Farms for the Future: Massachusetts - American Farmland Trust

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CHAPTER FOURFarm Viability and Conservation ProgramsFarm Viability Enhancement ProgramThe Farm Viability Enhancement Program (FVEP) has been a powerful tool in helping Massachusettsfarmers adapt to changing markets and consumer demands. The program provides farmers with two typesof assistance.In Phase I, a team of consultants helps participating farmers develop a “farm viability plan” to improvetheir farm profitability. The plan might focus on improved management practices, diversification, directmarketing, possible value-added initiatives, agritourism or some combination thereof. The plan may alsoaddress farm environmental and/or energy concerns.Phase II provides funding to implement components of the plan; the participating farmer must grantto the Commonwealth a non-development covenant on the land for a number of years. The size of thegrant varies from $25,000 to $100,000 depending on the size of the farm, the components of the planto be implemented and the length of the covenant—five to 10 years. The program holds periodic openapplication periods, typically once or twice a year.Number of Farm Viability covenantsthrough fiscal year 2007Farms in 110 towns have participated in thecovenant phase of the FVEP program.Number ofcovenants by town01–45–12Source: Massachusetts Department of Agricultural Resources, 2007Program SpendingOver the past 10 years, annual spending forthe two phases of the program has averaged$1.2 million. Since 1996, $1.5 million has beenexpended on Phase I, helping develop viabilityplans for 278 farms, or an average of 25 farms ayear. Through Phase II, an additional $11.9 millionhas funded 259 covenants, temporarilyprotecting 29,011 acres of Massachusetts farmlandfrom development and providing valuablefinancing for farm business improvements. 31The FVEP, authorized under MassachusettsGeneral Laws Chapter 20, Section 22, is fundedthrough the state’s capital budget. The 2008Environmental Bond bill provided $30 millionover five years for a suite of farm viability initiatives,including the FVEP. Another statute enactedin 2008, the Dairy Farm Preservation Act,expands FVEP Phase II eligibility to owners ofland enrolled in the APR program, provided theimplementation funding improves the economicviability or productivity of the farm, createsadditional jobs and tax revenues, supports onfarmrenewable energy or environmentalremediation projects, or expands and supportsfarm markets and infrastructure that strengthenthe farm industry.Since its enactment in 1996, the FVEPhas provided $13.5 million in assistanceto 278 farmers under the two phasesof the program. 3212American Farmland Trust
Massachusetts’ Investments in Farmland ConservationFarm Viability Enhancement Program: Connecting Farms with ConsumersAt Diemand Farm in Wendell, plans to expand the refrigeration capacity are underway, madepossible by the FVEP. This is the second time the farm has made use of the program; the farmowes its current success in large part, says the Diemand family, to changes made through earlierbusiness planning and funding through the program.Before Diemand Farm enrolled in the FVEP, customers who wished to purchase the farm’s eggswould pick them up from a self-serve outdoor refrigerator on the farm. The farm’s turkey potpieswere popular, but the farm produced only about 50 of them a year. The FVEP grant changed this.Business planning allowed the family to explore the expansion of its product line and the constructionof a farm store. A Phase II grant put the plan into action.Today the farm sells eggs, fresh turkeys and chickens, turkey potpies, soups, ground turkey, fruitpies and cookies, maple syrup, honey and compost. The farm’s store employs one full-time andtwo part-time staff, and production of turkey potpies has multiplied to several hundred a year.Diemand Farm products can now be found in University of Massachusetts dining halls and inthe Cooley Dickinson Hospital café and are available at local grocery stores and through a homedelivery service. Expanding the refrigeration capacity will open the door to further market opportunities,helping the family meet growing demand for its products.Program DemandDemand for the FVEP has been relatively constant.In the past five years, the program received 293applications, 68 of which went unfunded. Whilesome of these applications were deemed ineligible,some would likely have been funded had theresources been available. As older covenantsexpire, many program participants are seekingrenewal contracts to implement other componentsof their viability plan. Since 2004, 25 renewalapplications have been accepted. 33Leveraging Private DollarsAs with any type of business, farm upgrades andexpansions can be costly. The FVEP has helpedleverage bank financing for farm business improvementsand additional farm owner investments.Of FVEP participants to date, 73 percent haveinvested additional funds to complete improvementsdescribed in their viability plans. The totalestimated value of these leveraged funds is overSeventy-three percent of FVEP participantscontribute additional funds to implementtheir viability plans, at an averageof $31,791 per farm. 35Other Farm Viability ProgramsIn addition to the FVEP, a number of smaller programsare funded through the “farm viability”capital account.ACCELERATED CONSERVATIONPLANNING PARTNERSHIPWell-managed farms can provide multiple environmentalbenefits, from carbon sequestration towater filtration to wildlife habitat. While somefarming practices that provide habitat, conservewater or energy, or reduce fertilizer or pesticideuse are inexpensive to implement, others can becomplicated and expensive. Accordingly, severalfederal and state conservation programs havebeen created to help farmers plan for and adoptconservation measures. One such program is thestate’s Accelerated Conservation PlanningPartnership (ACPP), a program that helps farmersidentify the type of conservation practices thatmake sense for their farm.ACPP’s conservation planners provide farmersand other landowners with information aboutstate and federal farm conservation programs.The program has developed conservation plansfor more than 15,000 acres in nine Massachusettscounties, helping to ensure landowner eligibilityfor these programs. Participants in the APR$6 million. 34 13American Farmland Trust
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