According to a 2020 study done by Iowa State University, about half of all farmland in the Midwest is rented through short term leases (1-2 years).
“Farmland rental arrangements where tenants may not reap the benefits of conservation investments are a commonly cited barrier to conservation practice adoption in agriculture and may result in lower adoption rates on rented land than on owner-operated fields,”. (Wilde, 2022) . Due to conservation practices being multiyear projects that may not immediately show results, tenants with short term leases are discouraged from investing in conservation as they may not provide a return within the time of their lease.
The study encourages farmers to sign up for leases 3 years and above to invoke confidence in the return of investment for conservational farming practices and methods. It is vital that proper leasing agreements are done for conservational efforts to be implemented. If no lease documentation is in place, farmers are less encouraged to have important conversations about land care or using cost share resources for conservational practices.
It is recommended farmers and tenants discuss goals, rental rates, future adjustments to the agreement, conservational objectives and any concerns that may be preventing farmers from leasing for a longer time before agreeing to the lease. Foundations such as the Chesapeake Bay Foundation (CBF) and Natural Resources Conservation Service (NRCS) may help farmers to implement consevational strategies on their land such as using science-based approaches to prevent pollution in natural occurring bodies of water.
In conclusion, a long term lease on agricultural property is necessary for conservational efforts to provide a worthwhile return on investment due to its multiyear process. Farmers who sign on for short term leases may not be able to obtain high returns as their is an adjustment period where harvest may decrease at first, however it will stabilize over time.
Reference:Wilde, M. (2022, June 12). New lease on conservation. DTN Progressive Farmer. Retrieved September 19, 2022, from https://www.dtnpf.com/agriculture/web/ag/magazine/your-land/article/2022/06/12/new-lease-conservation
