By Andi Anderson
The demographic landscape of Iowa's landowners has undergone a significant shift, with individuals aged 65 and older now owning two-thirds of the state's farmland. This shift raises critical concerns about transferring farmland to younger farmers, as revealed by recent findings from the Iowa Farmland Ownership and Tenure Survey conducted by Dr. Wendong Zhang.
A notable trend is the decline in farmland owned primarily for generating household income, down from 56% in 2012 to 38% in 2022. Instead, a significant portion, 37%, is now held for sentimental reasons, while 23% serves as a long-term investment.
Despite the anticipated transfer, recent data suggests that only about 2% of Iowa's farmland is owned by early-stage farmers, hindering a significant succession to the next generation. Financial barriers pose a considerable challenge, with concerns about young farmers' capacity to afford fair market prices for large land parcels.
While 80% of landowners don't plan to sell in the next five years, those open to selling prioritize young and beginning farmers. However, financial barriers persist, despite some landowners willing to sell below market value to hardworking beginners, creating subjective criteria.
Efforts like the Beginning Farmer Center and government programs aim to bridge these gaps. Initiatives such as Ag Link connect experienced farmers with new ones to facilitate transfers. Government programs offer financial aid, allocating loans and microloans to qualifying young farmers, aiming to reduce barriers to farmland ownership.
These efforts collectively strive to support young and beginning farmers, easing the path for farmland transfer and ensuring the agricultural legacy thrives in Iowa's changing landscape.
Photo Credit: istock-alenamozhjer
Categories: Iowa, Business, Government & Policy