Recommended
Recommended
More Related Content
What's hot
Similar to Who Owns, Rents and Buys Farmland Today
Similar to Who Owns, Rents and Buys Farmland Today (20)
Recently uploaded
Recently uploaded (20)
Who Owns, Rents and Buys Farmland Today
- 1. Who Owns, Rents and Buys Farmland Today Speaker: Dr. Wendong Zhang, Iowa State University Moderator: Dr. LeeAnn Moss, AcreValue
- 2. 2 Our Speakers Today Dr. Wendong Zhang, Iowa State University ● Assistant Professor of Economics ● Leading Researcher of Iowa Land Value & Ownership Surveys ● ISU Center for Agricultural & Rural Development affiliation ● Co-founder of new ISU China Ag center ● Ph.D., Ag Econ, Ohio State Dr. LeeAnn Moss, AcreValue ● Director of Industry Marketing ● Joined Granular in 2017 ● Former farm real estate broker, auctioneer and Appraiser ● Ph.D., Ag Econ, University of Illinois Featured Guest:
- 3. 1 / Quick Poll 2 / Farmland Ownership 3 / Farmland Leasing Relationships 4 / Landowner Characteristics 5 / The Future: What Could Change? 6 / Parcel-level Data with AcreValue 7 / Q&A 3 Today’s Agenda
- 4. 4 Survey sources Introduction US-based survey 2014 (USDA) ▪ Tenure, Ownership and Transition of Ag Land (TOTAL) ▪ Jointly done with USDA/NASS and ERS ▪ Only nationally representative data since 1999 Iowa-based survey 2017 (ISU) ▪ Iowa Statue University Farmland Ownership and Tenure Survey ▪ Statistically representative of all owners and all land ▪ Conducted every 5 years since 1982
- 5. 5 Introduction States the US TOTAL survey covers
- 6. Trends in Farmland Ownership Who owns it How it’s acquired
- 7. 7 Ownership US farm assets: Land is > 80%
- 8. 8 40% of land in farms is rented from others All Operators Owner- operated 61% Rented from an operator 8% Owned by non-operator Landlords 31% Non-operator Landlords Individuals/ Partnerships 21% of all farmland Corporation, trusts, or other owner 10% of all farmland Ownership Over time, more land in trusts & corporations
- 9. 9 Non-operators more likely to inherit land Ownership 70% of land owned by operator landowners is purchased How Acquired
- 10. 10 Existing farmers are primary buyers of Iowa farmland Ownership Investor share increased when farm income dropped
- 11. 11 2012 2017 All <35 35-65 65-80 >80 Current income 56% 49% 40% 56% 45% 41% Long-term investment 19% 19% 44% 15% 22% 19% Family or sentimental 22% 29% 0% 25% 30% 38% Home 1% 2% 12% 2% 1% 1% Recreation 1% 1% 5% 1% 1% 0% None given 1% 1% 0% 1% 0% 1% Primary reason for Iowa owners to own land Ownership
- 12. 12 Years Owned 2012 2017 > 50 Years 20% 8% 40-50 Years 12% 30-40 Years 15% 13% 20-30 Years 19% 20% 10-20 Years 21% 24% < 10 Years 24% 24% Farmland ownership is a long-term commitment Ownership IowaData
- 13. 13 82% of Iowa land is owned free of debt Ownership
- 14. Trends in Farmland Leasing Relationships Who are the landlords Lease types Who are the tenants
- 15. 15 Pastureland more likely to be owner-operated than cropland Leasing Pastureland Owner- operated 72% Rented 28% Cropland Owner- operated 46% Rented 54%
- 16. 16 Most rented farmland concentrated in cash grain production regions Leasing % rented land is higher in areas with higher quality soils
- 17. 17 A shift toward cash rent Leasing Crop share less popular in current low margin times 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1982 1992 2002 2007 2012 2017 PercentageofFarmland Owner-operated Cash rent lease Crop share lease Other type of lease %ofIowaFarmland
- 18. 18 Tenants: who they are & their leasing relationships Leasing Non-operators offer longer term leases 30 % 22 % 48 % relative close friend someone else 100 80 60 40 20 0
- 19. Trends in Landowner CharacteristicsWhat’s changing What’s not Implications
- 20. 20 US land ownership concentrated among older operators & landlords Landowner Characteristics Concentration > 65 years old greater for non-operator landlords
- 21. 21 Average age of both growers & labor force trending older Landowner Characteristics
- 22. 22 Half of leased land is owned by women Landowner Characteristics Percentage of Acres Rented
- 23. 23 Landowners increasingly educated Landowner Characteristics 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 1982 1992 2002 2007 2012 2017 PercentageofFarmland < High school High school Some post high school BS, BA, etc. Graduate degree
- 24. 24 57% of Iowa land is owned by those who do not currently farm Landowner Characteristics Of those, 34% are owners with no farming experience 0% 50% 100% 2002 2007 2012 2017 Full-time farmer Part-time farmer Do not farm
- 25. The Future – What Could Change?
- 26. 26 The land market remains tight The Future 4% of land expected to go on open market in a 5 year period Plans to Sell in 2015 - 2019
- 27. 27 Landowners: not planning to sell outside family or put land on market The Future Dominant land transfer methods: will, gift to family, or trusts 0% 20% 40% 60% 80% 100% 1982 1992 2002 2007 2012 2017 PercentageofFarmland Will to family Will to others Give to family Give to others Sell to family Sell to others Put in trust Other
- 28. 28 69% of Iowa land will not be sold: reasons are unknown The Future Retirement from farming encourages sales Retirement from farming (7%) Higher selling price per acre (3%) Elimination of step-up basis tax benefits for heirs (3%) Personal reasons (3%) Decision will be made by heirs (2%) Lower capital gains tax rate (2%) Sale is in process (1%) Not planning to sell (69%) Don't know (9%) 2017
- 29. 29 Summary & Looking Ahead Trends & Looking Ahead Cash rent is increasingly popular and dominant Land values under double downward pressures (interest rate hikes + trade uncertainty) Lower land prices may present opportunities for investors as return (rent/land price) might increase Trade disputes will impact younger farmers more, especially those with financial stress Land Farmland is a long-term investment Farmland market will remain tight, with land transfers mostly within family 82% of Iowa land is owned debt-free 29% of Iowa land owned primarily for sentimental reasons Owners & Ownership 60% of land is owned by owners 65+, a third by 75+ 13% of Iowa land owned by women 80+ Ownership shifting to trust and corporations More land owned by owners with no farming experience
- 30. How to Find Parcel and Ownership Details in AcreValue
- 31. 31 AcreValue
- 32. 32 AcreValue
- 33. 33 AcreValue
- 34. 34 AcreValue
- 35. 35 AcreValue
- 36. 36 AcreValue
- 37. 37 AcreValue
- 38. 38 AcreValue
- 40. Thank you Contact Us: LeeAnn Moss leeannmoss@granular.ag Wendong Zhang wdzhang@iastate.edu
Editor's Notes
- Put Iowa Data somewhere - done
- JANE, WENDONG WANTS TO ADD THIS SLIDE
- Need to add “Iowa Data” somewhere - Maybe Y axis could read “% of Iowa Farmland” ??? - done
- Chart of the RHS has the wrong Y axis label – should go to 100%, not 30%.
- Remove first column (Owner operator)
- Wendong sent more recent data for the last columns… need to replace. - done In short, label last blue column 2012 (instead of 2007) and number should be 58.3 (instead of 57.1)
- Change Y axis to percentages. - done So in other words, 0.9 would change to 90
- Did say: …for any reason