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Dynamics of Farmland Ownership and Leasing: Implications for Young and Beginning Farmers

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  • Ani L. Katchova
  • Mary Clare Ahearn

Abstract

This study considers the transition into farming and growth of new farmers in U.S. agriculture by examining land ownership and leasing trends. Our approach is to characterize the entire distribution by farmer age and farmer experience rather than using young versus old and beginning versus established farmer categories. We also use a linked-farms longitudinal approach to show trends over time in farmland expansion and contraction. We find that farms operated by older beginning farmers tend to be smaller and do not tend to grow over time. Our results show that it is mostly young farmers as opposed to all beginning farmers who rapidly expand their farm operations after entering agriculture. Our findings inform policy makers about the strategies that young and beginning farmers use to start their businesses and expand over time, and suggest more effective approaches for targeting loan programs to both young and beginning farmers.

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  • Ani L. Katchova & Mary Clare Ahearn, 2016. "Dynamics of Farmland Ownership and Leasing: Implications for Young and Beginning Farmers," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 38(2), pages 334-350.
    • Handle: RePEc:oup:apecpp:v:38:y:2016:i:2:p:334-350.
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    File URL: http://hdl.handle.net/10.1093/aepp/ppv024
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    Cited by:

    1. Callahan, Scott & Hellerstein, Daniel, 2022. "Access to Farmland by Beginning and Socially Disadvantaged Farmers: Issues and Opportunities," USDA Miscellaneous 333543, United States Department of Agriculture.
    2. Ani L. Katchova & Mary Clare Ahearn, 2017. "Farm entry and exit from US agriculture," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 77(1), pages 50-63, May.
    3. Adam Calo, 2018. "How knowledge deficit interventions fail to resolve beginning farmer challenges," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 35(2), pages 367-381, June.
    4. Lars Isenhardt & Stefan Seifert & Silke Hüttel, 2023. "Tenant Favoritism and Right of First Refusals in Farmland Auctions: Competition and Price Effects," Land Economics, University of Wisconsin Press, vol. 99(2), pages 302-324.
    5. Johanna Jauernig & Stephan Brosig & Silke Hüttel, 2023. "Profession and residency matter: Farmers' preferences for farmland price regulation in Germany," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(3), pages 816-834, September.
    6. Robert Dinterman & Ani L Katchova, 2020. "Property Tax Incidence on Cropland Cash Rent," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(4), pages 739-758, December.
    7. Adjei, Eugene & Hartarska, Valentina M., 2022. "An Impact Analysis of the Transition Incentive Program on Beginning Farmers and Ranchers in Rural United States," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322506, Agricultural and Applied Economics Association.
    8. Ar. R. T. Hidayat & Corinthias P. M. Sianipar & Shizuka Hashimoto & Satoshi Hoshino & Muhammad Dimyati & Ahmad E. Yustika, 2023. "Personal Cognition and Implicit Constructs Affecting Preferential Decisions on Farmland Ownership: Multiple Case Studies in Kediri, East Java, Indonesia," Land, MDPI, vol. 12(10), pages 1-23, September.
    9. Valliant, Julia C.D. & Ruhf, Kathryn Z. & Gibson, Kevin D. & Brooks, J.R. & Farmer, James R., 2019. "Fostering farm transfers from farm owners to unrelated, new farmers: A qualitative assessment of farm link services," Land Use Policy, Elsevier, vol. 86(C), pages 438-447.
    10. McDonald, Tia M. & Durst, Ron & Whitt, Christine, 2021. "The Effect on Family Farms of Changing Capital Gains Taxation at Death," Economic Brief 320794, United States Department of Agriculture, Economic Research Service.
    11. Rahe, Mallory L. & Tsay, Juo-Han & Low, Sarah A., 2023. "Vendor persistence and sales growth 2019-2021: Evidence from five rural Oregon farmers markets," 2023 Annual Meeting, July 23-25, Washington D.C. 336002, Agricultural and Applied Economics Association.
    12. He, Yiming & Collins, Alan R., 2021. "The effect of information structure on farmland contractual choice: toward a revised theory of share tenancy with new evidence from Guangdong, China," International Review of Law and Economics, Elsevier, vol. 65(C).
    13. Alen Mujčinović & Aleksandra Nikolić & Emelj Tuna & Ivana Janeska Stamenkovska & Vesela Radović & Paul Flynn & Veronica McCauley, 2021. "Is It Possible to Tackle Youth Needs with Agricultural and Rural Development Policies?," Sustainability, MDPI, vol. 13(15), pages 1-15, July.
    14. Johanna Jauernig & Stephan Brosig & Silke Hüttel, 2023. "Profession and residency matter: Farmers' preferences for farmland price regulation in Germany," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(3), pages 816-834, September.
    15. Bauman, Allison & Jablonski, Becca B. R. & Key, Nigel D. & Hadrich, Joleen C., 2022. "Land tenure and profitability outcomes for U.S. beginning farmers and ranchers," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322233, Agricultural and Applied Economics Association.
    16. May, Daniel & Arancibia, Sara & Behrendt, Karl & Adams, John, 2019. "Preventing young farmers from leaving the farm: Investigating the effectiveness of the young farmer payment using a behavioural approach," Land Use Policy, Elsevier, vol. 82(C), pages 317-327.
    17. Aleksandra Figurek & Katerina Morphi & Alkis Thrassou, 2023. "A Sustainable Risk Management Model and Instruments for Young Farmers in EU Agriculture," Sustainability, MDPI, vol. 16(1), pages 1-24, December.
    18. Grout, Travis & Ifft, Jennifer & Malinovskaya, Anna, 2021. "Energy income and farm viability: Evidence from USDA farm survey data," Energy Policy, Elsevier, vol. 155(C).
    19. Becca B. R. Jablonski & Nigel Key & Joleen Hadrich & Allie Bauman & Sarah Campbell & Dawn Thilmany & Martha Sullins, 2022. "Opportunities to support beginning farmers and ranchers in the 2023 Farm Bill," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 44(3), pages 1177-1194, September.
    20. Burns, Christopher & Key, Nigel & Tulman, Sarah & Borchers, Allison & Weber, Jeremy, 2018. "Farmland Values, Land Ownership, and Returns to Farmland, 2000-2016," Economic Research Report 276249, United States Department of Agriculture, Economic Research Service.
    21. Tsaiyu Chang, 2021. "Does religious social capital affect farmland transactions? A spatial autoregressive analysis in Taiwan," Letters in Spatial and Resource Sciences, Springer, vol. 14(3), pages 223-245, December.
    22. Keefe O. Keeley & Kevin J. Wolz & Kaitie I. Adams & Jeannine H. Richards & Erin Hannum & Severine von Tscharner Fleming & Stephen J. Ventura, 2019. "Multi-Party Agroforestry: Emergent Approaches to Trees and Tenure on Farms in the Midwest USA," Sustainability, MDPI, vol. 11(8), pages 1-22, April.

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