Leasing Farmland in the United States

Abstract

Land leasing plays a vital role in U.S. agriculture, allowing landlords to receive monetary returns from land they do not wish to operate, and allowing tenants to acquire use rights to land. Agricultural leasing is no longer seen as a temporary step toward full ownership, but as an effective way to gain control of land resources. Leasing can be used to expand or contract the farm operation, to conserve limited capital for financing farm operations, to enhance management flexibility, and to reduce risk. This report examines the extent of agricultural leasing, the characteristics of owners who lease land to others, and the nature of leasing arrangements. It is based on the data file of the 1988 Agricultural Economics and Land Ownership Survey (AELOS), a follow-on to the 1987 Census of Agriculture. AELOS provides information on the ownership of land held by operators and nonoperators of farms.