Questions on Farm Land Preservation

Q: WHY FARMLAND PRESERVATION?

A:  Portage County has been losing, on average, the equivalent of ten 100-acre farms per year.  The pattern of development - road frontage , five acre or larger lots, scattered  in open fields - have eroded our farmland and open spaces and are contributing to the loss of Portage County's rural character.  Public costs - police, fire, schools, sewers, etc., - have increased significantly over the past ten years thus creating an increased tax burden on the citizens of our county.

Q:  DON'T MORE HOMES GENERATE REVENUE FOR THE COUNTY BY INCREASING THE TAX BASE?

A:  Yes.  New homes do generate a tax base.  However, they also demand police, fire, roads, schools and other publicly funded services.  Research studies conducted across the country have shown that for every $1.00 that a new home generates in taxes, it takes between $1.25 and $1.50 to support the needed services.  Most of this cost is in schools.  For every $1.00 that industry generates, it takes about 60 cents to supply the services, and for every $1.00 generated by agriculture, it takes only 30 cents to support those farms.

Q:  DO WE NEED TO STOP DEVELOPMENT?

A:  NO.  Farmland Preservation is NOT about stopping development.  It is about BALANCING our economic growth and development while protecting the economic base of our agricultural industry, thus preserving the rural character of our community.  It is PLANNED PRO-GROWTH.  We need to provide for homes, industry and agriculture.

Q:  HOW CAN WE PRESERVE OR PROTECT OUR FARMLAND AND AGRICULTURAL INDUSTRY?

A: There are many "tools" that we can employ to help preserve and protect the agricultural industry.  They range from individual choices farmers can make, such as changing agricultural enterprises and becoming more efficient in their farming operations, to publicly supported programs such as the Purchase of Development Rights (PDR) and Transfer of Development Rights (TDR), to changes in the patterns of development, such as conservation subdivisions which promote conservation of agricultural lands and open spaces.

Q:  WHAT IS A CONSERVATION SUBDIVISION?

A:  In a conservation subdivision, reduced restrictions on setbacks and minimum lot sizes allow the builder and developer to modify the manner in which the homes are arranged.  They are designed and planned to conserve the special characteristics of a parcel of land.  Typically, the developer is required to set aside 50% of the development for open space which retains the rural character of the community and maintains open spaces for wildlife, agricultural production or environmental protection.

Q:  WHAT IS A PDR PROGRAM?

A:  Purchase of Development Rights (PDR) is a program that allows landowners to sell the right to develop their land.

All pieces of the property have a "bundle of rights".  For example, an owner may sell the mineral rights but still own and retain the land.  The same concept applies to the development rights.  The landowner may sell off the right to develop the land and still own and retain the land itself.  The rights to develop are retired and held by a non-profit corporation as a conservation easement.

Q:  HOW MUCH DOES THE OWNER GET IF HE SELLS HIS DEVELOPMENT RIGHTS?

A:  The land would be appraised based on its agricultural production potential as well as its value if it were to be sold for development.  The difference between its agricultural production value and the value for development is considered the development rights value.  For example, if the agricultural production value was $2,000 per acre and the value, if sold for development, is $6,000 per acre, the development rights value is $4,000 per acre.  In most programs, the landowner receives between 85 and 100 percent of its development rights value.

Q:  WHO PAYS FOR THE DEVELOPMENT RIGHTS?

A:  In most cases, the cost of a PDR program is supported by residents of the county.  The monies are generated in many ways including donations, sales taxes, real estate transfer taxes, bond issues, and other public revenue.    In almost all cases, the citizens have to vote favorably for the revenue source before a program is successful.  One option which may be available to Portage County citizens is the one-quarter sales tax which was being used to retire the bond to finance the jail.  The jail is paid for and that tax expired.  The county commissioners can ask the votes to approve a similar tax which would be dedicated to farmland preservation.