2006 Report to the General Assembly

North Carolina Agricultural Developmentand Farmland Preservation Trust Fund

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Between 2003 and 2006, North Carolina lost

5,500 farms and 300,000 acres of farmland, which is equivalent to losing an entire county.* Th is has put a strain on our county budgets, our local and state economy, our natural resources, and threatens our agricultural heritage. We need to protect the foundation of North Carolina’s #1 agribusiness industry from shortsighted conversions to other uses.* (USDA-2006)

North Carolina Agricultural Developmentand Farmland Preservation Trust Fund

ContentsADFP Advisory Committee ......................................................3Background ................................................................................4Why preserve Farmland? ..........................................................52006 Pilot Project .....................................................................6

Johnston County Soil & Water Conservation District ................ 8Polk County Farmland Preservation Board .................................. 9Th e Southern Appalachian Highlands Conservancy .................. 10Southwestern NC RC&D Council ................................................ 11

Education and Outreach .........................................................12Budget ......................................................................................14

Photo credits:Front cover, Top & lower left: Lisa Brockmeier, NCDA&CS; lower center: Photos.com; lower right: Mark Daniels.Back cover: Mark DanielsDesign: Lisa Brockmeier

“You’ve got people moving in from New York, the northern states, and it looks like they are all coming to the Carolinas. Another twenty years where will our agricultural land be?”--Harold Wright, Bladen County Farmer, 2006 Small Farmer of the Year, From Fertile Ground, The Rural Center.

Chairman Steve Troxler,Commissioner of Agriculture

Bruce Andrews, N.C. Department of Commerce

Andrew Branan, N.C. Farm Transition Network

Gerry Cohn, American Farmland Trust

Jimmy Gentry, N.C. State Grange

Billy Guillet, N.C. Rural Economic Development Center

William Holbrook, Haywood County Farmer(Appointed by the President Pro Tempore of the Senate)

Jane Iseley, Alamance County Farmer(Appointed by the Speaker of the House)

Dr. Ed Jones, N.C. Cooperative Extension Service, N.C. State University

Paul Myer, N.C. Association of County Commissioners

Edgar Miller, Conservation Trust for North Carolina

Erica Peterson, N.C. Agribusiness Council

Don Rawls, N.C. Association of Soil & Water Conservation Districts

Gilistine Richardson, Black Farmers & Agriculturalists Association

Robert Slocum Jr., N.C. Forestry Association

Jackie Th ompson, Wake County Farmer(Appointed by the Governor)

Dr. Alton Th ompson, School of Agriculture & Environmental Sciences, N.C. A&T State University

Manly Wilder, N.C. Division of Soil & Water Conservation

Steve Woodson, N.C. Farm Bureau

ADFP Advisory CommitteeFor a discussion of how the Advisory Committee is selected, please see page 15

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The original Farmland Preservation Trust Fund was established

in 1986 by the General Assembly. Funding was not provided until 1998, when the legislature appropriated $250,000 for acquisition of agricultural conservation easements in North Carolina. Th e Conservation Trust for North Carolina was contracted at this time to administer the program.

Background

Funding

Between 1998 and 2004 the Farmland Preservation Trust Fund was allocated a total of $2.65 million, preserved 33 farms on more than 4.7 thousand acres and leveraged private, county and federal funds worth $26 million. In September 2005, the General Assembly passed House Bill 607, establishing the North Carolina Agricultural Development and Farmland Preservation Trust Fund (ADFP). Th is legislation established a 19-member Trust Fund Advisory Committee to advise the Commissioner of Agriculture on the prioritization and allocation of funds, the development of criteria for awarding funds, program planning, and other areas of growth and development relating to farming in North Carolina. Th is bill also broadened the mission of the trust fund to include three grant priorities: • conservation easements (permanent easements)• agricultural agreements (term easements)• sustainable or viable agriculture programs Th e ADFP Trust Fund received a $50,000 appropriation in 2005, of which $44,000 was designated by the ADFP Advisory Committee for pilot projects. Th e ADFP Trust Fund received no appropriations in 2006.

1999-2000

1998-1999

2000-2001

2001-2002

2002-2003

2003-2004

2005-2006

2004-2005

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

“We’ve got to worry about all the development occurring on our farmlands around the inner banks and eastern North Carolina and in the mountains. We need a policy so we can protect farmland from tax and ownership problems.--Johnny Wynne, Dean, NCSU College of Agriculture and Life Sciences, From Fertile Ground, The Rural Center

Why preserve Farmland?

#1 Industry in North CarolinaNorth Carolina agriculture is the foundation that supports the $68 billion agribusiness industry. Th e ADFP Trust Fund plans to sustain the agricultural economy by preserving the lands that produced these commodities for the economy. Th e success of the program will maintain farm family income, retain agriculture-related jobs and increase public awareness about the importance of farm families to North Carolina’s economy.

North carolina accounts for:

• 71.5% of all U.S. fl ue-cured tobacco production• 37.8% of all U.S. sweet potatoes production• 21.2% of all U.S. Christmas tree receipts• 14% of all U.S. turkeys

In addition, North Carolina is 8th in US cash receipts in agriculture and produces 1.6 billion in ag exports.

Seventeen percent of the N.C. labor force is in agriculture or agribusinesses.

Countywide Economic Benefi tAn American Farmland Trust survey found that for every dollar in taxes received from farm & forest lands, the national average of services paid by the government is only 34 cents. However, services paid to residential development average $1.15 per dollar of taxes received. Th erefore, it is a net gain of revenue for the tax base and thus an economic benefi t for any county to preserve working lands. Surveys in North Carolina have shown similar ratios (Mitch Renkow, Dept. of Ag & Resource Economics, NCSU, 1998 & 2001).

Quality of LifeKeeping farms and forests in productive agriculture maintains the quality of life of North Carolinians. Rural working landscapes are an integral part of our heritage that should be preserved for future generations. If we do not save our agricultural areas we will destroy the rustic landscape that attracts people and industry to North Carolina.

Ability To Buy Locally Grown ProductsMaintaining the agriculture industry in North Carolina allows consumers to purchase and consume products from local agricultural producers. Recent concerns regarding produce from other parts of the country and the world highlight the value of using local farm products. North Carolina has many types of climates and soils, which allow farmers throughout the state to produce a wide range of commodities throughout the year.

Environmental Services Farm and forest lands are critical for their ability to recharge ground water in our communities and provide wildlife habitat. Farm and forestlands also sequester signifi cant amounts of carbon helping to mitigate global warming. It has been recognized that the preservation of these types of lands will help in the sequestration of carbon, and reduce the consumption of fossil fuel associated with the transportation of goods. Th ese eff orts will help reduce the greenhouse gases that contribute to global climate change.

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2006 Pilot Project

Grant recipients Award

Alamance County Voluntary Farmland Preservation Program

$9,250

Johnston County Soil & Water Conservation District

$5,100

Polk County Farmland Preservation Board

$8,400

Th e Southern Appalachian Highlands Conservancy

$11,500

Southwestern NC RC&D Council

$9,750

A total of $44,000 in funding was available for the pilot project.

Th e ADFP Trust Fund received 22 applications requesting a total of $575,900 for projects valuing more than $9.5 million. Th e Advisory Committee elected to fund 5 projects with a total project value of over $3.8 million. Th e pilot projects were geographically diverse and varied in scope.

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“Without a doubt the single greatest challenge facing agriculture in North Carolina is our growth and the resulting interface between our rural and urban communities. What tools are we going to put in place to try to preserve not only agriculture, but farmland and open space?”--Larry Wooten, President NC Farm Bureau, From Fertile Ground, The Rural Center

Alamance is located in the Piedmont, with Interstate 40 running through the middle of the county. I-40 provides easy access to markets but also attracts development. Currently, the top and bottom third of the county are composed predominanty of agricultural and forestlands. Th e Alamance County Voluntary Agricultural District Board will develop a Comprehensive Countywide Farm Protection Plan that will tie into the County Land Use Plan. During the initial feedback on the development of the Land Use Plan, a major concern of local residents was the need for farmland protection. Th e plan will contain an overview of current conditions of working lands within the county, challenges to the farming sector, an overview of current opportunities, action steps to achieve objectives and a schedule for completing those steps. New agricultural markets such as wineries and grass-fed beef operations are developing in this area, and this plan will help facilitate those operations as well as more traditional farming. Th is plan will assist county leaders, planners and landowners in protecting and preserving the agricultural industry of Alamance County.

It is the hope of the Advisory Committee that this plan could be used as a model for other counties. A consultant will oversee completion of the plan. Th e data will be gathered by local Soil & Water Conservation District and

Cooperative Extension Agents. Community meetings will be organized by the local agents to get landowner, farmer and agricultural group input. Th ese meetings will help the consultant understand the concerns and direction of Alamance County residents. When completed, the Agricultural Advisory Board will take the plan to the county commissioners for approval. Copies of the plan will also be distributed to local businesses and residents.

Letters of Support: William Henry Vines Jr., President,Alamance County Farm BureauGerry Cohn, Southest Regional Director,American Farmland Trust Roy Stanley, Jr., Chairman,Alamance County Soil and Water District

Contacts: Phil Ross, Alamance County Soil and Water District Paul Walker, Alamance County Cooperative Extension

Alamance County Voluntary Farmland Preservation ProgramAwarded by ADFP: $9,250

Match: $5,000

Project Total $14,250

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North Carolina leads the nation in the loss of farms, tying Tennessee and Florida with the disappearance of 1,000 agricultural operations in 2005.--Source: USDA, “Farms, Land in Farms, and Livestock Operations, 2006 Summary”

An ADFP Trust Fund grant will aid with the implementation of the Johnston County Voluntary Agricultural District program. Because the VAD program is newly established, the funds will be used to launch the program and provide a strong foundation upon which to build other farmland protection programs. Th e purpose of the VAD program is to promote and maintain agricultural values and the general welfare of the county by increasing the identity and visibility of agriculture in the county. Th e goal of the VAD is to promote and encourage farmland preservation by enrolling farmland into the 10-year voluntary conservation agreement. Voluntary Agricultural Districts can provide farmers:

1. Recognition & public awareness about agriculture in the county

2. Increased protection from nuisance suits

3. Waiver of water and sewer assessments

4. Public hearings when proposing farm condemnation

5. Higher eligibility for funding, and

6. An offi cial role in county government

Contacts:Susan Woodard, Soil and Water Conservation District Education Specialist

John M. Langdon, Chairman,Johnston County Soil and Water Conservation District

Johnston County Soil & Water Conservation DistrictAwarded by ADFP: $5,100

Match: $1,500

Project Total: $6,600

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Farm and ranch lands provide food and cover for wildlife, help control fl ooding, protect wetlands and watersheds, and maintain air quality. They can absorb and fi lter wastewater and provide groundwater recharge.--Source: American Farmland Trust

Polk County is one of the more progressive counties in the farmland preservation movement. Progressive Farmer picked Polk County as one of the top 10 best places to live in rural America. Th e Polk County Farmland Preservation Board has installed a Voluntary Agriculture District, an Enhanced Voluntary Agriculture District and is now focusing on permanent protection of the county’s farmland. Th e Polk County Farmland Preservation Board will assist the Polk County Soil & Water Conservation District in holding, maintaining and monitoring an Agricultural Conservation Easement on a Polk County beef cattle farm. Th e 400-acre Frank Smith Farm consists of rolling pastures and almost two miles of stream. Th is conservation easement protects the farmland and water resources in perpetuity. Th e ADFP Trust Fund monies were designated for the transaction costs of the farm to be held in an agricultural conservation easement by the Soil & Water District.

Contacts:Dave Slater, Polk County Farmland Preservation Board

Sandra Reid, Polk CountySoil and Water Conservation District

Polk County Farmland Preservation BoardAwarded by ADFP: $8,400

Match: $3,368,400

Project Total: $3.36 million

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“Agriculture is still a pivotal industry in the US, and the biggest industry in the North Carolina. And people are realizing that food security is part of homeland security, that if a nation cannot feed itself, it cannot protect itself.”--Alton Thompson, Dean, School of Agriculture and Environmental Sciences, N.C. A&T, From Fertile Ground, The Rural Center

Th e owners of Sugar Creek Farm wish to donate a conservation easement on their property located in Sandymush in Buncombe County. ADFP Trust Fund monies will be used to pay for the transaction costs. Th e owners lease land to a young, beginning farmer who uses the land for a market garden, selling organically raised vegetables at local farm markets. Th e farm owners grow perennial plants, apples and blueberries and raise bees and heritage-breed turkeys for direct-market sale.

Contact:William Hamilton, Farmland Program Director, Southern Appalachian Highlands Conservancy

.

Th e Southern Appalachian Highlands ConservancyAwarded by ADFP: $11,500

Match: $12,100

Project Total: $23,600

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“My primary concern, over the long term, would be our loss of farmland and farms in North Carolina. If our losses continue, it will be very damaging to agriculture in North Carolina”Jimmy Gentry, President, N.C. State Grange

Th e Blue Ridge Parkway curves gracefully along the southern border of Haywood County. Th is scenic beauty has attracted scores of development, and 80 percent of its prime farmland has been lost. Th e remaining prime farmlands produce high-value crops such as peppers and tomatoes. Th e grant money will be used to develop two important land conservation tools that are currently missing in the Bethel community. Th e N.C. RC&D Council has hired a consultant to draft and administer an Enhanced Voluntary Agricultural District. Th ey hope that these 10-year agreements will give local residents the protection they need until funds are established for more permanent protection. Th e grant will also help the community purchase two appraisals for working lands so farmers in the county can fully understand the tax implications and values of conservation easements.

Letters of Support:George Fishback, Chairman,Bethel Rural Community Organization

Carlyle Ferguson, Chairman,Haywood County Soil and Water Conservation District

Carl Silverstein, Executive Director,Southern Appalachian Highlands Conservancy

Contact: Tim Garrett, Southwestern NC RC& D Council

Southwestern N.C. RC&D CouncilAwarded by ADFP: $9,750

Match: $31,700

Project Total: $41,450

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Education and Outreach

Fair ExhibitIn October 2006, the ADFP Trust Fund staff developed an educational booth as part of the Our Land Our Legacy exhibit at the N.C. State Fair. Th is booth provided fair visitors with information on the ADFP Trust Fund, voluntary agricultural districts, enhanced voluntary ag districts, conservation easements and county farmland protection plans. Th e booth contained maps, brochures, an interactive game and a computer survey.

Agricultural Group MeetingsDuring the course of the year, the staff has been invited to speak at many commodity meetings, county meetings, agribusiness board meetings, agritourism conferences, town council meetings and many others to talk about farmland preservation. After each meeting, staff members were greeted with many questions regarding North Carolina’s farmland preservation eff orts. Every public engagement has solidifi ed our understanding that there is overwhelming support for farmland preservation by the residents of North Carolina.

ADFP Web Site www.ncadfp.orgWe are currently enhancing the program’s Web site to make it more user-friendly as part of the awareness portion of the project. Th e Web site will include an example of a completed grant application, a frequently asked questions section and an interactive map that provides information about nonprofi t groups and county agencies that can assist landowners in completing a grant application. Th e Web site will also include links to sample Voluntary Agricultural District ordinances, samples of county farmland protection plans and a discussion board for VAD advisors to post questions and recieve answers regarding Voluntary Agricultural Districts.

The Advisory Committee has been active in its eff orts to raise

awareness about the ADFP Trust Fund, farmland preservation programs and how the fund can help counties and nonprofi ts preserve farmland in North Carolina.

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In November, the ADFP Trust Fund staff , members of the Advisory Committee and conservation professionals held four workshops around the state. Th ese workshops titled Farmland Preservation Tools & Techniques were held in Fletcher, Statesville, Raleigh and Williamston. During the fi rst half of these workshops, presenters gave brief overviews of conservation easements, county farmland protection plans, federal funding sources, the ADFP Trust Fund and Ag Districts. Th e second part of these workshops included breakout sessions allowing participants to learn the details of these farmland preservation techniques and ask about specifi c farming conditions and concerns. Farmers, landowners, cooperative extension agents, SWCD offi cers, county managers, county planners and county commissioners attended these workshops. During the open session of these meetings many individuals expressed their concern for the future of farmland and farmers in North Carolina. Th e following groups partnered in hosting these workshops:American Farmland Trust Carolina Mountains Land ConservancyConservation Trust for N.C.N.C. Coastal Land Trust N.C. Department of Agriculture and Consumer ServicesN.C. Farm Transition Network, IncIredell County Cooperative ExtensionIredell County Farmland Preservation BoardMadison County Cooperative Extension

N.C. Department of Environment and Natural ResourcesNCSU-Dept of Agriculture & Resource Economics Northampton County Cooperative ExtensionSouthern Appalachian Highlands ConservatoryPolk County Soil & Water Conservation DistrictTh e Land Trust for the Little TennesseeTh e LandTrust for Central N.C.USDA Natural Resource Conservation ServiceUSDA Rural DevelopmentFarmers from many counties

“Farming is part of our heritage and our future. Without farms, where would any of us be?”--Dennis Paschal, Mayor, Wentworth, N.C. (fi rst municipal EVAD in the state)

Workshops

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Budget

We are currently operating under the appropriations of 2005. No

appropriations were given to the ADFP Trust Fund to continue its farmland preservation eff orts in 2006. All current funds have been slated for the pilot projects and will be sent out on a reimbursment basis.

Eastern State Program ComparisonMany other states, including Maryland, New Jersey and Pennsylvania, established farmland preservation programs decades ago and are funding these programs with $15 million to $141 million annually. States throughout the nation fund their farmland preservation programs with bonds, agricultural transfer taxes, recording fees and general appropriations. New Jersey has an excellent farmland protection program, but it was established only after the state lost more than 45 percent of its farmland to development (New Jersey Department of Agriculture).

State Funds

AvailableTotal

Funding SpentAcres

protectedNC $0 $2.504 million³ 4,712¹

SC $15.5 million $3.325 million 3,070²

PA $102 million $513.5 million 318,350²

NJ $141 million $471.9 million 140,553²

MD $56.5 million $355.2 million 289,439²

KY $400,000 $11 million 23,209²¹Newest fi gures²Source: American Farmland Trust³Total funding spent on easments only

ADFP Budget Items(total $50,000)

Grants93%

Workshops0%

AdministrativeCosts2%

CommitteeMeetings2%

EducationalMaterials3%

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Advisory CommitteeTh e ADFP Advisory Committee is administered within the Department of Agriculture and Consumer Services and advises the Commissioner on the prioritization and allocation of funds, the development of criteria for awarding funds, program planning, and other areas where monies from the Trust Fund can be used to promote the growth, preservation and development of family farms in North Carolina.

Th e Advisory Committee is to report annually to the Joint Legislative Commission on Governmental Operations and the House of Representatives and Senate Appropriations Subcommittees on Natural and Economic Resources regarding trust fund activities.

Th e Advisory Committee is composed of 19 members (see page 3 for a list of current members):

(1) Th e Commissioner of Agriculture or designee, who shall serve as the Chair of the Advisory Committee.

(2) Th e Secretary of Commerce or designee.

(3) Th e Secretary of Environment and Natural Resources or designee.

(4) Th ree practicing farmers, one appointed by the Governor, one appointed by the President Pro Tempore of the Senate and one appointed by the Speaker of the House of Representatives.

(5) Th e Dean of the College of Agriculture

and Life Sciences at North Carolina State University or designee.

(6) Th e Dean of the School of Agriculture and Environmental Sciences at North Carolina Agricultural and Technical State University or designee.

(7) Th e Executive Director of the North Carolina Rural Economic Development Center Inc. or designee.

(8) Th e Executive Director of the Conservation Trust for North Carolina or designee.

(9) Th e Executive Director of the North Carolina Farm Transition Network or designee.

(10) Th e President of the North Carolina Association of Soil and Water Conservation Districts or designee.

(11) Th e Director of the Southeast Regional Offi ce of the American Farmland Trust or designee.

(12) Th e Executive Director of the North Carolina Agribusiness Council or designee.

(13) Th e President of the North Carolina State Grange or designee.

(14) Th e President of the North Carolina Farm Bureau Federation Inc. or designee.

(15) Th e President of the North Carolina Black Farmers and Agriculturalists Association or designee.

(16) Th e President of the North Carolina Forestry Association or designee.

(17) Th e Executive Director of the North Carolina Association of County Commissioners or designee.

Th e Advisory Committee is legislated to meet quarterly. Th e Department of Agriculture and Consumer Services shall provide the Advisory Committee with administrative staff .

StaffAs administered by legislation the NCDA&CS provides staff for the Advisory Committee to assist with the distribution of funds. Staff ensures applications are complete and within the legislated scope of the ADFP Trust Fund. Staff have been selected from other related areas and will assist the program on an as-needed basis. NCDA&CS staff members include:

Dewitt Hardee, Environmental Programs Manager, ADFP Manager

Maximilian Merrill, Environmental Programs Specialist, ADFP Staff Member

Lindsay Ballance, ADFP Staff Member

James Davis, Small Farms Division, ADFP Staff Member

Martha Glass, Agritourism Director, ADFP Staff Member

“Sooner or later the U.S. will run out of places to grow agricultural products. Then we are going to have the same situation with our food supply as we do with our oil.”--Steve Troxler, N.C. Commissioner of Agriculture

North CarolinaAgricultural Developmentand Farmland Preservation Trust Fund

Report prepared by theNC Department of AgricultureSteve Troxler, Commissioner

For more information contact theNC Agricultural Development and Farmland Preservation Trust Fund at:1001 Mail Service Center Raleigh, NC 27699-1001Phone: 919-733-7125www.ncagr.com • ncadfp@ncmail.net 2,000 copies of this public document were printed at a total cost of $1,602.28, or $0.80 each.