pdr’s and their affect on land use decisions & ag viability ray dutterer farm
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PDR’s and their affect onLand Use Decisions & Ag
Viability
Ray Dutterer Farm
Land Preservation . . . . . . why does it matter?
Raymond Bream Farm
Natural Resource Systems
Way of life
$0.27$0.36
$1.15
$0.00
$0.25
$0.50
$0.75
$1.00
$1.25
Commercial Industrial
Farm/Forest Residential
LOCAL MUNICIPALITY TAX ADVANTAGES
Cost of Community Services Studies
Graph: Median cost-per dollar of revenueraised -to provideservices to different land uses.
Source: American Farmland Trust, Farmland Information Center, September 2001
PDR’s . . .do they affect land use decisions?• Zoning
• Can zoning be altered? • Is zoning political?
Zoning• Is zoning permanent?
PDR’s . . .do they affect land land use decisions?
• Zoning
• Comprehensive Planning
Adams County Comprehensive PlanWith Preserved Farms
PDR’s. . .do they affect land use decisions?
• Zoning
• Comprehensive Planning
• Permanent vs Temporary decisions
Conservation Easements are the ONLY way to preserve land forever
Eric Keller Farm
Purchase of Development Rights
• Zoning
• Comprehensive Planning
• Permanent vs. Temporary decisions
PDR’s – Do they affect land use decisions?
• Preservation of “view sheds”
Preservation of view sheds. . .. . .what are they worth?
Will there be enough interest?Adams County’s 10,000 Acre Celebration
May 19, 2002
Applications Received by RoundAdams County Agricultural Land
Preservation Program
12,187 Acres Preserved (County program)
Preserved Lands of Adams County
1,338 Acres Preserved (Land Trust)
13,000 Acres of Outstanding Applications
Why would landowners want to preserve their land?
•Financial Incentive
What is an easement worth?Fair Market Value $ 10,000 / Acre Farmland Value - $ 6,000 / Acre Easement Value $ 4,000 / Acre
Pennsylvania Easement ValuesRange from $600 to $15,000 / Acre
Adams County Easement ValuesRange from $1,025 to $ 11,400 / Acre
Adams County ValuesFair Market Value
Ranges from $2,149 to $12,920
Agricultural ValueRanges from $960 to $2,000 / Acre
Easement ValueRanges from $1,025 to $ 11,400 / Acre
Easement Value actually paidRanges from $1.00 to $2,637
Why would landowners want to preserve their land?
•Financial Incentive
•Business Expansion
Business Expansion Hess Family Farms
Two farms preserved in 1991 & 1995
Expansion took place 1995-97
Why would landowners want to preserve their land?
•Financial Incentive
•Business Expansion
•Estate Planning
Estate PlanningThe Lobaugh Family
Why would landowners want to preserve their land?
•Financial Incentive
•Business Expansion
•Estate Planning
•Debt Repayment
Debt Repayment Easement sold in 1993 = $
1,464/acre Farmland Value (1993) = $
1,334 /acreSold in 2003 to repay debt = $
4,690/acre* (with easement in place)
Rhoades Dairy Farm
* This figure represents subtracting$30,000 for the value of the buildings
Why would landowners want to preserve their land?
•Financial Incentive
•Business Expansion
•Estate Planning
•Debt Repayment
• Bankruptcy
Bankruptcy SaleEasement sold in 1998 = $
1,297/acreFarmland Value (1998) = $
1,035/acre Public Sale in 2000 = $
1,630/acre *
• This figure represents subtracting $80,000 for the value of the buildings Hartlaub Farm
What is the value of
the land “After the Fact” ?
Sales of Preserved FarmsAdams County, PA
Example #1
Easement (9-21-99) Resale (2-1-00)
(Easement = $218,356)
Ag Land Value: $ 1,645/acre Sold for: $ 3,886/acre x 127 acres x 127 acres
$ 208,915 $ 493,522
+ $ 383,056 * $ 591,971
* Value of buildings at time of easement Notes: Farm set up for horses – sold to Hanover Shoe Farms Easement + Sale = $711,878 ($5,605/acre)
(“Loss” of $ 775/acre)
Sales of Preserved FarmsAdams County, PA
Example #2
Easement (6-13-95) Resale (6-19-00)
(Easement = $ 77,118)
Ag Land Value: $ 1,200/acre Sold for: $ 2,671/acre x 33 acres x 33 acres
$ 39,600 $ 88,143 + $ 0 * $ 39,600
* No buildings Note: Public (Estate) Sale & was a part of land restricted by NPS
(Gain of $1,471/acre)
Is an easement right for you?
This decision needs to bebased on 2 things:
1 – Is it a good business decision?
2 – Do you truly believe in preserving your land?
Ellen T. Dayhoff, DirectorAdams County Agricultural Land Preservation Board
670 Old Harrisburg Rd – Suite 100 Gettysburg, PA 17325
717-337-5859 - [email protected]
Sam and Ellen Dayhoff