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Farmland Ownership and Leasing: Implications for Young and Beginning Farmers

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  • Katchova, Ani L.
  • Ahearn, Mary Clare

Abstract

This study considers the issue of the transition of new farmers into 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 instead of a repeated cross-sectional approach to show trends over time in farmland expansion and contraction. Differences in farm size are more pronounced based on farmer experience than farmer age, as farms operated by older beginning farmers tend to be smaller and do not tend to grow over time. We find that it is mostly young farmers as opposed to all beginning farmers that 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 young and beginning farmers.

Suggested Citation

  • Katchova, Ani L. & Ahearn, Mary Clare, 2014. "Farmland Ownership and Leasing: Implications for Young and Beginning Farmers," Staff Papers 184725, University of Kentucky, Department of Agricultural Economics.
    • Handle: RePEc:ags:ukysps:184725
    DOI: 10.22004/ag.econ.184725
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    References listed on IDEAS

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    1. Boehlje, Michael, 1973. "The Entry-Growth-Exit Processes in Agriculture," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 5(1), pages 23-36, July.
    2. Jaclyn D. Kropp & Ani L. Katchova, 2011. "The effects of direct payments on liquidity and repayment capacity of beginning farmers," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 71(3), pages 347-365, November.
    3. H. Frederick Gale, 2003. "Age-Specific Patterns of Exit and Entry in U.S. Farming, 1978–1997," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 25(1), pages 168-186.
    4. Sureshwaran, Suresh & Ritchie, Stephanie, 2011. "U.S. Farm Bill Resources And Programs For Beginning Farmers," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 26(2), pages 1-7.
    5. Katchova, Ani L., 2010. "An Analysis of the Financial Performance of Beginning Farmers," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61513, Agricultural and Applied Economics Association.
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    8. Williamson, James M. & Katchova, Ani L., 2013. "Tax-Exempt Bond Financing for Beginning and Low-Equity Farmers: The Case of 'Aggie Bonds'," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 45, pages 1-12, August.
    9. Ahearn, Mary Clare, 2012. "Beginning Farmers and Ranchers: Who Are They?," Amber Waves:The Economics of Food, Farming, Natural Resources, and Rural America, United States Department of Agriculture, Economic Research Service, pages 1-2, May.
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    17. Meyer, Lee & Hunter, Jennifer & Katchova, Ani L. & Lovett, Sarah & Thilmany, Dawn D. & Sullins, Martha & Card, Adrian, 2011. "Approaching Beginning Farmers As A New Stakeholder For Extension," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 26(2), pages 1-7.
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    3. Seleky, Rosalia Natalia & Ozawa, Wataru & Chen, Aofei, 2024. "Motivation toward Rice Farming in Margokaton Village, Sleman District, Yogyakarta Province, Indonesia," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 21(01), June.
    4. Chang, Tsaiyu, 2021. "Would Religious Social Capital Affect Farmland Transactions? A Spatial Autoregressive Analysis in Taiwan," 2021 Conference, August 17-31, 2021, Virtual 314975, International Association of Agricultural Economists.
    5. 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.
    6. Cloete, Kandas & Möhring, Anke & Zantsi, Siphe, 2023. "Modelling the exiting of South African producers from commercial agricultural production – an agent-based model," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 62(3-4), December.

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