How Has Increased Oil Production Impacted American Farmers?

Gas and oil production has increased considerably in the United States over the past decade.  Between 2004 and 2014, production increased 69%, with two-thirds of that production originating on farmland.  What does that mean for both farm operators and non-operator landlords in terms of potential income, leasing, etc.?

Claudia Hitaj and research colleagues at USDA looked at the most recent numbers.

"And, the most pertinent fact is how you would benefit was whether or not you owned the oil and gas rights to your land,” Hitaj said.  “And, we saw that with a majority of the farmers, that was not the case, that someone else owned the oil and gas rights beneath the land they owned themselves."

Hitaj added that the study also quantified the percent of farm operators and non-operator landlords who actually own the oil and gas rights to their land.

"And we found that only 10% of farm operators reported receiving any oil and gas statements, and only 13% of non-operator landlords reported seeing any oil and gas statements."

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