WHAT IT IS: Landowners voluntarily agree to sell the development rights on their property to a qualified government agency or nonprofit organization that has established a program for acquiring development rights. Landowners do not give up title to the land. Also, they may restrict public access, or sell, give or transfer their property as they desire.

HOW IT WORKS: Landowners who want to sell development rights must apply to a program established to acquire development rights. Called purchase of agricultural conservation easements (PACE), these programs usually are run by public agencies or nonprofit organizations operating locally or at the state level. PACE programs typically are tbund in areas where there is significant pressure to develop land for residential or commercial use. Widespread in the Northeast, PACE programs are increasing in number in other parts of the country, most notably in California.

Most PACE programs follow the same process in evaluating which development rights to acquire or accept as a donation. This process is listed below and is described in further detail in The Conservation Easement Handbook: Managing Land Conservation and Historic Preservation Easement Programs:

1. Tour the property to determine if the property meets the goals of the program. Goals may include improving soil quality, limiting the threat of development and creating a buffer around other protected farms or a critical mass of farms and farm services.

2. Decide whether to acquire or accept the development rights.

3. Advise the owner to consult with legal and tax advisers about drafting a conservation easement. A conservation easement is a legally recorded agreement that permanently or temporarily limits the development of the entire property or specific parts of the property.

4. Compile a baseline data inventory of the property. This should include maps, legal documents pertinent to the easement and an inventory of the agricultural, ecological, manmade and scenic features on the property.

5. Obtain title information.

6. Obtain mortgage subordination.

7. Negotiate the restrictions and draft the document.

8. Obtain a qualified appraisal.

9. Enlist a back-up grantee. (optional)

10. Obtain formal acceptance from the program's authorities.

11. Sign and record the conservation easement.

12. Express appreciation and publicize the agreement.

PACE programs are often funded by bonds. Other sources include general appropriations, real-estate transfer taxes, other special purpose taxes and matching funds from other agencies. Some states have authorized unique funding mechanisms. For example, Pennsylvania uses a small percentage of its cigarette tax to fund its program, and Sonoma County, Califomia uses a percentage of sales tax revenues.

ADVANTAGES: PACE programs help stabilize farmland values and strengthen the future of farming in communities where they are implemented. Because the proceeds from the sale of development rights are usually spent close to home on capital improvements or to acquire additional farmland, these programs help support the local economy. Farmers also use the income from selling development rights to reduce their debt loads, establish funds for retirement or distribute money to heirs. Also, the land remains on local property tax rolls.

EXAMPLE: In Florida, a PACE program was authorized by the Green Swamp Bill. Signed into law in May 1994, this legislation earmarks $30 million to pay landowners the difference between their property's full market and undeveloped values. In exchange, the landowners must agree to create conservation easements that require them to forego future development of their land. This program only applies to agricultural land within Lake and Polk counties. It is administered by the Green Swamp Land Authority.

CONTACTS

(See Appendix A for addresses and phone numbers)

GENERAL INFORMATION ABOUT PACE PROGRAMS:

American Farmland Trust

GENERAL INFORMATION ABOUT GREEN SWAMP BILL: