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Show nistic and loses significance. But more importantly, residence requirements can restrict the operation of public land agricultural policy in a way that will lead to inefficient farming. We see no reason why, for example, Federal lands in a state should not be made available equally to a resident of the state and to a nonresident who desires to establish a farm in the state. Neither do we see, in this day and age, when many farmers live in towns and commute to work on their farms, why Federal land should be made available only to those who promise to live on the land. Corporate Farming The corporate form of business organization should not be excluded from participation in the distribution of Federal lands for intensive agricultural uses. Under the homestead laws and the Desert Land Act, corporations are not permitted to acquire agricultural land. But there appears to be no compelling reason to continue to discriminate against the corporate form of business organization in disposing of Federal lands for intensive agriculture. Not only is such discrimination inequitable, it also risks gross inefficiencies by ignoring the technology and size requirements of modern agriculture and the fact that many small farms are now operated by family corporations in order to secure advantages under tax and inheritance laws. Similarly, prescribed financial requirements and capacity should not be a condition of access to Federal lands for intensive agricultural use. While the general homestead laws do not require any indication of financial capability, the reclamation homesteader must pay 5 percent of the construction charge fixed for the farm unit he has chosen before the required certificate of qualification will be issued. We recognize that modern agriculture, with its demands for investment for machinery, irrigation facilities, and land, requires that a potential farm enterprise have substantial financial backing. It simply is not possible in most areas of the country today to start farming without both financing and technical capability. But, we do not believe that the investment needs are so great that it is necessary or desirable for the Federal Government to so qualify those to whom land will be made available.21 The fact that land is to be sold at its market value together with our next recommendation will tend to eliminate those who are not in a position to bid competitively for public land suitable for intensive agriculture. We recommend that cultivation requirements be used for a limited period of time to minimize speculation on lands disposed of for agricultural use. We generally oppose restrictions on land use after title passes from the Federal Government to a purchaser who pays market value for the land. However, in some instances, including the disposal of land for agricultural purposes, we believe it is desirable to assure the dedication of the land to agricultural use for a prescribed limited period. Agriculture is a low value use in most areas when compared with residential or commercial development. Throughout the country, the possibility of making a speculative windfall gain on farmland has caused problems for local zoning boards and has created instability in local land markets. The Federal Government should not add to the problem by making public lands available in a way that will encourage speculation, particularly in farming areas where local zoning, if any, may be weak. Requiring that market value be paid in disposing of lands for intensive agricultural use will go a long way to minimize speculation. But this should be accompanied by a cultivation or development requirement, with provision for the possibility of reversion of the land title for noncompliance. We do not believe that this constraint should be indefinite, but rather that it should expire automatically after a reasonable period of time has passed. 21 Where investments are to be very heavy, and other uses will be precluded, we recognize the need to have a financial standard for qualification. See Chapter Thirteen on Occupancy Uses. 184 |