Farms for the Future: Massachusetts - American Farmland Trust

Farms for the Future$16.0Agriculture Preservation Restriction Program:Historic Spending$14.9$14.0Million Millions$12.0$10.0$8.0$7.2 $6.9$7.3$11.1$7.1$8.4$7.9 $7.6$10.0$6.0$4.0$2.0$0.0$0.0FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY 08NOTE: Adjusted for Inflation: based upon the Bureau of Labor and Statistics CPI calculator: http://data.bls.gov/cgi-bin/cpicalc.plSource: Massachusetts Department of Agricultural Resources, 2008Rate of ProtectionSince the program’s first APR purchase in 1980, theprogram has protected an average of 2,300 acresper year. The average yearly decline in farmacreage over the same general time frame, dependingon the data source, is estimated at between2,900 acres and 7,700 acres. 26 Using even themost conservative of farmland loss estimates, since1980 the Commonwealth has consistently lostmore farmland per year than it has protectedthrough the program.Rising land values are reducing the program’s rateof farmland protection. Due to escalating farm realestate values, the APR program has been payinghigher prices to landowners for restrictions. Whilethe average price paid per acre over the life of theprogram is $2,864, the average price paid per acrein 2007 was $6,847. Consequently, the number ofacres protected annually has been dropping.Land protected through the APR Programto date represents 11.8 percent of theCommonwealth’s land in farms.Leveraging Federal, Localand Private ResourcesState expenditures on the APR program haveleveraged substantial federal and local funding aswell as private contributions from landownersthrough “bargain sales” (the sale of an agriculturalpreservation restriction at a price below itsappraised fair market value). In fiscal years 2004through 2008, 41 percent of the value of allAPR projects was contributed from sources otherthan the Commonwealth, including landownerbargain sales, private donations, municipalcontributions and federal funding.Between 2003 and 2007, the state protectedan average of only 1,828 acres each year—an18 percent drop from the historical average. 27Federal: Since 2002, Massachusetts has receivedan annual allocation from the federal FRPPprogram based on the number and value of pendingAPR applications and the availability of statefunds. The program provides up to 50 percent ofthe value of the APR for qualifying parcels. Inorder to take full advantage of the federal funding—approximately$25 million since 2002—thestate requires that virtually all APR applicationsqualify for the federal program as well. 28Historically, proceeds from the federal program,which Massachusetts receives in the form of areimbursement, have been used to fund programsother than the APR program, such as the FVEPprogram and other farm viability initiatives. In achange of approach, the Patrick administration infiscal year 2008 reinvested a majority of the reimbursement—$2.6million of $3.6 millionreceived—in the APR program.10American Farmland Trust