What Happens When Farmers Lose Their Land?
Farmers, who can no longer afford to pay their debts, risk losing their land if they aren't able to get caught up. One possible scenario is contract farmers for large agribusinesses that mortgage their farms to buy industrial-scale farming equipment; one bad year can mean the difference between profitability and bankruptcy. When farmers lose their land, several repercussions are possible.
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Working for the New Owner
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Farmers can become tenant farmers, living often in the same house but paying rent to farm the same property. They also can work for the new owner by paying rent in shares of the crop. This system is called sharecropping. The farmer also can seek employment from the new owner.
Moving Off the Land
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When a farmer's farm is foreclosed on, the farmer must move. The farmer can seek employment on a corporate farm or could move to the city for employment opportunities, though frequently as an unskilled laborer.
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When the City Comes to the Farm
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Farmers also may lose their land due to development. Farmers may choose to sell their land to developers for a profit instead of risking eminent domain. They can use the remaining parcels for urban farming at a higher profit margin, such as a pick-your-own fruit site or selling specialty produce. However, farmers without clear title can be forced off the land and have little recourse for restitution.
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- Photo Credit farm image by Richard McGuirk from Fotolia.com
