Actually it does. Giving the grazing away to a few lucky ranchers is not "better management", getting fair value for the grazing that is going to take place regardless is "better management" IMO.
That money left on the table benefits those ranchers and the American taxpayers make up the difference. I believe the earlier data indicated the USFS required 70+ million in funding for grazing contracts in 2009 and brought in a measly 5 million. Doesn't take a MBA to see that there is a problem here. The ranchers get 65 million in taxpayer financed grazing resources given to them and the taxpayers gets to pay for it with no benefit to them whatsoever.
Now let the state manage those contracts and they will likely charge at least 10x more and in many cases even more than that. Suddenly managing the grazing resource doesn't cost taxpayers a dime and the states have millions in extra revenue to fund the wildlife department and conservation projects. It's not as complicated as the feds want you to believe. The states and even other government agencies are already doing a much better job of administering grazing contracts than the BLM and USFS, the data confirms this.
You're completely missing the point because you are fixated on dollars here. Yes, the feds don't do a good job of managing grazing from a fiscal standpoint. However, from a wildlife standpoint they do at times do a fantastic job.
I think Montana DNRC does a very poor job of regulating grazing, from what I have seen. The Beaverhead/Deer Lodge Forest does a phenomenal job.