10% of Farmland to Be Transferred During 2015-201912/30/2016
The relatively advanced age of the U.S. farming population -about a third of principal farm operators in 2014 were at least age 65 compared with 12 percent of self-employed workers in nonagricultural businesses -has sparked interest in the manner in which land will be transferred to other landowners, including the next generation of farm operators.
Farmland owners planned to transfer 93 million acres in the next 5 years (2015-19)–10 percent of all land in farms–through a variety of means. Landowners anticipated selling 3.8 percent of all farmland, with just 2.3 percent planned to be sold to non-relatives.
A larger share of land (6.5 percent) is expected to be transferred through trusts, gifts, and wills.
The share of farmland available for purchase by non-relatives during 2015-19 will likely rise above 2.3 percent as some individuals (or entities) that inherit land may choose to sell it.
And, those who inherit land but don’t sell it may decide to rent it out to farm operators.
In 2014, 39 percent of all farmland was rented and 61 percent was owned by farm operators.