An analysis of farmland ownership versus rental/leasing and management strategies of part-owners in selected areas of southern Manitoba
Economic forces internal and external to the farming sector have influenced the nature and degree of change in Manitoba's agriculture throughout this century. The enlargement of farms to efficiently utilize expensive technological innovations has been accompanied by high land prices which together have pushed the capital requirements of farming operations to high levels. Rental and or leased land is presently being used in order to arrive at economies of scale in farming operations since credit for capital acquisition in order to purchase land is increasingly difficult to obtain. Rental/leasing has made it possible for established producers to expand without directly purchasing more land. However, renting/leasing is thought to be prevalently associated with undesirable farming practices which have long-term, and often dire consequences. This study is concerned with the comparison of farm practices which are undertaken on owned versus rented/leased land. Confirmed results included a variety of variations in practices between owned and rented/leased land by part-owners in southern Manitoba. All indications were that intensified positive management practices of part-owners prevailed on owned land versus rented/leased land. Results also indicated positive farm management practices could be obtained by leases or rental contracts which contain specific obligations in the form of provisions.