Desirability, Challenges, and Methods of Protecting Farmland

Land Economics/Use, Q24, Q28, R14,

DO AGRICULTURAL PRESERVATION PROGRAMS AND PREFERENTIAL PROPERTY TAX PROGRAMS AFFECT FARMLAND CONVERSION?

This paper examines the impact of having a preservation program on the rate of farmland loss for a 50 year period (1949-1997) in six Mid-Atlantic States: Delaware, Maryland, New York, New Jersey, Pennsylvania, and Virginia. Because farmland loss is affected by changing agricultural profitability, demand for land for non-agricultural purposes, and farmers' alternative employment opportunities, we include variables to control for these factors as well. Because a high rate of farmland loss may actually be the reason a county or state begins a preservation program, we need to determine if this endogeniety is causing biased and inconsistent results. If farmland preservation programs are only in counties with a high rate of farmland loss, then we need to establish what might have been the farmland loss rate if the program had not existed to determine if the program is having an impact.Agricultural and Food Policy, Land Economics/Use,

Foreword: Special Issue on Invasive Species

Resource /Energy Economics and Policy,

Does Targeting a Designated Area Crowd out the other Preservation Programs’ Efforts?

Maryland has introduced a number of land preservation programs over the past 40 years to permanently preserve resource lands. Although new programs can increase the number of acres being preserved, they might have unintended impact on land preservation due to interaction with existing land preservation programs. The Maryland Rural Legacy program began in 1997 by designating large contiguous blocks of land and focusing its preservation efforts only in those areas. The program’s could attract existing programs to shift their preservation effort into this designated rural legacy areas if there exist economy of scale or they subsidized existing programs’ effort through matching funds. Alternatively, it could crowd out the others’ preservation efforts in these areas if the RL program raises the cost of preserving there. Using parcel level data and a property score matching method, we find: 1) parcels in designated RL areas are more attractive to preservation programs, 2) the RL program crowds in the preservation effort of the other programs, and 3) RL program preserves more parcels and acres of land in these areas due to increased funding.Crowding effects, Designated preservation areas, Land preservation, Agricultural and Food Policy, Environmental Economics and Policy, Land Economics/Use, Resource /Energy Economics and Policy, Q18, Q24, Q28, Q58,

LANDOWNER DECISION MAKING ABOUT RIPARIAN BUFFERS

A two-stage model is used to examine a landowner's decision to use riparian buffers. First, the farmer chooses whether to continue farming or to sell the land for development. If the farmer continues farming, then he or she must decide whether or not to plant a buffer. If the farmer plants a buffer, he or she must choose its type: trees or grass. Simulations of a representative farmer determine the parameters and parameter values that affect each decision. The farmer chooses to plant a buffer unless the net crop price is high or the land rental rate is low. The choice of buffer type is affected by crop price, farm size, relative incentive payments, relative cost share rates, and amount of deer damage.agricultural land-use, Conservation Reserve Enhancement Program, environmental policy, land-use, riparian buffers, Land Economics/Use,

FOREWORD: The Economics of Land Use Change: Advancing the Frontiers

Agricultural and Food Policy, Community/Rural/Urban Development, Environmental Economics and Policy, Land Economics/Use, Research Methods/ Statistical Methods, Resource /Energy Economics and Policy,

A RELATIVE EFFICIENCY ANALYSIS OF FARMLAND PRESERVATION PROGRAMS

While agricultural land preservation programs seek to maximize number of acres, to preserve productive farms, to preserve contiguous farms, and to preserve threatened farms, they are often evaluated solely on the number of acres preserved. Using a Farrell efficiency analysis, preserved parcels in four Maryland counties were evaluated for all four goals. Comparisons are made between program Econometric analysis used these efficiency measures as dependent variables. Parcel size and productive farms were the most frequently used criteria to determine efficiency. In addition, purchase of development right programs were most successful in trading off objectives.Land Economics/Use,

CAPITALIZATION OF FARMLAND PRESERVATION PROGRAMS INTO FARMLAND PRICES

This paper examines whether permanent farmland preservation programs are capitalized into farmland prices. We consider the landowner's decision to voluntarily participate and correct for sample selection bias in our estimation of sales prices. Initial results suggest development restrictions resulting from participation in these programs are fully capitalized into farmland prices.Demand and Price Analysis, Land Economics/Use,

Gauging Support for Innovative Farmland Preservation Techniques

This paper describes four innovative farmland preservation techniques and gauges support through interviews of key stakeholders: program administrators, lawmakers, and landowners. Four techniques were selected for assessment from approximately 30 novel techniques: rights of first refusal; term conservation easements; land preservation tontines; and agricultural conservation pension. Rights of first refusal was the most favored, although respondents thought effective implementation would need targeting of land and a dedicated funding source. Agricultural conservation pension was also viewed favorably, although considered administratively difficult to implement. Tontines were perceived to be an interesting concept, but confusing, difficult to implement, and ill-defined. Term easements were viewed unfavorably because they did not preserve land permanently.Land Economics/Use,

GETTING THE MOST FOR OUR MONEY IN FARMLAND PRESERVATION

This paper looks at the design and operation of the main program in Maryland, the Maryland Agricultural Land Preservation Fund (MALPF). We examine the features of the program in comparison to possible alternative designs. Our broader purpose is to examine the nature of farmland preservation and the implications for how to best design farmland preservation programs.Agricultural and Food Policy,