The largest bloc of U.S. farmers, those aged 65 and over, owns or leases one-third of the 980 million acres of farmland in the country, writes economist David Widmar, adding, “How the land held by older producers is transferred, and the timing, will have major implications for the industry.” At the blog Agricultural Economics Insights, Widmar says the decades-long trend has been toward a larger and larger share of land held by older farmers. Some of it reflects the fact that the 65-and-over cohort comprises an ever larger portion of “primary operators” – one-third of that group, currently.
As a rule, older farmers own land rather than rent it. Will that remain the case, or will more land be rented in the future? he asks. “As those older than 65 years…begin to retire and exit production, significant acreages will change hands,” says Widmar. He expects one outcome to be greater concentration of land ownership. Many farmers are multigeneration operations with a transition plan.
There will be “special challenges,” says Widmar, because land is a farmer’s greatest resource “and the older generations may need the younger generations to provide funds to support their retirement. Additionally, even though the operation may continue to a younger generation, the younger generation may include heirs that are off-farm….How these acres transition will be important to farmers, lenders, and agribusinesses alike.”