Centre County Government

Centre County Planning and
Community Development Office
 

Ag Land

Centre County Agricultural Security Areas (Preliminary Update)

Agricultural Security Areas
Permanent Agricultural Easements
Proposed Agricultural Easements

Farmland is an important industry in Centre County. According to the Pennsylvania Agricultural Statistics for 2006-2007:

• There are 1,215 farms in Centre County on 164,500 acres.
• The average farm covers 134 acres.
• Centre County's farms sold agricultural products valued at over $69 million (46% from dairy products).
• The average Centre County farm sold $59,879 in products.

Why Preserve Farming in Centre County?

The land-extensive nature of farming provides significant community benefits:

• Farmland gives the community an open, pastoral character. This helps preserve the identity of individual towns and villages by buffering one community from neighboring settlements. Farmland contributes to the scenic views characteristic of Centre County. Farms provide both habitat and corridors for fish and wildlife. Air quality is enhanced by the dynamics of farmland. Farm markets provide quality produce, meat and dairy products. Taken together, these factors are important to the public=s perception of the quality of life in Centre County.
• Farmland allows for groundwater recharge, assuring stable supplies of drinking water plus water for environmental uses and recreation.
• Conservation of Centre County=s superior quality soils, an outstanding agricultural resource.
• Tax revenues collected from farmland far exceed the cost of providing return services to that land.
• Farming has been a part of the economy since Centre County was created; its presence provides a link to the community's history and future.
• Many Centre County educational and cultural institutions bear ties to our agrarian roots. As farmland is permanently lost, so are many of our traditions, lifestyles and values.
• Soils in portions of Centre County are highly productive for agricultural purposes. Precipitation is also relatively consistent from year to year, allowing farming to occur without irrigation.
• And perhaps, most obviously, we all need to eat. As population continues to increase and/or occupy more land, farmland will become more scarce.

When quality of life and economic factors are totaled, it is clear that the preservation of farmland is something that should be of interest to people who live in the built-up areas of Centre County as well as those whose livelihoods are linked to the agricultural economy.

Preserved Farmland Remains Privately Owned

Farmland preservation is significantly different from open space preservation.

• The land being preserved is part of a productive, privately-owned tax paying business enterprise.
• The purpose of purchasing the development rights is to preserve productive agricultural land for future use. The American Farmland Trust reports that over "half the value of U.S. farm production — including 80 percent of our fruits and vegetables and more than half of our dairy products — are produced in rapidly urbanizing counties."
• The Purchase of Agricultural Conservation Easements does not involve the outright purchase of the farmland — only the purchase of development rights (the right to build homes, stores, and factories on the land).
• The land remains the private property of the farmer — and it remains on the tax rolls.
• The farmer can sell the land for agricultural purposes.
• Development rights are purchased to allow the farmer to recoup the difference between the value of the land for development purposes and the value as farmland.

The Farm as a Business

Living next to a farm is not the same as living next to a state forest, state gamelands, or a state or local park. Farms have characteristics common to many industrial enterprises. This may seem like a statement of the obvious. However, there have been numerous occasions where people, enticed to build a home in an agricultural area by the area's scenic beauty, have ended up complaining about routine farming practices carried out by the owner of the adjoining farmland. It seems that people who did not grow up around farms forget that:

• Farms are businesses which require a significant capital investment to start and operate.
• Farmland is private property, not public space available for four-wheeling, snowmobiling or other recreational activities, unless the landowner has specifically granted permission to use the land.
• Raw materials are shipped in, processed, and shipped out as value-added products.
• The production process involves activities that generate waste products, noise, and odors; may involve the use of pesticides, herbicides, and machinery; and entail operations beyond "regular business hours."
• The business is established to generate a profit.

Farmland Preservation

The preservation of farmland by purchasing development rights got started in the Northeast United States during the 1970's. Pennsylvania took the first step in creating a program in 1981 when it adopted an Agricultural Security Area law (PA Act 43 of 1981). The law created a partnership between the landowner, local government, county government, and state government. The federal government has occasionally provided funds and private land trusts also make contributions.

• Landowners initiate the process of creating an Agricultural Security Area (ASAs) by petitioning their Township.
• The Township approves the creation of the ASA and is responsible for renewing the areas every 7 years.
• Since 1999, municipalities also can provide money for the purchase of ag easements.
• Counties have been responsible for organizing programs to purchase agricultural conservation easements (referred to as the PACE program).

Agricultural Security Areas are created when owners with at least 500 acres of land notify the township supervisors that they wish to be included in an ASA and the municipality approves the application in accordance with Act 43:

Here in Centre County, over 73,000 acres in 17 municipalities are enrolled in ASA's:

Being in an Ag Security Area has four benefits:

• The municipality is prevented from enacting ordinances which Aunreasonably restrict farm structures or farm practices@ (Section 911 of Act 43 of 1981).
• The ability of the state to condemn land is limited.
• Federal loan applicants may qualify for a lower interest rate.
• Only land in an ag security area can be considered for the purchase of an ag conservation easement.

$$$ for the Purchase of Development Rights

Each year, the County allocates funds for the purchase of agricultural easements. Over the past 22 years, Centre County contributed $1,218,385 for the purchase of development rights, and is reimbursed by the state for Aclosing costs@: appraisals, surveys, attorney's fees, etc.). For 2011 the County=s total contributions have leveraged $9,589,066 in state funds, $1,991,439 in federal funds, and $220,415 in private contributions through Ferguson Township, Potter Township and Spring Township.

Centre County Government's 2011 allocation of $102,149 Includes: an $80,000 appropriation and $22,149 in Clean and Green Rollback Interest.

Beginning in January 1999, a change in state law provided a new source of revenue. Land enrolled in the Clean and Green Program is given a break on local real estate taxes. If the land is withdrawn from the program, the landowner must repay 7 years worth of back taxes, plus interest. All of the interest that is repaid must be used by counties to supplement their existing allocation of funds for the purchase of ag easements. For 2010, this source of funding generated $3,011 for Centre County.

The amount of state funds awarded to Centre County depends on:

• The funds provided in the state budget.
• The number of counties participating in the program (57 counties are currently participating).
• The amount of money provided by Centre County (including donations) compared to funds contributed by other counties. Some of the participating counties increased their contributions. (51 counties appropriated $17 million for 2010).

State funds for the purchase of ag conservation easements traditionally have come from grants by the Pennsylvania Department of Agriculture under the provisions of Act 43 of 1981. The $100 million bond issue overwhelmingly approved by voters to launch the ag conservation easement program has been exhausted. The source of on-going state funding for the program is a 2 cent per pack tax on cigarettes, which generates approximately $20 million a year for the program. (Each pack-a-day smoker provides about $7.30 a year for the purchase of ag easements program.) The 2011 State Budget contained a total allocation of $22 million for counties to purchase of development rights on farmland. County appropriations totaled $16.5 million.

How Successful Has the Program Been?

In the past 22 years, funds from all of the sources described above have been used to purchase the development rights on 4,100 farms across Pennsylvania (there are approximately 58,000 farms in the state). Pennsylvania ranks first in the nation with 450,769 acres permanently preserved in 57 counties.

Easements Purchased in Centre County

Funds have been used to purchase permanent agricultural conservation easements on 39 farms in Centre County (see inset on the previous page). Those farms are in Benner, Ferguson, Harris, Marion, Potter, Spring and Walker Townships. There are 60 active applications (covering more than 8,000 acres) that have been submitted by farmland owners interested in participating in the program. Each farm is given a weighted score using computer software. Farms are ranked, based on their score; with farm owners at the top of the list offered the opportunity sell their development rights.

For Additional Information

Since 1990, the Centre County Planning Office has administered the Purchase of Agricultural Conservation Easements (PACE) Program on behalf of the Centre County Agricultural Land Preservation Board. The staff member responsible for administering the program is Norman K. Lathbury. He can be reached by calling 814-355-6791, by stopping in at the Willowbank Office Building, by e-mail (nklathbury@co.centre.pa.us), or by fax at 814-355-8661. The Preservation Board, which is appointed by the County Commissioners, is composed of nine members. The Board meets the fourth Thursday of each month at 7:30 pm, at the Willowbank Office Building, 420 Holmes Street, Bellefonte. The meetings are advertised and the public is welcome.