gaining access to quality farmland - ct nofa home started/kolesinskas - farmland.pdf · gaining...
TRANSCRIPT
Gaining Access to Quality Farmland
Getting Started in Organics Conference January 26, 2013
Kip Kolesinskas, Conservation Scientist
Funding provided by:
How Can I find Farmland to rent or own?
Land in the family Privately owned –unprotected Privately owned- protected Land Trust owned Municipal owned State owned Water Company/Utility owned Bring new land into production
Accessing Land in the Family
Estate Planning needs Transferring business/land to the next
generation Use of Farmland Protection Use of Lease Agreements
Landowner Rights • The right to build
• The right to cut trees
• The right to hunt
• The right to cultivate
• Etc.
Agricultural Easement • A Conservation Easement is a deed
restriction that landowners voluntarily place on part or all of their land
• An Agricultural Conservation Easement is specifically designed for agricultural land.
Agricultural Easement (continued)
• An Agricultural Easement is designed to protect interests, including: – The interests of the farmland owner
(both current and future); and – The interests of the easement holder
(state agency, federal agency, municipality, or land trust).
• Protects the agricultural value and productivity of the land
• Limits non-farm development
• Limits subdivision
• Includes flexibility to allow farm to adapt to changing economic conditions
Agricultural Easement (continued)
Farmland Protection Programs in Connecticut 1. Connecticut State Farmland Preservation
Program
2. Connecticut Joint State-Town Farmland Preservation Program
3. Connecticut State Open Space & Watershed Land Acquisition Grant Program
4. Connecticut Community Farms Pilot Program
Farmland Protection Programs in Connecticut (continued)
5. Federal Farm and Ranch Lands Protection Program (FRPP)
6. Grassland Reserve Program (GRP)
7. Other Partners: municipal programs & land trusts
8. Forest Legacy Program
Leasing Farmland to Promote Access to Land and the Agricultural Economy
Cost of Farmland
2010 Farm Real Estate values: (includes agriculture land and farm buildings)
• RI = $13,600/acre • MA = $11,600/acre • CT = $11,500/acre • Northeast = $4,690/acre • National = $2,140/acre
Source: USDA National Agriculture Statistical Service
Cost of Farmland
Trend in Farm Real Estate values: Source: USDA National Agriculture Statistical Service
2006 2007 2008 2009 2010
Connecticut $/acre
12,100 12,700 12,700 12,000 11,500
38% of principal farm operators (defined as the “person primarily responsible for the on-site, day-to-day operation of the farm”) 29% of all farmers
Source: USDA 2010 Census of Agriculture & www.census.gov/compendia/statab/2012/tables/12s0828.xls
Who relies on leased farmland in CT?
Why Lease Farmland?
Cost of purchasing land Opportunity to save money for purchase Opportunity to invest in equipment May be less responsibility, costs Allows participation in state and federal
programs Helps with risk management
Understanding Lessors in CT
Why lease? For what? • Financial Mission & Objectives • Quality of Life •Maintain PA 490 tax rate •Support for agriculture
To whom? • Considerations in Finding a Farmer • Leasing Procedures
For how long? • Tenure Options….
Focus on Private Landowners, Land Trusts & Towns
Financials of Farmland Leasing Estimated benefit to landowner from land stewardship • After 3-5 years of not farming = $1,500/acre or more to return the land to farming • Benefit to landowner is $300-500/acre a year
What is the land worth? • Depends on the variables of the property for lease - length of lease, location, quality of soil, infrastructure (irrigation, storage, etc.) • Depends on market demands for the area the property is located in • Suitability of soils, location in the State
Financials of Farmland Leasing Rates are calculated per acre, per year
Rough estimates of Farmland Leasing Rates • hay/pasture and a short-term lease: $0 - $50/acre (even more for alfalfa hay with a longer-term lease)
• good hayland and land in silage: $0 - $70/acre
• vegetable production in best soils (75-80% prime farmland soils): $0 - $330/acre (top price includes long-term lease and irrigation)
• veg. production outside of River Valley: $0 - $220/acre
•As the ranges above attest, there are many variables to consider!
Sources of Land to Lease or Own Outreach in the Community Land linking Services 1. CT Farmlink 2. New England Farmland Finder 3. New England Landlink NOFA Grange Market Bulletin, Country Folks, etc. Town , State, Land Trust Incubator/ Community Farms
Finding farmland
Evaluating the property Soil suitability –Web Soil Survey Access to water Infrastructure Restrictions in the deed Is it protected?-CT ECO Online Owner restrictions/uses Zoning restrictions Neighbor/adjacent landowner issues Stewardship/restoration needs
Tenure Options
• Short term lease • Long term lease • Rolling lease • Very long term ground lease • Licensing
18 ELEMENTS OF A GOOD LEASE
18 Elements of a Good Lease
1. Identification of the Parties 2. Description of the Property 3. Durational Terms of the Lease 4. Rent or Payment 5. Taxes 6. Utilities 7. Uses of the Property 8. Entry 9. Maintenance and Repairs
18 Elements of a Good Lease cont.
10. Alterations and Improvements to the Site 11. Stewardship Guidelines 12. Additional Limits/Restrictions on Farm
Practices 13. Subletting 14. Default Provisions 15. Security Deposit 16. Monitoring/Reporting 17. Insurance/Liability 18. Condemnation/Casualty Loss
Lessor complaints:
• Farmer fails to pay rent on time
• Inadequate stewardship practices
• Failure of farmer to maintain structures
• Under-utilization of fields by tenant
• Concern about creating unfair competition with local farmers if tenant farmer comes from outside the community
Farmer complaints:
• Lessor does not understand agriculture
• Lack of designated person or commission to make timely decisions about lease issues
• Maintenance issues – access gates, delays on road clearing, or possibly damage from utility work
• Damage from vandalism and poaching
To download the Farmland ConneCTions Leasing guide: http://www.extension.uconn.edu/
To download a copy of the Land for Good leasing Guides: www.landforgood.org
Opportunities for Restoration/Investment
Up to 250 farms may be served with priority given to (1) fruit & vegetable, (2) livestock & dairy, (3) other uses. Requires: increase farm resource base match for up to $20K conservation/restoration plan one year to complete activity
PUBLIC Act 11-1.
Restoration activities include, but not limited to: • clear and remove trees, stumps, brush or stones • install resource protection fencing • water resource management • restore shellfish beds or aquaculture ponds • remove invasive plants and hedgerows
multiflora rose
Autumn olive
Beltane Farm, Lebanon: clearing farmland soils for expansion of goat pasture for dairy
Additional CT Department of Agriculture Funding $$ for Farm Viability
• Connecticut Agriculture Viability Grants • Connecticut Farm Reinvestment Grants Program • Connecticut Farm Transition Grants • Environmental Assistance Program Visit: www.ctgov/doag
Additional Resources Cont. • Environmental Quality Incentives Program
&Technical Assistance – USDA/Natural Resources Conservation Service
• UConn Cooperative Extension Specialists • CT Agricultural Experiment Station • CT Conservation Districts
Assistance to new and beginning farmers on
land evaluation, rental and leasing: Contact [email protected]
Visit http://www.extension.uconn.edu/ and click on the link to “Farmland ConneCTions” to access the publication-Farmland ConneCTions: A Guide for Connecticut Towns, Institutions and
Land Trusts Using or Leasing Farmland
