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AREI Chapter 1.3: Land Ownership and Farm Structure

Contents
 

Robert Hoppe

Abstract—Small family farms account for most land owned by farms, making them important to conservation. Leased land is a large share of farm operations, and farmers' tenure affects their use of conservation measures, particularly measures with a long payback period. The trend of concentrating livestock on fewer acres than in the past raises environmental concerns.

Ownership of U.S. Land

The land surface of the United States covers 2.3 billion acres. Private owners held 61 percent in 2002, the Federal Government 28 percent, State and local governments 9 percent, and Indian reservations 3 percent (fig. 1.3.1). Virtually all cropland is privately owned, as is three-fifths of grassland pasture and range and over half of forestland. Federal, State, and local government holdings consist primarily of forestland, rangeland, and other land. Most land in Federal ownership—largely in the West—is managed by the Department of the Interior (68 percent) and the Department of Agriculture (28 percent) (U.S. GSA, 2005). (For more information, see AREI Chapter 1.1, Land Use.)

Farm operators do not own all the land used in agriculture. According to the 1999 Agricultural Economics and Land Ownership Survey (AELOS), farmers held 58 percent of the land in farms in 1999 (USDA, 2001). These landowning farmers also made up 58 percent of the 3.4 million farmland owners.

Nonoperator landlords accounted for the remaining 42 percent of land in farms. Ninety-five percent of nonfarm landlords were individuals/families or partnerships. Of these unincorporated landlords, 55 percent were at least 65 years old. Many nonfarm landlords have a historic connection to farming. Among the people who have exited farming or inherited farmland since the number of farms peaked during the Great Depression, a number have retained ownership of some or all their land (Hoppe et al., 1995).

Farm Numbers, Farm Types, and Conservation Programs

The number of farms has declined dramatically since its peak of 6.8 million in 1935, with most of the decline occurring during the 1940s, 1950s, and 1960s (fig. 1.3.2).

Figure 1.3.2--Farms, land in farms, and average acres per farm, 1850-2002 d

 

For more information, contact: Robert Hoppe

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Updated date: July 21, 2006