N.M. Stat. § 19-7-29
The commissioner of public lands of the state of New Mexico shall determine the annual rental to be charged for grazing lands belonging to the state, and such rentals shall be based upon the classification and valuation herein provided for and upon the appraisal required by the act of congress granting the lands to the state. The commissioner shall, as soon as practicable, classify and determine the value of all grazing lands belonging to the state, and in such determination, shall take into consideration the carrying capacity of such lands; that is, the number of livestock such lands will reasonably carry per annum without injury to such lands. In determining such carrying capacity, the commissioner may take into consideration the determination by the grazing service of the bureau of land management, by the soil conservation service, by the forest service or by any other federal agency, of the carrying capacity of similar lands, and may also take into consideration the carrying capacity of similar patented lands as determined by the New Mexico state tax commission [property tax division of the taxation and revenue department] or other taxing authorities. In determining such capacity, five sheep shall be considered the equivalent of one cow, and the commissioner may determine such carrying capacity by counties or some natural division instead of by individual sections or leases. All appraisals of state grazing land hereafter made shall set out the opinion of the appraiser as to the average carrying capacity of the land appraised. The commissioner shall at all times take into consideration economic conditions in arriving at the value of grazing lands for leasing purposes, and shall have the power, in renewing any lease, to reduce the minimum rentals hereinafter set out by not more than thirty-three and one-third percent, if severe drouth or economic conditions, in his judgment, require such reduction. All leases for grazing purposes entered into for any period beginning after the effective date of this act [section] shall carry a minimum annual rental per acre as follows:
Number of cows the land will carry per section Annual rental
5 head and less 3 cents per acre
6 head 4 cents per acre
7 head 5 cents per acre
8 head 6 cents per acre
9 head 7 cents per acre
10 head 8 cents per acre
11 head 9 cents per acre
12 head 10 cents per acre
13 head 11 cents per acre
14 head 12 cents per acre
15 head 13 cents per acre
16 head 14 cents per acre
17 head 15 cents per acre
18 head 16 cents per acre
19 head 17 cents per acre
20 head 18 cents per acre
21 head 19 cents per acre
22 head 20 cents per acre
23 head 21 cents per acre
24 head and over 22 cents per acre
Any state grazing leases which, at the time of the passage and approval of this act [section], are subject to any civil action by the government of the United States or are subject to any supplemental agreement with the United States government in any land acquisition program by the United States in the establishment of military reservations within this state, shall not be subject to the minimum rates established by this act [section], but shall be at the rate established and ordered by the commissioner of public lands.
NMS § 19-7-29