Considering the nexus between public grazing lands and privately owned rangelands in the American West, some scholars argue that reduced access to public grazing allotments can result in subdivision or land conversion of private lands affiliated with livestock production—an argument presented as a choice between “cows or condos.” This argument has been applied to compensated permit waivers, a tool meant to reduce wildlife-livestock and other conflicts on public lands. We tested this “cows or condos” hypothesis by conducting semistructured interviews and a survey of permittees who have participated in a permit waiver, and through a property and records analysis of privately owned properties affiliated with 49 permittees who have accepted compensation to waive a federal grazing permit in the West since 1999. While we found no evidence of subdivision on private properties, common themes and mixed experiences arose from the producers we communicated with. Nearly every producer was experiencing untenable conflict on their grazing lease, most producers would have preferred to remain on their allotment if conflicts were reduced but were grateful they received compensation for waiving their permit, and many producers expressed concerns about the impacts of ongoing fragmentation of rangelands across the American West. The permit waiver presented difficulties for some producers, but for others the permit waiver was a catalyst for expanding their operation. Conflict with wildlife, agency restrictions, and exorbitant land values were cited by most producers as factors compromising their operation. We found no evidence to support the claim that compensated permit waivers are driving subdivision in the West; rather, many ranchers indicated the rapid development and fragmentation of Western landscapes is a major factor reducing the viability of livestock production.