I can only reply based upon my own
experience. While living in New Jersey and Hawaii, I was friends to many farmers and learned about their land situations.
In New Jersey, some farmers worked land that they did not live on. Most owned that land. They would live in one parcel, and just farm the others. Some rented land from or leased the land from a private owner. I was not aware of any restrictions that prevented people from living upon the land that they farmed. Housing could be upon any of the land parcels. So it wasn't uncommon to see a house built on the corner of a farm.
Hawaii is a little different. First of all, some land is fee simple, meaning that the owner actually owns it. A lot of land here is leasehold, meaning that a large entity owns the land and the homeowner or farmer has a lease for using it for a specified number of years. Most leases are 30+ years, though some are far shorter. Most big farms and ranches use leasehold land. Small farms might be either lease or fee simple. Parker Ranch is an exception in that much of their land is owned outright. Many of the big operations use multiple land parcels sitting
side by side. So it looks like they have a farm consisting of hundreds, or thousands, of acres as obit big unit. In reality they may have numerous individual parcels .....the problem being that the leases on each parcel could vary and the restrictions on each parcel could be different. Makes for some interesting business manipulations!
Hawaii Island has lots of open land in farms and ranches. One of the reasons it is so open and beautiful here is that there are restrictions. The land cannot have a residence in it. Thus many farmers and ranchers do not, cannot, live on their land. At times this is causing a lot of problems and issues for the farmers and ranchers. But that's another story. So if you come to my island and see farmers & ranchers living in town, it's because they are not allowed to build a house on the land they work. They may lease it, or may very well own it, but may not reside upon it. But if it is a small farm, then the farmer often lives on that land (or maintains a house on it that he rents out for income).......... There is an exception to this generalization in my own area. Most of the Ka'u
coffee farms are on leasehold land that has residential restrictions. The farms are small (5 to 10 acres). But a drive-by person gets the impression that it's one quite large coffee farm because of the lack of houses.