Agricultural Land Preservation in Massachusetts

1. Agricultural Land Preservation in Massachusetts IMLA Regional Conference Portsmouth, NH - 6/20/2012 Bob Ritchie, General Counsel Department of Agricultural Resources

2. 30 (+) year history: Established in 1977 - one of the first volunteer Farmland Preservation Programs in the United States. FIRST RESTRICTION: Salisbury, 1980, 18 acres As mid-May 2012, 810 APRs acquired, with 67,668 acres protected in approximately 162 towns Agricultural Preservation Restriction Program (APR)

3. APR’s Mission and PurposeMISSION:The mission of the APR Program is to keep agricultural land available and affordable for farmers. In order to do that, the agricultural resource, including soils, must be restricted with covenants that assure it remains a productive landscape available for farmers to acquire at its agricultural rather than its unrestricted market value. …

4. Thresholds for Consideration in the APR Program. • Land must be “actively devoted” to agricultural or horticultural uses. Defined in Sections 1-5, inclusive, of Chapter 61A for at least two immediately preceding tax years. • Minimum of 5 acres. • Gross sales of agricultural products from the land must total “not less than $500 per year” for five acres, plus additional $5 per each acre above five acres.

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

6. Release of Restriction • APRs are perpetual, subject to Article 97 of the Articles of Amendment of the state constitution, and can only be released if authorized by a two-thirds vote of both houses of the Legislature. • As a condition of release, the current value of the restriction must be re-paid proportionately to the original sources of funding for the APR. • Executive Office and Department Policies involving Land Disposition (no net lose policies) discourages the conversion of viable units of agricultural land to non-agricultural uses. • The Department requires that one acre of agricultural land of comparable or greater agricultural viability be permanently protected for future agricultural use, for every acre of agricultural land so released.

7. APR Criteria: • Soil Classification, physical features and location. • Degree of threat to the continuation of agriculture on the project land. • Degree to which the project land size and composition will be economically viable for agricultural purposes and likelihood the land remains in agricultural use. • Other Considerations: • Vicinity of the project to “blocks” of protected farmland. • Municipality willingness to assist (funding, legal services, etc.) • Accomplish collateral environmental objectives. Partner agencies • Community commitment to implement Sustainable Development Principles. • Acquisition cost is justifiable by the anticipated benefit. • Is the project FRPP eligible.

8. Overview 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

9. AGRICULTURAL PRESERVATION RESTRICTIONSPermanently protecting critical farmland resources through acquisition of non-agricultural value.Statutory Formula:An amount as is determined by the agricultural lands preservation committee to be equitable in consideration of anticipated benefits from such project but not to exceed the difference between the fair market value of such land and the fair market value of such land restricted for agricultural purposes pursuant to this section. FUNDING SOURCES: (include)State Contribution- Environmental Bond FundsLocal Contribution- Municipalities, Land TrustsFederal Farm & Ranch Land Protection Funds (FRPP)Bargain Sales By Landowners (Tax Benefits)

10. Agricultural Lands Preservation Committee Makes the Call • Broad-based Involvement: Five State Members: Commissioner of Agricultural Resources (Chair) Secretary of Environmental Affairs or designee Director, Housing & Community Development or designee Chair, Board of Agriculture (Fred Dabney, Jr.) (Director, Office of State Planning or designee) Four Public Members: George Beebe, Great Barrington Gordon Price, Boxford Warren Shaw Jr., Dracut Steve Verrill, Concord

11. Baseline/ Monitoring • MDAR’s baseline and monitoring program: • A snapshot in time of the restricted farm parcel for the landowner and Department. • Makes contact with current and future landowners on permitted uses and activities. • Prevents or helps remedy most disputes or violations. • Provides a history of any changes on the parcel. • Approx. 75 Baselines per Year • 93 Backlog APRs Baseline Remain • 187 Monitoring Reports in 2012

12. APR StewardshipEFFORTS • Department Approvals (Uses, Acts, Structures): • Certificates of Approval (COA): Approx. 38 Per Year • Certificates of Compliance (COC): 66 Pending or Issued • Implementation of COC Procedures is a priority in 2012 • Special Permits: Approx. 2 – 4 New or Renewal Permits • Waivers ROFR & Option to Purchase at Ag. Value: Approx. 14 Per Year • Compliance & Enforcement • Mutual Resolution/ Legal Action • Special Attorney General (SAG) Status

13. Amended Policies / Rules • APR’s Regulation (330CMR22.00) • Promulgated 12/25/2009 • Limited Conditional Certificate of Approvals • Approval of Ag. Related Structures Services Farm Operations on non-restricted land. • APR Spending Cap (Score Card to Exceed $10,000/ acre up to max of $20,000/acre) • Proximity to Already Protected Farmland • Parcel Viability – Soil Composition • Local Critical Farmland – Municipal Support • Pending Policies • Conversion FVEP Covenant to APR • Memorandum of Understandings for Pre-Acquisition APRs

14. Technical & Grant Assistance • MDAR Programs: • APR Improvement Program (AIP) • Agricultural Environmental Enhancement Program (AEEP) • Agricultural Energy Grants • USDA Programs: • Environmental Quality Incentives Program (EQIP)

15. Agricultural Energy Grants • Goal: to foster energy conservation and to fund agricultural energy projects in an effort to improve energy efficiency and to facilitate adoption of alternative 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.

16. Farm Energy Discounts • Provides discounts on electricity and bass bills of 10% to eligible entities if certified by MDAR as principally and substantially engaged in the business of production agriculture for commercial purposes. • In 2011, 1,300 farms were enrolled, with average of $5,000 discounts, for a total of $650,000.

17. Agricultural Business Training • The long-term preservation of farmland depends on the success of the farmer in the business of farming. • The ABT program conducts repeat training programs: • “Tilling the Soil” • “Exploring the Small Farm Dream” • “Planning for Startup”

18. APR Improvement Program • Program provides business planning, technical assistance, and grants to farmers on land projected under an agricultural preservation restriction ( AIP farms met at least 4 of the 6 objectives): • - improve economic viability • - create private sector jobs • - enhance productivity and competitiveness • - expand farm facilities as part of a business plan • - support renewable energy • - strengthen markets • Program in its 3rd Round • First two rounds results included 21 participating farms with 3,632 acres of farmland; over $1.4 in grants (average grant $67,857); $138,302 in total technical assistance (average TA per farm $6,586)

19. Agricultural Environmental Enhancement Program • Goal: to support conservation practices intended to protect the state’s natural resources by prevention or mitigation of pollution that may arise from agricultural practices • From 1999 through 2011, more than 389 projects received a total of $4,500,000, selected based on potential to positively impact the most sensitive resource areas, such as water supply and wetlands

20. State-Owned Farmland • Goals include: • - making state-owned farmland available for commercial farming • - making vacant public lands available to groups and individuals for farming and community gardens

21. Matching Enterprise Grants • MEGA – a new program whose goal is to recognize the importance of beginning farmers by providing assistance to new and beginning farm enterprises (1 to 5 years in operation) • Program provides business planning and technical assistance of up to $10,000 to farmers who match the grant on a one-to-one basis

22. Agricultural Commissions, Right to Farm By-Laws • Facilitates the adoption of local “right to farm” ordinances and by-laws which serves as notice to all current and future residents of the community that the city or town is supportive of agriculture and judges the public benefits of farming as trumping the occasional noises and smells of the farm. • MDAR facilitates the creation of local agricultural commissions whose mission includes advocacy for farmland and farmers at the local level, including educational outreach to publicize the town as a “right to farm” community.

23. Mass Department of Agricultural ResourcesAgricultural Preservation Restriction Program 251 Causeway Street, Suite 500 Boston, Massachusetts 02114-2151 • Ron Hall, APR Program Coordinator 617-626-1704; Ronald.Hall@state.ma.us • Chris Chisholm, Eastern Mass APR Regional Planner 617-626-1788; Chris.Chisholm@state.ma.us • Michele Padula, Central Mass APR Regional Planner 617-626-1758; Michele.Padula@state.ma.us • Barbara Hopson, South Western Ma APR Regional Planner 413-548-1906; Barbara.Hopson@state.ma.us • Rick Chandler, North Western Ma APR Regional Planner 413-548-1905; rchandler@umext.umass.edu • Michael Gold, APR Information Systems Administrator; 617-626-1712; Michael.Gold@state.ma.us • Delia Delongchamp, APR Stewardship Coordinator, 617-626-1737; Delia.Delonchamp@state.ma.us

24. Mass Department of Agricultural ResourcesAgricultural Preservation Restriction Program 251 Causeway Street, Suite 500 Boston, Massachusetts 02114-2151 Web-Site Resources: http://www.mass.gov/agr/landuse/APR/index.htm http://www.mass.gov/agr/divisions/ag_technical_assistance.htm www.ma.nrcs.usda.gov

25. 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

26. PRIMARY CONCEPTS OF THE FARM VIABILITY PROGRAMImprove individual farm’s economic viability - Encourage more value-added & direct retail - Promote vertical integration - Enhance product diversity Improve environmental practices used on farms.

27. ADDITIONAL CONCEPTS TO SUPPORT FARM VIABILITYProtect agricultural land and open space more economicallyIncrease access to capitalProvide access to technical assistance no longer available elsewhereImprove business and management skills among farmers.

28. CRITERIA for SELECTION1.) Threat to the continuation of agriculture;2.) Number of acres to be placed in the covenant;3.) Whether the farm has diversified or is interested in retail or value added activities;4.) Number of years & type of experience of applicant;5.) Degree to which the project would accomplish environmental objectives;6.) The suitability/productivity based on soil classification, features and location.

29. Covenant, Contract and Check COVENANT OPTIONS - 5 years - $25,000 - 10 Years - $50,000 - 10 Years - $75,000 - if over 135 acres CONTRACT What is to be accomplished with funds and when CHECK 6 to 8 weeks following signing A Successful, Environmentally-Sound Farm Business is the Best Farmland Protection Tool

30. Program Description Phase I – Business Planning Phase II – Covenant, Contract and Check Phase III – Receipts, Reporting and Evaluation

31. A Few Statistics . . . • FVEP initiated in 1996 • 362 farms protected by 5 or 10 year covenants • 34,453 acres protected • Just under $15M in grants awarded • 99% of farmers in the program remain in farming • 73% of farmers in the program invest additional personal capital beyond the grants amounts • Average additional investment nearly $32,000 per farm • Grants up to $100,000 to be available to farmers committing $50,000 of personal capital to project

32. Massachusetts Department of Agricultural Resources 251 Causeway Street, Suite 500 Boston, Massachusetts 02114-2151 • Craig Richov, Farm Viability Program Director • 617-626-1725 • Craig.Richov@state.ma.us

33. Mass Department of Agricultural ResourcesAgricultural Preservation Restriction Program 251 Causeway Street, Suite 500 Boston, Massachusetts 02114-2151 Web-Site Resources: http://www.mass.gov/agr/landuse/APR/index.htm http://www.mass.gov/agr/divisions/ag_technical_assistance.htm www.ma.nrcs.usda.gov