4 Keys to Bridging the Farmer/Owner Gap

Advancing conservation on agricultural lands owned by those who do not farm it

I recently came across a study that found that upwards of 40 percent of all non-farmer owned cropland in the U.S. is rented. That number can be as much as 80 percent in some counties. The point of the study was to identify opportunities to advance conservation on agricultural lands owned by those who do not farm it.

We know that implementing conservation goals can improve your land—federal government conservation programs are designed to assist you in maintaining the positive attributes of your land. We also know that rented land is less likely to be managed with conservation goals in mind, but this study got to the heart of some reasons why. And if you identify with some of the reasons, there are some simple ways my team can help.

Most of the federal government farm programs come with cost-sharing and assistance in planning and implementation that would benefit farms and non-farmer owners alike. Yet the study revealed that many non-farmer landowners knew little to nothing about the conservation programs available to them and their lands.

One major concern I noted was that a majority of landowners responded that their lease agreements are verbal and only in place for a year at a time.

Verbal agreements in general are risky, for both parties, and in my opinion, potentially dangerous for landowners. With support such as what my company offers, there is no need to still have verbal leases today. A written lease will delineate who is responsible for carrying-out daily operations of your farm and spell-out liability issues and expectations for how things will be done each year. Without it, you are dependent on the good-will of the parties, or the mercy of your courts.

The trend of year-to-year leases can make certain kinds of conservation investments risky and also limit a farmer’s eligibility for benefits since most long-term conservation practices can go on for 10 to 15 years. 

Alternatively, if you are eligible for payouts associated with these practices (most offer them), owners will be smart to apply and manage them vs. putting this in the hands of the leasing farmer. An owner who receives these payments directly is free to negotiate annual leases without concerns on all remaining ground. This puts them in control of the length of the lease, even if they negotiate to share the program payments with farmers. Be leery of the farmer that wants to manage the program and payments. Even if they agree to pass them on to you, they may use that to obligate you to terms than you would otherwise not agree to.

Some positive findings…

The study revealed that most owners are supportive of their renters taking conservation-oriented action on the land and are willing to support them via several formal mechanisms (e.g., lease changes, cost-share, etc.).

We also learned that non-farmer and farmer owners alike deeply care about stewarding the land for future generations, yet many do not have a succession plan, leaving uncertainty about what will happen to the land in the future.

With these new insights, we have an opportunity to improve the situation with some simple solutions:

1) Education of landowners—they are often not aware of available conservation programs and are unsure about broaching the topic with their farmers.

2) Facilitating better communication between landowners and farmers—bringing them together to achieve mutually agreed upon conservation goals for the land, further regenerative farming practices, farmland preservation and improve conservation outcomes on the landscape.

3) Implementing written leases that protects all parties and opens up eligibility to more programs.

4) Emphasizing the need for succession planning among aging landowners, and facilitating that.

These are all things we do at Retherford Farm Consulting. If you have contracted us for your full farm management, we’re already providing these services for you. If not, and you’d like to discuss having us help with this, give me a call at (765) 427-1244 or email Dean@Retherfordre.com. Visit our website for more details.