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The Current Situation in Farmland Ownership; Implications for Conservation and the Next
GenerationNational Farm Business
Management ConferenceFargo, ND
Michael Duffy, Director, Iowa State University
Beginning Farmer Center
Outline
• Land owner demographics• Tenancy• Implications• Discussion
Iowa Farmland Owner Demographics
Distribution of Iowa Farmland by Age of Owner and Year
0%
5%
10%
15%
20%
25%
30%
< 25 25-34 35-44 45-54 55-64 65-74 > 75
1982 1992 2002 2007
Percent of U.S. Farmland by Age of Owner
0%
5%
10%
15%
20%
25%
30%
35%
< 25 25 - 34 35 - 44 45 - 49 50 - 54 55 - 59 60 - 64 65 - 69 > 70
1988 1999
1900** 1910** 1920** 1930** 1940** 1946 1958* 1970* 1976* 1982 1992 2002 20070%
10%
20%
30%
40%
50%
60%
Percent of Land Owned by Owners over the Age of 65*
1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 20070%
10%
20%
30%
40%
50%
60%
0
10
20
30
40
50
60
70
80
90
12%
55%
0.057
28%
7%
15%
50
77.9
Percent of Populations over 65 and Life Expectancy
IA Farmland Owners IA Farmers IA Population Life Expectancy
Percent of Population
Years of Age
Percent of Total Acres Owned and Percent of Category Rented
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Spouses SO - Male SO - Female Multiple
Percent of Acres Owned Percent of Owned Rented
Percent of Land in Each Region Owned by a Single Female over the Age of 75
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
NW SW N NC S NE E
Percent of Iowa Farmland by Residence of Owner
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Iowa Resident Non-Iowa Resident
1982 1992 2002 2007
Farm Tenancy
Percent of Farmland Rented in the U.S.
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
1900
1910
1920
1925
1930
1935
1940
1945
1950
1954
1959
1964
1969
1974
1978
1982
1987
1992
1997
2002
2007
1910 1920 1925 1930 1935 1940 1945 1950 1954 1959 1964 1969 1974 1978 1982 1987 1992 1997 1998 1999 2000 2001 2002 2003 2004 2005 20070%
10%
20%
30%
40%
50%
60%
70%
80%
53%
69%
9.3%
25.0%
37%
6%
Distribution of U.S. Farm Operators by Tenure Status
Full Owners Part Owners All Tenants
1910 1920 1925 1930 1935 1940 1945 1950 1954 1959 1964 1969 1974 1978 1982 1987 1992 1997 1998 1999 2000 2001 2002 2003 2004 2005 20070%
10%
20%
30%
40%
50%
60%
70%
52.9%
37%
15%
54%
25.8%
8.9%
Distribution of U.S. Farm Acres by Tenure Status
Full Owner Part Owners All Tenants
Percent of Farmland Rented, 2007
20%
Decatur
22%
Davis
24%
Appanoose
26%
Clarke
26%
Lucas
27%
Ringgold
27%
Wayne
28%
Allamakee
28%
Monroe
30%
Dubuque
31%
Clayton
32%
Van Buren
33%
Jefferson
34%
Mahaska
35%
Jackson
36%
Taylor
36%
Wapello
36%
Adams
37%
Marion
37%
Keokuk
37%
Lee
37%
Warren
37%
Union
38%
Winneshiek
39%
Henry
40%
Iowa
40%
Washington
42%
Delaware
45%
Madison
45%
Jones
46%
Louisa
46%
Page
46%
Adair
46%
Poweshiek47%
Johnson
48%
Guthrie
48%
Fayette
48%
Howard
50%
Des Moines
50%
Cass
50%
Chickasaw
51%
Bremer
51%
Muscatine
51%
Montgomery
53%
Tama
53%
Linn
53%
Mills
54%
Buchanan
55%
Jasper
55%
Audubon
56%
Marshall
56%
Black Hawk
57%
Plymouth
57%
Carroll
57%
Mitchell
57%
Benton
57%
Worth
57%
Harrison
57%
Butler
58%
Kossuth
58%
Clinton
58%
Woodbury
58%
Floyd
59%
Cedar
59%
Scott
60%
Fremont
60%
Pottawattamie
61%
Winnebago
61%
Cherokee
61%
Lyon
61%
Hardin
62%
Story
62%
Dallas
63%
Shelby
63%
Ida
63%
Sioux
63%
Cerro Gordo
63%
Crawford
64%
O'Brien
64%
Webster
64%
Franklin
64%
Calhoun
64%
Emmet
65%
Greene
65%
Boone
65%
Polk
65%
Buena Vista
65%
Sac
65%
Monona
65%
Dickinson
66%
Osceola
67%
Grundy
67%
Hamilton
67%
Wright
67%
Humboldt68%
Pocahontas
69%
Clay
70%
Hancock
70%
Palo Alto
20% to 40%
40% to 50%
50% to 60%
60% to 80%
Percent Change in Land Rented from 1950 to 2007
-44%
Decatur
-30%
Clayton
-29%
Lucas
-29%
Clarke
-28%
Davis
-28%
Ringgold
-27%
Appanoose
-25%
Wayne
-24%
Adams
-22%
Mahaska
-16%
Marion
-12%
Taylor
-12%
Allamakee
-11%
Delaware
-9%
Henry
-9%
Washington
-9%
Keokuk
-8%
Union
-8%
Warren
-7%
Jefferson
-7%
Poweshiek
-4%
Montgomery
-4%
Iowa
-1%
Winneshiek
-1%
Plymouth
-1%
Mills
-1%
Calhoun
-1%
Dubuque
0%
Cherokee
0%
Guthrie
0%
Marshall
0%
Page
1%
Van Buren
1%
Adair
1%
Monroe
2%
Lyon
3%
Butler
3%
Kossuth
3%
Benton
4%
Jones
5%
Louisa
5%
Wapello
5%
Emmet
6%
Tama6%
Greene
6%
Grundy
6%
Jackson
7%
O'Brien
7%
Harrison
7%
Story
7%
Ida
8%
Jasper
8%
Buena Vista
8%
Carroll
8%
Bremer
9%
Webster
9%
Fremont
10%
Hardin
11%
Fayette
12%
Audubon
12%
Wright
12%
Humboldt
12%
Howard
12%
Muscatine
12%
Sioux
12%
Lee
13%
Osceola
14%
Cedar
14%
Black Hawk
15%
Worth
15%
Pottawattamie
15%
Hamilton
16%
Boone
16%
Pocahontas
16%
Sac
17%
Monona
17%
Chickasaw
18%
Clay
18%
Shelby
19%
Floyd
20%
Franklin
20%
Johnson
20%
Dickinson
20%
Woodbury
20%
Madison
21%
Winnebago
22%
Crawford
22%
Cerro Gordo
22%
Palo Alto
22%
Linn
24%
Scott
25%
Clinton
25%
Polk
25%
Dallas
25%
Des Moines
25%
Buchanan
26%
Hancock
26%
Mitchell
44%
Cass
-45% to -10%
-10% to 0%
0% to 10%
10% to 45%
0 1-25% 26-50% 51-75% 76-99% 100%0%
10%
20%
30%
40%
50%
60%
Percent of Farms and Cropland by Percent of Land Rented, 2007
Farms Cropland
Percent of Acres Rented
Impact on Conservation• Concern over absentee ownership
and conservation started in the 1930s. There was a general fear that as more people farmed land they didn’t own there would be less incentive for them to take care of the land.
• Many studies, commissions, government programs and so forth started in this time period.
Joke in 1930s
• “Owner : why do not you get busy and fix that leaky roof?
• Tenant: Because it is your roof• Owner: Yes, but it is leaking on you
• Tenant: I know, but next year it won’t be.”
(Rasmussen 1999)
• Findings from several studies suggest that for short term conservation practices there isn’t too much difference between renters and owners. But, there are differences with respect to longer term conservation investments.
Impact on the Next Generation
Percentage of Farmland by Anticipated Transfer Method
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Will Family Will Others GiveFamily
GiveOthers
Sell Family Sell Others Trust Do Else
Sell
Equal divisi
on
No plans
Give to 1 heir
Equal but f
arming heir
more
Misc
/keep la
nd in 1 piece
Other
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Farmers Opinion of Best Estate Plan
Next Generation• Current generation doesn’t plan to
fully retire, they plan on using the existing farm for a significant portion of their retirement income and they plan to divide the land equally among the heirs
• Access to land will be an issue for the next generation; its always been difficult but today’s demographic make the problems even more acute
Next Generation• Income will be the key; how many
families can be supported• Will technology continue to push
towards larger units meaning more rented land
Parting Thoughts• The percent of farmland owned by
those over 65 is continuing to increase and will likely do so for quite a while
• Increasing age in general, lack of alternative investments, lack of retirements and technological change all increase the age of the land owner
Parting Thoughts• There will continue to be an increase
in the ‘absentee’ landowner as farms get divided among the family
• Current heirs seem more likely to hold on to the land but it isn’t known what the succeeding generation will do
• Conservation, especially short term practices, should not be impacted by these changes.
Parting Thoughts• In many respects these are not
new problems but in other aspects they are new
• The next generation of agriculturalists will view the world differently and they could view the land differently too
