It�s a common issue in Virginia and just about every other
state: what to do to protect your farm from development or any other
situation that would take it out of production. Sometimes this occurs
because a farmer gets an offer he or she simply can�t refuse. Certainly no
one would deny any farmer the right to make a nice profit, especially if
it�s just before retirement. (Not that farmers ever really retire.)
All too often, however, the life-changing event comes from
a transition issue, not a monetary offer. What does a farmer do when the
kids are grown and settled nicely into non-farm life, especially if the
�kids� currently running the farm are 65 or 70 years old and the farm owner
is 90-plus?
Here in Virginia, agriculture is the very heart of our
economy and has been for 400-plus years. It remains our largest industry �
by far � and few would argue that well-managed farm- and forestlands produce
significant environmental benefits, require little or no public services and
make significant contributions to local economies, tourism, recreation, and
our quality of life.
Even fewer people would dispute the fact that it is
difficult to keep working farmland in production. The most recent
information from the National Resources Inventory (NRI) indicates that,
between 2002 and 2007, Virginia lost 60,800 acres of agricultural land
directly to developed uses. Separate data from the Census of Agriculture
indicate that more than 520,000 acres of land were no longer considered as
working farms during that same 2002-2007 period. Because rural landowners
have much of their equity tied up in their land, they generally have to
choose between selling their land for as much as possible, or holding onto
the land for agricultural uses without the benefit of income from a farm
sale.
The good news, though, is that a
third alternative is available: conservation easements.
A conservation easement is a
voluntary perpetual agreement that restricts non-agricultural uses such as
mining and large-scale residential and commercial development. The landowner
continues to own, live on and use the land. Land under easement may be sold
or passed on to heirs but is bound by the easement restrictions. As an added
bonus, there are generous state tax credits and federal tax deductions
available for landowners who make these easement donations.
As Virginia commissioner of agriculture, I became involved
more than two years ago in a project designed to increase the amount of
working farm- and forestland permanently protected from development. While
recent data from the Virginia Department of Conservation and Recreation
indicate that 66 percent of the 75,025 acres that received land-preservation
tax credits in 2011 was in production agriculture or active forestry, I felt
that additional work was needed. So we pulled together a diverse group of
agricultural and conservation representatives to work with the Virginia
Outdoors Foundation (VOF), the largest conservation easement holder in
Virginia.
Our goals were simple: to develop a conservation easement
tailored to working farms to increase the number of landowners who take
advantage of conservation easements and the tax benefits that may result.
Because of this collaborative effort, VOF now offers a new working lands
variant to its existing conservation easement. This provides a wider range
of allowable uses without approval on a given farm; gives farmers more
leeway in building new farm structures; and still maintains its core
function of keeping the farm free from development.
Considering whether a conservation easement is right for
your family and your farm is a big decision. It is something my family and I
are considering right now for our farm in Rockingham County. I do understand
that a conservation easement is not always the best option for everyone, but
regardless of how this decision plays out for my family, I feel strongly
that the donation of a conservation easement warrants serious consideration
by other working farm and forest landowners in Virginia. If we can help farm
owners make that decision, we are ready and eager to do so.
I strongly encourage Virginia farm owners interested in
permanently protecting their land to contact our Office of Farmland
Preservation (OFP). Our OFP coordinator, Kevin Schmidt, is available to
answer questions and to provide additional information. You may call him at
(804) 786-1346, or email him at [email protected].
Matt Lohr serves as Virginia�s 14th Commissioner of
Agriculture and Consumer Services, appointed by Gov. Bob McDonnell on May 1,
2010. He and his family operate Valley Pike Farm, a 250-acre commercial
poultry, beef, crops, and agri-tourism operation served by Shenandoah Valley
Electric Cooperative.
