When the Güstrow line of dukes died out in 1695, the third large partitioning of the state was established through the “Hamburg Agreement” in the battle for succession in 1701. The duchy of Mecklenburg-Strelitz was created from Stargard and the principality of Ratzeburg. Mecklenburg-Schwerin received the Werle part around Güstrow.
Approximately 10 % of land in both of the Mecklenburgs belonged to the towns and state convents. The Dukes retained 40 % as state farms, which they gave to tenants of the properties to manage, and around 600 aristocratic owners of approx. 1,000 properties shared the remaining 40 %. There remained around 4,900 farms.