Masters Theses

Date of Award

3-1977

Degree Type

Thesis

Degree Name

Master of Science

Major

Agricultural Economics

Major Professor

Brady J. Deaton

Committee Members

Billy Trevena, Darrell Mundy

Abstract

Factors such as age and occupation of the owner, the kind and size of land held, mortgaged indebtedness, credit availability and future land plans affect the use of rural land. An evaluation of these factors was undertaken to explain the direction and quality of changes occurring in agriculture in West Tennessee. The purpose of this study was to: (1) obtain information concerning the characteristics of the land and the landowners, (2) clearly delineate the nature and significance of changing land use patterns, and (3) determine the process involved with land acquisition and the demographic characteristics of owners who have expanded their base and those who have not expanded their base. Data were obtained from a sample of 141 landowners in five counties of West Tennessee. The landowners were randomly selected from computer tapes of the county tax rolls and personally interviewed, using a questionnaire specifically designed for this study. The average sample of landowners was 57 years old and owned an average of 247 acres in 1975 as compared to an average size of 81 acres in 1960. The average gross farm income was approximately 26,000 dollars. The owners in 1975 valued their land at an average of 519 dollars per acre compared to 112 dollars per acre in 1960. Forty-one percent of the owners held units of less than 100 acres. Approximately 10 percent of the owners held 50 percent of the land and more than 70 percent of the owners held less than the average size ownership unit. Over 75 percent of all owners purchased their land, but only 7 percent of the owners plan to sell their land on the open market. Eighty-five percent of the owners plan to transfer their land through gift or inheritance. Cash payments were the most widely used means for financing the purchase of the land. Thirty-three percent of all land transferred was purchased through cash payment. Commercial banks financed 31 percent of all land purchases. Loans from governmental agencies accounted for less than 11 percent of the financing for land purchases. Forty-one percent of the land owners were full time farmers, approximately 21 percent were retired workers, and approximately 11 percent were business and professional workers. These three occupations all increased since 1960, when the percentages were 36, 14, and 4 respectively. The gross farm income and the size of the ownership unit were significantly higher for those owners who have not expanded. In 1974, average gross farm income was $54,975 for the expansion group and $6,025 for the nonexpansion group. The former group owned 410 acres while the latter owned 137 acres. As in most farm areas of the United States, the process of land acquisition has led to increases in the average farm size in West Tennessee. The study concludes that specific steps may have to be taken to insure the availability of farmland for young owners. The recent move to reduce inheritance taxes for those who desire to farm the land they inherit is one example of public policy to facilitate farmland preservation.

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