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Western Juniper (Juniperus occidentalis) is a native species in Oregon, California, Idaho and Nevada. Western Juniper has been encroaching into sagebrush steppe ecosystems since European settlement of the range. As juniper cover increases from Phase I to Phase III, sagebrush and understory herbaceous vegetation decrease to less than half of their original cover, causing significant reductions in the wildlife habitat and forage available for domestic livestock. This study analyzed the economic impacts of forage reductions and ranchers' willingness to pay for juniper removal, using a dynamic multi-period linear programming model. The model maximizes the net present value of representative 300 head cow/calf ranch in the Jordan Valley area of Owyhee County, Idaho over a 40-year planning horizon with 100 price iterations per year.  Optimal production levels and economic returns are estimated as juniper encroachment advances from Phase I to Phase III. The net present value of the ranch's income stream was estimated at $435,983, $373,515, and $294,852 for Phase I through III, respectively. The second portion of the study analyzed the costs and benefits to the ranch of western juniper removal. It showed that the ranch can afford to invest up to $5,648 per year ($30/acre) for juniper removal on the BLM allotment when it starts in Phase II and is converted back to a Phase I encroachment level. However, this price level drops the ranch's NPV below the NPV if the allotment was not treated. Only when the cost of treatment is dropped to $3,766 per year ($20/acre) or less does the NPV for treating the ranch become higher than when left untreated. Ranchers are the main beneficiaries of these market value increases. The non-market benefits of removal encompass factors such as sage-grouse habitat rehabilitation, other wildlife benefits and overall ecosystem stabilization. These non-market benefits are shared across all users of the range, and provide the rationale for cost sharing programs.