Farms for the Future: Massachusetts - American Farmland Trust

Massachusetts’ Investments in Farmland Conservation· The 2002 Census of Agriculture data reportthat, from 1997 to 2002, the total acreageof land in farms in Massachusetts declinedannually on average by nearly 12,000 acres.The Census does not indicate whether or notthis land has been developed. Like the 2003Annual NRI data, more recent estimates fromthe National Agricultural Statistics Servicesuggest that the rate of land leaving agriculturalproduction may be abating. 15 New 2007Census data are expected in February 2009.· There are significant regional variations infarmland loss. The 2002 Census reports thatPlymouth County saw the largest drop inland in farms from 1997 to 2002, with a27 percent decline in farm acreage. Bristol,Hampden, Hampshire and Worcester countieseach experienced more than a 10 percentdrop in farm acreage.Farmland AffordabilityThe Commonwealth’s shrinking base of workinglands has enormous repercussions for a naturalresource-based industry whose profitabilitydepends on a stable source of productive land.Competing demands on farmland for housing andcommercial development have dramaticallyincreased farm real estate values over the pastdecade from $6,200 per acre in 1997 to $12,200per acre in 2008. 16 While the escalating value offarmland represents a valuable asset on the farmbalance sheet and a vital nest egg for retiringfarmers, it is also making it increasingly difficultto establish or expand a farm operation.The average per-acre farm real estate valuein Massachusetts is $12,200, the highestin the country. 17Farmers across Massachusetts rely on rented land.According to the 2002 Census of Agriculture,109,000 acres of land in farms in the state arerented or leased by farmers from non-farminglandowners. 18 While the Census does not indicatewhat type of land this is, assuming it islargely cropland and pasture land, rental landwould account for over 40 percent of theCommonwealth’s total land in crops or pasture.Land owned by non-farming landowners can beespecially vulnerable to conversion to nonagriculturaluses, especially if passed on to heirswho have little connection to either the land or tothe farmer working it.Farm Expenses and IncomeMassachusetts farmers pay over $360 millionannually in production expenses. Farm expensesin the Commonwealth have risen sharply in thepast decade. From 1997 to 2002, average productionexpenses increased by a staggering27.5 percent. Partially as a result of risingexpenses, the same five-year period saw a steepdrop in net farm income, from an average perfarm of $24,000 to an average of $11,000. Morerecent estimates suggest a upward turn in net farmincome—from $94 million in 2002 to $131 millionin 2005—but a continued escalation of farminput costs such as feed and energy. 19The average per-acre property tax paid byMassachusetts farmers is the fourth highestin the nation. 20Several factors contribute to the high costs offarm production expenses in the Commonwealth.Because of agriculture’s dependence on fuel, highenergy costs have a significant impact on farming.Massachusetts ranks eighth in the U.S. for overallenergy prices, which are 30 percent higher thanthe national average. 21 Rising land values havealso contributed to higher expenses. Land renthas increased—from 1997 to 2002 the per farmaverage increased by 20 percent while the numberof renters paying $10,000 or more annually increasedby 38 percent. Property taxes, too, havehad an impact.High production expenses have encouragedMassachusetts farm businesses to develop retailmarket opportunities and value-added products tomaintain profitability. As a result, the state’s farmslead the way in the growing direct-to-consumermovement. In fact, Massachusetts ranks first inthe nation for the value of direct market sales perfarm, at $24,900—over 2.5 times that of the U.S.average. Worcester County ranks fourth among allcounties in the U.S. for the value of direct sales ofagricultural products to consumers, at nearly$5 million. 22American Farmland Trust5