Agricultural Land Agricultural Land Preservation in Preservation in MassachusettsMassachusetts

IMLA Regional ConferenceIMLA Regional Conference

Portsmouth, NH - 6/20/2012Portsmouth, NH - 6/20/2012

Bob Ritchie, General CounselDepartment of Agricultural Resources

Agricultural Preservation Restriction Agricultural Preservation Restriction Program (APR)Program (APR)

30 (+) year history:30 (+) year history:1.1. Established in 1977 - one of Established in 1977 - one of

the first volunteer Farmland the first volunteer Farmland Preservation Programs in Preservation Programs in the United States.the United States.

2.2. FIRST RESTRICTION: FIRST RESTRICTION: Salisbury, 1980, 18 acresSalisbury, 1980, 18 acres

3.3. As mid-May 2012, 810 APRs As mid-May 2012, 810 APRs acquired, with 67,668 acres acquired, with 67,668 acres protected in approximately protected in approximately 162 towns162 towns

APR’s Mission and PurposeAPR’s Mission and PurposeMISSION:MISSION:

The mission of the APR Program is to keep agricultural land The mission of the APR Program is to keep agricultural land available and affordable for farmers. In order to do that, the available and affordable for farmers. In order to do that, the agricultural resource, including soils, must be restricted with agricultural resource, including soils, must be restricted with

covenants that assure it remains a productive landscape available covenants that assure it remains a productive landscape available for farmers to acquire at its agricultural rather than its for farmers to acquire at its agricultural rather than its

unrestricted market value. unrestricted market value.

… …

Thresholds for Consideration Thresholds for Consideration in the APR Program.in the APR Program.

Land must be “actively devoted” to Land must be “actively devoted” to agricultural or horticultural uses. Defined in agricultural or horticultural uses. Defined in Sections 1-5, inclusive, of Chapter 61A for at Sections 1-5, inclusive, of Chapter 61A for at least two immediately preceding tax years.least two immediately preceding tax years.

Minimum of 5 acres.Minimum of 5 acres. Gross sales of agricultural products from the Gross sales of agricultural products from the

land must total “not less than $500 per year” land must total “not less than $500 per year” for five acres, plus additional $5 per each acre for five acres, plus additional $5 per each acre above five acres.above five acres.

APR as a Restriction and a APR as a Restriction and a ContractContract

The APR Restriction is both a restriction in land The APR Restriction is both a restriction in land and a binding agreement between an owner of and a binding agreement between an owner of an APR Parcel and the Commonwealth, exists in an APR Parcel and the Commonwealth, exists in perpetuity, runs with the land, binds all future perpetuity, runs with the land, binds all future owners of the APR Parcel, and is recorded at the owners of the APR Parcel, and is recorded at the appropriate Registry of Deeds. The recorded appropriate Registry of Deeds. The recorded instrument contains a statement of purpose, instrument contains a statement of purpose, ownership rights, prohibited uses and acts, ownership rights, prohibited uses and acts, uses and acts requiring Department approval, uses and acts requiring Department approval, processes and procedures, affirmative duty to processes and procedures, affirmative duty to farm, inspection and enforcement rights, and farm, inspection and enforcement rights, and option to purchase at agricultural value.option to purchase at agricultural value.

Release of RestrictionRelease of Restriction APRs are perpetual, subject to Article 97 of the Articles of APRs are perpetual, subject to Article 97 of the Articles of

Amendment of the state constitution, and can only be Amendment of the state constitution, and can only be released if authorized by a two-thirds vote of both houses released if authorized by a two-thirds vote of both houses of the Legislature. of the Legislature.

As a condition of release, the current value of the As a condition of release, the current value of the restriction must be re-paid proportionately to the original restriction must be re-paid proportionately to the original sources of funding for the APR.sources of funding for the APR.

Executive Office and Department Policies involving Land Executive Office and Department Policies involving Land Disposition (no net lose policies)Disposition (no net lose policies) discourages the discourages the conversion of viable units of agricultural land to non-conversion of viable units of agricultural land to non-agricultural uses.agricultural uses.

The Department requires that one acre of agricultural The Department requires that one acre of agricultural land of comparable or greater agricultural viability be land of comparable or greater agricultural viability be permanently protected for future agricultural use, for permanently protected for future agricultural use, for every acre of agricultural land so released.every acre of agricultural land so released.

APR Criteria:APR Criteria: Soil Classification, physical features and location.Soil Classification, physical features and location. Degree of threat to the continuation of agriculture on Degree of threat to the continuation of agriculture on

the project land.the project land. Degree to which the project land size and Degree to which the project land size and

composition will be economically viable for composition will be economically viable for agricultural purposes and likelihood the land remains agricultural purposes and likelihood the land remains in agricultural use.in agricultural use.

Other Considerations:Other Considerations: Vicinity of the project to “blocks” of protected farmland.Vicinity of the project to “blocks” of protected farmland. Municipality willingness to assist (funding, legal services, Municipality willingness to assist (funding, legal services,

etc.)etc.) Accomplish collateral environmental objectives. Partner Accomplish collateral environmental objectives. Partner

agenciesagencies Community commitment to implement Sustainable Community commitment to implement Sustainable

Development Principles.Development Principles. Acquisition cost is justifiable by the anticipated benefit.Acquisition cost is justifiable by the anticipated benefit. Is the project FRPP eligible.Is the project FRPP eligible.

Overview of APR ProcessOverview of APR Process Voluntary Application Field inspection &

Recommendation for ALPC Nomination Scoring of Parcel Evaluation of FRPP

Standards Evaluation of Community

(APR-Muni) Appraisal & offer to

Landowner Final ALPC Vote Closing Process: 18-24 months

AGRICULTURAL PRESERVATION AGRICULTURAL PRESERVATION RESTRICTIONSRESTRICTIONS

Permanently protecting critical farmland Permanently protecting critical farmland resources through acquisition of non-resources through acquisition of non-agricultural value.agricultural value.

Statutory Formula:Statutory Formula: An amount as is determined by the An amount as is determined by the agricultural lands preservation committee to be equitable in agricultural lands preservation committee to be equitable in consideration of anticipated benefits from such project but not to consideration of anticipated benefits from such project but not to exceed the difference between the fair market value of such land exceed the difference between the fair market value of such land and the fair market value of such land restricted for agricultural and the fair market value of such land restricted for agricultural purposes pursuant to this section. purposes pursuant to this section.

FUNDING SOURCES: FUNDING SOURCES: (include)State Contribution- Environmental Bond FundsState Contribution- Environmental Bond FundsLocal Contribution- Municipalities, Land TrustsLocal Contribution- Municipalities, Land TrustsFederal Farm & Ranch Land Protection Funds (FRPP)Federal Farm & Ranch Land Protection Funds (FRPP)Bargain Sales By Landowners (Tax Benefits)Bargain Sales By Landowners (Tax Benefits)

Agricultural Lands Preservation Agricultural Lands Preservation Committee Makes the CallCommittee Makes the Call

Broad-based Involvement:

Five State Members:Commissioner of Agricultural Resources (Chair)Secretary of Environmental Affairs or designeeDirector, Housing & Community Development or designeeChair, Board of Agriculture (Fred Dabney, Jr.)(Director, Office of State Planning or designee)

Four Public Members:George Beebe, Great BarringtonGordon Price, BoxfordWarren Shaw Jr., DracutSteve Verrill, Concord

Baseline/ MonitoringBaseline/ Monitoring MDAR’s baseline and MDAR’s baseline and

monitoring program:monitoring program:1.1. A snapshot in time of the A snapshot in time of the

restricted farm parcel for restricted farm parcel for the landowner and the landowner and Department.Department.

2.2. Makes contact with current Makes contact with current and future landowners on and future landowners on permitted uses and permitted uses and activities.activities.

3.3. Prevents or helps remedy Prevents or helps remedy most disputes or violations.most disputes or violations.

4.4. Provides a history of any Provides a history of any changes on the parcel.changes on the parcel.

Approx. 75 Baselines per YearApprox. 75 Baselines per Year

1.1. 93 Backlog APRs Baseline 93 Backlog APRs Baseline RemainRemain

187 Monitoring Reports in 2012187 Monitoring Reports in 2012

APR APR StewardshiStewardshi

ppEFFORTSEFFORTS Department Approvals (Uses, Acts, Structures):

1. Certificates of Approval (COA): Approx. 38 Per Year2. Certificates of Compliance (COC): 66 Pending or Issued

Implementation of COC Procedures is a priority in 20123. Special Permits: Approx. 2 – 4 New or Renewal Permits4. Waivers ROFR & Option to Purchase at Ag. Value: Approx.

14 Per Year

Compliance & Enforcement1. Mutual Resolution/ Legal Action2. Special Attorney General (SAG) Status

Amended Policies / RulesAmended Policies / Rules APR’s Regulation (330CMR22.00) APR’s Regulation (330CMR22.00)

1.1. Promulgated 12/25/2009Promulgated 12/25/2009

Limited Conditional Certificate of ApprovalsLimited Conditional Certificate of Approvals1.1. Approval of Ag. Related Structures Services Farm Approval of Ag. Related Structures Services Farm

Operations on non-restricted land.Operations on non-restricted land.

APR Spending Cap (Score Card to Exceed APR Spending Cap (Score Card to Exceed $10,000/ acre up to max of $20,000/acre)$10,000/ acre up to max of $20,000/acre)

1.1. Proximity to Already Protected FarmlandProximity to Already Protected Farmland

2.2. Parcel Viability – Soil CompositionParcel Viability – Soil Composition

3.3. Local Critical Farmland – Municipal SupportLocal Critical Farmland – Municipal Support

Pending PoliciesPending Policies1.1. Conversion FVEP Covenant to APRConversion FVEP Covenant to APR

2.2. Memorandum of Understandings for Pre-Acquisition Memorandum of Understandings for Pre-Acquisition APRs APRs

Technical & Grant Technical & Grant AssistanceAssistance

MDAR Programs:1. APR Improvement Program

(AIP)2. Agricultural Environmental

Enhancement Program (AEEP)

3. Agricultural Energy Grants

USDA Programs:1. Environmental Quality

Incentives Program (EQIP)

Agricultural Energy GrantsAgricultural Energy Grants

Goal: to foster energy conservation and to fund Goal: to foster energy conservation and to fund agricultural energy projects in an effort to improve agricultural energy projects in an effort to improve energy efficiency and to facilitate adoption of energy efficiency and to facilitate adoption of altalteernative clean energy technologies on farms.rnative clean energy technologies on farms.

Program in 5th year. For FY 2012, 59 proposals were received, with $455,000 funds available for individual projects up to a maximum of $30,000.

Farm Energy DiscountsFarm Energy Discounts

Provides discounts on electricity and bass bills Provides discounts on electricity and bass bills of 10% to eligible entities if certified by MDAR of 10% to eligible entities if certified by MDAR as principally and substantially engaged in the as principally and substantially engaged in the business of production agriculture for business of production agriculture for commercial purposes.commercial purposes.

In 2011, 1,300 farms were enrolled, with In 2011, 1,300 farms were enrolled, with average of $5,000 discounts, for a total of average of $5,000 discounts, for a total of $650,000. $650,000.

Agricultural Business Agricultural Business TrainingTraining

The long-term preservation of farmland The long-term preservation of farmland depends on the success of the farmer in the depends on the success of the farmer in the business of farming. business of farming.

The ABT program conducts repeat training The ABT program conducts repeat training programs:programs: ““Tilling the Soil”Tilling the Soil” ““Exploring the Small Farm Dream”Exploring the Small Farm Dream” ““Planning for Startup”Planning for Startup”

APR Improvement APR Improvement ProgramProgram Program provides business planning, technical Program provides business planning, technical

assistance, and grants to farmers on land projected assistance, and grants to farmers on land projected under an agricultural preservation restriction ( AIP under an agricultural preservation restriction ( AIP farms met at least 4 of the 6 objectives):farms met at least 4 of the 6 objectives):

1.1. - improve economic viability- improve economic viability

2.2. - create private sector jobs- create private sector jobs

3.3. - enhance productivity and competitiveness- enhance productivity and competitiveness

4.4. - expand farm facilities as part of a business - expand farm facilities as part of a business planplan

5.5. - support renewable energy- support renewable energy

6.6. - strengthen markets- strengthen markets Program in its 3Program in its 3rdrd Round Round First two rounds results included 21 participating First two rounds results included 21 participating

farms with 3,632 acres of farmland; over $1.4 in farms with 3,632 acres of farmland; over $1.4 in grants (average grant $67,857); $138,302 in total grants (average grant $67,857); $138,302 in total technical assistance (average TA per farm $6,586)technical assistance (average TA per farm $6,586)

Agricultural Environmental Agricultural Environmental Enhancement ProgramEnhancement Program

Goal: to support conservation practices Goal: to support conservation practices intended to protect the state’s natural intended to protect the state’s natural resources by prevention or mitigation of resources by prevention or mitigation of pollution that may arise from agricultural pollution that may arise from agricultural practicespractices

From 1999 through 2011, more than 389 From 1999 through 2011, more than 389 projects received a total of $4,500,000, projects received a total of $4,500,000, selected based on potential to positively selected based on potential to positively impact the most sensitive resource areas, such impact the most sensitive resource areas, such as water supply and wetlandsas water supply and wetlands

State-Owned FarmlandState-Owned Farmland

Goals include:Goals include: - making state-owned farmland available for - making state-owned farmland available for

commercial farmingcommercial farming - making vacant public lands available to - making vacant public lands available to

groups and individuals for farming and groups and individuals for farming and community gardenscommunity gardens

Matching Enterprise Matching Enterprise GrantsGrants

MEGA – a new program whose goal is to MEGA – a new program whose goal is to recognize the importance of beginning farmers recognize the importance of beginning farmers by providing assistance to new and beginning by providing assistance to new and beginning farm enterprises (1 to 5 years in operation)farm enterprises (1 to 5 years in operation)

Program provides business planning and Program provides business planning and technical assistance of up to $10,000 to technical assistance of up to $10,000 to farmers who match the grant on a one-to-one farmers who match the grant on a one-to-one basisbasis

Agricultural Commissions, Agricultural Commissions, Right to Farm By-LawsRight to Farm By-Laws

Facilitates the adoption of local “right to farm” Facilitates the adoption of local “right to farm” ordinances and by-laws which serves as notice ordinances and by-laws which serves as notice to all current and future residents of the to all current and future residents of the community that the city or town is supportive of community that the city or town is supportive of agriculture and judges the public benefits of agriculture and judges the public benefits of farming as trumping the occasional noises and farming as trumping the occasional noises and smells of the farm.smells of the farm.

MDAR facilitates the creation of local MDAR facilitates the creation of local agricultural commissions whose mission includes agricultural commissions whose mission includes advocacy for farmland and farmers at the local advocacy for farmland and farmers at the local level, including educational outreach to level, including educational outreach to publicize the town as a “right to farm” publicize the town as a “right to farm” community.community.

Mass Department of Agricultural Mass Department of Agricultural ResourcesResources

Agricultural Preservation Restriction ProgramAgricultural Preservation Restriction Program

251 Causeway Street, Suite 500251 Causeway Street, Suite 500Boston, Massachusetts 02114-2151Boston, Massachusetts 02114-2151

Ron Hall, APR Program CoordinatorRon Hall, APR Program Coordinator617-626-1704; 617-626-1704; Ronald.Hall@state.ma.usRonald.Hall@state.ma.us

Chris Chisholm, Eastern Mass APR Regional Planner 617-626-1788; Chris.Chisholm@state.ma.usChris.Chisholm@state.ma.us

Michele Padula, Central Mass APR Regional Planner 617-626-1758; Michele.Padula@state.ma.us Michele.Padula@state.ma.us

Barbara Hopson, South Western Ma APR Regional Planner413-548-1906; Barbara.Hopson@state.ma.usBarbara.Hopson@state.ma.us

Rick Chandler, North Western Ma APR Regional Planner413-548-1905; rchandler@umext.umass.edu rchandler@umext.umass.edu

Michael Gold, APR Information Systems Administrator; 617-626-1712; Michael.Gold@state.ma.us @state.ma.us

Delia Delongchamp, APR Stewardship Coordinator, 617-626-1737; Delia.Delonchamp@state.ma.usDelia.Delonchamp@state.ma.us

Mass Department of Agricultural Mass Department of Agricultural ResourcesResources

Agricultural Preservation Restriction ProgramAgricultural Preservation Restriction Program251 Causeway Street, Suite 500251 Causeway Street, Suite 500

Boston, Massachusetts 02114-2151Boston, Massachusetts 02114-2151

Web-Site Resources:Web-Site Resources:

http://www.mass.gov/agr/landuse/APR/index.htmhttp://www.mass.gov/agr/landuse/APR/index.htm

http://www.mass.gov/agr/divisions/http://www.mass.gov/agr/divisions/ag_technical_assistance.htmag_technical_assistance.htm

www.ma.nrcs.usda.gov www.ma.nrcs.usda.gov

FARM VIABILITY - Enhancement Covenants

The BEST way to keep land in agricultural use is to make agriculture PROFITABLE for

those who use the resource.

The Farm Viability Enhancement Program is an innovative effort that integrates technical assistance and business planning along with access to capital and farmland preservation

PRIMARY CONCEPTS OF THE PRIMARY CONCEPTS OF THE FARM VIABILITY PROGRAMFARM VIABILITY PROGRAM

Improve individual farm’s economic Improve individual farm’s economic viabilityviability - Encourage more value-added & direct - Encourage more value-added & direct retailretail - Promote vertical integration - Promote vertical integration - Enhance product diversity - Enhance product diversity

Improve environmental practices used on Improve environmental practices used on farms.farms.

ADDITIONAL CONCEPTS TO ADDITIONAL CONCEPTS TO SUPPORT FARM VIABILITYSUPPORT FARM VIABILITY

Protect agricultural land and open space Protect agricultural land and open space more economicallymore economically

Increase access to capitalIncrease access to capital

Provide access to technical assistance no Provide access to technical assistance no longer available elsewherelonger available elsewhere

Improve business and management skills Improve business and management skills among farmers.among farmers.

CRITERIA for SELECTIONCRITERIA for SELECTION

1.) Threat to the continuation of agriculture;1.) Threat to the continuation of agriculture;

2.) Number of acres to be placed in the 2.) Number of acres to be placed in the covenant;covenant;

3.) Whether the farm has diversified or is 3.) Whether the farm has diversified or is interested in retail or value added activities;interested in retail or value added activities;

4.) Number of years & type of experience of 4.) Number of years & type of experience of applicant;applicant;

5.) Degree to which the project would accomplish 5.) Degree to which the project would accomplish environmental objectives;environmental objectives;

6.) The suitability/productivity based on soil 6.) The suitability/productivity based on soil classification, features and location.classification, features and location.

Covenant, Contract and Covenant, Contract and CheckCheck

COVENANT OPTIONSCOVENANT OPTIONS

- 5 years - $25,000- 5 years - $25,000

- 10 Years - $50,000- 10 Years - $50,000

- 10 Years - $75,000 - if over 135 acres- 10 Years - $75,000 - if over 135 acres

CONTRACTCONTRACT

What is to be accomplished with funds and What is to be accomplished with funds and whenwhen

CHECKCHECK

6 to 8 weeks following signing6 to 8 weeks following signing

A Successful, Environmentally-Sound Farm A Successful, Environmentally-Sound Farm Business is the Best Farmland Protection ToolBusiness is the Best Farmland Protection Tool

Program DescriptionProgram Description

Phase I – Business Planning

Phase II – Covenant, Contract and Check

Phase III – Receipts, Reporting and Evaluation 

A Few Statistics . . . A Few Statistics . . .

FVEP initiated in 1996FVEP initiated in 1996 362 farms protected by 5 or 10 year covenants362 farms protected by 5 or 10 year covenants 34,453 acres protected34,453 acres protected Just under $15M in grants awardedJust under $15M in grants awarded 99% of farmers in the program remain in farming99% of farmers in the program remain in farming 73% of farmers in the program invest additional 73% of farmers in the program invest additional

personal capital beyond the grants amountspersonal capital beyond the grants amounts Average additional investment nearly $32,000 Average additional investment nearly $32,000

per farmper farm Grants up to $100,000 to be available to farmers Grants up to $100,000 to be available to farmers

committing $50,000 of personal capital to projectcommitting $50,000 of personal capital to project

Massachusetts Massachusetts Department of Department of

Agricultural ResourcesAgricultural Resources251 Causeway Street, Suite 500251 Causeway Street, Suite 500

Boston, Massachusetts 02114-2151Boston, Massachusetts 02114-2151

Craig Richov, Farm Viability Program DirectorCraig Richov, Farm Viability Program Director 617-626-1725617-626-1725 Craig.Richov@state.ma.usCraig.Richov@state.ma.us

Mass Department of Agricultural Mass Department of Agricultural ResourcesResources

Agricultural Preservation Restriction ProgramAgricultural Preservation Restriction Program251 Causeway Street, Suite 500251 Causeway Street, Suite 500

Boston, Massachusetts 02114-2151Boston, Massachusetts 02114-2151

Web-Site Resources:Web-Site Resources:

http://www.mass.gov/agr/landuse/APR/index.htmhttp://www.mass.gov/agr/landuse/APR/index.htm

http://www.mass.gov/agr/divisions/http://www.mass.gov/agr/divisions/ag_technical_assistance.htmag_technical_assistance.htm

www.ma.nrcs.usda.gov www.ma.nrcs.usda.gov