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HomeMy WebLinkAboutAgenda - 11-17-2009 - 4hORANGE COUNTY BOARD OF COUNTY COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: November 17, 2009 Action Agenda Item No. 4 - h SUBJECT: Authorization to Resubmit Grant Application to N.C. Agricultural Development and Farmland Preservation Trust Fund DEPARTMENT: ERCD PUBLIC HEARING: (Y/N) No ATTACHMENTS INFORMATION CONTACT: Application Guidelines David Stancil, 245-2590 Rich Shaw, 245-2591 PURPOSE: To consider authorizing staff to re-apply for a grant from the North Carolina Agricultural Development and Farmland Preservation Trust Fund. BACKGROUND: The North Carolina General Assembly has appropriated $2 million in FY 2009-10 for funding assistance from the N.C. Agricultural Development and Farmland Preservation (ADFP) Trust Fund. The mission of the Trust Fund is to preserve NC's working family farms. Funding is available for agricultural conservation easements and enterprise programs. In 2007 Orange County was awarded $132,000 for the regional Shared Use Food Processing Center. Applications for this upcoming grant cycle are due December 4, 2009. In 2008 Orange County submitted an application to the ADFP Trust Fund for matching funds to purchase a conservation easement for the Breeze farm (Phase II). That project was not selected for funding, however. The ADFP Trust Fund staff has advised that the chances of funding Orange County's application would improve with adoption of a county farmland protection plan. The Board will consider adoption of the County's new Agricultural Development and Farmland Protection Plan on this same November 17, 2009 meeting agenda. Approval of that plan would lower the County's local match requirement from 30% to 15%. ERCD would like to re-submit the application for state matching funds to complete the planned two-phased conservation easement on the Breeze farm on Schley Road. In 2008 the County used a grant from the federal Farm and Ranch Land Protection Program to purchase an easement on a 141-acre portion of the Breeze farm (Phase I). Phase II would be on an adjacent 153 acres of the farm. If the County were successful in completing this project, there would be over 560 acres of contiguous farmland protected along Schley Road. Grants will be announced in June 2010. FINANCIAL IMPACT: The grant, if awarded, would provide up to $300,000 toward the purchase of a conservation easement for the Breeze Farm. The grant would be matched with up to $200,000 in County funds to complete the project, although that amount could be considerably less if the County leverages some additional matching funds from the federal 2 Farm and Ranch Land Protection Program (FRPP). The Lands Legacy Program currently has $437,900 unencumbered for purchasing conservation easements. The proposed conservation easement would have no affect on the property taxes paid to Orange County for these properties. Both farms are enrolled in the Present Use Value program and therefore are already taxed at a rate that is lower than would be the case if this property were under an agricultural conservation easement. RECOMMENDATION: The Manager recommends that the Board authorize staff to submit the application for a grant from the ADFP Trust Fund by the December 4 deadline, contingent on approval of the County's Agricultural Development and Farmland Protection Plan also on tonight's meeting agenda. ~,~~~ ~oFr tnsrFw, ..,- ~-~' ~'~'> `1 ' NCDA&CS ADFP Trust Fund Grant Application Guidelines ^ Overview . ~ Mission To fund projects to encourage the preservation of qualifying agricultural, horticultural, and forestlands to foster the growth, development, and sustainability of family farms. History Between the years of 2002 and 2007, North Carolina lost 600,000 acres of farmland according to USDA-NABS; this is equivalent to the average size of one of our counties. In addition, thousands of acres of forestlands have been converted to development. This has put a strain on our county budgets, our local and state economy, and our natural resources, and is a loss to our agricultural heritage. The foundation of North Carolina's #1 industry needs to be protected from unwise and unplanned conversions to other uses. Today, approximately 90 percent of all North Carolina lands are privately owned. The U.S. Census Bureau predicts that our state's population will expand by 4 million people by 2030. This growth threatens our farm and forestland. Preserving farmland also protects our natural resources, wildlife habitat, and water resources. Eligibility All applicants must be non-profit conservation organizations or county agencies. (G.S.106-744) Farmers, landowners, and others interested in applying must partner with anon-profit conservation organization or county agency in order to participate in an ADFP Trust Fund grant proposal. Agricultural Development and Plan grants are limited to requests regarding projects serving the constituents of a Voluntary Agricultural District (VAD) or Enhanced Voluntary Agricultural District (EVAD) or the establishment of a VAD, EVAD, or County Farmland Protection Plan. Funding Purposes To secure agricultural conservation easements on agricultural, horticultural, and forestlands for active production of food, fiber, and other agricultural products. Easements include the following options: ^ Perpetual ^ 50 year term ^ 40 year term _ ^ 30 year term ^ 20 year term ^ 10 year term 4 To support public and private enterprise programs that will promote profitable and sustainable agricultural, horticultural, and forestlands through assistance to farmers in developing plans for: ^ production of food, fiber, and value-added products ^ agritourism activities ^ marketing and sales of .agricultural products produced on the farm ^ agriculturally-related business activities ^ other programs approved by the NC ADFP Trust Fund Funding Priorities Funding priority will be given to projects that involve the following affiliations: ^ Counties with Farmland Protection Plans ^ Goodness Grows Farmers l American Tree Farm /Forest Stewardship Program Members ^ Enhanced Voluntary Agricultural District Farmers ^ Voluntary Agricultural District Farmers ^ Groups and Individuals with Farm or Forest Transition Plans ^ Groups and Individuals with Conservation Plans ^ Groups and Individuals with Forest Management Plans ^ Limited Resource Farmers (see definitions section) ^ Beginning Farmers (see definitions section) ^ Century Farm Members Grant Amount Requests The maximum grant will be based on the potential beneficial impact of the project, the resources available to the Advisory Committee, and the needs of the project or the groups intended to be served by the grant programs. Agricultural Development and Agricultural Plan grant requests are limited to $100,000 per application. Agricultural Plan grants are limited to the development and adoption of a county Voluntary Agricultural District, Enhanced Voluntary Agricultural District, or County Farmland Protection Plans. Agricultural Development grants are restricted to public or private enterprise programs that will promote profitable and sustainable farms by assisting in developing and .implementing plans for the production of food, fiber, and value-added products, agritourism activities, marketing and sales of agricultural products produced on the farm, and other agriculture- related business activities. Match Requirements Non-profit conservation organizations must match a minimum of 30% of ADFP Trust Fund monies received. These monies must be from sources other than the ADFP Trust Fund. A Tier Two or Tier Three Enterprise County (as defined in G.S. 1436-437.08) ^ With a NCDA&CS approved County Farmland Protection Plan (G.S. 106-744(e)), must match a minimum of 15% of ADFP Trust Fund monies received. (G.S. 106- 744(c2)) These monies must be from sources other than the ADFP Trust Fund. ^ Without a NCDA&CS approved County Farmland Protection Plan (G.S. 106-744(e)), must match a minimum of 30% of ADFP Trust Fund monies received. (G.S. 106- 744(c2)) These monies must be from sources other than the ADFP Trust Fund. A Tier One Enterprise County (as defined in G.S. 1438-437.08) ^ With a NCDA&CS approved County Farmland Protection Plan (G.S. 106-744(e)), is not required to acquire matching funds. (G.S. 106-744(c2)) 5 ^ Without a NCDA&CS approved County Farmland Protection Plan (G.S. 106-744(e)), must match a minimum of 30% of ADFP Trust Fund monies received. (G.S. 106- 744(c2)) These monies must be from sources other than the ADFP Trust Fund. Documentation of match will be required in the reporting process. [Note: List of tiers is available at http://www.nccommerce.com] Allowable Costs ADFP Trust Fund monies may not be used to reimburse for administrative or personnel costs unless specialized services are needed. Approval of necessary specialized services will be determined by ADFP Trust Fund staff when reviewing applications. Travel expenses and other acquisition costs are not reimbursable for easement applications. All reimbursement for travel, meals, rentals including meeting facilities, etc. for agricultural development related expenditures shall follow the State of North Carolina reimbursement guidelines. Prudence must be demonstrated by grantee for reimbursement to be granted. Allowable and non-allowable costs for reimbursements: Allowable Costs Non-allowable Costs Equipment Consultant and Specialized Services Office Supplies Printing and Binding Promotional Materials (see exceptions listed in Non-allowable costs) Site Development Construction Special Program Supplies Survey Baseline Documentation Report Environmental Assessment/Audit Legal Fees Closing Costs Workshops and Conferences Travel (for easements) Personnel/Administrative Services Promotional Materials (unallowable costs include gifts, memorabilia, models, and souvenirs) Stewardship endowment Appraisal ^ Number of Proposals Allowed Each organization or agency may submit up to 6 proposals per funding cycle which shall be restricted to 2 perpetual easements, 2 term easements, and 2 enterprise programs grant request types. ^ Incomplete Applications All information requested in this application is required. Incomplete applications will be considered ineligible for funding. ^ Evaluation of Applications The ADFP Trust Fund staff evaluates each application. The evaluation includes a review, using a scoring system, of the application and all the documents submitted with it. On-site visits (or interviews) will be conducted for those applications receiving the highest scores. ^ Selecting Recipients The ADFP Trust Fund Advisory Committee, anineteen-member committee, advises the Commissioner of Agriculture who selects the applicants who will receive an ADFP Trust Fund grant. 6 ^ ADFP Trust Fund on the Web An electronic copy of the application is available through the ADFP Trust Fund website at www.ncadf~.org. You may also request a hard copy be sent to you. ^ Funding Period The grant contract period for Agricultural Development and Agricultural Plans begins July 1, 2010 and ends June 30, 2011. The grant contract period for agricultural conservation easements begins July 1, 2010 and ends June 30, 2012. ^ Questions about Filling Out the Application If you have questions about filling out this application, please contact the ADFP Trust Fund office by email at ncadfp@ncagr.gov. ^ Application Deadline One unbound complete application suitable for photocopying must be delivered no later than 5:00 PM on December 4, 2009. All applications must be sent by Fedex, UPS, Certified Mail, or hand delivered to: ^ NCDA&CS ^ NC ADFP Trust Fund ^ 2 W. Edenton Street ^ Raleigh, NC 27601 7 Definitions Agricultural Conservation Easement - a negative easement in gross restricting residential, commercial, and industrial development of land for the purpose of maintaining its agricultural production capability (G.S. 106-744(b)). Beginning Farmer - A farmer who has not operated a farm or who has operated a farm for not more than 10 years and who will materially and substantially participate in the operation of the farm (G.S. 143-215.74(b)(9)(a)). Limited Resource Farmer - A farmer with direct and indirect annual gross farm sales that do not exceed one hundred fifty five thousand two hundred dollars ($155,200) in each of the previous two years and with an adjusted household income in each of the previous two years that is at or below the greater of the county median household income, as determined by the United States Department of Housing and Urban Development, or two times the national poverty level based on the federal poverty guidelines established by the United States Department of Health and Human Services and revised each April 1 (G.S. 143-215.74(b)(9)(b)). = Countywide Farmland Protection Plan - A plan that satisfies all of the following requirements: (1) The countywide farmland protection plan shall contain a list and description of existing agricultural activity in the county. (2) The countywide farmland protection plan shall contain a list of existing challenges to continued family farming in the county. (3) The countywide farmland protection plan shall contain a list of opportunities for maintaining or enhancing small, family-owned farms and the local agricultural economy. (4) The countywide farmland protection plan shall describe how the county plans to maintain a viable agricultural community and shall address farmland preservation tools, such as agricultural economic development, including farm diversification and marketing assistance; other kinds of agricultural technical assistance, such as farm infrastructure financing, farmland purchasing, linking with younger farmers, and estate planning; the desirability and feasibility of donating agricultural conservation easements, and entering into voluntary agricultural districts. (5) The countywide farmland protection plan shall contain a schedule for implementing the plan and an identification of possible funding sources for the long-term support of the plan. (G.S. 106-744(e)) Voluntary Agricultural District (VAD) - In order for farmland to qualify for inclusion in a voluntary agricultural district or an enhanced voluntary agricultural district under Article 61 of Chapter 106 of the North Carolina General Statutes, it must be real property that: (1) Is participating in the farm present-use-value taxation program established by G.S. 105-277.2 through 105-277.7 or is otherwise determined by the county to meet all the qualifications of this program set forth in G.S. 105-277.3; (2) Repealed by Session Laws 2005-390, s. 11 effective September 13, 2005. (3) Is managed in accordance with the Soil Conservation Service defined erosion control practices that are addressed to highly erodible land; and (4) Is the subject of a conservation agreement, as defined in G.S. 121-35, between the county and the owner of such land that prohibits nonfarm use or development of such land for a period of at least 10 years, except for the creation of not more than three lots that meet applicable county zoning and subdivision regulations. (1985 (Reg. Sess., 1986), c. 1025, s. 1; 2005-390, ss. 3, 11.) (G.S. 106-737) ^ Enhanced Voluntary Agricultural District (EVAD) - A district established by a county or a city by ordinance under Part 3 of Article 61 of Chapter 106 of the General Statutes (G.S. 143-215.74(b)(9)(a1)). For additional resources, go to http://www.ncadfp.org.