State PACE programs growing despite cuts

WASHINGTON — According to new statistics released by American Farmland Trust’s (AFT) Farmland Information Center, state governments’ efforts to protect agricultural land through purchase of agricultural conservation easement (PACE) programs accelerated in 2009 despite funding shortfalls.

PACE programs pay farmers and ranchers to permanently protect their land with a conservation easement that limits future development and keeps the farmland available for agriculture.

The survey of PACE programs in 26 states found that they acquired 7 percent more easements and protected 7 percent more acres than in 2008, but cumulatively states spent $101,173,259 — or 30 percent less — than in 2008, likely due to declining land values.

Decline

For example, agricultural land values declined in several states — Rhode Island (11.1 percent), Delaware (9.0 percent), New Jersey (5.1 percent) and Connecticut (4.2 percent).

Overall, states spent $234,932,161 to protect 128,665 acres of farm and ranch land in 2009.

The federal government helped bridge the funding gap by releasing $22 million more in Farm and Ranch Lands Protection Program (FRPP) allocations than it did in 2008. States may need to continue to do more with less.

Although land values have declined, the economic downturn and state budget shortfalls have resulted in reduced funding for farmland protection, even in states with typically well-funded programs.

Cuts

States report that they will have $9.5 million less to work with in the upcoming year. These cuts come on top of a 23.5 percent decrease or $109 million reduction in available funding since 2007.

States with well-established PACE programs who have experienced significant funding cuts are Massachusetts (36 percent), Pennsylvania (15 percent) and Vermont (9 percent).

Proceeds

AFT studies show that farmers use PACE proceeds to buy equipment and supplies, retire debt and implement conservation practices. Because these dollars tend to circulate locally and farm and ranch lands underlie agricultural productivity,

As of January 2010, 25 states have active state-level PACE programs. Dozens of local communities and private land trusts complement state programs or, where none exist, independently protect agricultural land.

Nationwide, thousands of communities benefit from protected farms and ranches for local production of food, fiber energy and ecosystem services as well as value-added enterprises that ripple through local economies.

Beyond their direct and indirect economic impacts, protected farms maintain open space, community heritage and rural character in perpetuity.

Combined PACE programs reached important milestones in 2009. To date, the state programs have invested over $3 billion to protect more than 2 million acres of farm and ranch land.