1. Land Use in the US Dana Constantine Lesleigh Dexter Rick Howard

2. Major Land Uses Grassland, pasture, and range 31% of land use – 578 millions acres Decline since mid 60’s of 636 million acres Reasons for decline: –improved forage quality –Increased productivity –declining numbers of domestic animals

3. Major Land Uses Forest land 29% of land use in US –553 million acres allowed for timber production –65 million acres that prohibit timber production (i.e. wilderness areas, state and federal parks)

4. Major Land Uses Cropland 24% of land use – 455 million acres Designated for crops, pasture and idled cropland Lowest amount - 1964 with 444 million acres 2 major peaks of cropland: –1949: 470 million acres –between 1978-1982

5. Major Land Uses Special Uses 11% of land use – 207 million acres Includes: –Urban areas –Rural transportation –Rural parks and wildlife –Defense and industrial uses –Farmstead/farm roads and lanes –Other misc. non-farm uses Increased 328% from 15 million acres in 1945 to 64 million acres in 1997

6. Major Land Uses Miscellaneous other land uses 6% of land use – 102 million acres Consists of: – marshes and swamps not included in other land uses –bare rock areas, deserts –other uses not inventoried Decreased until 1964 but now increasing

7. Regional Changes in Land use Cropland: Increased in the Northern Plains, Mountain, Corn Belt, Southern Plains and Pacific regions Decreased in the Northeast, Appalachian, Southeast, Delta and Lake States from: –Failing small farms –Increased urbanization –Increased taxes –Decreased profit margin

8. Regional Changes in Land use Grassland : Increased in the Southern Plains and South East Decreased in all other areas Decreases due to: –reforestation of abandoned small farm –urbanization –concentration of the dairy industry –conversion to cropland

9. Regional Changes in Land use Forest land : Increased in the Northeast and Appalachian regions –Due to reforestation of farmlands Decreased in the Pacific and Mountain regions –Due to conversion to recreation and wildlife areas

10. Regional Changes in Land use Special Uses Land: Increased in all areas except the Northern Plains –Due to recreational and wildlife use, urbanization, and transportation National defense areas and miscellaneous farm uses decreased in all areas

11. Crop Land Usage Crop land: idled crop land, crop land in pastures and crop land in crops Typical harvest : - 2-3% crop failure - 5-10% summer fallow Corn, soybeans, wheat and hay account for 80% of harvested crops

12. Federal Programs for Idle Crop Land Acreage Reduction Program required participants in USDA commodity programs to idle a percentage of crop acreage –Eliminated in 1996 Farm Act Conservation Reserve Program: – current program has 30 million acres of idle crop land

13. Federal Lands 563 million acres of U.S. are federally owned BLM manages 264 million acres FS manages 192 million acres Both BLM and FS manage land for: –Grazing –Timber –Oil, gas, and minerals –Recreation –Conservation practices FWS and NPS manage the remainder for recreation and conservation

14. Use of Federal Lands Conflicts can arise when dealing with the management of federal lands Multiple Use Sustained Yield Act -1960 - Federal land must be managed for multiple use -Timber, grazing and mining vs. conservation and recreation

15. Federal Restrictions on Public and Private Land Use Government Regulations: –Endangered Species Act –Clean Water Act Conservation Easements: –Wetlands Reserve Program –Federal Tax Codes Conservation Contracts: –Conservation Reserve Program

16. Urbanization Land converted to urban use comes from several different land uses Conversion to urban use is mainly irreversible Urbanization impacts many facets: –food and fiber production –open spaces –rural lifestyles –local rural economies –unique farmlands –infrastructure costs –watershed protection

17. Urbanization Most urban areas are surrounded by prime farmland and expansion must occur on the surrounding land The main concern is that all prime farmland will be converted into urban use areas

18. Wetlands Wetlands provide: –Wildlife habitat –Storm-water storage –Groundwater recharge –Pollution control –Recreation 1780 – 221 million acres of wetlands Currently - 124 million acres of wetlands –80% of wetlands lost were converted to agricultural lands. –90% of current wetlands are on non-federal rural lands

19. Protection of Wetlands Agriculture policies are increasingly emphasizing wetland conservation 1990 & 1996 Farm Acts: –Swampbuster –any conversion of wetlands means loss of eligibility for all farm program benefits Wetlands Reserve Program –encourages wetland restoration with payments and cost shares to farmers

20. Farm Land Farm real estate is the main source for collateral for farm loans In 2000, 54% of total farm sector debt was real estate debt Avg. farmland values have increased from $599/acre to $1,130/acre

21. Cash Rents Cash rent: –amount of cash paid by a tenant to a landowner for the use of a parcel of farmland Approximately 41% of farmland is operated under some form of lease To tenants, cash rents represent a major expense High value crops tend to bring high cash rents (ex. California, Midwest)

22. Land Tenure Rental Advantages : Access to more land without capital Avoid risk of asset depreciation Flexibility of size and types of land use

23. Grazing Fees Grazing fee: –the use of pasture or rangeland where payments are based on “grazing units” instead of acres Grazing unit  Animal Unit Month –One cow or cow-calf pair OR seven goats/sheep Avg. $12.60 per AUM in 2000 Fees have been rising over the last decade

24. Agricultural Real Estate Taxes Property taxes are a direct cost to landowners But when landowners rent farmland, those taxes are passed on to the tenant  cost of production for all operators

25. Encouraging Farming All 50 states have laws on preferential land-use assessment These laws permit farmland devoted to farming be assessed based on it’s use as farmland –Extremely beneficial to farmland owners near urban areas –Reward farms and ranches for providing open space, habitat for wildlife, and environmental amenities

26. Determining Farmland Value Intrinsic value to farmers Recreational purposes –Fee-hunting/fee-recreation –Wildlife viewing Interest rates –Higher interest rates  lower land values (mid to late 1970s) –Lower interest rates  higher land values (1981- 1985)

27. Determining Farmland Value Conversion of farmland to non-farm uses –Biggest influence on farmland values –Non-farm influence – 25% of the market value of US farmland –Happens near urban area Government policies –Federal commodity support programs –Farm credit programs –Habitat protection laws –Environmental regulations –Infrastructure development (roads, dams)

28. Non-market Public Goods of Farmland Farmland provides non-monetary benefits –“rural amenities” like recreation, aesthetic enjoyment –Areas high in amenities grow much quicker than other areas Amenities can’t be bought or sold –Need social actions (i.e. legislation) to offset the market’s inability to account for these valued non-market goods

29. Non-market Public Goods of Farmland State and local land use policies – primary means of preserving “rural amenities” –Encourage the retention of private land as undeveloped or “open space” land Federal role is limited but expanding –Federal Agricultural Improvement and Reform Act (FAIR) protects prime/unique farmland from non- agricultural uses –Farmland Protection Program (FPP) matches funds from state and local farmland protection programs

30. U.S. Land Ownership & Farm Structure

32. Privately Owned Land Farm Numbers: Maximum: 7 Million – 1935 Major decline between 1940 – 1960 Numbers of farms decreased but the amount of farmland did not

33. Farm Types: According to USDA’s Economic Research Service (ERS)  Small Family - limited resource - retirement - residential / lifestyle - farming occupation – low sales - farming occupation – high sales  Large Family  Very Large Family  Non-Family

34. Farming occupation – High sales small farms, large family farms, and very large family farms 75% of WRP & CRP commodity payments Farming occupation – Low sales small farms, residential / lifestyle, and retirement farms 25% of WRP & CRP commodity payments Distribution of Conservation Program Payments

35. Retirement Residential / lifestyle Farm-occup. – low sales Non-family 50% grazing land 25 – 33% cropland Large Very Large 50 – 60% cropland 30 – 40% grazing land Land Use

36. Three Keys to the Tenure / Conservation Relationship Tenure’s impact depends on timing & magnitude of costs/returns from the conservation practice under study Different lease arrangements influence renters’ conservation decisions Land characteristics vary between land operated by renters and owners

37. Concentration of Production Concentration of Production = more livestock on fewer farms 1997 – 50% of farm sales came from 2% of U.S. farms & only 15% of the land Higher concentrations raise environmental concerns: –Large livestock farms –Land absorption ability – 23% nitrogen and phosphorous –Overgrazing

38. Are there any questions?