minimum wage in Oregon, but the number of 

hours was established in the settlement as was a credit for board. It was found in the settlement 

that herders work 40 hours per week for 52 weeks per year for a total of 2,080 hours per year. 

This calculates to 173.33 hours per month.

USDA Food Plans Board Deduction

The sheep industry presents a base wage rate equal to the 2014 federal minimum wage rate, but 

proposes to deduct the value of rancher-provided grocery costs supplied to herdersin calculating 

the final herder compensation. It is proposed that the value of herder meals be based upon the 

U.S. Department of Agriculture (USDA) “Food Plans: Cost of Food” which offers a competitive 

meal cost. 

The Center for Nutrition Policy and Promotion (CNPP) of the USDA uses the USDA’s Food Plans 

and current food cost data to calculate, each month, the Cost of Food at Home for four different 

cost levels. The Thrifty, Low-Cost, Moderate-Cost, and Liberal Food Plans each represent a 

nutritious diet at a different cost. 

According to USDA, the nutritional bases of the Food Plans are the 1997-2005 Dietary Reference

Intakes, 2005 Dietary Guidelines for Americans, and 2005 MyPyramid food intake

recommendations. In addition to cost, differences among plans are in specific foods and

quantities of foods. All four Food Plans are based on 2001-02 data and updated to current dollars

by using the Consumer Price Index for specific food items.

Each plan provides enough food for all meals to be eaten at home or carried out of the home. 

The thrifty plan, which is the least costly of the four, is the basis for the Supplemental Nutrition 

Assistance Program (SNAP) allotments, formerly the Food Stamp program. The low and moderate

programs provide appropriate diets with increasing quantities. The liberal plan permits a greater 

variety of foods: more meat and a different mix of fruits and vegetables than the other plans.

In July 2014 a thrifty meal plan per person per month was $187.70, $242.00 per person for a lowcost option, $303.70 per person for a moderate-cost plan and $373.10 per person for a liberal

meal plan. The costs given are for individuals in 4-person families. For individuals in other size 

families, the following adjustments are suggested by USDA: 1-person—add 20 percent; 2-

person—add 10 percent; 3-person—add 5 percent; 4-person—no adjustment; 5- or 6-person—

subtract 5 percent; 7- (or more) person—subtract 10 percent. Table 1 outlines the different USDA 

meal plan costs. 
7

Table 1 USDA Food Plan Costs

Thrifty Low Moderate Liberal

Base Monthly Cost: 4-Person 

Household, Male, 19-50 Years

$187.70 $242.00 $303.70 $373.10

Added 20% for Individual Cost $225.24 $290.40 $364.44 $447.72

It is recommended that the Liberal plan be adopted in calculating herder compensation because 

it most closely reflects the diet of sheepherders: a mature male with a large share of meat in the 

diet. For a 19- to 50-year old male herder the estimated monthly food budget for a liberal-cost 

plan is 20 percent more than $373.10 per month, or $447.72. 

The Liberal meal plan is also justified because it is the one plan that most closely matches the 

cost of meals in the 2010 Colorado Wool Growers Association survey of sheep ranchers. In 2010 

Colorado Wool Growers commissioned a study to estimate the real wage benefit afforded 

sheepherders. Its finding on the valuation of board helps validate the use of the USDA Food Plan 

cost.

According to the study, total economic costs of hiring a herder included direct wages, but also 

room and board, airfare and domestic transportation. Survey results of sheep ranchers revealed 

that ranchers spent an average $382 per month on groceries per herder in 2010 (Appendix A). 

The Wool Growers’ study found:

“The provision of abundant, high-quality food is critical to the performance and 

well-being of the herder and is a significant component of the real wage received 

by herders. One rancher explained, “A well-fed man takes care of our property as 

it was his own.” 

Ranchers explained that they are willing to accommodate a herder’s food 

preferences. A grocery list will include meat from the ranch (often lamb, beef and 

pork), but also purchased chicken and canned tuna. A rancher reported that his 

herders love chicken. He buys chicken by the caseload. The herders also enjoy 

fresh fruits and vegetables, fresh milk, beans, canned and fresh tomatoes as well 

as cookies and crackers. Personal items purchased at the grocery store such as 

razors, stamps and phone cards are often deducted from herder wages.”

In 2014 dollars the $382 per month in groceries translates to $414 per month using the all items 

Consumer Price Index (CPI) reported by the Bureau of Labor Statistics. This finding helps validate 
8

use of the USDA Food Plan cost. Table 2 delineates the resulting herder compensation calculated 

after the Liberal USDA Food Plan cost is deducted. The resulting herder compensation utilizing 

the USDA Food Plan cost is $808.92.

Table 2 Proposed Herder Compensation with USDA Food Plan Deduction

A. Base Rate per Hour

(Federal minimum wage)

B. Monthly Wage (@ 

173.33 hours per mo.)

C. USDA Meal 

Plan Deduction

Option 1. Herder 

Compensation 

(Column B -C)

National $7.25 1,256.64 $447.72 $808.92

Annual Herder Compensation Adjustments

It is proposed that the recommended herder compensation will adjust annually by two 

mechanism to accurately reflect market conditions. First, the committee recommended that 

changes in the base wage adjust with the Employment Cost Index (ECI) with a 2 percent 

maximum. Second, the cost of meals deducted will adjust with the USDA Food Plans Liberal cost.

The ECI represents the cost of labor. It is a quarterly index published by the U.S. Department of 

Labor, Bureau of Labor Statistics (BLS), which measures changes in employee compensation, or 

the cost of labor. The index is based on a survey of employer payrolls in the final month of each 

quarter. Importantly, it controls for changes in the industrial-occupational composition of jobs.

That is, the index will not fall due to an employment shift to lower-paying occupations.

The ECI differs from simply tracking wages because it calculates the total set of employee costs 

to businesses, not just wages. It includes the cost of fringe benefits, health insurance, pensions 

and death-benefit plans and bonuses. 

The ECI defines labor cost for the civilian labor force, private industry and state and local 

government. The civilian labor forces describes the subset of Americans who have jobs or are 

seeking a job, are at least 16 years old, are not serving in the military and are not institutionalized. 

All non-farm industries are covered, with the exception of federal government employees (which 

only make up 2-3% of the work force). In summary: the index captures all Americans who are 

eligible to work in the everyday U.S. economy. The herder compensation updates will utilize the 

civilian labor force index across all occupations. 

Tying agricultural wages to the ECI has been widely supported by agricultural worker groups for 

it was proposed and passed in the immigration Senate Bill 744 Border Security, Economic 

Opportunity, and Immigration Modernization Act on June 27, 2013.
9

It is proposed that restrictions be placed on year-to-year herder compensation increases. The 

sheep industry is a volatile industry exhibited by recent sharp swings in feeder and slaughter lamb 

prices. Unnecessarily volatile input costs such as in herder wages would only add risk (and thus 

costs) to an industry that has been contracting over the last few decades.

As reviewed, the committee recommends tying changes to the base wage to changes in the ECI, 

but with a cap of 2 percent.2If the base wage adjustment cap is adopted then the rule would 

have gone into effect in 5 out of the past 10 years. Where the ECI growth is higher than 2 percent, 

the base wage increase will be topped at 2 percent. Herder wages will adjust annually with the 

implementation of the wage adjustment beginning on January 1, 2015 utilizing the ECI report 

from the third quarter of 2014.

In a two-pronged adjustment mechanism, it is also recommended that the boarding calculation

is updated annually. The cost of providing meals to herders can vary considerably year-to-year

and that cost doesn’t necessarily trend with the ECI. Not only does the ranchers’ grocery bills

fluctuate, but the opportunity cost of the meat provide herders varies. Sheep ranchers provide 

their herders meat from their ranch. The value of that lamb, beef or pork could receive a premium 

over commodity values in the marketplace. The beef or pork sheep ranchers provide is often allnatural or, in the case of beef, grass-fed. Further, lamb is a premium protein. 

It is proposed that boarding compensation adjusts annually with the Liberal USDA Food Plan cost. 

The Food Plan is released monthly and is adjusted based upon the Consumer Price Index (CPI). In 

the event that the annual adjustment in meal costs exceeds the increase in the base wage rate, 

 

2

The immigration Senate bill 744 Border Security, Economic Opportunity, and Immigration Modernization Act that 

passed the Senate on June 27, 2013 included language that introduced limits to agricultural worker wage 

adjustments. The wage adjustment language has passed the Senate and has been approved by various influential 

farmer groups. 

1.0

1.5

2.0

2.5

3.0

3.5

4.0

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Percent

Figure 1 Annual Percent Change in ECI 

Source: Derived from BLS.
10

the current herder compensation will remain unchanged. That is, in any year there will never be 

a reduction in herder compensation, only increases when the adjustment mechanisms require.

Conclusion

This note proposes a new sheepherder wage methodology. It provides for a feasible, workable 

option to update the base wage with a one-time calculation based upon the federal minimum 

wage rate and deduction for meals. Precedence for this wage methodology is already established 

in Oregon in 1994. The industry also recommends a two-tier updating mechanism that ensures 

that herder wages are kept up to date with market conditions. 

As its base, it is proposed that a new, national, herder wage be determined using the federal 

minimum wage. Second, the value of meals provided herders will be deducted from the base 

wage based upon the Liberal USDA Food Plan cost of meals at home. The base wage rate less the 

meals deduction yields the herder compensation. 

Each year the herder compensation will be updated. The base wage rate will be tied to changes 

in the Employment Cost Index (ECI) with a 2-percent cap. The board deduction will also change 

each year based upon changes in the USDA Liberal Food Plan cost. It is further recommended 

that the updating mechanism should not have an adverse effect on herder compensation in any 

year.

 
11

 

References

“Border Security, Economic Opportunity, and Immigration Modernization Act,’’ June 27, 2013, S.744.ES.

Colorado Wool Growers Association. March 2010. “The Real Wage Benefits Provided To H-2A Sheep 

Herders and the Economic Cost to Colorado Ranchers.” Prepared by Julie Stepanek Shiflett.

U.S. Department of Agriculture, September 2014. “USDA Food Plans: Cost of Food,” Accessed at 

http://www.cnpp.usda.gov/USDAFoodPlansCostofFood/reports on 9/22/14.

U.S. Department of Labor, June 14, 2011. “Attachment A: Special Procedures: Labor

Certification Process for Applications for Sheepherding and Goatherding Occupations under the

H-2A Program.”

U.S. Department of Labor, Bureau of Labor Statistics. Employment Cost Index. Accessed at 

http://www.bls.gov/news.release/eci.toc.htm on September 22, 2014. 

U.S. Department of Labor, Bureau of Labor Statistics, “Frequently Asked Questions (FAQs), 

Question: Is the Consumer Price Index (CPI) a cost-of-living index? Accessed at 

http://www.bls.gov/dolfaq/bls_ques2.htm on October 1, 2014.

U.S. Department of Labor, Bureau of Labor Statistics, “National Compensation Survey - Employment 

Cost Trends,” Accessed at http://www.bls.gov/ect/ on October 1, 2014.

U.S. Department of Labor, Employment and Training Administration, June 14, 2011, “Advisory: Training 

and Employment Guidance Letter No. 32-10.”

U.S. Department of Labor, Employment and Training Administration, “Labor Certification Process for the 

Temporary Employment of Aliens in Agriculture in the United States: 2014 Allowable Charges for 

Agricultural Workers’ Meals and Travel Subsistence Reimbursement, Including Lodging,” Federal 

Register / Vol. 79, No. 43 / Wednesday, March 5, 2014 / Notices.

U.S. Department of Labor, Wage and Hour Division, Division of Communications

Accessed at http://www.dol.gov/dol/topic/wages/minimumwage.htm on September 22, 2014.

U.S. Department of Labor, Wage and Hour Division, Division of Communications, Accessed at 

http://www.dol.gov/whd/minwage/america.htm#Consolidated on October 1, 2014.

U.S. Department of Labor, Wage and Hour Division (WHD), “Minimum Wages for Tipped Employees,”

Accessed at http://www.dol.gov/whd/state/tipped.htm on September 23, 2014.

U.S. Department of Labor, Wage and Hour Division (WHD), July 2009. “Fact Sheet #2: Restaurants and 

Fast Food Establishments under the Fair Labor Standards Act (FLSA)”
12

Appendix A – Real Wage Cost Estimate to Sheep Ranchers

The following excerpt is from the 2010 Colorado Wool Growers’ “The Real Wage Benefits 

Provided To H-2A Sheep Herders and the Economic Cost to Colorado Ranchers.”

The actual pay received by H-2A herders doesn’t accurately capture the real wage benefits 

provided to herders such as free room and board. A real wage calculation captures the value of 

all goods and services provided to herders during their employment. A real wage captures 

opportunity cost. That is: ‘What would it cost if a herder had to pay his own food, housing or 

clothing expenses?’ These values are added onto the herder base pay to calculate his real wage.

Herders also do not pay for transport, but this will be factored into the real expenses paid by 

ranchers, not into the real wage calculation for herders. 

Unlike the employers of H-2A farm workers, employers of H-2A sheep herders must pay for food; 

and transportation costs that are much higher than for H-2A farm workers. The ranchers pay the 

herders a federally established wage of $750 per month. However, the inclusion of additional 

benefits including food and housing, yield an estimated real wage of $1,638 per month or $10.24 

per hour. 

In calculating the real wage paid to herders, a budget was outlined representing typical expenses 

and receipts afforded herders as presented by ranchers surveyed (Table 2). 

Table 2. Calculation of Real Wages for Colorado H-2A Sheep Herders

Real Wage Paid to Herder

Herder Real Wage 

(Per month)

Herder Real Wage (Per 

hour @ 160 

hours/month)

1. Base pay $750 $4.69

2. Food $382 $2.39

3. Housing -- Rental $288 $1.80

4. Housing -- Maintenance and Utilities $137 $0.86

5. Clothing and Tools $27 $0.17

6. Doctor fees $23 $0.14

7. Cashed in paid vacation (2 weeks per year) $31 $0.20

Real Wage Paid to Herder $1,638 $10.24
13

Meals Valuation

The Colorado Wool Growers’ Association rancher survey asked ranchers how much they spend 

on groceries for their herders.

Ranchers spent an average $382 per month on groceries per herder on 2010. 

Per regulations, a rancher employing an H-2A herder must provide food. Ranchersshop on behalf 

of herders and deliver food and supplies at least twice weekly. The provision of abundant, highquality food is critical to the performance and well-being of the herder and is a significant 

component of the real wage received by herders. One rancher explained, “A well-fed man takes 

care of our property as it was his own.” 

Ranchers explained that they are willing to accommodate a herder’s food preferences. A grocery 

list will include meat from the ranch (often lamb, beef and pork), but also purchased chicken and 

canned tuna. A rancher reported that his herders love chicken. He buys chicken by the caseload. 

The herders also enjoy fresh fruits and vegetables, fresh milk, beans, canned and fresh tomatoes 

as well as cookies and crackers. Purchasing groceries is an expense that the herder does not have 

to pay. By contrast, it is an expense that both the H-2A farm worker and minimum wage town 

worker must incur.

Personal items purchased at the grocery store such as razors, stamps and phone cards are often 

deducted from herder wages. 

Housing Valuation

The conservative estimate for the monthly value of sheep camp housing is $288, which is less 

than $10 per day. 

The $288 per month is based upon sheep rancher sheep wagon payment rates and a survey of 

rental rates for hunting cabins in the wilderness. However, there are additional costs including 

maintenance. Survey results revealed that ranchers pay an additional $137 per month for camp 

maintenance, heating, and water. The total cost to the rancher to provide housing is thus $425 

per month.

The special provisions created for employers of H-2A sheep herders require that housing be 

provided to the herders as a component of the contract. Housing receipts provided to the herders 

enter the real wage calculation in two ways. First, a rental rate can be computed to assess the 

value of the sheep camp. Second, annual maintenance of sheep camps and bunk houses, in 

addition to the provision of fuel and water, is a cost to the rancher, which is also to the herder’s 

benefit. 

The housing provided herders can be variable, but all housing is typically hard-sided, on wheels, 

sleeps one comfortably, uses a wood stove or propane for heat, cooking and washing. 
14

The interior of the sheep wagon is similar to a compact RV. There's a bed, folding tables, and built 

in seats with storage space underneath. A newer sheep wagon will have solar panels to provide 

indoor hot water, heat, air conditioning and electricity. 

Department of Labor requires that State Workforce Agencies (SWAs) use the detailed housing 

regulations to conduct inspections of fixed-site and mobile housing units at least once every three 

years.3 Additionally, the rancher must sign a statement at the time of application that herder 

housing meets the standards outlined in the regulations. 

Whether it’s a condo or a sheep camp, living accommodations cost money; expenditures include 

both the initial purchase price and maintenance. In order to assign a fair value to sheep camp 

housing provided to herders, two different approaches were utilized: 1) the break even cost over 

a 10-year period; and 2) a conservative rental rate value. 

The breakeven cost is the estimated lower boundary for the sheep wagon rental rate. It is the 

minimum that the rancher should accept for use of the wagon. It is the depreciation expense, 

which is that portion of the total cost of a business’s fixed asset that is allocated to a given period, 

such as a month, for using that asset during the period.

Using an average purchase price of $15,000 for a sheep camp, as provided by surveyed ranchers, 

and a break even value over a 10 year period, the monthly housing cost is $125 per month. 

The second method to determine the value of housing provided to herders is to estimate the 

potential rental rate of a sheep wagon. This serves as the upper boundary for the estimated 

rental rate. 

Outdoors enthusiasts (hunters, hikers, fishermen, etc.) routinely rent very simple living quarters. 

The value recreationists place on a rustic cabin or trailer assist with establishing a rental rate for 

a sheep wagon.

Nearly one-half of ranchers surveyed live in the tri-county area in northwestern Colorado –

Moffat, Routt and Rio Blanco Counties. Availability of hunting cabins or cabins for backpackers is 

limited. Rustic cabins in National Forests can run from $50 to $75 per night (up to $2,250 per 

month).4 Very rustic cabins at the Wilderness Ranch, about 50 miles northeast of Craig (in Moffat 

County) bordering the Routt National Forest, rent for about $600 per month.5 The cabins do not 

have electricity or running water, but are larger than a sheep wagon. 

 

3 Department of Labor, Employment and Training Administration. “Special Procedures for Processing H-2A 

Applications for Occupations Involved in the Open Range Production of Livestock,” February 9, 2007.

4 U.S. Forest Service. Cabin and Lookout Rentals – Colorado. Accessed at 

http://www.fs.fed.us/r2/recreation/rentals/#co_cabins in February 2010.

5 Country Living Realty, LLC. Craig, Colorado. Phone conversation with Broker Associate Marylou Wisdom 

February 13, 2010
15

Two real estate agents were contacted in the Craig area to estimate the rental rate of a very 

rustic, isolated, one person, no-amenity cabin or trailer.6 The realtors reported rent could range 

between $350 and $450 per month. 

The rental market for a rustic cabin or trailer in the wilderness with no amenities is thin. This 

means that if a landlord wanted to find a renter, he or she would most likely have to significantly 

lower the rent. In order to provide a conservative value for sheep camp housing, the median 

value between $125 (break even cost) and $450 (rental estimate) of $288 per month, was chosen 

as a representative rental rate for an average sheep wagon (less than $10 per day).

In addition to free rent, herders benefit from the annual expense (incurred by ranchers) of 

equipping the sheep camp, providing propane and wood and general maintenance. Every year, 

ranchers likely revamp at least one of multiple sheep camps. This includes changing or fixing tires, 

providing new paint, flooring and upholstery. Additionally, stove pipes need replacing about 

every 3 years. One rancher spent $1,200 to provide additional insulation for his sheep camps. Per 

regulations, the rancher will also provide a new first aid kit annually as well as a new or recharged 

fire extinguisher.

Ranchers typically cut wood for the herders to use for heat and cooking. Additionally, many 

ranchers provide propane, which can cost $25 per month. Ranchers also often provide Coleman 

fuel for lanterns in addition to batteries. 

One hundred percent of the ranchers surveyed provided information on camp maintenance, and 

the average monthly expenditure for sheep camp maintenance and fuel is $137. This is a housing 

expense that a herder doesn’t have to pay and is counted toward the herder’s real wage. 

The total housing benefit to herders is therefore $425 per month – sum of rent, maintenance and 

utilities.

 

6 Country Living Realty, LLC. Craig, Colorado. Phone conversation February 13, 2010. American Northwest 

Realty. Craig, Colorado. Phone conversation with Broker Roy McAnally on Feb. 13, 2010. By comparison, 

a one-bedroom home for rent in Craig goes for about $650/mo. to $850/mo. in Feb. 2010.