The extent to which the tenure status of farm operators affects agricultural e ffciency has interested economists for decades. Different theories dealing with the subject have evolved; but only a few empirical studies have been made to test their validity. This deficiency in agricultural economics research arises, at least partly, from the need for techniques and procedures that will deal adequately with the problems involved. One purpose of the study on which this report is based was to explore methods that might be used in analyzing the inefficiencies that are due to tenure. The study was conducted under a cooperative arrangement between the Farm Economics Research Division, Agricultural Research Service, and the Agricultural Experiment Stations of Missouri, Iowa, Nebraska, and Kansas. The author acknowledges the contributions of the members of the North Central Land Tenure Research Committee to this article.