North Dakota farmers continue to use land leasing as an important part of their resource acquisitions. In 1976, cash rent replaced the crop-share as the most widely used lease type. Cash rental rates continued to rise but at a slower rate than in 1975

Johnson, J.E.

Staroba, Arlyn R.

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1976 Land Rental Arlyn R. Staroba and J.E. Johnson North Dakota farmers continue to use land leasing as an important part of their resource acquisitions. In 1976, cash rent replaced the crop· share as the most widely used lease type. Cash rental rates continued to rise but at a slower rate than in 1975. The popularity of cash renting has grown in North Dakota over the past several years, and in 1976 accounted for slightly more than half of all leases reported on the 1976 Farmland Market Sur­vey conducted by the Department of Agricultural Economics. Crop-share leases represented 44 per cent of the reports, with a combination of crop­share and cash in the remaining 6 per cent of the replies. Cash rent, as in recent years, was more popular in the eastern part of the state, while crop·share prevailed in western areas (see Map 1). A verages in this report are based on 113 replies from real estate brokers. The total number of replies varies from year to year, and also varies in number of replies within each State Economic Area (SEA). The small number of replies in most counties pre­vents estimating any county average farmland ren­tal values. Map 2 shows that the most common crop· share lease again in 1976 was the %-113 arrangement, followed by the 50·50 share lease. The %-l;3 arrange­ment averaged more than 65 per cent usage of the crop-share leases in all SEA's, with the exception of SEA's 3B and 4 where the 50·50 arrangement was more widely utilized. The 50-50 arrangement usually includes more risk shared by the landlord through the payment of more of the expenses, while in the %-113 arrangement, the tenant commonly pays all expenses. The state average cash rent for wheat or barley land increased by 15 per cent from $25.58 per acre in 1975 to $29.52 in 1976 (Map 3). The largest per­centage cash rent increases (all over 21 per cent) were recorded in SEA's 1, 3B and 3C. Less than 5 per cent increases were recorded in the northern wheat area and south-central livestock-grain area (SEA's 3A and 2B). Comparatively, the state aver­age land value rose by 14 per cent from $285 in 1975 to $325 in 1976, according to the Farmland Market Survey. The percentage of cash rent to land value continued at about an average of 9.08 per cent for the state. Traditionally, this value has ranged from 7.5 to 8.5 per cent. Average cash rent for pastureland decreased in two of the seven State Economic Areas between 1975 and 1976 (Map 4). SEA's 1 and 3A reported Staroba is research associate and Dr. Johnson is professor, Department ofAgricultural Economics. a 3.5 and 3.6 per cent drop in average pasture cash rent per acre, respectively. Highest increases in pastureland cash rent were recorded in the eastern part of the state, with small or no increa!les in central and western North Dakota. Reports of cash rent paid for specialty crops ranged from $25 to $100 per acre. Specialty crops listed included sugar-beets, potatoes, pinto beans, sunflowers, and clover for hay. 1974 Census of Agriculture Selected farm operator characteristics important to the land rental picture are summarized by coun­ties in Table 1. The data are from the preliminary 1974 Census of Agriculture which was released in late 1976. Comparative data for 1969 are also in­cluded. On a state-wide basis, general historical patterns that are occurring throughout the United States continued between the two censuses (1969, 1974). The number of farms in North Dakota decreased on the average of 600 farms per year during this five-year period, while the average size of farm in­creased. About 1,038,000 acres were shifted out of agriculture by expanding cities, highways, power lines, etc. The average age of farm operators in the state increased by almost two years to 50.5. The only trend that indicated some reversal from historical patterns was in the ownership of land. Historically, the state has been moving away from full ownership of land toward renting. But between 1969 and 1974, the number of farms operated by full owners as a percentage of all farms increased by 1.7 per cent, while both part ownership and full tenacy declined. Whether this is also true of the number of acres controlled by the various tenancy classes is not yet known. The percentage of owner-operated farms in­creased in 37 of the 53 counties. Counties not realiz­ing an increase in owner-operatorship were mainly located in the northern one-half or the southwestern corner of the state. Statewide, the number of part owner-operated and full tenant-operated farms fell by almost 2 per cent. Twenty-one counties increased in the percen­tage of part owner-operated farms, with no counties in the northwestern corner of the state recording an increase. No eastern North Dakota counties regis­tered a percentage increase in full tenant-operated farms. 23 2A CASH 40% CROP-SHARE 51% CASH 43% CROP-SHARE-CASH 9% CROP-SHARE 54% CROP-SHARE-CASH 3% CASH CROP-SHARE CROP-SHARE-CASH CASH 5~%1 CROP-SHAR E 3 ....---_________1-_________ CROP-SHARE-CASH %% 38 CASH 55% 42% 49% ..........., CROP-SHARE 42i CROP-SHARE-CASH 3A1 9% ......--3C Map 1. Per cent of leases by types in use in 1976. 2A 3A 75-25 = 0% 75-25 = 0% 2/3-1/3 = 68% 2/3-1/3 = 89% 50-50 = 21% 70-30 = 5% 75-25 = 0%~~=~~ ~ l~i 2/3-1/3 = 41% 7~=~~: 561 38 75-25 = 0% 2/3-1/3 = 35% ""'-~ 50-50 = 35% 70-30 = 24% 2/~~ij~ ~ t~~ 50- 50 = 0~10070-30 = 6 75-25 = 8~2/3-1/3 = 10 10 1 28 3C ~8=~8 ~ 8i Map 2. Per cent of crop-share leases in use in 1976. The total is less than 100% in some cases due to the presence of other share ratios. 24 2A $15-45 10,03$10-27 38 ~ 1~~1 ~ $iU~ M6 RANGE: 4 Ufi ~ $IHl = $I~.72"1~ 1~76 =$~1:~!!9~4 - 32.61QZ31976 RANGE: ~:09 - 18.4 20-70f~76 RANGE; 1971197!~~ =I~~~ : $1~J1 1976 AVERAGE: $15-50 19~~: 15,8419719 6 RANG~: Slr-2_-2_6_ I~7§ = $3~:9~ 1 3C 19~~: ~l~~----------"------I.--1~76 AVERAGE: $20-$63 Map 3. Cash rent per acre - wheat or barley land, 1976. 2A m~=$H~ 19Z3 - 4.17 1976 RANGE: $5-8....­1q7? - 53197Lf - :34 1976 - $ 7'~l!§75 = f:19~~ ­ ~. 1976 RANGE: $4-10 197§ - $ ~.31 1973 - .34 1975 RANGE: $2-10 1 Map 4. Cash rent per acre - pastureland 1976. 25 Table 1. Selected North Dakota Farm Tenure Characteristics, 1974 and 1969 Censuses of Agriculture. Number of Average Size of Tenure: Tenure: Tenure: Average Age of NORTH DAKOTA Farms Farm Operating Units Full Owners Part Owners Full Tenants All Operators COUNTIES 1974 1969 1974 1969 1974 1969 1974 1969 1974 1969 1974 1969 Number Acres Per Cent of Farms Years ADAMS 480 498 1.283 1,281 42 39 44 50 14 11 50.2 50.2 BARNES 1,255 1,324 747 729 44 42 42 42 14 16 50.0 49.5 BENSON 1,024 977 893 856 40 39 45 46 15 15 49.6 49.6 BILLINGS 276 292 2,850 2,689 51 49 38 42 11 9 52.2 50.4 BOTTINEAU 1,217 1,277 891 838 35 36 52 48 13 16 50.9 50.0 BOWMAN 401 418 1,807 1,789 37 34 51 56 12 10 50.3 48.7 BURKE 673 739 945 893 37 35 51 54 12 11 52.9 51.7 BURLEIGH 884 932 1,120 1,100 47 47 43 42 10 11 50.5 48.7 CASS 1,546 1,684 672 656 40 35 40 40 20 25 50.3 48.4 CAVALIER 1,152 1,274 780 751 36 35 48 45 16 20 50.5 49.3 DICKEY 819 837 821 833 45 43 43 47 12 10 49.4 49.0 DIVIDE 687 733 1,125 1,072 34 36 51 57 15 7 51.8 50.4 DUNN 784 821 1,771 1,756 46 45 43 45 11 10 50.4 48.7 EDDY 395 445 958 931 43 44 44 44 13 12 48.6 48.9 EMMONS 942 1,055 907 860 54 46 39 40 7 14 49.9 46.8 FOSTER 376 430 1,078 917 40 45 50 44 10 11 50.5 48.5 G VALLEY 293 305 1,707 1,710 37 31 54 51 9 18 49.9 50.1 GFORKS 1,172 1,281 739 683 31 33 52 47 17 20 48.9 49.6 GRANT 817 872 1,232 1,165 44 46 46 45 10 9 49.8 48.2 GRIGGS 544 562 822 788 46 45 41 43 13 12 49.8 49.8 HETTINGER 615 663 1,235 1,183 34 38 54 51 12 11 49.7 47.0 KIDDER 624 674 1,219 1,147 46 44 44 50 10 6 49.9 48.3 LAMOURE 934 1,011 775 717 45 41 43 46 12 13 50.3 48.9 LOGAN 655 717 919 860 47 43 41 47 12 10 48.1 47.3 MCHENRY 1,168 1,211 994 934 43 40 44 48 13 12 52.4 49.9 MCINTOSH 702 759 868 791 38 41 52 51 10 8 49.0 47.1 MCKENZIE 892 905 1,386 1,876 45 41 46 50 9 9 51.8 49.8 MCLEAN 1,328 1,439 922 875 38 35 49 53 13 12 51.5 48.6 MERCER 658 706 912 899 40 39 45 46 15 15 51.3 47.5 MORTON 1,122 1,146 1,140 1,030 52 48 40 42 8 10 48.3 47.3 MOUNTRAIL 1,048 1,112 1,039 1,015 40 36 51 52 9 12 51.5 49.5 NELSON 763 787 845 818 39 36 47 46 14 18 51.6 49.7 OLIVER 404 434 1,023 1,406 47 43 46 45 7 12 51.3 49.5 PEMBINA 936 1,065 716 630 36 37 50 46 14 17 51.7 49.9 PIERCE 687 778 896 870 43 44 43 42 14 14 49.6 48.6 RAMSEY 799 888 925 846 44 40 41 41 15 19 52.3 49.3 RANSOM 662 770 816 723 46 46 42 41 12 13 50.3 49.1 RENVILLE 558 616 928 861 30 34 51 51 19 15 51.9 49.1 RICHLAND 1,532 1,627 571 529 40 36 45 44 15 20 50.2 48.7 ROLETTE 623 603 821 821 44 39 41 43 15 18 50.8 47.1 SARGENT 703 787 728 681 42 39 46 45 12 16 49.3 48.4 SHERIDAN 569 654 953 917 37 38 48 48 15 14 49.0 48.0 SIOUX 262 239 3,254 2,978 33 26 56 59 11 15 47.4 47.2 SLOPE 333 324 2,384 2,240 36 43 50 44 14 13 49.1 47.5 STARK 906 909 928 947 51 46 38 41 11 13 50.0 46.5 STEELE 568 581 816 767 33 32 51 49 16 19 50.7 48.6 STUTSMAN 1,275 1,412 1,026 958 43 44 45 45 12 12 49.3 49.2 TOWNER 693 722 942 919 38 32 43 45 19 23 52.6 48.5 TRAILL 864 992 606 548 33 32 47 45 20 23 49.4 49.3 WALSH 1,225 1,415 653 592 37 35 49 49 14 16 51.5 49.2 WARD 1,468 1,555 841 815 39 36 47 48 14 16 50.9 49.3 WELLS 899 971 922 855 37 36 48 47 15 17 49.4 48.2 WILLIAMS 1,154 1,153 1,071 1,115 36 33 50 58 14 9 51.9 50.5 N.D. 43,366 46,381 970 930 40.7 39.0 45.9 46.6 13.4 14.4 50.5 48.9 SOURCE: U.S. CENSUS OF AGRICULTURE, preliminary reports, 1974. 26 27 

1976 Land Rental

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