Ranchers Boarding BLM Wild Horses Face Social Security Earnings Test
Over 37,675 wild horses managed by the Bureau of Land Management (BLM) are currently grazing on private ranches under long-term contracts. Ranchers who provide care and pasture for these animals report their income as Schedule F farm revenue, which triggers Social Security’s earnings test if they claim benefits before age 67. This means early retirees could lose $1 in monthly benefits for every $2 of net income above the annual limit of $24,480. In contrast, ranchers who lease their land without providing care report rental payments as Schedule E income and avoid this earnings test entirely. Additionally, boarding wild horses also incurs self-employment tax on profits, while cash leases do not. These financial distinctions create a significant advantage for flat-rate pasture rentals from both Social Security and tax perspectives. The BLM spent $101 million in fiscal 2024 to manage off-range horse populations, with contracts often requiring long-term commitments of five to ten years. A federal judge recently blocked the removal of horses from three Northern California herd areas, highlighting ongoing challenges in managing these animals.
Topics: BLM farming income IRS Social Security earnings test wild horses