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PDR’s and their affect on Land Use Decisions & Ag Viability Ray Dutterer Farm
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Land Preservation...... why does it matter? Raymond Bream Farm Natural Resource Systems
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Way of life
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LOCAL MUNICIPALITY TAX ADVANTAGES Cost of Community Services Studies Graph: Median cost -per dollar of revenue raised -to provide services to different land uses. Source: American Farmland Trust, Farmland Information Center, September 2001
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PDR’s...do they affect land use decisions? Zoning
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Can zoning be altered? Is zoning political? Zoning Is zoning permanent?
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PDR’s...do they affect land land use decisions? Zoning Comprehensive Planning
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Adams County Comprehensive Plan With Preserved Farms
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PDR’s...do they affect land use decisions? Zoning Comprehensive Planning Permanent vs Temporary decisions
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Conservation Easements are the ONLY way to preserve land forever Eric Keller Farm Purchase of Development Rights
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Zoning Comprehensive Planning Permanent vs. Temporary decisions PDR’s – Do they affect land use decisions? Preservation of “view sheds”
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Preservation of view sheds......what are they worth?
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Will there be enough interest? Adams County’s 10,000 Acre Celebration May 19, 2002
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Applications Received by Round Adams County Agricultural Land Preservation Program
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12,187 Acres Preserved (County program) Preserved Lands of Adams County 1,338 Acres Preserved (Land Trust) 13,000 Acres of Outstanding Applications
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Why would landowners want to preserve their land? Financial Incentive
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What is an easement worth? Fair Market Value $ 10,000 / Acre Farmland Value - $ 6,000 / Acre Easement Value $ 4,000 / Acre Pennsylvania Easement Values Range from $600 to $15,000 / Acre Adams County Easement Values Range from $1,025 to $ 11,400 / Acre
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Adams County Values Fair Market Value Ranges from $2,149 to $12,920 Agricultural Value Ranges from $960 to $2,000 / Acre Easement Value Ranges from $1,025 to $ 11,400 / Acre Easement Value actually paid Ranges from $1.00 to $2,637
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Why would landowners want to preserve their land? Financial Incentive Business Expansion
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Hess Family Farms Two farms preserved in 1991 & 1995 Expansion took place 1995-97
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Why would landowners want to preserve their land? Financial Incentive Business Expansion Estate Planning
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The Lobaugh Family
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Why would landowners want to preserve their land? Financial Incentive Business Expansion Estate Planning Debt Repayment
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Easement sold in 1993 = $ 1,464/acre Farmland Value (1993) = $ 1,334 /acre Sold 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
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Why would landowners want to preserve their land? Financial Incentive Business Expansion Estate Planning Debt Repayment Bankruptcy
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Bankruptcy Sale Easement sold in 1998 = $ 1,297/acre Farmland 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
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What is the value of the land “After the Fact” ?
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Sales of Preserved Farms Adams 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)
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Sales of Preserved Farms Adams County, PA Example #2 Easement (6-13-95)Resale (6-19-00) (Easement = $ 77,118) Ag Land Value: $ 1,200/acreSold 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)
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Is an easement right for you? This decision needs to be based on 2 things: 1 – Is it a good business decision? 2 – Do you truly believe in preserving your land?
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Ellen T. Dayhoff, Director Adams 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
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