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PDR’s and their affect on Land Use Decisions & Ag Viability. Ray Dutterer Farm. Land Preservation . . . . . . why does it matter?. Natural Resource Systems. Raymond Bream Farm. Way of life. LOCAL MUNICIPALITY TAX ADVANTAGES Cost of Community Services Studies. Graph: Median cost
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PDR’s and their affect on Land Use Decisions & Ag Viability Ray Dutterer Farm
Land Preservation . . . . . . why does it matter? Natural Resource Systems Raymond Bream Farm
LOCAL MUNICIPALITY TAX ADVANTAGES Cost of Community Services Studies Graph: Median cost -per dollar of revenue raised -to provide services to different land uses. Source: American Farmland Trust, Farmland Information Center, September 2001
Zoning • Is zoning permanent? • Can zoning be altered? • Is zoning political?
PDR’s . . .do they affect land land use decisions? • Zoning • Comprehensive Planning
Adams County Comprehensive Plan With Preserved Farms
PDR’s. . .do they affect land use decisions? • Zoning • Comprehensive Planning • Permanent vs Temporary decisions
Purchase of Development Rights Conservation Easements are the ONLY way to preserve land forever Eric Keller Farm
Zoning • Comprehensive Planning • Permanent vs. Temporary decisions PDR’s – Do they affect land use decisions? • Preservation of “view sheds”
Preservation of view sheds. . . . . .what are they worth?
Will there be enough interest? Adams County’s 10,000 Acre Celebration May 19, 2002
Applications Received by RoundAdams County Agricultural LandPreservation Program
Preserved Lands of Adams County 12,187 Acres Preserved (County program) 1,338 Acres Preserved (Land Trust) 13,000 Acres of Outstanding Applications
Why would landowners want to preserve their land? • Financial Incentive
What is an easement worth? Fair Market Value $ 10,000 / Acre Farmland Value - $ 6,000 / Acre Easement Value $ 4,000 / Acre Pennsylvania Easement Values Range from $600 to $15,000 / Acre Adams County Easement Values Range from $1,025 to $ 11,400 / Acre
Adams County Values Fair Market Value Ranges from $2,149 to $12,920 Agricultural Value Ranges from $960 to $2,000 / Acre Easement Value Ranges from $1,025 to $ 11,400 / Acre Easement Value actually paid Ranges from $1.00 to $2,637
Why would landowners want to preserve their land? • Financial Incentive • Business Expansion
Business Expansion Hess Family Farms Two farms preserved in 1991 & 1995 Expansion took place 1995-97
Why would landowners want to preserve their land? • Financial Incentive • Business Expansion • Estate Planning
Estate Planning The Lobaugh Family
Why would landowners want to preserve their land? • Financial Incentive • Business Expansion • Estate Planning • Debt Repayment
Debt Repayment Easement sold in 1993 = $ 1,464/acre Farmland Value (1993) = $ 1,334 /acre Sold in 2003 to repay debt = $ 4,690/acre* (with easement in place) * This figure represents subtracting $30,000 for the value of the buildings Rhoades Dairy Farm
Why would landowners want to preserve their land? • Financial Incentive • Business Expansion • Estate Planning • Debt Repayment • Bankruptcy
Bankruptcy Sale Easement sold in 1998 = $ 1,297/acre Farmland Value (1998) = $ 1,035/acre Public Sale in 2000 = $ 1,630/acre * • This figure represents subtracting • $80,000 for the value of the buildings • Hartlaub Farm
What is the value of the land “After the Fact” ?
Sales of Preserved Farms Adams County, PA Example #1 Easement (9-21-99)Resale (2-1-00) (Easement = $218,356) Ag Land Value: $ 1,645/acre Sold for: $ 3,886/acre x 127 acres x 127 acres $ 208,915 $ 493,522 +$ 383,056 * $ 591,971 * Value of buildings at time of easement Notes: Farm set up for horses – sold to Hanover Shoe Farms Easement + Sale = $711,878 ($5,605/acre) (“Loss” of $ 775/acre)
Sales of Preserved Farms Adams County, PA Example #2 Easement (6-13-95)Resale (6-19-00) (Easement = $ 77,118) Ag Land Value: $ 1,200/acre Sold for: $ 2,671/acre x 33 acres x 33 acres $ 39,600 $ 88,143 +$ 0 * $ 39,600 * No buildings Note: Public (Estate) Sale & was a part of land restricted by NPS (Gain of $1,471/acre)
Is an easement right for you? This decision needs to be based on 2 things: 1 – Is it a good business decision? 2 – Do you truly believe in preserving your land?
Ellen T. Dayhoff, Director Adams County Agricultural Land Preservation Board 670 Old Harrisburg Rd – Suite 100 Gettysburg, PA 17325 717-337-5859 - agland@acc.pa.net Sam and Ellen Dayhoff