path: home
 

Virginia Agricultural Vitality Program
It’s not farmland without farmers™

Statement of the Issue

Virginia is losing 46,000 acres of rural land each year as the rate of loss of prime soils has increased 76% in the last decade; according to U.S.D.A. Nearly two-thirds of the land in Virginia is the private working landscape of farms and forests. The state estimates that over two-thirds of this land will change hands in the next decade.

Most localities have failed to plan for a viable agricultural sector in the future of their communities. The typical agricultural zoning allows a variety of non-agricultural uses including densities of non-farm residential development that are incompatible with farming. In this context, agricultural land has become a speculative commodity with a cost that far exceeds agricultural value – making land unaffordable to farmers.

The agriculture industry is suffering from the same challenges of globalization that face all American industries. But agriculture faces an additional challenge; the family business is also the family home. And in many cases, the land is also the retirement account for the farmer. In 1990, 60% of the farm families in North America relied on off-farm income to supplement the farm business; by 1998 that percentage had increased to 80%. This results in fewer farm families encouraging children to farm and increased financial stress on existing operations. In Virginia, only one farmer is under 35 years old for each 5 retiring farmers.

With growing localities searching for solutions to infrastructure funding shortfalls and constant property tax increases, retention of the rural working landscape becomes more critical. On average nationally, for each dollar in local taxes farm and forest lands pay, only $0.36 in services is required; in contrast, residential lands use $ 1.16 in services.

Background

By enacting the Virginia Agricultural Vitality Program (VAVP) and creating the Office of Farmland Preservation, the Commonwealth shaped a series of approaches aimed at securing the future viability of Virginia’s agricultural industry, but the program remains unfunded. VAVP establishes recommendations for funding and guidelines for purchase of development rights (PDR) programs. Nine Virginia localities have adopted PDR programs. These include: Virginia Beach (1995), Albemarle (2000), Loudoun (2000), James City County (2001), Clarke County (2002), Fauquier County (2002), Chesapeake (2003), Rockbridge (2003) and Rappahannock (2004). Only two programs have dedicated funding, four rely on annual appropriations and three are unfunded. A significant number of other communities are developing PDR programs and examining strategies to protect rural industries.

A PDR program is the recognition of the multiple public benefits of agricultural land use and the industry. It gives communities a way to share the costs of protecting farmland with farmers. It gives farm families an opportunity to access dormant equity to use for business investment, debt reduction, or to fund retirement. Nationally, states provide an average of 60% of the funding to buy development rights.

VAVP also establishes the Virginia Farm Link Program “to provide assistance to retiring farmers and individuals seeking to become active farmers in the transition of farm businesses and properties.” The Virginia Farm Bureau Federation previewed the linking database and webpage at their December 2003 meeting. The assistance this program will provide includes:

  • preparation of business transition plans,
  • facilitation of transfer of property and operations,
  • information on farming innovations, and
  • research assistance in marketing, financial and other agricultural matters.

Recommendations

• Support state funding to localities for the purchase of agricultural conservation easements to permanently retire the non-agricultural development rights on farms and forest properties.

• Support funding of the Virginia Agricultural Vitality Program to continue further development of the FarmLink Program and to provide farm families with assistance in transitioning their farms and businesses to the next generation.

Contacts:

Mary Heinricht:
Ag Prospects,
P.O. Box 1385 Culpeper, VA 22701
(540) 825-5418,
(540) 825-8124 fax
maryheinricht@earthlink.net