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Various incentives are available to compensate private
landowners for entering into Farmland Stewardship Agreements.
A
cash payment program
will provide funds up front in a lump sum or annually from federal, state or local government agencies or private land
trusts. These fees will be based on the market value of each
"service" rendered, on the quality or rarity of the resource under
management, or the quantity of benefits provided, with higher fees for greater
benefits that can be quantified. These values will be determined and set
by the Secretary of Agriculture.
Funds come from:
- Existing programs that can be combined into the Farmland Stewardship Agreement.
- Existing programs that currently cannot not used in a
given state or area because of various limitations that could be addressed by the
Farmland Stewardship Agreement.
- Use of existing funding sources to pay for services
undertaken to advance public health, safety and welfare and protect the environment.
- New funding appropriated at the federal, state or local levels to carry out Farmland Stewardship Agreements.
Also being considered as a compensation tool are federal tax
incentives, including:
- Federal income tax deductions based on per acre stewardship
fees.
- Federal income tax deductions on state and local taxes for
properties under Farmland Stewardship Agreements.
- Immediate 100% relief from federal estate taxes for property remaining
in agricultural or forest production and subject to a Farmland Stewardship Agreement.
- Exclusion of the gain from sales of land remaining in
agriculture or forestry production and subject to a Farmland Stewardship Agreement.
Several
other incentives are being
eyed. Among them are:
- Priority processing of permits from state and local
agencies;
- Consolidation of permits from state and local
agencies into a single operating plan;
- Extended-duration permits from state and local
agencies;
- Enhanced eligibility and priority listing for
participation in cost-share programs, loan programs, conservation programs
and permanent conservation easement and/or public purchase programs;
- Priority access to technical assistance services
provided by federal and, where possible, local, regional and state agencies;
- Guaranteed receipt, use and discharge of water at specified volumes
throughout the term of the agreement;
- Combining all permits and regulatory requirements into the
agreements "farm operation document" so the document can
become a
comprehensive operating plan satisfying permits, regulations and requirements
from all governmental entities or participating entities for the duration of the
agreement, and
- Using the Farmland Stewardship Agreement as a
vehicle to
consolidate all conservation plans, cost-share programs, best management practices and
conservation programs.
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