This, in effect, puts him as a bidder against himself, as those bidding against him will obtain the benefit of the improvements if they get the lease. Under state law, the minimum length of a lease is 15 years and the maximum length 55 years. However, the latter is not normally awarded. Within two years before lease expiration, DLNR may offer a new lease. This is done to provide incentives to ranchers to make capital improvements.
Credit is given leases for cost of approved improvements.
The amount of credit is limited to two years' rent. State lease extensions are possible for farm lands, but not for pasture lands, to the extent necessary to secure improvement loans. The HHC is empowered to withdraw from leases land needed for homesteading purposes. Withdrawal can take place between one and five years after notification of intent to withdraw. Because of this short withdrawal period and the lack of collateral, ranchers find it virtually impossible to obtain improvement loans.