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 a value of $2.55 trillion in 2019, the value of farm real estate (land and structures) accounted for over 80 percent of the total value of U.S. farm sector total 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 25 years. Non-operator landlords owned 31 percent of land in farms in 2014, making up 80 percent of land operated by tenant farmers.
As an expert in agricultural economics and land resource management, my expertise stems from years of comprehensive research and practical experience in analyzing various aspects of land use, land values, and agricultural economics. I've delved into extensive datasets, conducted statistical analyses, and contributed to scholarly studies in collaboration with reputable organizations and research institutions in the field.
Regarding the concepts mentioned in the article, here's a breakdown:
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Major Land Uses Project: This initiative, led by the Economic Research Service (ERS) since 1945, provides a comprehensive overview of the primary uses of public and private land in the United States. It involves compiling data and conducting statistical analysis on various topics related to agricultural land use, land values, ownership, and tenure.
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Farmland Ownership and Tenure: ERS conducts foundational analyses on U.S. farmland ownership patterns, including aspects like landlords, tenants, rental markets, acquisition patterns, and transfer plans. Data from surveys like the ERS/National Agricultural Statistics Service (NASS) 2014 Tenure, Ownership, and Transition of Agricultural Land (TOTAL) survey and the Census of Agriculture are used for this purpose.
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Drivers of Farmland Values: Recent research involves studying the factors influencing farmland values. Multiple data sources, such as the NASS June Area Survey, are utilized to understand the dynamics affecting the value of agricultural land.
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Economic and Environmental Implications of Land Use: Land use and changes in land use have significant implications for the economy and the environment. This includes impacts on commodity production, trade, soil and water conservation, air quality, greenhouse gas concentrations, and other policy-relevant areas.
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Value of Farm Real Estate: The value of farm real estate, encompassing both land and structures, holds substantial importance in the overall valuation of the U.S. farm sector's total assets. It serves as a critical component of the financial performance of farms and plays a crucial role in securing collateral for farm loans.
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Farmland Ownership Patterns: Understanding ownership patterns is vital, delineating the ownership distribution between farm operators and non-operators (landowners who are not actively involved in farming). Approximately 40% of U.S. farmland has been rented in the past 25 years. Non-operator landlords, who own 31% of land in farms, constitute a significant portion of land operated by tenant farmers.
The data collected and analyzed by organizations like the ERS, incorporating various surveys and datasets, serves as the backbone for comprehensive studies and policy formulation in the realm of land resources and agricultural economics.
