$0.27$0.36
$1.15
$0.00
$0.25
$0.50
$0.75
$1.00
$1.25
Commercial Industrial
Farm/Forest Residential
LOCAL MUNICIPALITY TAX ADVANTAGES
Cost of Community Services Studies
Graph: Median cost-per dollar of revenueraised -to provideservices to different land uses.
Source: American Farmland Trust, Farmland Information Center, September 2001
PDR’s. . .do they affect land use decisions?
• Zoning
• Comprehensive Planning
• Permanent vs Temporary decisions
Conservation Easements are the ONLY way to preserve land forever
Eric Keller Farm
Purchase of Development Rights
• Zoning
• Comprehensive Planning
• Permanent vs. Temporary decisions
PDR’s – Do they affect land use decisions?
• Preservation of “view sheds”
12,187 Acres Preserved (County program)
Preserved Lands of Adams County
1,338 Acres Preserved (Land Trust)
13,000 Acres of Outstanding Applications
What is an easement worth?Fair Market Value $ 10,000 / Acre Farmland Value - $ 6,000 / Acre Easement Value $ 4,000 / Acre
Pennsylvania Easement ValuesRange from $600 to $15,000 / Acre
Adams County Easement ValuesRange from $1,025 to $ 11,400 / Acre
Adams County ValuesFair Market Value
Ranges from $2,149 to $12,920
Agricultural ValueRanges from $960 to $2,000 / Acre
Easement ValueRanges from $1,025 to $ 11,400 / Acre
Easement Value actually paidRanges from $1.00 to $2,637
Business Expansion Hess Family Farms
Two farms preserved in 1991 & 1995
Expansion took place 1995-97
Why would landowners want to preserve their land?
•Financial Incentive
•Business Expansion
•Estate Planning
Why would landowners want to preserve their land?
•Financial Incentive
•Business Expansion
•Estate Planning
•Debt Repayment
Debt Repayment Easement sold in 1993 = $
1,464/acre Farmland Value (1993) = $
1,334 /acreSold in 2003 to repay debt = $
4,690/acre* (with easement in place)
Rhoades Dairy Farm
* This figure represents subtracting$30,000 for the value of the buildings
Why would landowners want to preserve their land?
•Financial Incentive
•Business Expansion
•Estate Planning
•Debt Repayment
• Bankruptcy
Bankruptcy SaleEasement sold in 1998 = $
1,297/acreFarmland Value (1998) = $
1,035/acre Public Sale in 2000 = $
1,630/acre *
• This figure represents subtracting $80,000 for the value of the buildings Hartlaub Farm
Sales of Preserved FarmsAdams County, PA
Example #1
Easement (9-21-99) Resale (2-1-00)
(Easement = $218,356)
Ag Land Value: $ 1,645/acre Sold for: $ 3,886/acre x 127 acres x 127 acres
$ 208,915 $ 493,522
+ $ 383,056 * $ 591,971
* Value of buildings at time of easement Notes: Farm set up for horses – sold to Hanover Shoe Farms Easement + Sale = $711,878 ($5,605/acre)
(“Loss” of $ 775/acre)
Sales of Preserved FarmsAdams County, PA
Example #2
Easement (6-13-95) Resale (6-19-00)
(Easement = $ 77,118)
Ag Land Value: $ 1,200/acre Sold for: $ 2,671/acre x 33 acres x 33 acres
$ 39,600 $ 88,143 + $ 0 * $ 39,600
* No buildings Note: Public (Estate) Sale & was a part of land restricted by NPS
(Gain of $1,471/acre)
Is an easement right for you?
This decision needs to bebased on 2 things:
1 – Is it a good business decision?
2 – Do you truly believe in preserving your land?
Ellen T. Dayhoff, DirectorAdams County Agricultural Land Preservation Board
670 Old Harrisburg Rd – Suite 100 Gettysburg, PA 17325
717-337-5859 - [email protected]
Sam and Ellen Dayhoff