Budget & Finance Committee Releases Review Of Farmland Preservation Program

The House-Senate Legislative Budget and Finance Committee this week released a comprehensive review of the state Agricultural Conservation Easement Purchase Program authorized by Senate Resolution 195 sponsored by Sen. Mike Brubaker (R-Lancaster)(photo), Majority Chair of the Senate Agriculture and Rural Affairs Committee.

 

Among the report's findings were concerns expressed by county farmland preservation officials and developers that a 1994 change in the program directed funds toward the purchase of farms close to areas of development increasing the cost of the program and directing funds away from "better-value" farms that may have a greater long-term benefit for agriculture.  At the same time, the report found that farms in the program were still being used for agricultural purposes.

 

The report also found virtually all stakeholders recommended eliminating a provision of the program that allowed the preservation easement to be extinguished after 25 years if the land was no longer viable for agricultural purposes.

 

As of June 2008, 3,579 farms and 395,636 acres of farmland were preserved under the easement program with an average cost of $2,377 per acre, although farmland had been purchased with as high as $35,379 per acre cost after the $10,000 per acre cap was removed in 2001. Since then 2,613 acres were purchased with a cost exceeding the $10,000 cap.

 

In addition to purchasing easements, the report noted tax credit programs in-lieu of cash payments for conservation and agricultural easements have been successful in preserving land in 12 other states. Pennsylvania presently has no such program, but does offer tax credits for farmers who install conservation practices under the Resource Enhancement and Protection Program (REAP) enacted in 2007.

Other issues covered in the report include: preserving small farms, requiring local financial participation, options for maximizing the dollars available, providingtransitional guidance to farmers, new possible sources of dedicated funding, feasibility of providing property tax incentives for preserved farms, the feasibility of expanding mineral extraction rights, and the effectiveness of the Agricultural Lands Condemnation Approval Board.

 

The full report is available online.  A one-page summary is also available.

 

The Committee is Chaired by Sen. John Pippy (R-Allegheny) and the Vice-Chair is Sen. Gerald LaValle (D-Beaver).