Big changes are on the horizon for American agriculture. Over the next 20 years, a significant portion of the nation’s farmland—at least 33%, according to Farmland.org—will transfer ownership. Other estimates, such as those from Farmers National Co., suggest this figure could climb as high as 70%. While the exact number is uncertain, the consensus is clear: a substantial shift is coming.

One of the most striking aspects of this transition is where the ownership is heading. Farmland ownership is increasingly moving out of rural America and into urban areas, with many landowners living far from the land they own.

This raises critical questions for farmers who rent land: What will this shift mean for them? How can they adapt and even thrive in the face of uncertainty? These big changes bring challenges—and significant opportunities for those willing to prepare.

Land transfer in action

I recently worked with an acquaintance who faced one of these generational land transfer scenarios. He understood the numbers but wanted to make sure he wasn’t missing anything. His mother gifted him and his brother 600 acres of unencumbered farmland worth approximately $6 million. While this initially seemed like an incredible opportunity, he soon realized that keeping the land didn’t align with his financial goals. After evaluating the opportunity cost, he made the tough decision to sell the land. He did not offer the tenant any special terms.

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This wasn’t an easy choice. Selling meant letting go of part of his family’s legacy. However, it gave him financial freedom, allowing him to do something he had always dreamed of—writing substantial college fund checks to his grandkids every year.

This example highlights the emotional and financial challenges tied to generational land transfers. It also underscores an important truth: these transitions are already happening. Farmers need to prepare now for the decisions and opportunities these changes bring.

Preparing for the shift

For farmers renting significant acreage, the challenge lies in navigating relationships with landowners—many of whom are absentee. Success in this evolving landscape requires a new mindset and preparation in three key areas.

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Start the conversation

The first step is simple but crucial: start a conversation with your landlords about their plans for the future.  Ask what they envision for their land and what they hope to achieve through its transfer. Then begin building relationships with those who will control the land next. These conversations might feel uncomfortable at first, but they are essential.

In the example I shared, a deeper relationship between the landowner and the farmer could have led to different outcomes. Building trust and understanding now can unlock opportunities and help farmers stay proactive rather than reactive during these transitions.

Matt Boos is the founder of Agrigrowth Consulting, based in Sioux Falls, South Dakota. With over 20 years of experience in agribusiness sales and management across seven states, Matt has gained deep insights into what drives the success of top-performing farms. He specializes in helping multi-generational farms grow strategically through peer group formation and facilitation, auxiliary business development, and succession planning.

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