As part of its research program on the economics of land resources, ERS compiles data and conducts statistical analysis on a variety of topics concerning agricultural land use, land values, and land ownership and tenure. The Major Land Uses project, maintained by ERS since 1945, is the most comprehensive accounting of all major uses of public and private land in the United States. ERS also conducts foundational analyses on various aspects of U.S. farmland ownership, including landlords, tenants, rental markets, acquisition patterns, and transfer plans—using data from the ERS/National Agricultural Statistics Service (NASS) 2014 Tenure, Ownership, and Transition of Agricultural Land (TOTAL) survey, the Census of Agriculture, and other sources. Recent research on the drivers of farmland values utilizes several data sources, including the NASS June Area Survey. Various stakeholders—including policymakers, academics, and the broader rural community—rely on ERS researchers to conduct peer-reviewed national and regional studies concerning the farmland economy.
Agricultural production is a major use of land, accounting for roughly 52 percent of the U.S. land base. (See data on Major Land Uses.) Land use and land-use changes have important economic and environmental implications for commodity production and trade, open space, soil and water conservation, air quality and atmospheric greenhouse gas concentrations, and other areas of policy relevance.
With an estimated value of $3.18 trillion in 2022, the value of farm real estate (land and structures) accounted for over 80 percent of the total value of U.S. farm sector assets. (See more on farm assets and debt, including real estate.) Because real estate comprises such a significant portion of the balance sheet of U.S. farms, farmland and real estate values are critical barometers of the farm sector's financial performance. Changes in farmland values also affect the financial well-being of agricultural producers because farm real estate is the largest single component in a typical farmer's investment portfolio and it serves as the principal source of collateral for farm loans.
Broadly speaking, farmland ownership patterns identify the extent to which farmland is owned by farm operators and non-operators (landowners who do not themselves actively participate in a farm operation) who own land for investment or other purposes. About 40 percent of U.S. farmland has been rented over the last 30 years. Non-operator landlords owned 31 percent of land in farms in 2014, making up 80 percent of land operated by tenant farmers.
FAQs
Land tenure and property rights affect the application of technologies for agricultural and natural resource management. Secured property rights give sufficient incentives to the farmers to increase their efficiencies in terms of productivity and ensure environmental sustainability.
What is the value of all US farmland? ›
Farm real estate (land and structures) accounted for 3.18 trillion dollars (82.8 percent) of the total value of U.S. farm assets in 2022. (See more on farm assets and debt, including real estate.)
What are the examples of land use? ›
“Land use” is the term used to describe the human use of land. It represents the economic and cultural activities (e.g., agricultural, residential, industrial, mining, and recreational uses) that are practiced at a given place. Public and private lands frequently represent very different uses.
How to calculate the value of a farm? ›
Farmland value is typically determined by location, potential income generation and capacity for productivity. Property taxes are then calculated based on this estimated value, so knowing whether a piece of land is enrolled in a current use or differential assessment to lower property taxes is valuable information.
What is an example of land tenure? ›
For example, a person may have a right to use a parcel of land for a 6 month growing season, and if that person is safe from eviction during the season, the tenure is secure.
What are land tenure problems? ›
When land tenure is secure, land can be a cornerstone for economic growth and an incentive for investment, but when land rights are insecure, this can lead to conflicts, instability and the exclusion of vulnerable groups, such as women, indigenous people and the poor.
How many acres does the average U.S. farmer own? ›
The average farm size for 2021 is 445 acres, up from 444 acres the previous year.
What is the cheapest state to buy a farm in? ›
Oklahoma. Oklahoma currently sits at the lowest cost per acre among the best states for farmland in the US, so this is another state to consider when looking to buy land for agricultural purposes.
Who owns the most farmland in USA? ›
Bill and Melinda Gates
Bill Gates, the co-founder of Microsoft, and his former wife Melinda Gates are not only renowned philanthropists but also owners of significant farmland. Their investments in farmland are managed through the Bill & Melinda Gates Foundation Trust.
What is the most common land use? ›
Agriculture is a major use of land. Half of the world's habitable land is used for agriculture. The extensive land use of agriculture has a major impact on the Earth's environment as it reduces wilderness and threatens biodiversity.
This entry contains the percentage shares of total land area for three different types of land use: agricultural land, forest, and other; agricultural land is further divided into arable land - land cultivated for crops like wheat, maize, and rice that are replanted after each harvest, permanent crops - land cultivated ...
What is a sentence for land use? ›
Examples of land use
However, some legislation controlling land use in the city was passed. He also notes that semi-natural habitats are becoming endangered due to major changes in land use.
How do you measure the value of land? ›
Land value may be determined by real estate appraisals conducted by third parties. An appraiser's assessment can be crucial to a lender's decisions on offering to finance a prospective buyer or refinancing for a property holder. Appraisal of the land can include a comparison of its condition to similar real estate.
How much profit per acre of farm? ›
Gross income per acre: Direct to consumer sales – (organically certified) - $20,000 - $22,000. Direct to consumer sales – (non-organically certified) - $16,000 - $18,000. Institutional sales – (food cooperatives, restaurants) - $12,000 - $14,000.
What is the average worth of a farm? ›
The United States farm real estate value, a measurement of the value of all land and buildings on farms, averaged $4,080 per acre for 2023, up $280 per acre (7.4 percent) from 2022.
What does tenure mean in farming? ›
Farmland tenure, which broadly refers to the institutions governing the control and use of farmland, shapes many farm decisions, including those related to production, conservation, and succession planning.
What is land tenure significance? ›
It determines who can use land, for how long and under what conditions. Tenure may be based both on official laws and policies, and on informal local customs (insofar higher law does allow that).
How does land tenure affect sustainability? ›
Land tenure underpins the socio-economic relations surrounding natural resource use and, espe- cially, decisions around whether to increase agricultural production, decrease environmental degradation, support urban development, empower women, and support property rights for Indigenous Peoples and local communities.
How does farming affect the land? ›
Agriculture causes deforestation, water overuse, and greenhouse gas emissions. Climate change impacts agriculture through productivity, soil quality, and health risks. Soil degradation is caused by erosion, nutrient depletion, and chemical use.
