Compensation as a Means of Improving the Farm Tenancy System

Excerpts from the report: One of the fundamental ideals underlying early American democracy was the widest possible diffusion of private property in land occupied by owner-operators in family-sized units. To this end the early land grants and land patents were made. The preemption laws and later the homestead acts were designed to attain the same objective. Yet as early as 1880 over 25 percent of the farms in the United States were operated by tenants. This proportion continued to increase until at present more than two-fifths of the farms are rented, and over one-half of the farm land is operated under lease. Thus, the original ideal has not been attained. A re-examination of our land policies and a study of the economic and social consequences of tenant farming indicate quite clearly that the recent concern over land ownership and farm tenancy is well founded. The objective of this report is to furnish a broad outline of the field of compensation and to supply part of the material which may be used by landlords, tenants, legislators, and others in formulating those parts of leasing agreements and State statutes pertaining to compensation. The principles laid down when defining compensation will be based upon the leasing agreements which have been developed by landlords and tenants in this country, and upon the older and wider experiences of landlords and tenants in foreign countries, particularly in England, Wales, and Scotland. The origin and historical development compensation, both in this country and in selected foreign countries, will be sketched. An analysis of the particular ways in which its widespread use would improve the tenancy system in this country will be presented, and the discussion will be concluded with a consideration of some of the legal aspects of such adjustments.