Thursday, January 15, 2009

Purchase of Development Rights

Jim Goldsmith (Juneau County UWEX) recently asked about information on the Purchase of Development Rights (PDR). I believe the Town of Dunn was the first municipality to start a PDR program in Wisconsin. More information is available at:
http://town.dunn.wi.us/PurchaseofDevelopmentRights.aspx

Bill Rizzo or Mindy Habecker (Dane County UWEX) might have some additional information. Brian Ohm in URPL would be another good contact.

The Gathering Waters Conservancy also has a list of Wisconsin Counties that have, or are thinking about starting a PDR program. See:
http://www.gatheringwaters.org/policy_pdr_local.php

14 comments:

Andy said...

Jim:

I've been working with a professor in the law school and his class on this issue and after you've exhausted Andy's good suggestions, and if you are still in need, call me and I'll see if there is anything I can do to connect with him in addition.

Greg


Greg Wise
Professor and Community Development Specialist Director, Center for Community & Economic Development University of Wisconsin-Extension
333 Lowell Hall, 610 Langdon Street
Madison, WI 53703-1104
Tel: 608-263-7804 Fax: 606-263-4999
greg.wise@uwex.edu
http:/www.uwex.edu/ces/cced

Andy said...

For anyone interested in this topic, stay tuned for Working Lands workshops. In December, the Towns Association completed a working lands series. The link to Wisconsin Eye has an archive to watch or listen on working lands. http://www.wisconsineye.org/wisEye_programming/ARCHIVES-dec08.html#evt_081216_wis_towns_1

Below are tentative dates for this year sponsored by a variety of organizations.
I believe at each session, there will be a speaker from American Farmland Trust and from DATCP among others.
When I see registration for these appear, I will make sure to send them on.

February 4 - Rock County
February 5 - Glacial Lakes
February 6 - Oneida Nation (by invitation only) February 7 - WI Farmers Union (panel discussion and breakout session instead of workshop) February 24 - Natural Heritage Land Trust and Capital Area RPC February 25 - Tall Pines and Drumlin (morning) February 25 - Dodge County (pm/evening) February 26 - Racine and Kenosha (morning) February 16 - Ozaukee County (afternoon) March 11 - West Central RPC March 12 - Marathon and Lincoln

Anna

Anna Haines
Center for Land Use Education
800 Reserve Street
College of Natural Resources
University of Wisconsin, Stevens Point
Stevens Point, WI 54481
715.346.2386
ahaines@uwsp.edu
www.uwsp.edu/cnr/landcenter/

Andy said...

Jim,
The state has been considering a Purchase of Agricultural Conservation Easements (PACE) program along with changes to the Farmland Preservation program. I would suggest checking out the Working Land Initiative page on the DATCP website for updates: http://www.datcp.state.wi.us/workinglands/index.jsp.

Within Extension, Mike Koles (CRD) and Greg Blonde (Ag) from Waupaca County have been particularly active in this area helping to organize several land use tours to view similar programs out East.

The Wisconsin Towns Association and other partners recently hosted a number of Working Lands Workshops around the state. The WTA website includes a link to powerpoint presentations and full coverage of one of the workshops by WisconsinEye: http://www.wisctowns.com/

Becky


Rebecca Roberts
UWEX Center for Land Use Education
College of Natural Resources
University of Wisconsin, Stevens Point
800 Reserve Street
Stevens Point, WI 54481
715-346-4322
rroberts@uwsp.edu

Andy said...

I suspect what you're looking for is an organization willing to accept the donated--or be able to purchase the--development rights from Mr.
Farmer, right?

That's a tough one if no such organization exists in your area. I suspect by now you know that AFT has purchased development rights, but whether this would be a priority is something to investigate.

It's important for Mr. Farmer to understand that right now for farmers (and non-farmers), the federal tax advantages are extremely favorable for the donation of development rights to a qualified land trust.
Basically, he can deduct 100% of his Adjusted Gross Income from his federal tax return for up to 15 years or until the value of the easement is exhausted. Gathering Waters of Wisconsin would have resources in detail about this federal tax provision. It would take a person very motivated to protect his/her land from development, but in the conservation world there are many such people, so why would farmers be any different?

Again, however, he needs a "receiving organization" like a land trust to make this transaction a possibility, so check with Gathering Waters about possible land trusts that might operate in your area.. In some cases if the land has significant natural values, Wisconsin DNR has been that organization. An example of a very large national land trust interested in conservation values is The Nature Conservancy, but they have very specific, targeted sites they work in.

Good luck.

John

John Exo
Natural Resources Educator
UW-Extension, Lower Wisconsin River Basin
505 Broadway
Baraboo, WI 53913

608.355.3554
608.355.3550 (fax)
john.exo@ces.uwex.edu
http://basineducation.uwex.edu/lowerwis/

Andy said...

Phil Harris here in AAE and a ANR farm law specialist was on the Town of Dunn's development rights committee and has first hand knowledge of how it was implemented.

Steven C. Deller
Professor and Community Development Economist Department of Agricultural and Applied Economics
521 Taylor Hall --- 427 Lorch Street
University of Wisconsin-Madison/Extension Madison, WI 53706
608-263-6251
"Conformity can be costly in a world of uncertainty"
Nobel winning economist Douglass North

Anonymous said...
This comment has been removed by a blog administrator.
Anonymous said...

Hi Jim and Craig,

It is really tough to find funding to do one individual transaction of purchasing development rights from a farmer to preserve farmland. In Wisconsin, I believe most PDR transactions have happened within an established program, eg. Town of Dunn's Farmland Preservation Program, Town of Bayfield's Farmland Preservation Program. Partly because the 50% funding everyone uses (Federal Farm and Ranch Protection Program from the Farm Bill) is set up to fund programs that: have established criteria, found a local match and show the capacity to monitor the properties annually. Once the local program is set up, you can apply for funding for an individual farm to the FRPP grant program (administered by Carl Wacker at NRCS in Madison).

So, if there is interest in Juneau County in setting up a local or regional PDR program, then this farmer could be the first to apply.

We found in the Town of Bayfield, that it is valuable for the local unit of government to partner with a land trust. This partnership brings the real estate experience of the land trusts to the deal and makes it a stronger program.

The proposed Working Lands Initiative includes establishing a grant fund for local farmland preservation (PDR) programs. To be eligible, the county must have an updated Farmland Preservation Plan. There may be other requirements as the program is developed. It may be tough to get money to start up this fund in the next budget, so there are many unknowns at this point.

For more information on FRPP funding
http://www.wi.nrcs.usda.gov/programs/fpp.html
Town of Bayfield farmland Preservation Program http://www.brcland.org/projects/Bayfield%20Farmland%20Preservation%20Pro
gram.pdf
Town of Dunn's comprehensive website
http://town.dunn.wi.us/PurchaseofDevelopmentRights.aspx

Ruth Oppedahl
Lake Superior Basin Educator for Natural Resources Cooperative Extension-University of Wisconsin-Extension Northern Great Lakes Visitor Center 29270 County Highway G Ashland, WI 54806
Tel.: 715-685-2676

Anonymous said...

The Spring 2007 and Summer 2007 editions of the Land Use Tracker also contain a number of articles on the Wisconsin Working Lands Initiative and PDR/TDR programs used in Wisconsin and other states.

http://www.uwsp.edu/cnr/landcenter/newsletterstracker.html

Rebecca Roberts
Rebecca.Roberts@uwsp.edu

Anonymous said...

Hi Jim,

To answer your immediate question:

I'm guessing Juneau County doesn't have a Purchase of Development Rights Program, or as DATCP likes to call it, a PACE Program. So, the best bet is to work with a Land Trust. Again, I don't know if there is a Juneau Co. Land Trust. I looked on the Gathering Waters Website and found this list: http://www.wiatri.net/projects/landtrusts/countyresult.cfm?ID=56 However, that's the list for Sauk County because only one land trust, the Prairie Enthusiasts were listed under Juneau Co. From the name, I have to wonder if they'll be helpful with ag land preservation. Sometimes land trusts will go out of there area if requested.


However, purchase of development rights programs are not the only way to help farmers keep land in production. The new farmland preservation program is being proposed the second week of Feb. I don't have much information, it will be in the new budget. DATCP keeping it under wraps. But I do know there will be an increase in the $ provided to producers in the program. Not much of an increase, but an increase. And there is the possibility of funds available for local government PACE programs.

Other tools are available. I'm not sure what the land owner's concerns are. If financial, selling development rights, and tax breaks are helpful. Some counties will allow landowners some flexibility in siting development. This could allow the land owner to sell a few small lots, and keep the rest in ag.

If his concern is more social, say road safety, or neighbor complaints, there are a slew of educational material to help him/her deal with new neighbors.

I'd be happy to answer more questions, give me a call if you'd like: 715-425-3083

Coach Andresen said...

I think this (the blog vs. e-mail)is a good idea (as you can see from my signature I use this for my soccer team)- but I've found that lots of people don't like to take the extra time to go to a log-in (or if they're like me, they forget their user-name and password if they don't use it often enough). With the popularity of Facebook, using the "group" option may be another approach.

Anonymous said...

DATCP's Working Lands Initiative has produced a number of proposals for farmland preservation. I think a number of these hinge on the next budget cycle, but summaries of these proposals are available at:

http://www.datcp.state.wi.us/workinglands/index.jsp (look under proposal information sheets).

Matt Kures
GIS State Specialist

Anonymous said...

I serve on a land trust board (West Wisconsin Land Trust) that works
with land owners to place easements on their property to protect it from
any future development....but we do not cover your part of the state.
Rick Gauger is our Executive Director that I cc'd this message to.
Hopefully he can refer you to an organization in your area (Juneau
County) that could help you.

Bob Cropp
UW-Extension Agriculture Agent, Pepin County

Anonymous said...

I would recommend Gathering Waters Conservancy (GW), and Pam Foster Felt. I have copied her on this email, for your convenience. Currently, that particular county (Juneau) is under served by land trusts. We would be happy to assist you from an advising standpoint, but we would have to defer to GW on the holding of any protection agreement.

Richard E. Gauger West Wisconsin Land Trust 500 Main St, Suite 307 Menomonie, WI 54751
Executive Director (715) 235-8850 office (715) 235-8910 FAX (715) 309-8075 cell

Anonymous said...

Everyone talks about selling development rights but I think we should consider leasing the right with long terms and renewal dates. Several reasons for this. Selling the development rights does not keep the price of the land low for the next generation or owner to be able to afford the land and farm it although it does tie it up so it is open lands. So the current owner gets an infusion of money from selling the rights but in 10-20 years when it's time to transfer / sell the land to the next generation the land price will have appreciated even without development rights. Then there is no chest to dig into to help the next generation afford the land. Any lease should have an automatic index tie to the appreciation rate of the land for development. Today the difference between farm/open land and development land might be $5000/acre but in 10-20 years it may be $10,000 so now the land without development rights is worth $7000/acre instead of $2000. That could be more than a farmer can afford and pay for it with the profits from growing a crop on. It may also be easier to get a lease funded because it is less $ up front. My dad has been trying to sell development right to 300 acres in upstate NY and the county and town were having trouble coming up with the funds. They were almost ready to close and suspended the purchase do to the economic down turn. Another reason not to sell is that in 50 years when Mauston has completely surrounded this property, it may be impossible or too expensive or too many urban conflicts to use it for agricultural purposes. So at that time it might be best to allow the lease to lapse. If I were the entity leasing the development rights I would want a 10-20 year window for a lease to lapse because you want to make it harder to develop the land or the land owner to jump out of the lease. We don't want to subsidize land prospectors.

I'm not sure if any one has considered leasing rights but hopefully you can follow my logic. Good luck.

Scott Sanford M.Engr
Senior Outreach Specialist
Rural Energy Program / Focus on Energy