Army agricultural leasing began during World War II as farmers leased open space around airfields and ammunition storage sites. The temporary nature of outleasing makes it an excellent technique for dealing with excess land: if the Army needs the leased land in the future then the leases can be revoked. By 1956, the Army was leasing 992,894 acres for agriculture and grazing purposes. National policy required that leases be formed in consultation with county agriculture agents for technical guidance on crop rotation and soil management.
The Army recognized that agriculture and grazing outleases provided benefits that went beyond the lease payments received. The lessees also provided mowing, weed and brush control, fence construction and repair, correction of drainage problems, construction of fire lanes, and control of field rodents on leased lands.
Another benefit was a lowered fire risk because the agriculture and grazing operations on the leased lands reduced underbrush and grasses that could fuel fires. Fire maintenance was a persistent concern and an ongoing management problem for installations. The reduced fire risk on outleased lands freed installations to concentrate their limited maintenance budget on other areas.
Leasing was actively promoted up until and during the 1960s. This coincided with the DoD’s land management strategy of multiple-use and sustained yield. AR 420-74, Land Forest and Wildlife Management, described the Army’s land management approach as "a coordinated program of land management and improvement … applied on a multiple use basis to provide maximum military use; control vegetation to prevent destructive fires; stabilize soil to control erosion; protect natural resources; sustain productivity of croplands, grasslands, and timberlands; and encourage fish and wildlife."
When the outleasing program began, lease income was deposited into the U.S. Treasury. In 1964, the Office of the Chief of Engineers, U.S. Army studied the possibility of installations retaining lease income for base maintenance. However, no sponsor volunteered to champion the cause and no change resulted. Two decades would pass before the agriculture and grazing outlease program would be established as a reimbursable program.
By the end of the 1960s, the growing public awareness of environmental issues coincided with increased pressure to use government lands for recreation. These factors influenced Army leasing decisions. The 1966 update of AR 420-74 required that conservation measures be incorporated into lease agreements and carried out by the lessee. In addition, whenever possible, leases should include provisions for public recreational use of leased lands.
During the late 1970s and early 1980s, agricultural leasing continued to be promoted throughout the Army as an inexpensive means of managing land and resources. At that time, approximately 850,000 acres of land were leased on 60 Army installations. Leasing for crop production occurred on approximately 160,000 acres; the balance was leased for grazing. Lessees were required to adhere to proper agricultural practices for erosion control and to enhance soil fertility and productivity. Additional benefits of outleasing were recognized during this time, including improved public relations with local farmers and enhancement of habitat and food sources for wildlife. The importance of good public relations grew as public knowledge about conservation issues and awareness of Army activities increased.
In 1983, military installations were granted the authority to use revenues gained from leasing for the improvement of agriculture lands. This had the effect of increasing incentives to offer land for lease. The ability to retain and use lease proceeds provided a measure of funding stability to the agriculture and grazing outlease program. The program became largely self-sustaining and had less need to compete for scarce appropriated funds.
Today, the Army operates under an ecosystem approach of land management. The DoD policy on ecosystem management, issued in 1996, is still applicable today. Ecosystem management is an integrated approach to managing natural systems and all their component parts: soil, water, wildlife, and vegetation. The policy supports multiple-use activities, including agriculture outleasing, when compatible with the mission and long-term ecosystem management goals. The military mission is the primary objective and agriculture and grazing outleases must support mission activities.