HomeMy WebLinkAboutAPB agenda 041801COUNTY OF ORANGE
ENVIRONMENT AND RESOURCE CONSERVATION
MEMORANDUM
To: Agricultural Preservation Board
From: Tina Moon, Preservation Planner
Date: April 11, 2001
Re: April 18 Meeting Agenda
Please find attached the agenda for our next meeting, scheduled for:
We will have Commissioner Jacobs with us to talk about his work with the Smart
Growth Commission, and to participate in our discussions of ongoing programs
such as the New Consensus for Farmland and the Voluntary Agricultural Districts.
Please contact Carol Melton (245 -2597) by Tuesday, April 17 if you will be unable
to attend.'
Copies: David Stancil, Environment & Resource Conservation Director
Fletcher Barber, CES County Director
Brent Bogue, District Conservationist
01
AGENDA
PLANNING AND AGRICULTURAL CENTER
Conference Room
306 Revere Road
HILLSBOROUGH, NORTH CAROLINA
Wednesday, April 18, 2001
7:30 p.m.
Time Page AGENDA ITEM
7:30 1. CALL TO ORDER
7:30 2. CONSIDERATION OF ADDITIONS TO AGENDA
7:31 02 3. APPROVAL OF MINUTES — March 21
7:35 4. ITEMS FOR DISCUSSION
a. Farm and Open Space Preservation Work Group:
Final Report
b. New Consensus for Farmland
c. Voluntary Agricultural Districts
d. Smart Growth Commission
e. May 2th Joint Meeting w/ Planning Board & HPC
8:55 06 5. INFORMATIONAL ITEMS
a. County Space Needs Study (Ag Center)
b. NC Farmland Preservation Demonstration Program
c. Report to the NC General Assembly
d. "Vineyards Contribute to Open Space Protection"
e. "Plan could lead to zoning,"
Caswell County protects farmland
9:00 6. ADJOURNMENT
02
Page 1
DRAFT MINUTES
AGRICULTURAL PRESERVATION BOARD
March 21, 2001
PRESENT: Whit Morrow, Elizabeth Walters, Nancy Goodwin, Bob Strayhorn,
Louise Tate, Tony Kleese, Marty Mandell, Environment & Resource
Conservation Director David Stancil, ERCD Preservation Planner
Tina Moon, Administrative Assistant Carol Melton.
Guests present: Carl Walters.
ABSENT: Charles Thompson, Noah Ranells, Rodney Recor.
ITEM #1: CALL TO ORDER
The meeting was called to order at 7:30 by Chair Morrow.
ITEM #2: CONSIDERATION OF ADDITIONS TO AGENDA
Kleese reported on a project called "Sonoma Grown" where local
products are highlighted in the local markets.
Mandell reported that she had attended the Clean Cities
Conference that was held in Raleigh. She noted that the US Dept
of Energy has -said that the future of alternative fueled vehicles will
be ethanol fuel followed by electric and that NC has the opportunity
to grow the corn to make ethanol. NC has the perfect climate for
growing corn, and corn will be the key ingredient in this major
- upcoming market.
ITEM #3: APPROVAL OF MINUTES January 31, 2001
Motion: Strayhorn made motion for approval of January 31, 2001 minutes.
Seconded by Kleese.
Vote: Unanimous.
Motion: Tate made motion for approval of February 21, 2001 minutes.
Seconded by Strayhorn.
Vote: Unanimous.
Draft 3/21/2001 1
Page 2 03
Strayhorn asked if the final changes had been done on the
agreement component of the new VAD application form. Staff to finalize form
and bring before the APB at the next meeting.
ITEM #4: ITEMS FOR DISCUSSION
a. Agricultural Priority Areas
Stancil reminded the APB that in June of last year the BOCC asked
them to reconsider criteria for evaluating farmland conservation easements. The
APB developed a Farmland Ranking System, which they (APB) adopted in June
2000. Several of our neighboring counties, who have established agricultural
preservation programs, have identified Agricultural Priority Areas —areas which
tend to have best farmlands, areas that are actively farmed, or areas where
attention should be focused. Orange County has yet to identify agricultural
priority areas.
Staff provided a map of the county showing the location of prime farmland and
the protective watersheds. The County Commissioners have suggested that the
APB focus agricultural preservation efforts in water supply watersheds areas,
because preserving farms that are good stewards and use best management
practices helps preserve water quality. ERCD staff are in the process of
digitizing information from the Farm Service and Soil and Water Conservation
District to determine the location of active farms. The map should reveal the
position of individual fields based on crop categories. The determination of
active farmland within water supply areas will help identify target acquisition or
easement sites for Lands Legacy funds and other grant funds.
The APB had a brainstorming session on active and economically successful
farms and outlined those sites on the map. Kleese noted that it might be
appropriate to rank areas facing high development pressure higher than land
that is not under similar pressure. Stancil advised the group that the ranking
system, that the board approved last June, attempts to balance the importance
of highly productive soils versus active farmland threatened by immediate
development. Moon distributed copies of the farmland ranking criteria to the
APB for reference.
Stancil suggested defining different priority areas based on different criteria, such
as water supply watersheds, and having Upper Eno agricultural priority as a
definable bio- region. Kleese noted that some farms might fall in two watersheds.
Mandell suggested defining farm restrictions to encourage farms in priority areas
to help protect the watersheds. Stancil noted that the criteria used so far have
been focused on the Cane Creek, the Upper Eno and Back Creek watersheds.
There is now a precedent with the Walters Conservation easement (Back Creek
watershed) which is under negotiations. The Upper Eno and Cane Creek are
two watersheds where there tends to be a lot of agricultural activity of different
Draft 3/21/2001
9�
Page 3
types. One approach might be to designate those watersheds as the priority
agricultural areas and then make provisions for farms that split the boundary.
Classifying them in the watershed where the larger acreage is located might be a
way to go.
The APB continued discussing the farms and their locations in the potential four
priority areas of Cane Creek, Upper Eno, Back Creek and Little River. Other
important active farm units were identified and marked on the map. Strayhorn
noted that they had not identified farms that were likely to be lost within the near
future. Morrow noted that there are farms that aren't in a watershed which meet
the other criteria such as soils, and that the economic vitality is important in
regards to promotion of culture heritage. These farms should be included in
some way. Including farms that are assets to the entire community was
suggested.
Stancil summarized the APB's ideas toward agricultural priority areas. One
approach is to target efforts toward farms in the county's water supply
watersheds. Another approach is to consider economic vitality, value to the
community, and potential threats. These categories were labeled Geographic
and Objective areas.
Kleese suggested going with the general areas as identified at this time pending
on further information. We see the northern third of the county as a high priority
and also the critical watersheds of Cane Creek, Upper Eno. Maybe the
northern /western area of the county should also be included. Mandell asked to
include farm activity regardless of location. Other farms within the objective
criteria economic vitality, environmental water quality areas, threatened areas
were also identified on the map. Staff to create map of the identified areas for
APB review. Mandell asked for a small map to use while viewing the county
farms (while on the road).
Stancil distributed and reviewed two resolutions adopted by the BOCC on March
6th: Deferral of Accrued Use Value property taxes — Farmer to Farmer Transfers
in Voluntary Agricultural Districts and Promote Viable Agriculture /Alternative
Farming & Agricultural Practices.
ITEM #5: INFORMATIONAL ITEMS
Draft 3/21/2001
a. Farm and Open Space Preservation Work Group: Final
Report
Stancil reported that Commissioner Jacobs is likely to come
to the April meeting to discuss this report.
b. Farmland Preservation Report
C.. "Farmers head to Raleigh"
Page 4 05
d. Joint Meeting with Planning Board and Historic
Preservation Commission
The APB discussed potential topics for the upcoming joint
meeting with the Planning Board and Historic Preservation
Commission. The most timely topic to discuss is the newly
proposed Heritage /Scenic Corridor Program, which may be
the appropriate tool to preserve St. Mary's Road. Morrow
suggested having an overlay map to point out the St. Mary's
Corridor and Cedar Grove Crossroads and other things that
might coincide with farmland preservation. Once there are
four or five groups interested in a particular site, more
funding sources become available to possibly buy
easements and meeting multiple goals. May second was
discussed as a possible time for a joint meeting of the APB,
HPC and Planning Boards.
ITEM #6: ADJOURNMENT
Meeting adjourned at 9:15.
Draft 3/21/2001 4
os
Informational Items
NORTH CAROLINA FARMLAND PRESERVATION DEMONSTRATION PROGRAM
GRANTS AWARDED FROM NC FARMLAND PRESERVATION TRUST FUND
1999 through 2001
The NC Farmland Preservation Trust Fund has received three successive annual appropriations
from the NC General Assembly to the NC Department of Agriculture and Consumer Services,
beginning in late 1998 and under provisions of the Farmland Preservation enabling statute of 1986
(NCGS 106 -735 to 744). Appropriations to the program by the General Assembly have been:
$250,000 for FY 1998 -99, $500,000 for FY 1999 -2000, and $1,500,000 for FY 2000 -01. The
appropriations were used to make grants for qualified local governments and non -profit land trusts
to acquire agricultural conservation easements and for program development, education and
promotion, administration. These grants have leveraged over $10 million in local funds and
equivalent values of donated development, rights (i.e., a 1.4 grant ratio of $1 state: $4 local
funds /donated value). Grant expenditures have satisfied the legislative intent to demonstrate .
protection of critical farmlands located in urban fringe growth areas and in sensitive watersheds or
other important environmental resource areas. The Department of Agriculture has contracted the
private, non -profit Conservation Trust for North Carolina to administer the program.
Program Results to Date
Total Grants Awarded:
Farms Protected:
Acres Protected:
$2,037,500 in three annual grant cycles
[7 grants to reimburse transactional costs for donated agricultural
conservation easements; 14 grants to match other local or private
funds or equivalent donations by landowners for the purchase of
non -farm development rights at or most often (11) substantially
below fair - market appraised values]
20
2,869
Other Program Activites: promotion of farmland protection options through publications,
news media articles, public presentations and forums; provision
of guidelines for forming county farmland protection programs
and establishing voluntary agricultural preservation districts;
representation of farm preservation interests to legislative study
commissions and other task forces.
Farmland Protection Grants Awarded in 1999 [$250,000 State appropriation]
Grantee Grant . Farm County Easement Size
1. LandTrust for Central NC
$ 15,518 d
Daltonia
Iredell
198 of 615 ac.
and bequested easement donated over remainder
2. LandTrust for Central NC
$ 50,390 b
Karriker Farm
Rowan
81 of 400 ac.
3. Blue Ridge. Rural LT /SAHC
$ 10,500 d
Richardson
Alleghany
298 ac'
4. Piedmont Land Conservancy
$ 67,000 b
Newlin - Hickory Alamance/
122 of 160 ac.
Grove Dairy
Chatham
5. Forsyth County SWCD*
$ 44,092 m
Blackburn
Forsyth
59 ac.
1999
758 acres total
07
I
Farmland Protection Grants Awarded in 2000 [$500,000 State appropriation]
Grantee Grant Farm County Easement Size
6. LandTrust for Central'NC
$150,000 b
Green Farm Cabarrus
317 acres
7. Forsyth County SWCD*
$123,000 m
Preston Farms Forsyth
66 of 200 ac.
8. Foothills Conservancy
$102,000 b ...
Bovender Farm Rutherford
304 of 935 ac.
9. Wake County SWCD*
$ 6,000 d
Theys Farm Wake
92 of 100 ac.
10 -11 Piedmont Land Consery
$ 44,000 d
Ferguson Farm Randolph
70 of 85 ac.
Troy Farm Randolph
305 of 314
* Soil and Water Conservation District
2000
1154 acres total
Farmland Protection Grants Awarded in 2001 [$1,500,000 State appropriation]
Grantee Grant Farm County Easement Size
12. LandTrust for Central NC $217,350 b
13. Piedmont Land Conservancy $210,300 b
14. Triangle land Conservancy $15,000 d
Barber/Floyd Farm Rowan 120 of 241 acres
Hadley Bros. Farm Alamance 143 of 262 ac.
& Chatham
Nutter /Siebert Farm Orange 80 of 350 ac.
(2 °d of series of pbased easements for t o tal -f 1Q,7
15. Durham County
$250,000 b .
Herndon Farm Durham 50 of 110 ac.
16. Orange County
$107,000 m
Walters Farm
Orange
70 of 113 ac.
17. NC Coastal Land Trust
$210,000 b
Rayburn Farm
Perquimans
130 of 378 ac.
18. Sandhills Area Land Trust &
$217,350 b
Weeks Farm
Harnett
75 of 600 ac.
Averasboro Battlefield Comm.
19. LandTrust for Central NC
$138,000 b
Wilburn/Williams
Cabarrus
92 ac.
20. Blue Ridge Rural Land Trust
$60,000 b -
Mauldin Farm
Wilkes
177 ac.
$1,425,000
2001
957 acres total
d = donated non -farm development rights /grant reimbursed transactional costs for establishing
permanent conservation easement
b = bargain sale of non -farm development rights/ purchase price for permanent conservation
easement substantially less than half of the appraised development rights values
m = matching local funds equal to or greater than the state grant for purchase of non -farm
development rights on land designated by a county as high priority for farmland protection
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S
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2001
SENATE BILL 145
1
Short Title: Use Value Rollback Modified. (Public)
Sponsors: Senators Kinnaird; Albertson, Ballance, Carter, Cunningham, Gulley,
Harris, Lee, Metcalf, Purcell, Warren, Weinstein, and Wellons.
Referred to: Finance.
February 14, 2001
11
A BILL TO BE ENTITLED
AN ACT TO ELIMINATE ROLLBACK OF DEFERRED TAXES WHEN USE
VALUE PROPERTY IS TRANSFERRED BETWEEN FARMERS, WITHOUT
EXTINGUISHING THE LIEN FOR THE DEFERRED TAXES.
The General Assembly of North Carolina enacts:
SECTION 1. G.S. 105- 277.3(b2) reads as rewritten:
l',� "(b2,.�) ,Exception to Ownership Requirements. ��05 277.4(e) provides ,.
d ef�P.0 le if land fails to * any een i+ror'T� Of Pr�GTITZT7S
ASSII�[ 1. Z1'7— RT"'TT1I'GG�A2t�CVIIQrCIl7 rC'TiRTC
e-l—as S If e ion "eoer- ingly, Notwithstanding the provisions of this section,-if- land fails
to meet an ownership requirement due to a change of ownership, G.S. 105 2277.4(e)
applies. Despite this failth-e and the r-esialting liability fer taxes tinder- G.S. 105 ,
the land may qualify for classification in the hands of the new owner if it meets both of
the conditions listed below. In addition, G.S. 105- 277.4(c) provides that deferred taxes
are payable if land fails to meet any condition or requirement for classification.
Notwithstanding the provisions of G.S. 105- 277.4(c), if land fails to meet an ownership
requirement due to a change of ownership, but the land meets both of the conditions
listed below, no deferred taxes are payable under G.S. 105- 277.4(c). The lien for the
deferred taxes is not extinguished, however, upon transfer to the new owner, and the
deferred taxes remain a lien on the land under G.S. 105- 277.4(c). Land qualifies for the
exceptions provided in this subsection if it meets both of the following_ conditions: if
beth of the a eendifiens are met, even if the aew ewner- does not Faee�-��
h-ffi&.
(1) The land was appraised at its present use value or was eligible for
appraisal at its present use value at the time title to the land passed to
the new owner.
12
l
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2001
1 (2) At the time title to the land passed to the new owner, the owner owned
2 other land classified under subsection (a)."
3 SECTION 2. This act is effective for taxes imposed for taxable years
4 beginning on or after July 1, 2001.
Page 2 Senate Bill 145 - First Edition
Y
THE NORTH CAROLINA
STATE GRANGE
Farmland Preservation Fund
(Proposed)
When farmland is being taken out of agriculture for development a fee would
be paid by the developer into the Farmland Preservation Program contracted
with NCDA &CS.
Developers would add the fee to other development cost which would be passed
along to the buyers of the developed property. With up to 150,000 acres of
farm land being lost each year to development, a $100 per acre development fee
would generate up to $15,000,000 annually.
Exemptions could be allowed where non - agricultural growth is needed. .
These funds would provide dedicated, non -tax generated monies for farmland
preservation, to be used as follows:
Purchase future development rights from farmers to insure that their land stays
in agriculture. Farmers would be able to participate in helping preserve open
spaces by selling their development rights for adequate compensation. For
farmers, land is often their retirement fund and the Program could compensate
them for the difference in Development Value verses Agricultural Value.
Make low interest loans available to farmers who have sold their development
rights and have a need to borrow funds in the future for agricultural expansion.
Land that doesn't have development rights lowers the landowner's asset base.
Provide new farmers low interest loans for the purchase of land from persons
who have sold their development rights and wish to get out of farming.
Up to 50% of the funds developed in a county should be available in that county
to supplement that county's own farm land preservation efforts.
PO BOX 9965 s GREENSBORO, NC 27429 -9965 4 336/854 -9000 + 800/432 -4857 + FAX 336/292 -1923
15
REPORT TO THE
NORTH CAROLINA GENERAL ASSEMBLY
ON THE
NORTH CAROLINA FARMLAND PRESERVATION
DEMONSTRATION PROGRAM AND
FARMLAND PRESERVATION TRUST FUND
GRANT AWARDS,
YEAR THREE
February,2001
prepared for the N.C. Department of Agriculture & Consumer Services
by the Conservation Trust for North Carolina
SJ
February, 2001
REPORT ON THE NC FARMLAND PRESERVATION TRUST FUND
DEMONSTRATION PROJECT, YEAR THREE
We are pleased to provide this report on the third year of the North Carolina
Farmland Preservation Demonstration Project, which was again administered by the
Conservation Trust for North Carolina for the N.C. Department of Agriculture and
Consumer Services. Grant funds this year were awarded to two counties and six private
land trusts to protect all or large parts of nine farms and 957 acres of agricultural land
through permanent conservation easements. The $1,500,000 appropriation from the
General Assembly for FY 2000 -01 affected the donations or bargain sales of non -farm
development- rights that are estimated as close to $5 million in value.
In total, the grants awarded from the General Assembly's appropriations to the
NC Farmland Preservation Trust Fund ($250,000 in 1998, $500,000 in 1999, and
$1,500,000 in 2000) have been used to acquire agricultural conservation easements on
2,869 acres on 20 farms. Grants were awarded to cover the transactional and monitoring
costs for conservation easements donated by the owners of six of those farms. The grants
awarded from the NC Farmland Preservation Trust Fund in its first three years have
leveraged well over $10 million in local funds and equivalent values of donated
development rights (a ratio of $1 state: $4 local funds /donation value).
We are grateful for the opportunity to assist in the administration of this program,
and we look forward to continued involvement in its future success.
,Sincerely,
Charles E. Roe, CTNC Executive Director
CONSERVATION TRUST FOR NORTH CAROLINA
PO Box 33333 . RALEIGH, NC 27636 -3333 - PHONE 919 -828 -4199 - FAx 919- 828 -4508
EMAIL ctnc @mindspring.com - www.ctnc.org
17
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19
NORTH CAROLINA FARMLAND PRESERVATION DEMONSTRATION PROGRAM
GRANTS AWARDED FROM NC FARMLAND PRESERVATION TRUST FUND
1999 through 2001
The NC Farmland Preservation Trust Fund has received three successive annual appropriations
from the NC General Assembly to the NC Department of Agriculture and Consumer Services,
beginning in late 1998 and under provisions of the Farmland Preservation enabling statute of 1986
(NCGS 106 -735 to 744). Appropriations to the program by the General Assembly have been:
$250,000 for FY 1998 -99, $500,000 for FY 1999 -2000, and $1,500,000 for FY 2000 -01. The
appropriations were used to make grants for qualified local governments and non -profit land trusts
to acquire agricultural conservation easements and for program development, education and
promotion, administration. These grants have leveraged over $10 million in local funds and
equivalent values of donated development rights (i.e., a 1.4 grant ratio of $1 state: $4 local
funds /donated value). Grant expenditures have satisfied the legislative intent to demonstrate
protection of critical farmlands located in urban fringe growth areas and in sensitive watersheds or
other important environmental resource areas. The Department of Agriculture has contracted the
private, non -profit Conservation Trust for North Carolina to administer the program.
Program Results to Date
Total Grants Awarded: $2,037,500 in three annual grant cycles
[7 grants to reimburse transactional costs for donated agricultural
conservation easements; 14 grants to match other local or private
funds or equivalent donations by landowners for the purchase of
non -farm development rights at or most often (11) substantially
below fair - market appraised values]
Farms Protected: 20
Acres Protected: 2,869
Other Program Activites: promotion of farmland protection options through publications,
news media articles, public presentations and forums; provision
of guidelines for forming county farmland protection programs
and establishing voluntary agricultural preservation districts;
representation of farm preservation interests to legislative study
commissions and other task forces.
Farmland Protection Grants Awarded in 1999 [$250,000 State appropriation]
Grantee Grant . Farm County Easement Size
1. LandTrust for Central NC
$ 15,518 d
Daltonia
Iredell
198 of 615 ac.
and bequested easement donated over remainder
2. LandTrust for Central NC
$ 50,390 b
Karriker Farm
Rowan
81 of 400 ac.
3. Blue Ridge Rural LT /SAHC
$ 10,500 d
Richardson
Alleghany
298 ac
4. Piedmont Land Conservancy
$ 67,000 b
Newlin - Hickory Alamance/
122 of 160 ac.
Grove Dairy
Chatham
5. Forsyth County SWCD*
$ 44,092 m
Blackburn
Forsyth
59 ac.
1999
758 acres total
24
Farmland Protection Grants Awarded in 2000
[$500,000 State appropriation]
en s or tot of 187 ac)
Herndon Farm Durham 50 of 110 ac.
Grantee
Grant
Farm County
Easement Size
70 of 113 ac..
18. Sandhills Area Land Trust &
$217,350 b
Farm
Weeks Farm
6. LandTrust for Central NC
$150,000.b
Green Farm Cabarrus
317 acres
7. Forsyth County SWCD*
$123,000 m
Preston Farms Forsyth
66 of 200 ac.
8. Foothills Conservancy
$102,000 b
Bovender Farm Rutherford
304 of 935 ac.
9. Wake County SWCD*
$ 6,000 d
Theys Farm Wake
92 of 100 ac.
10 -11 Piedmont Land Consery
$ 44,000 d
Ferguson Farm Randolph
70 of 85 ac.
2001
957 acres total
Troy Farm Randolph
305 of 314
* Soil and Water Conservation
District
2000
1154 acres total
Farmland Protection Grants Awarded in 2001 [$1,500,000 State appropriation]
Grantee . Grant I Farm County Easement Size
12. LandTrust for Central NC $217,350 b
13. Piedmont Land Conservancy $210,300 b
14. Triangle land Conservancy $15,000 d
Barber/Floyd Farm Rowan 120 of 241 acres
Hadley Bros. Farm Alamance 143 of 262 ac.
& Chatham
Nutter /Siebert Farm Orange 80 of 350 ac.
(2 °a of series of phased easem t f al
15. Durham County
$250,000 b
en s or tot of 187 ac)
Herndon Farm Durham 50 of 110 ac.
16. Orange County
17. NC Coastal Land Trust
$107,000 m
$210,000 b
Walters Farm
Rayburn
Orange
70 of 113 ac..
18. Sandhills Area Land Trust &
$217,350 b
Farm
Weeks Farm
Perquimans
Harnett
130 of 378 ac.
75 of 600 ac.
Averasboro Battlefield Comm:
19. LandTrust for Central NC
$138,000 b
Wilburn/Williams
Cabarrus
92 ac.
20. Blue Ridge Rural Land Trust
$60,000 b
Mauldin Farm
Wilkes
177 ac.
$1,425,000
2001
957 acres total
d = donated non -farm development rights /grant reimbursed transactional costs for establishing
permanent conservation easement
b = bargain sale of non -farm development rights/ purchase price for permanent conservation
easement substantially less than half of the appraised development rights values
m = matching local funds equal to or greater than the state grant for purchase of non -farm
development rights on land designated by a county as high priority for farmland protection
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23
NORTH CAROLINA'S FARMLAND PRESERVATION PROGRAM -
TO KEEP AGRICULTURE A VIABLE AND PROFITABLE
COMPONENT OF OUR ECONOMY AND TO PRESERVE OUR
RURAL LANDS HERITAGE
February, 2001
North Carolina Farmland Losses
Farms, farmland and farmers are being lost at an alarming rate in North
Carolina. Statistics show that NC lost about 1,500,000 acres of farmland and
forestland to development between 1982 -97, over a third of those acres being
prime farmland. During that same period 17,000 farms went out of business.
Since 1992 the average annual rate of conversion of North Carolina farmland
and forestland to development exceeded 100,000 acres a year. North Carolina
ranked 6th nationally in conversion of rural land to development. North Carolina
has one of the lowest amounts of preserved farmland in comparison to the
country's other ten most populous states.
With so many farmers giving up agriculture and the average age of the
North Carolina farmer being in the late 50's, and with young people being turned
away from entering agriculture by low profits, high land values.and high start-up
costs, the future of our agriculture heritage is at a critical cross - roads.
Why Should North Carolina Care?
Every year approximately 100,000 people come to live in North Carolina.
Many of the people and businesses are attracted to North Carolina because of
our rural beauty.and heritage, yet few, if any, come to become a part of our
agriculture heritage. Some of our state's highest valued farmland for fruits, row
crops, vegetables and dairy products are on the urban edge, and are subject to
increasing development pressures. Our state's unique cultural, educational and
political institutions were crafted from our agrarian roots. As our state loses its
agriculture land, many traditions, lifestyles and values are fading and may be
lost forever. In addition to promoting sound local economies, healthy farms and
farmers help communities maintain their rural culture and heritage.
At the same time, citizens polled in national surveys have consistently
cited protecting farmland as one of their top quality of life issues. Agriculture is
this state's #1 economic engine. Tourism, which is highly dependent on the
state's rural beauty, is the state's #2 economic engine. From a local
perspective, elected officials and public managers are beginning to recognize
24
that farmland costs government less in public services than does residential
development. Development — particularly in the rural -urban fringe areas- -
requires more expense in public services, such as roads, schools, water and
sewer, and fire and police protection. As farmlands are lost to development, the
cost for these services places a strain on local government budgets. This has
made local governments more aware of the need to preserve their agricultural
and forest lands.
Finally, farmland maintained in good stewardship provides many
additional benefits related to habitat for wildlife, water quality and recharge of
water supplies, and open and green spaces for public enjoyment.
What has North Carolina done in recent years to preserve
farmland?
North Carolina enacted the Farmland Preservation statue, G.S. 106 -744
in 1986. This legislation allows the state to set up a fund for receiving monies
and administering a statewide farmland preservation program. Legislative
amendment in the 2000 session of the General Assembly altered the local match
requirements to receive state grants for farmland protection. The North Carolina
legislation also allows counties to set up agriculture preservation districts. But
these statutes are inadequately funded and promoted. At present only 12
counties in NC have established agriculture districts (defined agriculture
protection areas where intensive development is discouraged).
The North Carolina Farmland Preservation Trust Fund was first funded in
1998 at $250,000 in non - recurring funds. The NC Department of Agriculture and
Consumer Services (NCDA), which is the administering agency for the Farmland
Preservation Trust Fund,- contracted with The Conservation Trust for North
Carolina (CTNC) to administer the grant program. CTNC used the $250,000 to
help local land trusts arrange the donation of agriculture easements and other
land trusts and one county to accept bargain sales of agriculture easements on
farmland. Due to the limited funding, easements could not be purchased at full
value. CTNC secured agriculture easements on 5 farms and 758 acres of
farmland through this allocation.
In 1999, the General Assembly funded the Farmland Trust Fund at
$500,000, again in non - recurring funds. Again, CTNC administered the funds
for the Department of Agriculture to help defray the costs of donated agricultural
easements and bargain sales of conservation easements. With this money,
CTNC secured agriculture conservation easements on 1,154 acres of farmland
on 6 different farms.
25
NC Farmland P reservationT rust Fund Grants in 2001
The NC General Assembly for FY 2000 -01 made a non - recurring
appropriation of $1,500,000 to the Farmland Preservation Trust Fund (with an
additional $200,000 to the State's Geographic Information and Analysis Service
for natural and agricultural resource mapping). The NC Department of
Agriculture and Consumer Services again contracted the private, not - for - profit
Conservation Trust for North Carolina (CTNC) to administer the grant program.
Eleven grant applications were received in December, 2000, with
requests exceeding $2.3 million. Nine grants were recommended by CTNC and
approved by the Department of Agriculture in January, 2001.
The nine grant awards made for'this 2000 -01 fiscal year were made as
follows:
Grantee Grant Farm County Easement Size/
Total Farm Size
1. LandTrust for Central NC $217,350 Barber.Floyd Farm Rowan 120 of 241 ac.
2. Piedmont Land Conservancy $210,300 Hadley Bros. Farm Alamance & 143 of 262 ac.
Sutphin area Chatham .
3. Triangle Land Conservancy $15,000 Nutter /Siebert Orange 80 of 350 ac
Maple View Dairy
2 "d of series of phased easements for total to date of 187 acres
4. Durham County
5. Orange County
6. NC Coastal Land Trust
$250,000 Herndon Farm
$107,000 Walters Farm
$210,000 Rayburn Farm
Durham 50 of 110 ac
Orange 70 of 113 ac
Perquimans 130 of 378 ac.
7. Sandhills Area Land Trust $217,350 Weeks Farm Harnett 75 of 600 ac.
& Averasboro Battlefield core of Averasboro Civil War Battlefield
Commission
8. LandTrust for Central NC $138,000 Wilburn/Williams Cabarrus/ 92 ac.
Farm Union
9. Blue Ridge Rural LandTrust $60,000 Mauldin Farm Wilkes 177 ac.
$1,425,000
957 acres total
Additional information about each of these farms is presented in a later
section of this report.
3
26
27
The Barber/Floyd Farm, Rowan County
conservation easement purchase by the
LandTrust for Central North Carolina
This "Legacy Farm" has been farmed by the same family for more than 200 years and is a
candidate for listing on the National Register of Historic Places. The family agreed to sell a
agricultural conservation easement on 120 acres (combining a donation and purchase) for far less
than half of the appraised value and intends to extend the easement over most of the whole 241 -
acre farm in the near future. The family accepted an easement sale price of less than one -fifth of
the estimated value of the non -farm development rights (in excess of $1 million). Other farm
owners in the same general area are also interested in placing permanent conservation easements
on their land holdings.
The family maintains and lives in the historic farm house, with a complex of historic
barns, cribs, sheds and grainaries. Located in a voluntary Agriculture Protection District and in
the historic Barber Community (named after this farm), the land is just east of Cleveland, NC, and
sits at the intersection of US Highway 70 and NC Highway 801. Within very short distance of the
farm are several manufacturing plants, a truck transportation center, an active railroad line, the
state's largest natural gas powered electricity production plant, and other commercial and
residential properties. The farm is zoned industrial.
Also nearby is the NC State Piedmont Agricultural Research Station, the historic
Millbridge farming community, an active cattle market, and the farm home of outgoing NC
Department of Agriculture Commissioner. Jim Graham.
Most of the farm consists prime farming soils. The current owners are restoring the
historic home and farm buildings and are reestablishing cattle operations along with the crop
lands. Currently the farm produces a rotation of corn, barley, and soybeans. Not only is this a
fully functional and successful working farm, but the natural beauty and historic significance of
the property are inspiring. Farming operations can survive adjacent to an industrial complex. The
first conservation easement covers the section of the farm next to US Highway 70.
The Hadley Farm, Sutphin Community of Alamance and Chatham Counties
conservation easement purchased by the
Piedmont Land Conservancy
"Farmers unite to 'conserve land" declared the front -page News & Observer feature story of Jan. 29,
2001, in its account about the protection of the Hadley family farm and five others in the Sutphin community
area along the Alamance- Chatham county line. The stability of that rural community, since its settlement by
Quakers in the 1700s, is reflected by the Hadley Brothers Farm. The farm has been in that family's
operation for more than six generations, with James and Gary Brothers operating the farm for the past 30
years.
The brothers agreed to place a permanent conservation easement over 143.5 of their total 262 -acre
farm in a "bargain sale" of the non -farm development rights. Their donation of development rights matches
the sum of the state's Farmland Preservation program grant to the holder of the easement. This easement is
the fifth in a series of agricultural conservation easements acquired by the Piedmont Land Conservancy in
the Sutphin farming community since 1996. A grant from the NC Farmland Preservation Trust Fund in
1999 helped finance a conservation easement over a large part of the nearby Newlin - Hickory Grove Dairy
Farm.
The protection of a major part of the Hadley farm brings the total contiguous acreage protected in
the Sutphin area to almost 500 acres, or one -third of the long -term goal. The process has been driven by the
initiative of local farmers who have been concerned about development threats to the long -term agricultural
and cultural viability of their Quaker farming community. Working with the Piedmont Land Conservancy,
and with assistance from the American Farmland Trust, large parts of five farms have been placed under
permanent conservation easements and another ten neighboring farmers are considering doing the same.
Currently, the Hadley farm is in transition from a dairy farm to raising heifers to be sold to other
dairies. The portion of the land under conservation easement is comprised of more than 110 acres of open
fields used for pasture and hay production, and about 30 acres of mature hardwood forest that provides
wildlife habitat and contributes to the scenic qualities of the landscape.
This "pilot" protection project demonstrates the long -term intent of the NC Farmland Preservation
Program to help conserve large assemblies of agricultural and forest lands and contribute to the viability and
sustainability of agricultural economies and rural communities. The Sutphin conservation project shows
how farmland protection can go beyond preserving single farms and protect whole farming communities. It
is the best example in North Carolina of using a combination of public and private funds, and landowner
donations, to maintain the fanning culture and economy.
29
The Nutter- Seibert Maple View Dairy Farm, Orange County
conservation easement donated to the
Triangle Land Conservancy
The Nutter family demonstrate that farm owners who are motivated by love of the land
and their farniing traditions can voluntarily give up unwanted development rights and earn
substantial financial benefits from income, estate, and property tax reductions. The Nutter's
phased donations of conservation easements over the Maple View Dairy Farm have been part of
their long -term farm business and estate planning. The farm is located on the outskirts of the
Chapel Hill- Carrboro urban area and the surrounding locale has been subject to development of
residential subdivisions.
The "show case" dairy farm provides milk to local groceries in the greater Research
Triangle region and its fresh milk products are in popular demand. About 300 animals are kept
on the farm, of which 130 comprise the milking herd. The farm has on -site milk production,
bottling and ice cream making operations. The farm consists of pastures, crop lands, managed
forests and part of the Pickards Mountain natural area. It is within the Morgan Creek - University
Lake public drinking water supply watershed. The scenic Dairyland Road runs through the farm,
Maple View Farm is part of a voluntary Agricultural Protection District.
This $15,000 grant from the NC Farmland Preservation Trust Fund helps reimburse the
substantial costs incurred in donating a permanent conservation easement—professional fees for
conservation planning, surveys, financial and legal advice and long -term stewardship monitoring
expenses. The Nutter's long -term plan has been to partner with the Triangle Land Conservancy to
convey conservation easements in stages that ultimately will protect 350 acres. This easement
over 80 acres brings the total to 187 acres under permanent protection. Donations of a series of
easements allows the Nutters to take full advantage of the tax benefits that accompany the
conveyance of perpetual easements for land conservation purposes.
This grant demonstrates the utility of the NC Farmland Preservation Trust Fund program in helping
working farmers who love their land to continue to sustainably manage agricultural and natural resources for
the benefit of the general public.
30
The Herndon Farm, Durham County
conservation easement purchased by
Durham County
Herndon Farm is a swath of undeveloped agricultural and forest land in an area
experiencing intense urban development. A new regional shopping center is being constructed
less than one mile away and several new residential - subdivisions are even closer. This "Century
Farm" has been in the same single family ownership since 1780. Its farm management uses
excellent natural resource conservation and approved woodland management practices. The farm
is in a Durham County Voluntary Agricultural Protection District and is a candidate for the
National Register of Historic Places.
The Herndon Farm is in diversified agricultural use, has plentiful water supply, good .
natural drainage, and accessibility to direct marketing. The farm has about 5,000 feet of frontage
on Crooked Creek, which drains into Jordan Lake, a public drinking water supply watershed. It
has 6,864 feet of frontage on scenic roads. The beautiful farm consists of rolling pastures, several
ponds, and stands of mature pines and hardwoods. Permanent vegetative covers over 90 percent
of the farm — livestock grazing pastures, permanent cover crops, contour striperopping, and
woodlands. Five acres produce blackberries and blueberries for local groceries and pick -your-
own market.
The family has accepted a "bargain sale" of the non - agricultural development rights,
vastly less than the estimated market value of the land. Directly adjacent properties have recently
been sold for $40,0004100,000 per acre! The conservation easement will help the family
contend with prospective high estate taxes upon the death of the current owners (widows ages 82
and 85) due to the high land values. But the owners and their family describe the farm as "heaven
on earth" and`firmly believe that they are obligated to maintain the stewardship of the farmlands.
The family intends to extend conservation easements over much of the whole farm in the next few
years, by combination of donation and purchase (by bargain sale).
31
The Rayburn Farm, Perquimans County
conservation easement purchased by the
North Carolina Coastal Land Trust
The first conservation easement in the coastal region purchased with grant funds from the
NC Preservation Trust Fund is located along southeast of Hertford, on Yeopim Creek in
Perquimans County. This is a "Legacy Farm" in the same single family ownership for more than three
hundred years and was part of an original King's grant to ancestors of the present owners. The present
owners have years of agriculture experience and their professional careers have been in agricultural and
natural resource management.
The northeastern North Carolina counties are experiencing development pressures spilling over
from the Norfolk - Virginia Beach metropolitan growth area. Although in a primarily rural area, there have
been several recent residential developments in close proximity to this farm. The population of the county is
rapidly increasing.
The property is an active working farm and forest. It consists of 143 acres devoted to row crops,
53 acres of pasture, and 182 acres of forest land mostly devoted to loblolly pine timber production. The
farm supports a large sheep herd, as well as rotating cotton and soybean crop production. The owners live
on this farm. The Raybums work with local forestry, wildlife, and soil conservationists to implement
agricultural, forestry and wildlife management plans for their farm.
The farm also has considerable scenic and water quality enhancement values. It has about one mile
of frontage along the beautiful blackwater Yeopim Creek,. and more than another mile along Barrows Creek
and another tributary stream. The adjacent bottomland and upland hardwood forests along these creeks
provide a diversity of habitats for abundant wildlife, and the owners have employed many wildlife enhancing
management practices. Yeopim Creek is classified as an anadromous fish spawning area, supporting many
economically important fish species.
The Raybums wish eventually to place all 378 acres of the farm under conservation easement.
They begin by accepting a bargain sale of non - agricultural development rights over 130 acres for one -half of
the estimated appraised value of the easement. This first phase of the conservation easement includes the
highest farmland and water quality values. Protection of this farm should create a fine regional
demonstration of conservation easements on privately -owned agricultural and forest lands.
32
Walters Farm, Orange County
conservation easement purchased by
Orange County
Victor Walters, aged 92, has farmed this land for nearly 60 years, and his son wants to
keep the land in family farming. Mr Walters bought this land for $8 per acre in 1941, and now it
is valued at about $4,000 per acre. Now residential subdivision is a real probability and threat to
continuation of farming in this area in western Orange County, only a few miles from Interstate 40
and US Highway 70 near Efland and Mebane. This is the first farmland protection project of the
new Orange County Land Legacy Program. Local funds were used to match the state Farmland
Preservation Trust Fund grant for the purchase of non -farm development rights over 70 of the
family's total 255 acre farm (113 owned by Mr. Walters, Sr.).
This farm in the Cedar Grove Township is one of the few surviving dairy farms in the
county. The parcel placed under easement is used for grazing of dairy and beef cattle by Mr.'
Walters' son. The farm is enrolled in a voluntary Agriculture Protection District and contains
significant prime soils. The farm is also located in the Back Creek public water supply watershed.
The family has long employed best management practices for protection of water quality and
exemplary land stewardship.
The portion of the farm placed under conservation easement has 900 feet of frontage on
High Rock Road, one of the county's more scenic rural roads, which gives the public beautiful
pastoral vistas over the farm's rolling pastures, forests, and a farm pond. The County expects to
expand its farmland protection over other farm units nearby. -
33
The Weeks Farm, Harnett County
conservation easement purchased by the
Sandhills Area Land Trust and Averasboro Battlefield Commission
with assistance from The Conservation Fund
In 1865 a fierce battle was fought on this farmland. Today it is a scene of fertile
agricultural fields, but with reminders of the adjacent Civil War memorial cemetery and historical
museum. The grant awarded from the NC Farmland Preservation Trust Fund enables the purchase
of a conservation easement over approximately 75 acres of the 600 acre Weeks Farm, Inc., of
Dunn, at 50 percent of the appraised value of the development rights. The Weeks are donating
half of the value of the non -farm development rights and have indicated willingness to extend
conservation easements over more of the farm in the future.
Not only will this easement ensure protection of highly productive agricultural land
(which is composed of prime agricultural soils), but also the farm composes the heart of the
Averasboro Civil War Battlefield. This protection project serves as a cornerstone in the broader
protection efforts to defend the larger battlefield and adjoining Cape Fear River Bluffs natural
area from undesirable development. The easement will preserve agriculture as an alternative to
the residential subdivision development and industrial warehouse construction that has occurred
nearby. The farm produces row crop small grain corn and soybeans.
The property protected by this easement was the location of the central combat action on
the Confederate army's third and final defensive line during the March 15 -16, 1865, Battle of
Averasboro. The property under easement is adjacent to, and surrounds on three sides, the
Chicora Civil War Cemetery (burial site of 56 Confederate soldiers) and is immediately across
NC Hwy 82 from the existing state historical museum. That highway exactly follows the path of
the plank Fayetteville- Raleigh road dating from colonial times. Until the purchase in 1981 by the
present owners, this land was owned by family descendants of the owners of an 8,300 -acre 18`"
and 19'' century plantation .
This farm protection project was endorsed by the NC Department of Cultural Resources,
the Harnett County Planning Office, the Soil and Water Conservation District, and local Farm
Services agent.
34
The Wilburn/Williams Farm, Cabarrus and Union Counties
conservation easement purchased by the
LandTrust for Central North Carolina
The Wilburn and Williams Farm represents the working farming culture of the Midlands area of
Cabarrus and Union Counties, on the rapidly urbanizing margin of the greater Charlotte metropolitan area.
This conservation easement restricts future development of a 92 acre tract consisting of gently sloping hills,
fields, a scenic creek, views of dramatic river bluffs, farming structures and the historic Marion Hamilton
house. Clear Creek flows through this farm just above its confluence with the Rocky River. This is a
productive working farm in a traditional farming community that provides agricultural produce,-scenic
beauty and water quality protection.
The pace of suburban and commercial development on the outer fringe of metropolitan Charlotte is
evidenced by the recent construction of a major residential development on what was another functional
farm adjacent to this tract, and the nearby construction of a huge new fiber optic manufacturing plant.
The Williams family has resisted offers to sell their farm for development and willingly accept the
sale of non -farm development rights at an amount less than one -fourth the actual appraised value. It is the
intent of the family to devote their lives to farming and they have been acquiring additional crop lands. The
purchase of this conservation easement helps enable the family to continue to farm and resist converting the
land to urban development uses. The easement permits only future construction of a single new house on
the road frontage and continued use and restoration of the historic 19th century house. All but a few acres of
the land is used for row crop production of corn, soybeans, wheat, oats, and barley in rotation. The wooded
buffer along Clear Creek harbors diverse wildlife.
The 317 -acre John Green Farm, protected by a conservation easement financed in part by a NC
Farmland Preservation Trust Fund grant in 2000, is located only about a mile away.
"3 5
The Charles Mauldin Farm, Wilkes County
conservation easement purchased by the
Blue Ridge Rural Land Trust
Charles Mauldin tells his community that he wants to set an example for other large land
owners in leaving a legacy of protected open space for their children. After farming the land for
37 years, he wants the land to continue to produce timber and crops, and "I don't want to see
houses or condominiums up here." He was willing to sell the development rights on his property
for one -fifth the estimated value. The grant from the NC Farmland Preservation Trust Fund
reimbursed Mauldin for the substantial survey and appraisal costs for the highly leveraged bargain
sale.
Like many other farms in the low mountains of northwestern North Carolina, most of this
farm has been converted to production of timber. The sustainable forestry management practices,
combined with wildlife habitat concerns, has qualified this farm for enrollment in the NC Forest
Service "Forest Stewardship Program." It is hoped that the conservation easement over this tree
farm will have educational demonstration benefits to influence protection of other nearby farms
and forest lands.
�j9
36
The two unfunded applications had high merit, but funding was
insufficient to cover them. One request from the Forysth County SWCD far
exceeded the maximum available grant total and did not demonstrate the
availability of the required local matching funds. Another request from the
Coastal Land Trust for a purchase of development rights on a portion of a farm
in Brunswick County was not recommended for funding in this grant cycle, but it
is hoped that sufficient funds will be made available in the future to go forward
with this easement. In fact, the CTNC has applied for supplemental funding from
the NC Department of Justice's new Environmental Enhancement Fund to
supplement the Farmland Preservation Trust Fund and award additional
farmland protection grants.
37
How Purchase of Development Rights Programs Work
The most commonly used and effective tool for protecting farmland from
development is called Purchase of Development Rights (PDR). PDR programs
buy the development rights from a willing landowner and place a conservation
easement over the portion of the farm for which the development rights were
purchased. This FPP tool is popular because it is voluntary and it compensates
the farmer for his or her right to develop the land. In addition, the landowner
retains the deed to the land and continues to farm the land as before, thereby
ensuring than the working landscape will continue. PDR, as mentioned, is
very popular in the states that use this tool. In Maryland, for instance, for every
one farmer that sells development rights to a FPP there are approximately 30
more waiting in line to sell. In Pennsylvania, there is a backlog of 1500 farmers
waiting to sell their development rights to the state FPP. Delaware also has a
large waiting list of farmers wanting to enter their PDR program.
In addition to it's popularity among farmers, PDR has proven to be a key
tool in keeping agriculture viable in a community by preserving large blocks of
protected agricultural land. These large blocks help maintain the agriculture
infrastructure needed to help farmers survive. Chemical, fertilizer, hardware and
tractor businesses tend to locate or remain located in these protected
communities, aware that their source of income — the farmer — will not be forced
out because of development. These PDR programs have been proven to
provide a sense of "agriculture permanence" to a community. That permanence
leads to farmers taking a brighter outlook on farming in their community and
thereby reinvesting more money into their farming operations. American
Farmland Trust surveys in both Massachusetts and Vermont show that farmers
use the money they receive from PDR to pay off existing farm debts, to reinvest
in new and upgraded equipment, and to start or add to a retirement account.
The Vermont and Massachusetts surveys found a 98% and 92% satisfaction rate
of farmers who had sold an easement on their farm. The desire "to protect the
land for farming ", was emphasized by 81.3% of the Massachusetts survey
respondents.
Finally, PDR has proven an effective tool for helping young people break
into agriculture. The same Massachusetts and Vermont surveys showed that
young people trying to enter agriculture tend to look for protected farms because
they know agriculture will be secure in that region and the price of the farms are
more affordable. The Massachusetts study stated, "Among survey respondents
who purchased protected farms, the affordability of the land was the most often -
cited reason for participation in the program, mentioned by 43.8% of farmers in
this category".
38
State and County Involvement in FPP /Agriculture Districts
In any FPP local organizations play an integral and vital role. Counties
work with the state FPP to create agriculture districts in regions most critical for
protecting that county's prime soils and rural heritage. Counties use the
agriculture district and purchase of development right tools to protect their most
strategic farmland, while allowing growth to occur on farmland less important to
agriculture and the environment. Local organizations also usually decide on
target acreage of farmland that should be protected in that county. This target
acreage usually correlates with the amount of farmland the county needs to keep
agriculture a viable component of that county's economy. For example,
Baltimore County, Maryland has a goal of preserving 80,000 acres of their
farmland, while St. Mary's County, Maryland has a goal of preserving 17,000
acres of their farmland. The county also has the option of raising additional
funds to match state funds in purchasing easements. Counties may receive
state FPP funding even if they do not have county funds for FPP.
In all state FPPs, establishment of agriculture districts is the first step. A
landowner must join an agriculture district before he or she can apply for selling
their development rights. This insures that the state /county concentrates its
efforts on protecting large contiguous blocks of agriculture on its prime soils. An
agriculture district may vary in minimum size requirements, depending on the
geographic region. For example, an agriculture district in the mountains may
have a minimum size of only 25 acres, whereas one in the coastal plain may
have a minimum size of 50 acres. All agriculture districts consist of a 10 -year
no- development zone. The placing of the farmland into agriculture districts
gives the county /state time to acquire the funds to buy the development rights,
and provides a staging area for delivery of related program incentives.
North Carolina's existing agriculture district statute differs from other state
programs in that it allows landowners to leave agriculture districts at any time.
This statute should be amended to restrict the ability to withdraw from an
agriculture district for 10 -year period be in line with the method used in all
other state PDR programs.
Other incentives should be established for entering into an agriculture
district. These should include state or county funding to help local government
and farmers create agriculture economic development plans, consistent state
and local agency policies to support farming in agriculture districts, local
planning requirements for agriculture districts, additional right -to -farm
protections, additional tax rollbacks /credits, agriculture impact statements for
public developments, limits on local governments ability to annex land in
agriculture districts, increased agricultural assistance programs (e.g., technical
assistance, cost - sharing), land use buffers required for development adjacent to
MO
LIMA
agriculture districts, and limits on rate of tax increase in agriculture districts.
Because environmental regulations represent a significant cost to farmers, state
and local agencies should consider providing additional flexibility and incentives
to farmers in an agriculture district. This can be safeguarded, in part, by the fact
that all farmland easements bought through PDR must have a locally- approved
soil and water conservation plan.
Farmland Preservation is best delivered at the local level. The preferred
mechanism for delivering the FPP on a county level is the local Soil and Water
Conservation District (SWCD), working with its local government, cooperative
extension service, and non - profit conservation organizations. The NC
Department of Agriculture and Consumer Services, which is responsible for
overall program authority, and the Department of Environment and Natural
Resources (DENR), which is responsible for soil and water conservation
programs, are working together to develop a model for program delivery.
Because; in North Carolina, there is a SWCD active in agriculture in every
county, there is an effective outreach and administrative mechanism available.
There is no need to create a duplicate or redundant Agriculture Preservation
Board to perform FPP work. The local SWCD can work with landowners, farm
organizations and county governments to set up agriculture districts, promote
farmland preservation throughout the county, approve funds spent on PDR in the
county, approve soil and water conservation plans for land included in
conservation easements, hold and/or monitor conservation easements, and work
with local planners on protecting target farmland for that county. SWCDs may
serve as a focal point for delivering other incentives associated with FPP
through local agriculture districts.
Forsyth County is so far the only North Carolina county with its own
Purchase of Developments Rights Program (PDR) program. Forsyth County has
funded its program through occasional appropriations of county funds. With
local appropriations, Forsyth County, through its Soil and Water Conservation
District (SWCD), purchased conservation easements on approximately 1200
acres of farmland under threat of development. Forsyth County has leveraged
additional federal (USDA Farmland Protection Program) and state farmland
protection funds to acquire conservation easements on an additional 200 acres
of farmland. Forsyth County has a waiting list of 5000 acres of farmland to enter
the local farmland preservation program, but this year allocated no local funds to
continue its purchase of development rights on critical farmlands.
40
Structuring a PDR Program
The first few years of a Farmland Preservation Program (FPP) must be
experimental and flexible. While a structured program is being implemented, the
Purchase of Development Rights (PDR) funds should be used to buy easements
on qualifying farmland, with an emphasis placed on farms within existing
agriculture districts, rural historic districts, farms with prime soils and significant
natural and cultural resources. During this transitional period, greater emphasis
is needed for counties and soil and water conservation districts to establish
agriculture protection districts. For North Carolina to have an effective FPP that
can help preserve our agriculture economy and protect our rural heritage, we
must have a fully - funded program that can preserve farmland in large
contiguous blocks, not isolated "museum farms" scattered throughout the
state. The #9 goal of a farmland preservation program is to preserve
enough of a state's productive farmland to perpetually maintain the land
base necessary for a viable agriculture industry.
For the program to capitalize on it's increasing interest and popularity
among farmers, continuing annual state appropriations are needed to fund the
NC Farmland Preservation Program, until a dedicated funding source can be
secured. The General Assembly's Smart Growth study commission earlier in
2001 recommended several possible funding sources to establish a dedicated
funding level for the program at a minimum of $15 million annually.
It is strongly recommended that NC FPP be funded at minimum .
appropriations of $1.5 million annually in FY 2009 -02 and 02 -03 so that
program can continue in its early demonstration phase without
interruption until a larger and dedicated funding source is found. The
North Carolina Department of Agriculture has requested continuation
appropriations of $1.5 million for farmland preservation program in their 2001
budget request. Appropriation bills have been introduced in both the NC Senate
and House for this funding level.
41
As one of his last acts in office,
former Governor Jim Hunt set a
goal to preserve one million acres of
farm and forest land in the state
over the next decade. A quick look
at the facts makes a strong case for
doing so.
Farmland and farm families are
being lost at an alarming rate in North
Carolina. Statistics
show the state lost
nearly one million
acres of farm and
forest land between
1982 and 1992, of
which over 295,000
acres was consid-
ered prime farm -
land. During this
period the state
ranked second
nationally in con-
version of farm acreage to develop-
ment. It was also a time when the
state lost 20,000 farmers.
The trend has unfortunately
continued. Between 1992 and 1997
North Carolina lost an additional
781,500 acres of farm and forest land
to bulldozers and poured concrete.
The annual conversion rate was esti-
mated at 156,000 acres.
A statistic which parallels the
loss of farmland is the increasing age
of today's Tar Heel farmer, which
averages nearly 60 years of age.
Young men and women who might
replace the agricultural workforce are
being discouraged by low profits,
high land prices and extraordinary
start -up costs which cause potential
lenders to turn away.
Left Bordered by a fence and acres of new hous-
ing, this old gray more is finding less open pasture
on which to graze.
Inset top: Beyond this street sign is open space for
pasture, however an asphalt road leads right to
the property line. The question is, how long will the
pasture remain undeveloped?
42
Our Future at Stake
Every year approximately 100,000
people come to live in North Carolina.
Many people and business owners are
attracted to the state's rural beauty and
heritage yet few, if any, come here to till
the soil and contribute to agricultural
production. Some of the state's high-
est valued farmland, dedicated to
`tobacco, fruit, vegetable and row
crop production, is located on the
state's urban fringes and is subject to
increasing development pressures.
As development has spread
across the state, elected officials and
public managers have come to realize
the associated costs and burdens. A
growing populace requires serious
investment in public services such as
roads, schools, water and sewer ser-
vices and police and fire protection.
Land devoted to farming, on the
other hand, does not require constant
dipping.into the public purse. When
farmland is lost, the pressure builds
to increase property taxes. Increased
taxation results in greater pressure on
remaining agricultural production. -
It is worth noting that this state's
unique cultural, educational and
political institutions were crafted
from agrarian roots. Tobacco is the
chief commodity that built the Tar
Heel state but unbridled develop-
ment is putting prime farmland, as
well as our heritage, at risk. Healthy
farms and farm families promote
sound local economies and help com-
munities maintain their rural culture
and heritage.
The current economic climate
provides another reason to preserve
open land. Some economists believe
America may be entering a period of
recession and the marked loss of jobs
in rural North Carolina is a telling
sign. Hundreds of textile jobs have
been Iost and the service jobs depen-
dent on an employed workforce are at
growing risk in rural North Carolina.
FEATURE ARTICLE
The fortune's of our top two
economic engines, agriculture and
tourism, are intertwined. We need
open space for agricultural com-
merce and we need undeveloped land
for the state's number two income
producer, tourism, which is highly
dependent on the open vista which
agriculture maintains.
In the Apex area of Wake County, bumper -to-
bumper subdivisions and new housing are squeez-
ing out family farms and traditional ways of life.
What the State is Doing
North Carolina enacted the vol-
untary Farmland Preservation District
Statute, G.S. 106 -744 in 1986. This
legislation allowed the state to set up
a fund for receiving monies and
administering a statewide farmland
preservation program. The state also
created legislation to permit counties
to set up agricultural districts. At
present, 12 counties have established
such districts or agriculture protec-
tion areas.
5
The North Carolina Farmland
Preservation Trust Fund was estab-
lished in 1998 with $250,000 in non-
recurring funds. NCDA &CS
administers the fund and has con-
tracted with the Conservation Trust
for North Carolina (CTNC) to
accept farmland easement applica-
tions and administer state- appropri-
ated funds. With these
monies CTNC secured
agriculture easements on
five farms and 1,200
.a acres of farmland.
La In 1999 the Gener-
al Assembly provided
$500,000 in additional
non - recurring funds.
Again, CTNC used the
funds to help defray the
costs of bargained and
sold conservation ease-
ments. Easements total-
ing 1,500 acres were
secured on nine farms in
the state.
New development is a common sight in once -rural
North Carolina. A 21 percent increase in North Car-
olina's population during the past decade has given
the state another seat in Congress, but has also put
pressure to develop once - productive farmland,
At the local level, Forsyth County
formed its own PDR (Purchase of
Development Rights) program.
Continued on next page
NC F.4R.Ll BUREAU NENS - FEBRUARY 2001
Conservation easements were pur-
chased on approximately 1,200 acres
of farmland which were threatened by
development. In addition to use of
state farmland
protection funds,
the county also
obtained financ-
ing from the
USDA Farmland
Protection Pro-
grain,- acquiring
conseration ease-
ments on an addi-
tiona1200 acres of
land. The county
currently has
5,000 acres await-
ing funding for inclusion in the farm-
land preservation program.
In Wake County, the town of
Cary has proposed a $15 million
appropriation to protect open space
and farmland. The Wake Soil and
Water Conservation District
(SWCD) is working with the town
to protect the few remaining farms
that fall within the city limits.
Through donation of conservation
easements, an additional 3,000 acres
of farmland is being preserved. Var-
ious land trusts across the state
report long lists of property owners
wishing to obtain easements. One
land trust reports that over 130
landowners are waiting to obtain
such status.
FEATURE ARTICLE
..................................... ...............................
owner for the right not to develop
land. The owner retains deed to the
property and can continue to use it to
produce farm income.
"Every year
approximately
100,000 people
come to live in
North Carolina."
How PDR Programs Work
A commonly used tool for pro-
tecting farmland from development
in many states is the Purchase of
Development Rights (PDR) pro-
gram. Through this program devel-
opment rights are purchased from
willing landowners and a conserva-
tion easement is placed on the prop-
erty. This tool is popular because of
its voluntary nature and the fact it
compensates the farmer or property
Based on expe-
rience in north-
eastern states,
PDR has helped
to keep agriculture
viable in many
communities. By
purchasing devel-
opment rights on
large blocks of
property, PDR has
preserved land
needed for agri-
cultural infrastruc-
ture. In turn, necessary agribusinesses
which supply seed,
feed, fertilizer s
farm equipme
have been able
locate or contii
doing business
farm sect(
According to
American Farml
Trust (AFT),
such agree-
ments provide
assurance that
surrounding
farmland will
not be lost to
development.
AFT survey
both Massachus
and Vermont indi-
cate farmers use
PDR money to pay
off existing debt,
reinvest in new and upgraded
equipment and start or add to
retirement accounts. Satisfaction
ratings among farmers are in the
upper- ninetieth percentile accord-
ing to AFT and the chief reason
stated for entering into a PDR was
to protect land for farming.
State and Local Involvement
The way the PDR program is
operated in other areas of the coun-
try is being fully explored by North
Carolina officials. Some landowners
will be hesitant about the idea of sell-
ing property development rights, for
fear of losing control of their land.
Based on the way programs are
administered across the country (and
the fact that public funds are used) it
is clear that farmer property rights
are not the only consideration. In
northern states, counties often create
regional agricultural districts to pro-
tect prime soil and rural heritage.
Obviously, not all county farms will
be located in areas considered prime
locations.
An old outbuilding, soon to be destroyed, is all that remains of this farm on
the outskirts ofApex, NC. As the sign proclaims, a new shopping center will
be built on acres of property being cleared behind the wooden structure.
According to AFT, the first step
in starting a PDR program is the
establishment of agriculture districts.
Landowners must join the agricul-
ture district before being able to sell
development rights. This ensures
that the state /county concentrates
efforts on protecting large contigu-
43
44
FEATURE ARTICLE
................................................... :................................ ...............................
............................,
ous blocks of farmland, located on
prime soils. PDR contracts usually
set minimum land requirements for
entry, for example, 25 -acre blocks in
mountainous regions and 501acre
blocks in flatter climes.
Local organizations usually
determine the amount of tillable land
needed to keep agriculture a viable
part of the county economy. For
example, Baltimore County, Mary-
land has set a goal of preserving
80,000 acres of farmland, while St.
Mary's County, Maryland has set a
more conservative goal to protect
17,000 acres of farmland.
In the American Farmland
Trust's "model" of an ag district con-
tract, those who join must agree to a
10 -year "no development" schedule,
even though they have not yet
received payment for development
rights. The AFT says the10 -year
period is necessary in order to give
the county/state time to raise ade-
quate funds to buy development
rights in the district. (In North
Carolina the existing Voluntary
Farmland Preservation district
statute does not contain this pro-
vision. Landowners are permitted
to leave an agricultural distract if
they so desire.)
To entice farmers to join agricul-
tural districts, AFT suggests that other
incentives be established, such as offer-
ing additional right -to -farm protec-
tions, tax rollbacks /credits and
protection from municipal annexation.
Establishing trust is foremost in
creating a successful agricultural dis-
trict and increasing membership.
Farmers must trust the process and
be permitted to play a role in opera-
tion of the district. For this reason
North Carolina is examining an ag
district model that involves the local
Soil and Water Conservation Dis-
tricts (SWCD.) This could be a plus
because many farmers are familiar
with, and currently involved with
these county organizations.
The local SWCD can work with
landowners, farm organizations and
county governments to set up agri-
culture districts, promote farmland
preservation throughout the county
and approve funds spent on PDR.
Additionally, the SWCD could
approve soil and water conservation
plans for land included in conserva-
tion easements and work with local
planners to ensure targeted farmland
is protected.
Another suggestion for North
Carolina is use of the "open space"
subdivision idea. Open space subdi-
visions leave a portion of the devel-
opment in open space and an
easement is placed over protected
farmland. Last year Governor Hunt
indicated he would like to see a
mandatory requirement that devel-
opers use this concept in preserving
at lease 20 percent of all develop-
ments. Currituck and Orange Coun-
ties have open space subdivision
ordinances.
Land preservation groups have
suggested that North Carolina dedi-
cate $20 million a year for an ideal
statewide effort. The North Caroli-
na Department of Agriculture and
Consumer Services has requested $1
million for farmland preservation in
their 2001 budget request. Also, the
Governor's Advisory .Committee on
Agriculture is developing recommen-
dations to apply $5 million in tobacco
settlement money to farmland
preservation efforts.
The Million Acre Initiative
Former Governor Hunt's Mil-
lion Acre Initiative, encompasses two
types of programs that acquire inter-
est in property. The first is a tradi-
tional, fee simple acquisition
program that purchases land directly
or acquires donated lands. Such land
7
is then placed into public (federal,
state or local) ownership. Some
examples include parks, greenways
and state forests. These require vari-
ous government bodies to become
land managers and stewards.
The second type program
involves conservation easements,
through which an interest in land is
acquired through purchase of devel-
opment rights, while keeping the
land in private ownership. Under
this type program the private
landowner retains title to the land
and can continue to use land produc-
tively.
A conservation easement plan
serves the public interest because
stewardship and oversight remains in
private hands. State taxpayers could
not afford to purchase and manage all
lands needing protection and local
communities also support this type
program because protected land
remains on local tax roles.
Preserving farmland through
purchase of conservation easements
is one way to promote accomplish-
ment of the million acre initiative. In
addition to providing food and fiber
for society, working agricultural land
serves to benefit rural and state
economies, providing open
greenspace and wildlife habitat on
property with approved soil and
water conservation plans.
Although farmland preservation
represents an important part of any
initiative, it must be viewed in a
wider context. To be successful in
the long term, such programs must
be coupled with efforts to sustain and
promote North Carolina agriculture,
creating more export markets, rural
economic development, financial
opportunities and expanded public
education of the importance of agri-
culture to North Carolina. m
NC FARM BUREAU NEWS — FeaRuARY 2001
45
Conservation Trust
For North Carolina
Preserving Farmland through Voluntary
Agricultural Districts:
A Guide for Citizens and Local Officials
Farmland preservation is becoming an increasingly important issue for local
governments in North Carolina. Citizens and public officials acknowledge the aesthetic
importance of farmland as open space - fields and forests that create attractive byways
and a visual buffer from the increasing urbanization of our state. Furthermore, they
recognize the economic importance of maintaining a strong local agricultural economy.
Because farmland 'pays its own way'— it generates more in tax revenues than it requires
in government services - the preservation of farmland is also considered sound fiscal
policy.
As the loss of farmland accelerates, local governments are exploring ways to preserve
farmland. One method — the creation of voluntary agricultural districts — has been an
option available to county governments for over fourteen years. This existing program
can provide an effective planning tool by delineating areas of contiguous, active
agricultural operations. Additionally, creating agricultural districts can provide a basis for
a comprehensive countywide farmland preservation program.
In 1986, the North Carolina General Assembly passed the Farmland Preservation
Enabling Act (FPEA). The Act, found in Chapter 106, Article 61 of the NC General
Statutes, provides authority for counties to establish farmland preservation programs.
These programs involve three components: Voluntary Agricultural Districts, Agricultural
Advisory Boards, and the Farmland Preservation Trust Fund.
Although the FPEA has been in existence since 1986, it remained a relatively obscure
program until recently. To date, about a dozen counties have adopted farmland
preservation /agricultural districts ordinances including: Avery, Buncombe, Cherokee,
Durham, Forsyth, Haywood, Henderson, Macon, Madison, Orange, and Rowan, and
Wake counties. A number of other counties are currently considering the adoption of
farmland preservation programs.
w
Voluntary Agricultural Districts
What are Voluntary Agricultural Districts?
Voluntary Agricultural Districts (VADs) are special areas where agriculture is
encouraged, promoted, and protected. Voluntary Agricultural Districts can serve to
increase awareness of the cultural, economic, and environmental importance of North
Carolina's farmland resources. (North Carolina is one of 21 states nationwide with an
agricultural districts program.) A voluntary agricultural district may consist of a portion of
a single farm, an entire farm, or two or more adjoining farms.
The purpose of Voluntary Agricultural Districts, as described in the FPEA, is to "increase
identity and pride in the agricultural community and its way of life, and to increase
protection from nuisance suits and other negative impacts on properly managed farms"
(NCGS, Sec. 106 -738).
How does a County establish Voluntary Agricultural Districts?
A Voluntary Agricultural District is established by the adoption of an ordinance by the
county Board of Commissioners. The Farmland Preservation Enabling Act allows
counties to adopt ordinances to establish Agricultural Advisory Boards and to create
Voluntary Agricultural Districts. The county ordinance will also set forth rules and
procedures for the Agricultural Advisory Board to conduct business, including the
application procedures for establishing a VAD. The Voluntary Farmland Preservation
Program ordinances adopted by Durham County and Orange County can provide a
model for starting an agricultural districts program.
Eligibility Requirements. To be considered for a voluntary agricultural district, farmland
must meet several eligibility criteria. First, it must be certified as `qualifying farmland'. In
order for farmland to 'qualify', it must be:
• Participating in the farm present -use value taxation program;
• Certified by the Natural Resources Conservation Service as being a farm on which at
least two - thirds of the land:
- contains high quality soils that are favorable for all the major crops common to
the county where the land is located;
- has been actively used in agricultural, horticultural, or forestry operations (as
defined by Chapter 105, NCGS) during each of the last five years;
• Managed in accordance with accepted NRCS erosion control practices;
• Subject to a voluntary conservation agreement between the County and the
landowner that prohibits non -farm use for at least 10 years, except for the creation of
three lots that meet county subdivision regulations
Once farmland is certified as'qualifying farmland', it must meet an acreage requirement.
The FPEA allows each County to set the minimum acreage for establishing a voluntary
agricultural district. For example, Orange County requires a minimum of 80 acres to
form a VAD; Durham County requires 20 acres.
Application and Adoption Procedures. As its name implies, the Voluntary Agricultural
District is a proposition by the landowner. A farmland owner must apply to the County's
Agricultural Advisory Board to establish a VAD. The Board will process the application
47
through its designated staff. Typically, the Soil & Water Conservation District,
Cooperative Extension Service, or county planning department will perform this function.
After receiving the application, a report must be prepared for submittal to the Board of
Commissioners. The report should include:
■ Statement of Certification as Qualifying Farmland from the District Conservationist
■ Statement from Tax Assessor verifying participation in the use -value program
■ Location map showing the public roads nearest the property and the proposed district
boundary.
■ Draft conservation agreement between the County and the landowner
■ Draft ordinance for district designation
Certification as Qualifying Farmland is the first step in the process. The county's District
Conservationist can determine if the farmland soil qualifies for certification. The
Conservationist can also verify that the farm is practicing accepted erosion control
techniques. The county tax assessor can provide a statement for the report, certifying
that the land described in the application is enrolled in the farm use -value program. The
assessor can also confirm the length of time that the land has been enrolled in the
program.
The conservation agreement between the County and the landowner is a voluntary, non-
binding instrument that prohibits non farm use for at least 10 years, except for the
creation of three lots that meet county subdivision regulations. Both parties may renew
the agreement after the 10 -year period. The landowner may revoke the agreement at
any time by simply submitting a letter of revocation to the Agricultural Advisory Board.
(A model conservation agreement for Voluntary Agricultural Districts is available from the
Conservation Trust for North Carolina.)
The VAD report and draft ordinance are reviewed by the Agricultural Advisory Board,
which then makes a recommendation of adoption to the County Board of
Commissioners. Adoption of the ordinance occurs with an affirmative, majority vote of
the Commissioners.
The ordinance creating a Voluntary Agricultural District provides a formal document that
legally establishes the district. Upon adoption, the County Register of Deeds records the
ordinance. The District may also be delineated on County tax maps or other map
records, including geographic information system data. Orange County, for example,
identifies voluntary agricultural districts as 'primary conservation areas' on a
comprehensive map of natural and open space resources.
Because the Voluntary Agricultural District is specifically documented in the land records
system, the county may require that a notice be made to anyone searching the title of
any tract of land that is located with one -half mile of the district.
This notification requirement is one of the most important benefits of becoming a
Voluntary Agricultural District. It alerts persons buying land within one -half mile of the
district that a bonafide farming operation exists. This provision grants some measure of
protection to farmers from potential nuisance lawsuits that might be initiated by persons
moving into close proximity to an Agricultural District.
Oub
Other benefits of becoming a Voluntary Agricultural District. In addition to the land
records notification requirement described above, establishment of a VAD can provide
other benefits that can help preserve farmland. These include:
Recognition. Counties may provide attractive signs along public roads at district
boundaries that identify farms as Voluntary Agricultural Districts. These signs alert
passersby that the farm owner is committed to the preservation of the agricultural
way of life. Voluntary Agricultural Districts, particularly those composed of a group of
farms, can become an influential entity by giving farmers a unified voice in the county
land planning process.
• Waiver of water and sewer assessments. Landowners within Agricultural Districts
will not be,required to connect to county or municipal water or sewer systems, nor
will they be assessed utility charges until their property is connected to the system:
• Public hearing required for proposed condemnations. Before any State or local
public agency or governmental unit can initiate formal proceedings for the
condemnation of land located within a voluntary agricultural district, a public hearing
must be conducted by the Agricultural Advisory Board.
• Consideration in the land development review process. When VADs are
delineated on County maps, county or municipal planning agencies are able to
consider potential impacts of proposed develops near or adjacent to the district. For
example, a local government may be able to, require an open space buffer between
the VAD boundary and a new development as a condition of subdivision approval.
■ Eligibility for Farmland Preservation Funds. Farms enrolled as voluntary
agricultural districts may be given priority when applying for conservation funds
through the NC Farmland Preservation Trust Fund, or the federal Farmland
Protection Program.
Agricultural Advisory Boards
The FPEA authorizes counties to establish agricultural advisory boards. These citizen
advisory boards may be structured as deemed appropriate by the county Board of
Commissioners, with the stipulation that each VAD have a representative on the
advisory board. While the Board of Commissioners sets forth the powers of the
agricultural advisory board (which may also be known as a Farmland Preservation
Board, Agricultural'Districts Board, etc.), they may give the board authority to review
agricultural district applications, make recommendations concerning the establishment of
agricultural districts, hold public hearings on publicly funded projects :likely to have an
impact on agricultural operations', and to generally "advise the county commissioners
on... issues affecting the agricultural economy or way of life within the county" (NCGS,
Sec. *106 -739).
Farmland Preservation Trust Fund
The FPEA also established the North Carolina Farmland Preservation Trust Fund to
provide a source of funds for the purchase of conservation easements from qualifying
farmland located within Voluntary Agricultural Districts. No funds were allocated to the
49
trust fund until 1998, when the General Assembly earmarked $250,000 for a pilot
farmland preservation program. The Department of Agricultural and Consumer
Services, which FPEA assigned to administer the trust fund, contracted with the
Conservation Trust for North Carolina (a private, not - for - profit, public interest
organization) to manage the pilot program. CTNC again administered the program in
1999, when $500,006'was allocated to the trust fund. In the first two years of the
operational grant program, twelve grants were awarded that protected parts of twelve
farms and 1,981 acres (six grants for a portion of the appraised value for the purchase of
non - agricultural development rights, or for "bargain sales" and partial donations of future
development rights; and six grants covered the transactional costs for donated
agricultural conservation easements).
The Department of Agriculture and Consumer Services has contracted CTNC to help
administer the farmland preservation grant program for the 2000 -01 fiscal year, and
$1,425,000 in appropriated state funds will be distributed in grants to counties and other
qualified land conservation organizations.
A county may seek a grant from the Farmland Preservation Trust Fund to acquire
agricultural conservation easements from landowners within VADs. The FPEA defines
`agricultural conservation easement' as agreement by the landowner to not use his or
her land for residential, commercial, or industrial development. Furthermore, the
easement must be of perpetual duration, although the County may agree to reconvey
the easement to the landowner after 20 years from the date of purchase, if the
landowner can demonstrate that commercial agriculture is no longer practicable on the
land.
The Future of Voluntary Agricultural Districts — What You Can Do
As interest in farmland preservation increases, annual funding for the North Carolina
Farmland Preservation Trust Fund may be given more consideration. Agricultural
Districts will receive more attention from local governments looking for an accepted,
voluntary program.
If you're a farmer, talk to your County Soil and Water Conservation District
Conservationist, Cooperative Extension Service agent, or Planning Department about
starting a VAD program. If your County already has a Voluntary Agricultural District
program, find out how you can promote the program.
Agricultural Advisory Board members themselves can be the best promoters of a voluntary
agricultural district program. A respected local farmer serving on the Board can have a
tremendous influence in convincing other farmers to enroll.
Since passage of the FPEA in 1986, participation in agricultural districts programs has
been, low. Although the program is strictly voluntary, farmland preservation advocates
generally agree that the incentives provided have not been attractive enough to
encourage new enrollment.
The Conservation Trust for North Carolina, along with other land trusts, preservation
advocates, and government officials are working on ways to strengthen the VAD
program to increase enrollment and make it an attractive option for farmers. These
could include additional tax breaks for farmers enrolled as voluntary agricultural districts.
so
Enhancements to the Voluntary Agricultural Districts program would require an
amendment to the Farmland Preservation Enabling Act by the General Assembly.
Encourage your state senator or representative to explore this idea.
There are new State and Federal initiatives on the horizon that could provide an impetus
for promoting and expanding the Voluntary Agricultural Districts program.
The Million Acres Initiative. Governor Hunt has recently announced the Million Acres
Initiative, which calls for North Carolina to preserve one million acres of land over the
next 10 years. In addition to conserving open space for parks and wildlands, this
initiative will also focus attention on farmland preservation. The success of this initiative
will depend on participation by numerous parties inside and outside of government.
The State foresees having two major roles in the Million Acres Initiative. First, it will
encourage private stewardship, by working with local governments, land trusts, and
others to educate landowners on the environmental and financial benefits of conserving
their lands. An enhanced Voluntary Agricultural District program could be an important
element in encouraging the voluntary preservation of farmland. Secondly, the state will
seek to support existing programs and facilitate coordination. The state's first priority will
be to fund, support, and enhance successful partnerships and programs, rather than to
create new programs. A Voluntary Agricultural District program that is already'on the
books' is a prime example of a fledgling, existing program that is worthy of increased
funding and support.
Federal Farmland Protection Program
The 1996 Farm Bill established a $35 million Farmland Protection Program (FPP), a
voluntary program that provides matching funds to State, local, or tribal entities with
existing farmland protection programs to purchase conservation easements or other
interests. The U.S. Department of Agriculture's (USDA) Natural Resources
Conservation Service (NRCS) has been designated as the lead agency in implementing
this program.
The Farmland Protection Program has been enormously popular. In 1998, when the
remaining funds of $17.2 million were allocated, the USDA received requests from 20
states totaling over $61- million. The FPP has helped to permanently protect more than
120,000 acres of prime farm and ranch lands nationwide.
Currently, there is no funding for the FPP. However, the Secretary of Agriculture
recently announced the Conservation Initiative, which would provide nearly $1.3 billion in
FY 2001 to several USDA farm conservation programs. Should Congress approve this
budget request, it would include $65 million for the FPP.
Qualification for FPP funding bears some similarity to eligibility for the Voluntary
Agricultural Districts program. Namely, the land offered must be prime, unique, or other
productive soil, and be large enough to sustain agricultural production. Enrollment in a
state or local farmland preservation program (such a VAD) would be advantageous
should the State or a county seek funds from the Farmland Protection Program.
51
Conclusion
Voluntary Agricultural Districts can be one of many tools that a community employs to
Protect its rapidly vanishing farmland. However, preservation of farmland in North
Carolina will require exceptional cooperation between farmers, urban and suburban
residents, and local government agencies. It will also require a broad - ranging mix of
incentive -based voluntary and regulatory techniques to protect the most significant
farmland resources. Such techniques could include greater public financing to purchase
conservation easements, incentives to donate development rights, agricultural
conservation zoning, open space subdivision zoning, establishing agricultural economic
development programs, or other innovative practices such as transfer of development
rights programs, which use development incentives to acquire conservation easements.
New initiatives and potential funding at the State and Federal level offer hope that
preservation will become a possibility for farmers who desire to remain on their land and
continue the agricultural way of life. When this is achieved, both .the farmer and the
community benefit from conserving open space, preserving our rural heritage, and
maintaining a strong and diversified economy.
By providing a variety of options for farmland owners, citizens, local governments, land
trusts, and other conservation organizations can help keep farmers farming — the best
preservation technique of all.
The author of this CTNC publication, Donald Belk, is a member of the American Institute of
Certified. Planners. He served as staff for the Orange County Farmland Preservation
Board from 19941999.
References:
North Carolina Farmland Preservation Enabling Act; establishment of Farmland Preservation Trust Fund. North
Carolina General Statutes, Chapter 106, Section 735 -744.
hftp://www.ncga.state.ne.us/statutes/Statutes—in_html/chpl 060.html
American Farmland Trust. Saving American Fart land.• What Works, Northampton, MA: American Farmland Trust,
1997. http: //www.farmland.org
American Farmland Trust Farmland Information Center. Agricultural District Programs - Fact Sheet.
Northampton, MA: American Farmland Trust, 1998. http:// www .farmlandinfo.org /fiicttas/tafs- adp.html
North Carolina Farm Bureau. "Counties can adopt ordinances to protect farmland." North Carolina Farm Bureau
News, October 1999, pp. 18 -19.
Tom Daniels and Deborah Bowers. Holding Our Ground., Protecting America's Farms and Farmland. Washington
DC: Island Press, 1997.
For more information, contact:
Director of Legal Affairs
N.C. Department of Agriculture and Consumer Services
P.O. 27647
Raleigh, NC 27611
Tel. 919- 733 -7125
Director
Division of Soil and Water Conservation
N.C. Department of Environment and Natural Resources
1614 Mail Service Center
Raleigh, NC 27604
Tel, 919 - 715 -6097
Ted Feitshans, Attorney
N.C. Cooperative Extension Service
NCSU Campus Box 8109, Room 232.0
Raleigh, NC 27695 -8109
Tel. 919 -515 -5195
www.ag-econ.ncsu.eduffaculty/feitshansAand.htm
SEE THE NC EXTENSION SERVICE WEB SITE
for model ordinances for agricultural districts
and for purchase of development rights programs.
General Counsel
N.C. Farm Bureau
PO Box 27766
Raleigh, NC 27611
Tel, 919 -782 -1705
Director
N.C. Grange.
PO Box 9965
Greensboro, NC 27429
or contact your local Soil and Water Conservation District or Cooperative Extension Service Center
for additional information and assistance.
I �
\ J
CTNC
Conservation Trust For North Carolina
PO Box 33333
Raleigh, NC 27636
Telephone: 919 -828 -4199 Fax: 919-828-4508
Email: ctnc@mindspring.com
Visit our website at: www.ctnc.ore
53
[text of educational brochure prepared for the NC Farmland Preservation Program]
Protecting Your Legacy: Conservation Options for Agricultural Lands
9 million acres.
49,000 farms.
57,000 farmers producing more than 80 different commodities.
Billions of dollars in revenue.
Immeasurable economic, social and environmental value.
This is agriculture in North Carolina.
Agriculture is an important part of life in North Carolina. It plays an integral role in our
history, culture, quality of life, and natural resource protection. It defines a way of life for
many North Carolina communities and provides valued open space to city dwellers.
Agriculture -- your land -- is important to you and your family. In our rapidly urbanizing state,
development pressures, increasing land values and property taxes, and falling revenues for
agricultural products make it more difficult for farmers to ensure that their land remains their
family legacy. According to the American Farmland Trust, North Carolina ranks second in
the nation for the amount of prime farmland converted to urban use, with 31% of our
state's prime farmland being developed from 1982 -1992.
Estate planning is an important tool that will help keep your land in your family for
generations to come. This brochure introduces several planning tools and programs that help
you to protect your land and maintain farming activities, while possibly reducing your taxes.
Planning for the future of your land may be one of the most important things you do today.
54
Example: Farm in an
Urbanizing Area
Without Easement Donation
Farm Value $1,700,000
Other Assets 150,000
Annual Income 40,000
Estate Tax Due 520,500
Income Tax Due 6,246
With Easement Donation, three
home sites reserved
Farm Value 1900,000
Other Assets 150,000
Annual Income 40,000
Estate Tax Due 173,500
Income Tax
Deduction 12,000
Income Tax Due 4,006
Source: Preserving Family Lands: Book
TT Ctar%hPn f Qmnll
CONSERVING YOUR FARMLAND THROUGH
ESTATE PLANNING
Your property and other assets are your estate. An
estate plan is like a map that guides the use and
appearance of your land now and in the future. Estate
planning can help you transfer ownership and
management of your farm and other assets to family
members; reduce income and estate taxes; ensure peace
of mind and enable you to protect the future of your
land. While there are several components that complete
an estate plan, below are some tools that can help.
Agricultural Conservation Easements
Conservation easements are voluntary, legal
agreements between the landowner and a nonprofit
conservation organization, such as a land trust, or a
government agency. Under the agreement you give up
certain rights to develop the land intensively, while
retaining ownership and agricultural use of the land.
Just as :all landowners and properties are different, every conservation easement is different,
depending on the landowners' needs and the natural resources and activities on the property.
Substantial tax reducing incentives encourage landowners to donate conservation easements.
For example, a family preserved 121 acres of their historic Orange County farm with a
conservation easement. The easement allows agriculture, forestry, and the construction of
related buildings, such as greenhouses or barns. A portion of the property is reserved for the
family's residential use, but the farm itself can never be developed for non - agricultural
purposes. Several dozen other North Carolina farm owners have granted similar
conservation easements to protect their family lands and reduce taxes.
Donating a permanent conservation easement may significantly reduce your federal and state
income taxes. The value of the property's development potential restricted by the permanent
conservation easement qualifies for a charitable federal income tax deduction and state
income tax credits. In many cases, estate taxes are also reduced for your heirs. Property
taxes may also be reduced in some cases.
Purchase of Development Rights (PDR)
You may also sell a conservation easement — the future rights to develop your property
intensively. This transaction is similar to a donation of a conservation easement, with the
landowner retaining ownership of the land while giving up certain development rights.
However, PDR allows you to change some of your real estate value into cash value. If the
conservation easement is sold for a price below the appraised fair market value, the
difference between the market value and the selling price may qualify for a federal and state
55
income tax deduction. Estate taxes may also be reduced if the easement reduces the
maximum development value of the property.
Life Estates
Perhaps you want to continue living on and using your farm, but don't wish to pass it on to
other family members. With a life estate, you can donate your farm to a nonprofit
organization, such as a land trust, and retain lifetime use of it. A life estate offers several
advantages. First, it enables you to support the land trust or other nonprofit,organization of
your choice. The life estate removes your farm from your taxable estate. You can continue
enjoying the use of your land, knowing that it is protected, particularly when'the life estate is
combined with an agricultural conservation easement. The life estate can also be combined
with other giving strategies to provide you with annual income for your lifetime.
Some landowners first place conservation easements on their farms and then bequeath the
land, restricted by the easement, to their favorite charities, such as colleges, churches or
other civic charitable organizations. This gives the landowner security that their farm will be
protected forever and not sold. if the charitable organization, such as the college, decides to
sell the property in the future.
LAND TRUSTS
Land Trusts are private, nonprofit conservation organizations that work with landowners to
protect their land, using voluntary tools such as those mentioned above. Before making any
estate planning decisions, you should consult your attorney, tax adviser, or estate planner.
Land trust staff can work with you and your advisers to find the tool that best suits your
needs.
There are some two dozen local and regional land trusts across North Carolina and new
trusts continue to form. The Conservation Trust for North Carolina (CTNC), a statewide
land trust dedicated to educating citizens and supporting other land trusts in efforts to
protect resources, can refer you to the land trust in your area.
PUBLIC AGENCIES
Some counties have or are developing farmland preservation programs and agricultural
districts. Local Soil and Water Conservation Districts also are able to arrange conservation
easements and other farm conservation management agreements. Contact your county,
District Conservationist, or Cooperative Extension Agent to see what assistance they offer
for farmland preservation.
PROTECTING YOUR LAND NOW
Protecting the productivity and value of your land now is important. There are a variety of
organizations and programs that can help you decide which alternative is best for protecting
and enhancing your agricultural resource. Your local Agricultural Extension Agent or Soil
and Water Conservation District staff can assist you in deciding how to best protect and
manage activities on your farm. The following programs and organizations offer guidance
and funding opportunities for implementing conservation and best management practices.
Federal Programs
Conservation Reserve Program (CRP): There are two types of CRP run by the US
Department of Agriculture (USDA) Farm Service Agency (FSA): the traditional CRP and
continuous CRP. Depending on the type chosen, farmers enroll large or small acreage in the
program for a specified contract period. Farmers cease production on the enrolled land and
establish covers of grass, trees, or water to preserve soil, water, and wildlife. In return,
farmers receive a rental fee, 50% cost share for conservation practices, and 25% of the cost .
for restoring wetlands.
Environmental Quality Incentives Program (EQUIP): EQUIP, also administered by
USDA,"focuses on conserving and enhancing the important soils, water, and other natural
resources often harbored by farms. It provides incentive payments to farmers for up to three
years for improved land management practices. EQUIP also provides cost sharing up to 75%
for implementing conservation practices.
Wildlife Habitat Incentives Program (WHIP): Local Soil and Water Conservation
District staff; MRCS, the Cooperative Extension, or FSA can assist landowners with WHIP.
WHIP protects free - ranging wildlife habitat with a focus on field margins and riparian
buffers. The amount of money available for each state is based on state WHIP plans and
national, regional, and state habitat priorities. WHIP provides up to $10,000, or 75% of the
average cost, per 5 -10 year contract to establish wildlife enhancing activities.
Wetlands Reserve Program (WRP): WRP is administered through the USDA and NRCS.
The program provides cost -share funding for the restoration of wetlands and riparian areas.
The three enrollment options include permanent conservation easements with payment of
100% of agricultural value or established area cap and 100% of restoration costs paid by
USDA; 30 year conservation easement with easement payment usually 75% of agricultural
value or area cap and 75% of restoration costs paid by USDA; or restoration cost -share
agreement with no incentive payment and 75% of restoration costs paid by USDA. -
State Programs
Conservation Reserve Enhancement Program (CREP): Along with USDA, the North
Carolina Division of Soil and Water Resources runs this program aimed at protecting and
restoring buffers along stream corridors on agricultural lands. The program is currently
J�
focusing in the Neuse, Tar - Pamlico, and Chowan river basins, as well as the Jordan Lake
area. Rent is paid for land enrolled in 10 -year, 15 -year, 30 -year, or permanent conservation
agreements. Bonus payments are made for 30 -year or permanent easements. Depending on
the length of the contract, implementation of best management practices may be cost shared.
North Carolina Agricultural Cost Share Program: This program, operated by the
Division of Soil and Water Resources, reimburses up to 75% of the average cost of
implementing best management practices, such as vegetative, structural, and management
systems, on your land.
YOUR NEXT STEP
Protecting your farm now and for future generations is important. There are options
available to sustain the viability of your farm and organizations that can help you implement
the tools that meet your needs. To learn more about your conservation options:
Contact your Extension Agent and Soil and Water Conservation District. Local
officials can help you implement good farm management practices based on the
characteristics of your land and the surrounding area. They can also refer you to other
agricultural support programs to 'enhance your farm's productivity and protect natural
resources. The phone numbers for your local Extension office and Conservation District are
in the county government section of your local phone book.
Contact your local land trust. Land trusts can help you design a conservation plan and put
you in touch with attorneys, financial advisers and land planners familiar with preservation
techniques. The Conservation Trust for North Carolina (CTNC) can direct you to your local
land trust. The Land Trust Directory is available from CTNC and on the CTNC web site:
www.ctnc.org.
Contact your personal legal and financial advisers. This brochure is an introduction to
some of the land protection techniques available to landowners. The best conservation plan
will vary among tracts of land and landowners. It is important that you consult your personal
professional advisers to choose the tools that are best for you.
Conservation Trust for North Carolina
P.O. Box 33333.
Raleigh, NC 27636 -3333
Phone: 919-828-4199 www.ctnc.org
NC Department of Agriculture and Consumer Services
P.O. Box 27647
Raleigh, NC 27611
Phone: 919- 733 -7125
i
Environ-nent News Service: AmeriScan: March 22, 2001
Nature photographer ]ohn
Netherton (Photo courtesy
johnnetherton.com)
wysiwyg:Hl/http://ens.lycos.com/ens/Mar2OOl/2001L-03-22-09.htmi
In August 1999, the Tennessee
Department of Environment and
Conservation honored Netherton by
designating a "Netherton Overlook"
at the Radnor Lake State Natural
Area.
Netherton, who began his
professional photographic career in
the 1970s, published a number of
books of nature photography. His
most recent book, "Snakes" was
released last year. Other books
featured "Frogs," "North American
Wading Birds," "Florida," and the
Tennessee region, including "Big
South Fork Country" and "Tennessee,
A Bicentennial Celebration."
Netherton credited his experiences observing wildlife and the
changing season's at Radnor Lake with inspiring both his
conservationist bent and his photographic career. His first book,
"Radnor Lake: Nashville's Walden," features stunning images of the
suburban park.
Netherton was currently working on a new book, in collaboration
with former U.S. Senator Howard Baker of Tennessee, on the
National Zoo in Washington, DC.
Netherton had close ties to the Nikon Corporation, and was a
contributing editor for "Outdoor Photography" magazine. He was
once named by "American Photographer" magazine as a Friend of
the Earth, citing his personal philosophy, respect for nature, and
commitment to recording it with passion and sensitivity.
VINEYARDS CONTRIBUTE TO OPEN SPACE PROTECTION
WASHINGTON, DC, March 22, 2001 (ENS) - Farmers are not the
only landowners looking to keep their acreage undeveloped for
future generations - now vineyard owners are jumping on the open
space bandwagon as well.
A survey by the American Vintners Association (AVA), the national
winery trade association, and the Land Trust of Napa County, a
leader in the land conservation movement, elicited dozens of land
conservation examples, released Tuesday at the AVA Annual
Meeting.
Land that is suited for wine grapes constitutes unique farmland, a
category defined by the U.S. Department of Agriculture as land used
for the production of specific high value crops. In addition to growing
59
< -r Q 11 ?1 /20fY1 9•06 AM
ivironment News Service: AmeriScan: March 22, 2001 wysiwyg : / /l/http: / /ens.lycos.com/ ens /mar200l/2001L- 03 -22 -09 html
GO grapes, vineyards around the country also create wildlife habitat and
open space for their communities.
Threats from development are putting pressure on some
landowners, who seek ways to protect their vineyard land and its
environmental benefits for future generations.
Two: land preservation examples are Boordy Vineyards in Maryland,
which donated a 240 acre conservation easement to the Maryland
Environmental Trust, and Jayson Pahlmeyer of Pahlmeyer Winery,
who donated 57 acres of his Napa Valley vineyard to the Land Trust
of Napa County, California.
"We want to preserve in perpetuity a large farming community just
half an hour from Baltimore, and we hope when our neighbors see
what we've done they'll follow suit," said Rob Deford, president of
Boordy Vineyards and chairman of the AVA Board of Directors.
"The future of Napa Valley is truly in our hands and I'm proud to do
my part," added Pahlmeyer.
Given the unique nature of vineyard land, some landowners are
placing conservation easements specific to agriculture on their land,
to ensure the land can be used for growing by future generations.
The donor may get tax benefits, but comments from vintners
indicate that their prime motivations are environmental preservation
and protection from development.
FIELD GUIDE HIGHLIGHTS SOUTHERN CALIFORNIA
REPTILES, AMPHIBIANS
SAN DIEGO, California, March 22, 2001 (ENS) - A new illustrated
field guide, available on the web, can help users identify 64 native
reptile and amphibian species and seven introduced species found in
coastal southern California.
This urbanized region is host to one of the richest varieties of
amphibians and reptiles in the U.S., and includes several species
protected by state and federal laws. The new guide, developed by
scientists at the U.S. Geological Survey (USGS) and University of
California, San Diego, covers species found in the counties of Los
Angeles, San Bernardino, Orange, Riverside and San Diego.
"A Field Guide to the Reptiles and Amphibians of Coastal Southern
California" is available at: http: / /www.werc.uscis._ciov.
"Since 1995, we have been conducting an intensive study of reptile
and amphibian communities in the coastal southern California
region," said Dr. Robert Fisher, a USGS zoologist with the Western
Ecological Research Center in San Diego, and coauthor of the guide.
Fisher said scientists "saw the pressing need for a well illustrated
field guide to help train students, researchers, reserve managers,
regulators and others to identify the local herpetofauna, with
emphasis on sensitive species."
„f a v?,in.nm n•nr, AM
Plan could lead to zoning
Ti
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�1
Cars
Plan could lead to zoning
Yanceyville
By Joseph Cigna
Times -News
By Sending.. t c er311OM
Flowers
01/03/31
Caswell County's farmland preservation program should help protect a way of life, but some also see it
as a preliminary step toward countywide zoning.
"Counties across the state are seeing a lot of development, and this is something that protects the
farmer's right to farm," Commissioner David Wrenn said. "Also, a farmer can continue to farm and
operate his business in the way he's accustomed to."
The program, approved by county commissioners earlier this month, is similar to the one recently
passed by Alamance County. It is designed to promote agriculture and protect farmers from encroaching
development by establishing voluntary agricultural districts. It also requires prospective developers and
residents be informed they are moving into an agricultural area. A minimum of 20 contiguous acres of
qualified farmland is required for a district.
Farmers can voluntarily withdraw from the program at any time. Notices will be placed on tax maps,
and signs will be erected along major roads to identify designated agricultural districts.
Pelham tobacco farmer George Ward said he plans to participate in the program.
"I think the plan will be very effective," Ward said. "With the growth all over the area and county,
where people want to live here and commute to their j obs, this will let them know that this is where
tobacco farming, cattle raising and other agricultural production are going on."
The program is a good first step in helping the county's nearly 1,000 farmers, said Ricky Williams, N.C.
Agricultural Extension Service agent for Caswell County.
"I think that it could be a really positive starting point," Williams said. "It should allow us to take care
of our agricultural land because things are different today as opposed to 50 years ago when a farm was a
farm, and it stayed that way."
David Vernon, a Caswell resident who has called for controlled development, said although the program
will give farmers some protection, zoning will be necessary if agriculture is to continue to flourish in
Caswell County.
"It's a good plan, and it should have been done, but the county is still not protected from developers,
and the farmer and the taxpayers are not," Vernon said. "If uncontrolled development proceeds as it has,
then county services like schools, fire protection, EMS will have to be expanded, and taxes will rise.
"We need zoning for our long -term fiscal protection and for all the other benefits zoning would bring to
all the residents and the farmers," he said.
Countywide zoning is probably inevitable, Wrenn said.
"I think we're going to do it, and we're already making steps in that direction," he said.
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Ward said he is still undecided about zoning.
"I'm not in favor of it, nor am I against it," he said. "But I do have a problem with telling people what
they can do with their property."
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