Nov. 2012

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Owners of 490 acres petition to end Md. ag easement

MALPF will hold a public hearing on the request from the Mullinix Brothers General Partnership Nov. 15 in Howard County.

Farm owners seeking to terminate easements must prove, before four boards, the land can no longer be farmed. The county agricultural preservation advisory board, the county elected governing body, the MALPF board, and finally the Maryland Board of Public Works, which consists of the governor, comptroller and treasurer, must all agree that “profitable farming is no longer feasible on the land.”

The three farms contain 295 acres of cropland used for corn, wheat, barley and soybeans, 50 acres of pasture for cattle and 130 acres of woodland. One of the farms is surrounded by suburban residential development. The other two farms are adjacent to other preserved farms but also have some residential development adjacent.

North Carolina sets deadline for state fund seekers

RALEIGH NC – Local governments and land trusts in North Carolina have until Dec. 17 to apply for $1.7 million in state grant funds for farmland preservation. The state legislature has allocated that amount annually since 2011 and through 2013. NC Agriculture Commissioner Steve Troxler said he hopes the legislature will continue to fund the state’s Agricultural Development and Farmland Preservation Trust Fund. “We want to encourage more preservation efforts through the Trust Fund,” he said.

The Trust Fund operating today was established in 2005 and has appropriated $15 million in grants for easements as well as farm planning and farm project development. Other funding predated the trust fund. North Carolina has preserved 8,654 acres through the fund as of June 30, with an additional 1,803 acres under contract, according to program director Dewitt Hardee of the NC Dept. of Agriculture.

In the program’s 2011-2012 grant cycle just over $1 million was awarded for perpetual easements on 747 acres, and $248,000 was awarded for term easements on two farms comprising 90 acres. There were requests for six term easements from four counties.

Term easements, which can have terms of any number of years, were authorized in the 2005 legislation. To date, seven term easements are held by the state, with terms ranging from 15 to 50 years.

Funding in the spotlight of nation’s top program

LANCASTER PA–Lancaster County’s success in preserving farmland has spurred an examination of “where do we go from here” by the chairman of the county commissioners who said he is concerned that 27 percent of the debt the county is carrying is from funding farmland preservation. Like other land preservation efforts in the Mid-Atlantic in a deficit-plagued economy, some introspection appears to be unavoidable even for a program that enjoyed across the board public support and has landed the covetous position as the nation’s top county when looking at number of acres preserved.

At a public meeting where at least 100 people showed up, a number of speakers were well informed and involved in farmland preservation. Gene Garber, famed nationally for his record in baseball and locally also for his commitment to farming and farmland preservation in Lancaster County, told the crowd he was certain that some kind of tax would be necessary to keep farmland preservation indefinitely, as the public seemed to support. Garber said he would support a “layered” approach to spread out the tax burden.

Tom Daniels, a University of Pennsylvania professor and former director of the Lancaster County program, suggested in written comments that it is time for Lancaster County to examine the bond market.

“Right now, it is attractive for local governments to go to the bond market because of the low interest rates. Bonding is how local governments typically pay for long-term capital investments, and farmland preservation is a long-term capital investment.” Daniels also said use of installment purchase agreements (IPAs) would enable the county to preserve more acres with less cash needed upfront.

Other suggestions from the attendees included looking at a local real estate transfer tax, a dedicated portion of a hotel tax, increases to the property tax, asking the state legislature to increase the portion of the cigarette tax dedicated to farmland preservation, and even a countywide transfer of development rights (TDR) program.

Lancaster County is not alone in worrying about the expense of land preservation. Other programs, such as the state programs of New Jersey and Pennsylvania, are continually looking over their shoulders to see who or what is threatening what has come to be, over the decades, nearly ironclad funding pools –one from a dedicated cigarette tax and the other from boundless enthusiasm of voters in love with open space in the nation’s most densely populated state. In Pennsylvania, state legislators were envious of cigarette tax revenues, which provide $21 million to the Bureau of Farmland Preservation each year, and attempted, but failed, to divert the money into the state’s general fund. Program supporters stopped the move.

In New Jersey, voters have never said no to borrowing more money for farmland and open space, but Gov. Chris Christie, who entered office on a pledge to cut deficit spending, managed to postpone release of the voter-approved bond funds for a few years. Several counties in Maryland, with new governing boards, have cut funding for farmland preservation, or, re-examined the need for it.

Lancaster County has preserved 94,000 acres of its rich farmland, spread among 1,200 farms – the most productive in the Northeast – and supporters don’t see a need to name an end-goal at which time no more farms will be added to the tally. Some counties have named a goal, for example, farm leaders in Carroll County, Md., think 100,000 acres would be a minimum to assure future commercial farm production. With 62,000 acres preserved in Carroll, the goal is about 15 years out, if the program’s normal year of preserving between 2,500 and 4,000 acres is sustained. In Marin County, Ca., 45,000 acres are preserved, but outgoing veteran executive director Bob Berner said in an interview with FPR last year that he feels the job is only half done.

Marin County voters approve farmland, open space funds

POINT REYES STA., CA – Marin County voters Nov. 6 approved a sales tax increase to preserve farmland and open space. The projected $10 million in new revenues will put $2 million annually into farmland preservation projects through the Marin Agricultural Land Trust. Ballot Measure A was supported by greater than 70 percent of voters. A two-thirds margin was required.

The Marin Agricultural Land Trust (MALT) has preserved to date 45,000 acres of farmland, and is among the nation’s top 12 counties for farmland preserved.

Other localities in the nation to ask voters for funds for open space that includes farm or ranchland include two towns in Connecticut and two in Colorado, according to the Trust for Public Land (see table below).

STATE	LOCALITY	AMOUNT	TYPE	AG LAND STATED
CA	Marin County	$10 million annually	.25% sales tax for 9 years	20% ($2 million yearly) for farmland preservation
CO	Garfield County	$20 million annually	.25% sales tax for 10 yrs	Open space, ranchland
CO	Gunnison County	$4.6 million annually	1% sales tax extended for 20 yrs	Open space, ranchland, farmland
CT	Granby, Town of	$3 million	Bond	Open space, farmland
CT	Rocky Hill, Town of	$10 million	Bond	Open space, farmland
Source: Trust for Public Land LandVote Database and other online sources.

Peterson calls for lame duck session action on farm bill

WASHINGTON – U.S. House Agriculture Committee Ranking Member Collin C. Peterson is urging House Republican leaders to bring the Agriculture Committee’s five-year farm bill to the floor for a vote in November.

“The election is over so it’s time to get to work. I’m optimistic that, if given the chance, we have the votes to pass a five-year farm bill. There is no good reason not to vote on the bill when we return next week, before Thanksgiving. This will give us the time we need to work out our differences with the Senate and get a new five-year farm bill signed into law by the end of the year. I remain opposed to an extension of any kind for any time,” Peterson said in a press release.

The omnibus farm bill was passed by the Senate over the summer, and by the House Agriculture Committee, but has been stalled in the House this fall. House Majority Leader Eric Cantor, of Virginia, said in October that he would bring the farm bill to a vote before the end of the year. The last farm bill was passed in 2008 and expired Sept. 30.

Both the House and Senate versions of the farm bill would cut programs, the House Ag Committee’s version by $35 billion, and the Senate version by $23 billion.

In June, following passage in the Senate Agriculture Committee, more than 500 organizations urged that the Conservation Title of the farm bill not be targeted for further cuts. A letter to House and Senate leaders, the organizations called conservation programs “high leverage investments in rural America” that have long waiting lists.

Farm brothers seek to buy back Md. easements

BY DEBORAH BOWERS

This story contains corrections since its original publication.

WEST FRIENDSHIP, MD – About 140 farmers and farm neighbors gathered at the Howard County, Md. fairgrounds dining hall Nov. 15 to hear public testimony given on whether a farm family whose three farms comprising 450 acres protected by state-held easements should be allowed to exit the program. The farms lie in the Dayton and Mt. Airy areas.

The easements, purchased more than 25 years ago by the Maryland Agricultural Land Preservation Foundation (MALPF), contain a clause allowing owners, after 25 years, to attempt to get out of the easement if they can convince local and state boards the land can no longer be farmed. The “buyout” clause was contained in all MALPF easements until it was removed by legislation in 2004. Easements since that legislation was enacted do not contain the clause.

In addition to local residents, including members of the Howard County Agricultural Land Preservation Advisory Board, about 25 employees and members of the Maryland Agricultural Land Preservation Foundation (MALPF) board of trustees attended the meeting that ran for one and a half hours.

Carol West, executive director of MALPF, asked members of the MALPF board to stand up and identify themselves and state whether or not they are farmers. She also encouraged people who had signed up to speak to state whether they are in farming and whether their operation was profitable. She informed the crowd that no decision would be made that evening on the Mullinix’s request.

Steve Mullinix, speaking for himself and his family including his two brothers who stood beside him, told members of the Maryland Agricultural Land Preservation Foundation board of trustees that his family couldn’t make a living on the farms.

Under the law the Mullinix family must prove the land cannot be farmed profitably, not only by themselves, but by anyone. If they can convince four local and state boards that it cannot, then the family would be able to buy back the easements at today’s appraised value.

“Is it profitable? Yes,” Mullinix stated, “but you can’t make a living, not in Howard County. If you can’t make a living in farming, who cares what your profits are?”

Mullinix was referring to the amount of development that has occurred in Howard County’s once rural areas that have become sprawling swaths of suburbia. Howard County elected officials over the last four decades did nothing to protect agriculture through more restrictive zoning but instead kept zoning that allowed a density of one dwelling per 4.25 acres, zoning that guaranteed suburban development. Meanwhile, the county spent millions purchasing development rights from willing sellers.

Zoning density allowances in agricultural zones in all other Central Maryland counties are lower, from one dwelling per 10 acres with family conveyance allowances in Harford, to one dwelling per 50 acres in Baltimore County.

Unabated development has made farming more difficult. Marc Hereth, a 35-year-old cattle and grain farmer who farms 200 acres on a preserved farm next to the Mullinixes and does custom planting and harvesting work on 1,000 acres more, said traveling Howard County roads with a combine is very difficult. “I’ve been hit three times this year.”

Hereth said that with his mortgage costs his farming “doesn’t produce any income.” In addition, he claimed that his family believed the MALPF program was for 25 years and that they “received no information that it was in perpetuity.”

Ed Stanfield, who produces vegetables and grains, said he transitioned out of dairy 15 years ago. “We need supplemental income to survive. If my property wasn’t paid for, if my equipment wasn’t paid for, I couldn’t make it.” Stanfield said MALPF needed to “loosen the reins” on farmers in the program because they “need the extra help.”

Small farm owner Brenda Stewart said the MALPF board needs “to rethink what is considered commercial,” because “we need more state support if we want them to stay on the land.”

Theodore Mariani, who owns 180 acres that is preserved in the Howard County program said he sympathized with farmers who received “such a small amount” for easements, and that he had a possible solution to what many see as overregulation by MALPF that caused the Mullinixes to be cited for leasing land to a landscaping company against MALPF rules.

“I think there has to be relief,” Mariani said. “How about transferring from the state program to the county program? These people are really hurting. It’s a tough situation and we have to pull together to help. We have to give them some leeway.”

Several spoke not in favor or against the Mullinixes bid to get out of the program, but spoke in agreement with them that farming is a hard way of life, with one person using the word “drudgery.”

But Ann Jones, whose family has farmed in Howard County for many generations, said her farm “has put two kids through college” and that Howard “has markets and there is potential here for farming.” Jones works in land preservation in Howard and in Baltimore County.

Others who spoke were owners of residential lots within view of the Mullinix farms who don’t want to lose the open space views they were told would be there forever.

Pam Killian of Linthicum Road said she sympathized with the Mullinixes difficulty dealing with a contract they have with the state. “However, we all entered into a contract. A real contract. We were told [the view] was forever.” Several other Linthicum Road residents also testified that they had purchased their lots because their real estate agents told them their views of rolling farmland were permanent.

That testimony led to a rebuff from a younger generation of Mullinixes. Nicole Mullinix, daughter of Steve Mullinix, had something to say about views.

“I would just like to point out you ruined our view first,” she said, eliciting a burst of applause.

In Howard County, MALPF has spent $5.5 million to preserve 3,970 acres on 31 farms, and Howard County has spent or committed $253 million in local dollars over the last 30 years, including $7 million it used to match MALPF dollars. In Howard County, 21,650 acres are preserved. Of those acres, 3,960 are held under MALPF easements and are vulnerable to the buyout clause.

In 2006, acknowledging its failure to create agricultural protection zoning, the county gave up its attempt at re-certification by the Foundation and the Maryland Department of Planning, effectively decreasing the amount of agricultural land transfer tax it could retain from 75 percent to 33 percent.

In an attempt to retain certification, Howard County planners in 2005 drafted a downzoning plan that would have changed density in rural areas from one dwelling per four and a quarter acres (1:4.25) to one dwelling per 10 acres (1:10). At the time, the county could get no applicants in its farmland preservation program by offering $20,000 per acre for easements. But despite planners’ efforts, elected officials bowed to landowners claiming the change would devalue their land.

Later, even at $40,000 per acre offered to compete with developers at the height of the real estate boom, only a few farms applied to sell easements. Then, in 2009, with the economic downturn, 13 farms applied to sell easements. Seven of those were approved for the program, with a net gain of 1,220 acres for the program.

Howard County was the first county in Maryland to offer its own locally operated program and was also first to devise alternative finance for buying easements, using installment purchase agreements and paying interest over 30 years. Most localities that use installment purchase currently are using shorter periods of 10 to 20 years.

Observers have long predicted that Howard County’s lack of protective zoning would cause trouble for farmers that did sell easements and aggravate operation of traditional farming; this, they said, was certain to spur attempts to get out of easements after 25 years.

Statewide, MALPF has preserved more than 284,000 acres on 2,100 farms at a total cost of $610.8 million.