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 - agland@acc.pa.net

Sam and Ellen Dayhoff