Program Impact

The primary goal of the Buy-Back Program is to maximize the reduction of fractional interests. Below are highlights of the Program’s impact on the reduction of fractional interests, as well as other associated positive impacts. 

As of December 31, 2018, the Program has acquired 800,310 interests, which is a 34 percent reduction in total purchasable fractional interests that are associated with the 50 locations where Program implementation has occurred since 9/2013 (a 27 percent reduction in interests at the approximately 150 Program-identified locations). All statistics referenced on this page are cumulative, unless otherwise noted. 

The graph below depicts the overall reduction of fractional interests. Accounting for other factors that increase fractionation (e.g. partitioning of tracts and landowners passing away with interests dividing among heirs), the number of fractional interests is 2.5 million as of December 31, 2018, which is 16 percent less than the number prior to the Program. Current location-specific results can be found here. 

Overall Reduction in Fractional Interests, 2007 - 2018

Notable location-specific results include Umatilla and Pine Ridge 35 percent and 46.5 percent reductions in fractional interests, respectively.

Program Success at Pine Ridge and Umatilla

These reductions are based on the number of purchasable fractional interests in 2018 compared to the number of purchasable fractional interests in 2013, so they include increases in fractionation due to factors such as partitioning or landowners passing away and dividing interests among multiple heirs.

The Buy-Back Program has achieved these reductions in fractional interests by offering opportunities to a significant number of landowners to participate in the Program. The Program has sent offers to more than 144,000 landowners, for more than 5 million acres and nearly 2 million interests. The charts below depict the Program’s progress in consolidating interests and acres and offering opportunities to landowners since September 30, 2013.

Effective Use of Consolidated Land

In order to make decisions regarding the use of a given tract of fractionated land, landowners whose combined interests make up a majority of the tract must consent to the decision. If a single owner, generally the tribe, owns the majority of a tract, they are able to make decisions regardless of how many other owners there are in a tract. Therefore, the Program measures progress not only by the number of interests consolidated, but also by whether the interests consolidated in a given tract rise to the level that enables improved management potential. The Program is working with the Bureau of Indian Affairs and tribes to explain the different consent requirements to facilitate decisions regarding consolidated land and to put the Program’s results in context.

As a general matter, the percentage of owner consent, as well as the steps and type of approval and documentation required, depend on the intended land use (e.g., a tract of land could be used for residential, business, agricultural, or grazing purposes). Several land uses require majority consent, while other uses entail consent thresholds that depend on the number of owners for that tract.

For agricultural leases and grazing permits, majority ownership consent is required (see 25 C.F.R. § 162.207).  Majority consent is defined as greater than 50 percent ownership interest. As of December 31, 2018, nearly 28,000 tracts at the 50 locations where the Program has implemented have increased to greater than 50 percent tribal ownership as a result of the Program, which is a 131% increase over the 2013 number.

The following maps display tribal management potential (i.e., the ability of a tribe to make decisions regarding land based on their ownership percentage in the tract) for agricultural purposes before and after Program acquisitions. Gray shading indicates tracts that were 100 percent tribally owned prior to Program implementation; light purple shading indicates fractionated tracts with greater than 50 percent tribal ownership; and dark purple shading indicates tracts that are now 100 percent tribally owned after Program implementation. Tribes can use these maps to plan for future use of tracts.

1500% increase in tribal management potential at the Blackfeet Reservation

The Blackfeet Nation experienced more than a 1,500 percent increase in the number of fractionated surface (S) and both (B) tracts in which the Nation now has a greater than 50 percent interest.

7000% increase in tribal management potential at the Navajo Reservation

The Navajo Nation experienced more than a 7,000 percent increase in the number of fractionated surface (S) and both (B) tracts in which the Nation now has a greater than 50 percent interest. The second map depicts tracts at Navajo New Mexico (Land Area Code 791) (interests were also consolidated throughout other parts of the Reservation).

Community and Economic Benefits

An ongoing commitment to land consolidation in Indian Country will have long-lasting effects such as improving government-to-government relationships, fostering cultural preservation, spurring economic development, furthering social initiatives, and promoting environmental conservation. Not only can tribes now use the newly consolidated land for these purposes, but tribes also earn more income from their increased ownership. Tribes have earned more than $35 million from land consolidated through the Buy-Back Program since calendar year 2013. Many tribes have plans for further development or protection of newly consolidated lands.

Nationwide Impact: Money received by landowners through the Buy-Back Program generates spending in local areas and supports economic activity. According to an analysis completed by the Department’s Office of Policy Analysis using data through August 2017, Program payments to landowners had various impacts on the national and local economies, including the following:

Nationwide payments made to individual landowners contributed an estimated:

• $1.3 billion in value added to the economy (i.e., contribution to the gross domestic product [GDP]),
• $2.3 billion in economic output (i.e., the total estimated value of production of goods and services supported through household spending spurred by Program payments), and
• 15,000 jobs nationwide (i.e., jobs supported by the household spending resulting from Program payments to landowners).

Montana Payments made to individual landowners in Montana contributed an estimated:

• $181 million in value added to the economy,
• $339 million in economic output, and
• 3,000 jobs statewide.

South Dakota Payments made to individual landowners in South Dakota contributed an estimated:

• $116 million in value added to the economy
• $206 million in economic output, and
• 1,700 jobs statewide.

Landowners residing in every U.S. state and the District of Columbia have accepted offers extended by the Program. Landowners residing in Montana, New Mexico, Washington, and Arizona account for more than 40 percent of accepted offers, amounting to more than $645 million.

The Program’s impact is significant at the state and local economic level. For example, landowners living in three Montana counties (Big Horn, Yellowstone, and Rosebud) accepted offers amounting to more than $117 million. Landowners living in six South Dakota counties (Bennet, Jackson, Mellette, Pennington, Oglala Lakota, and Todd) accepted offers amounting to $84 million, accounting for more than 45 percent of the total value of offers accepted in the state. The graph on the right illustrates accepted offers by state through August 31, 2017.

The average payment issued to landowners residing in Montana was about $7,700, which represents approximately 15 percent of the median household income in the state. The median payment issued to landowners residing in South Dakota was about $1,351, which represents about 2 percent of the median household income in the state. Landowners often spend income earned from land sales in their local economies or have used this income to reinvest in tribal communities.