Agricultural Experiment Station, University of Alaska
Abstract
A report submitted to the Department of Natural Resources, State of
Alaska, in accordance with terms of research contract OCTO 1142.Many Alaskans are concerned about the conversion of highly productive
agricultural lands to nonagricultural uses now occurring in the state.
Land on the urban fringes of Anchorage and Fairbanks that once produced
vegetables and grains or supported dairy farms appears most vulnerable
to this conversion. As major population centers grow, residential,
shopping center and industrial land uses displace agriculture because
they render greater returns. This displacement is viewed by some as not
being in society's best interest. Those concerned about the loss of
agricultural lands argue that these lands are some of the best agricultural
lands in the state and are vital to maintaining the agricultural
economy of the state. In addition, it is suggested that their preservation
will help to maintain a much desired way of life and to provide
needed open space.
The state and municipal governments in Alaska have made attempts to
intervene in the land market to slow down or stop agricultural land
conversion. Methods employed to date include tax incentives and the
sale of only the agricultural rights on state or municipal lands. This
report discusses the feasibility of an alternative means of preserving
agricultural lands, namely, the public purchase of development rights
from private landowners. Under this voluntary arrangement, private
agricultural landowners would be compensated for giving up their option to develop their land for nonagricultural purposes.Introduction: Overview, Plan of Report -- Market Failure and the Allocation of Agricultural Land Resources -- Agricultural Land Conversion in Alaska -- Present and Potential Agricultural Development in Alaska: Introduction, Present Agricultural Situation, Agricultural Lands for Future Development, Future Agricultural Development in Alaska -- Purchase of Development Rights: Suffolk County: History, Maryland, New Jersey, Massachusetts and Connecticut, Definition of Development Rights, Strengths and Weaknesses of Development Rights Purchases -- Applicability of a Development Rights Program in Alaska: Introduction, Development Rights Survey in Alaska: Response, Farm Size of Respondents, Interest in Selling Development Rights, Market Values of Cleared and Uncleared Agricultural Lands, Value of Development Rights, Distance from a Population Center, Interest in Selling Development Rights, and Perceived Value of Development Rights -- Economic Size Agricultural Operations -- Potential Costs of a Purchase of Development Rights Program: Other Costs -- Benefits of Development Rights Acquisition: Maintenance of the Local Agricultural Economy, Locally Produced Food, Open Space and Other Public Good Amenities, Removal of Uncertainty -- Other Agricultural Land Control Tools: Comparison of Agricultural Land Preservation Tools -- Summary and Conclusions -- References -- Appendix A: Operation of of Purchase of Development Rights Programs -- Appendix B: Alaska Agricultural Lands Survey -- Appendix C: Additional Comments from Respondents -- Appendix D: Alternative Agricultural Land Control Technique