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farmland leasing, land use, cropland lease, land rent


Farmland leasing is an important source of capital and method of controlling land resources in production agriculture allowing land owners and tenants flexibility to enhance, maintain or expand their income-generating capacity. In this report, we (1) provide information on the importance of farmland leasing in South Dakota, and (2) update information on crop-share leasing and hay-share leasing arrangements in South Dakota, based on a survey conducted in 2011. Farmland leasing is important in South Dakota where over 70% of farm operators are involved in farmland leasing and nearly two-fifths of agricultural land acres are leased. Leased farmland acres comprise even higher percentages in the crop-intensive eastern part of the state. An estimated 23% of South Dakota cropland acres rented are in crop-share leases, while 77% are in cash leases. An estimated 20% of South Dakota hay land acres rented are in hay-share leases, while 80% are in cash leases. Survey results indicate the prevalence of four common crop share arrangements in South Dakota: 2/3-1/3 tenant-landlord output shares, 3/5-2/5 output shares, 112-112 output shares, and 3/4-1/4 output shares. Most (80%) crop-share lease respondents reported the landlord and renter sharing expenses for one or more variable inputs, with the number and type of shared input expenses varying by region and output share.


Department of Economics, South Dakota State University

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