Farms for the Future: Massachusetts - American Farmland Trust

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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
Massachusetts’ Investments in Farmland ConservationLocal: The APR program also isleveraging three types of local fundingsources. The first is municipalcontributions toward the cost of anAPR project. While municipal contributionshave been requested by thestate for years, the process was formalizedin 2004 when the MDARadministratively instituted the APRMunicipal Grant Program. Virtuallyall APR applications are now runthrough the Municipal GrantProgram, and an applicant’s score andultimate approval are determined inpart on the basis of actions taken insupport of agriculture by the town inwhich the land is located.Private contributions are another source of localfunding. One type of private contribution is a“bargain sale,” a donation made by thelandowner selling the agricultural preservationrestriction or a portion of the restriction’s fairmarket value. Contributions from individuals,typically made to a land trust that then uses thefunds to help satisfy the local match requirementfor the APR application, are another source oflocal funding. 29One of the primary requirements of the MunicipalGrant Program is a local contribution of up to20 percent of the cost of an APR project. A localcontribution can include any or all of the threetypes of local funding sources noted above, andtowns can reduce the required match by takingMillions$7.0$6.0$5.0$4.0$3.0$2.0$1.0$0.0$8,000$7,000$6,000$5,000$4,000$3,000$2,000$1,000$0Agriculture Preservation Restriction Program:Price Paid Per Acre$2,864HistoricalAverageFederal Farm and Ranch Lands Protection Program:Allocations to Massachusetts$2.9$4.5 $4.7$3.8 $4.0$4,749$3,163specific actions to support farming and encouragefarmland protection locally. The program hasmanaged to achieve an overall 20 percent contributionfrom local sources annually and hasexceeded that goal over the past five years. Of theapproximately $66 million in value of APR projectscompleted from fiscal year 2004 throughfiscal year 2008, $8.5 million was contributedthrough landowner “bargain sales,” and an additional$11.1 million from municipalities and landtrusts, for an overall 30 percent local contribution.30Role of Land Trusts$5,627$6,255$6,8472003 2004 2005 2006 2007Average, 1980-2006AverageThe MDAR estimates that 20 to 30 percent ofAPR applications involve land trusts. Land trustsplay an increasingly important role in the programby helping landowners andtowns navigate the application$5.9FY03 FY04 FY05 FY06 FY07 FY 08Source: USDA Natural Resources Conservation Services, 2008Source: Massachusetts Department of Agricultural Resources, 2007process, finding additional financialresources to contribute toAPR applications, and providinginterim funding to landownersby “pre-acquiring” restrictions.A 2007 survey by AFT of 33land trusts around the statefound that land trusts haveeither pre-acquired or played asignificant fundraising role in atleast 89 APR projects involvingover 10,000 acres —one-sixthof all land protected throughthe program.American Farmland Trust11
Page 1 and 2: Farms for the FutureMassachusetts
Page 3: CHAPTER ONECommonwealth Farms: Many
Page 6 and 7: CHAPTER TWOFarming in the Commonwea
Page 8 and 9: Farms for the Future1%25%11%Source:
Page 10 and 11: Farms for the FutureAPR Program: Be
Page 14 and 15: CHAPTER FOURFarm Viability and Cons
Page 16 and 17: Farms for the Futureprogram, the FV
Page 18 and 19: CHAPTER FIVERecommendationsAgricult
Page 20 and 21: Farms for the FutureReport annually
Page 22 and 23: Farms for the FutureEndnotesChapter

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