Loss of Farmland

Bucks County has lost over 68 percent of its agricultural land during the past 50 years. Most of the residential and non-residential growth has occurred on prime farmland. To emphasize this decline, in 1950, there were 260,100 acres in agricultural production in Bucks County. These acres comprised 67 percent of Bucks County's total land base. According to the 1997 Agricultural Census, the amount of farmland in Bucks County has declined to 83,534 acres. Agriculture as a land use now comprises only 23 percent of Bucks County's total land base.

Farmland Loss in Bucks County, 1945-1992

*Increase in farms is due to inclusion of Christmas tree farms.

Source: U.S.D.A. Census of Agriculture, 1945-1997

Agriculture Today in Bucks

Despite the dramatic loss in farmland, Bucks County remains a highly productive agricultural county. Bucks County still ranks 12^th out of 67 counties in Pennsylvania in agricultural production. Market value of farm products/output has actually increased 11 percent over the last five years, from $62 million in 1992 to $69 million in 1997. There are 351 active full-time farms, with an average farm size of 113 acres. These statistics are a testament to our resilient farming community and indicative of a very viable economic sector.

Many of our traditional farms (crop and dairy) have made changes needed to adapt to the ever-increasing urban fringe. The diversification of agricultural crops including the development of vegetable and specialty crops and pick-your-own produce operations has helped expand and strengthen the agricultural industry. By far the most dramatic increase has been in horticultural crop production, which has registered a 47 percent increase in the last five years. Our farmers are an extremely industrious segment of Bucks County. But they also need help from the county, state, and Federal Government in preserving agriculture and their way of life.

STABILIZING OUR CURRENT AGRICULTURAL BASE

By the late 1980s, growth in Bucks County had reached a point where the loss of quality farmland was taking place at an alarming rate. Bucks County realized that the loss of prime farmland seriously impacts a community in many ways. The loss of farmland is not just the loss of the physical landscape, open space, and a segment of our economy. It is also the loss of the character of our community, a sense of identity, our history, and a way of life. Most importantly, it is a permanent loss for future generations.

Accomplishments/Results

In order to try to combat farmland loss, Bucks County has developed three very successful farmland preservation techniques. These techniques include the creation of a county/state farmland preservation program, crafting municipal partnerships, and the passage of an Open Space Program.

Bucks County has always been considered a pioneer in farmland preservation. Bucks County, in conjunction with the Pennsylvania Department of Agriculture, created the Bucks County Agricultural Land Preservation Program in 1989. Farmland owners that meet certain requirements may apply to sell an agricultural conservation easement on their land. The landowner retains ownership of the land. The farm, however, must forever remain in agricultural production.

The primary objective of the county's farmland preservation program is to save family farms. Our family farms are a valuable asset to the overall well being of the county. To date, we have preserved 39 family farms totaling over 3,600 acres. We have been successful in preserving a critical mass of farmland of over 1,000 acres on Buckingham Township and a critical mass of farmland of over 500 acres of farmland in Bedminster Township.

The preservation of these farms comes with a steep price tag, however. Farmland in Bucks County expensive due to its non-agricultural conversion market value. To date, we have spent over $25,000,000 in state and county money to preserve our farms. We are now paying an average of $6,129 per acre to preserve farms. To put this in perspective, neighboring Lehigh and Chester counties are paying on average $2,000 and $1,500 per acre respectively to preserve their farmland. Although costly, the price and risks of not taking any action to preserve these farms, we feel, far outweighs any monetary value.

Moreover, Bucks County has worked very hard in developing partnerships with local municipalities. We are currently the only county in Pennsylvania purchasing agricultural easements jointly with municipalities. The county commissioners are in constant contact with elected officials in identifying programs and resources that could be of assistance to county farmers. Through these efforts, nine municipalities in Bucks County have undertaken bond issues totaling over 53 million dollars for the preservation of farmland and open space.

The preservation of farmland is also the highest priority for residents of Bucks County. Two years ago, Bucks County taxpayers overwhelmingly approved a $59 million Open Space/Farmland Preservation/Parkland Acquisition/Natural Areas bond issue. Of the $59 million, $13.5 million will be allocated over a ten year period to help augment the county's farmland preservation program. This additional funding will help in achieving the goal of 10,000 acres of farmland to be preserved in Bucks County by 2007.

Since the adoption of the county's Open space Program, applications have increased 100 percent from 20 to 40 applications annually to the county's farmland preservation program. This increase has created a backlog list of 41 farms totaling 3,354 acres waiting to be funded for preservation. We are currently able to preserve only five to six farms a year with current levels of funding. We have estimated that it will take eight years and $20 million dollars at 1999 levels to preserve these farms. This estimate does not include likely increases due to inflation and price appreciation in the value of land caused by market forces.

Bucks County, for the second year in a row, has allocated more money for farmland preservation than all of the other 44 counties in Pennsylvania that participate in the state farmland preservation program. Unfortunately, Pennsylvania's state farmland preservation program cannot keep up with these increased allocations. Originally, the state program was designed to match county funds on a 4:1 basis. In recent years, however, the state program can provide only slightly more than a 1:1 match. This reduction is due to the increase in the number of counties in Pennsylvania that have farmland preservation programs increasing county funding and a stabilization of funding levels on the part of the state.

WHY PRESERVE FARMLAND

There are many reasons why we should be preserving our farmland. Some of the most important reasons are that farmland has a positive fiscal impact on our community and enhances our quality of life.

The preservation of our farmland is a key component in keeping our resident's taxes low. When farmland is converted for residential purposes, the increased costs to the community can be staggering. If the number of children living in new houses that are built on the farmland requires the school district to hire new teachers, build new schools, and increase expensive infrastructure, the fiscal impacts of farmland loss can be especially dramatic. For example, land use studies conducted by Penn State University in Bucks County (i.e., Buckingham and Bedminster townships) clearly indicate that a municipality ends up paying $1.10 for every dollar received in revenue to provide services to residential development. Conversely, municipalities spend on an average 8 cents for every dollar received in revenues to provide services to farmland.

Preserving our farms enhances the quality of life in the community and for our farmers. Farmland preservation allows our farmers the ability to use the money to expand farmland holdings or other capital farm improvements. Our preserved farms help create a critical mass of permanently preserved farms to ensure a local viable agricultural community.

Overall, preserving our farmland is an investment in our communities. Our farms contribute to the enhancement of the quality of life for the whole community by lowering the cost of infrastructure necessitated by housing developments, providing local, fresh food, providing wildlife habitat, water recharge areas, scenic views, and preserving our historic landscape. Farmland preservation also reduces conflict between farming and non-farm activities and helps to maintain the diversity of the local economy.

RECOMMENDTIONS--STRENGTHENING OUR FARMS ABILITY TO

SURVIVE INTO THE 21^st CENTURY

Preserving farmland will ensure that America remains a bountiful nation. The United States is one of the most productive agricultural countries in the world. America's farmers and ranchers produce 16 percent of the world's food on just 7 percent of the world's land. America has the most affordable food in the world. Our farm population, however, continues to decline. Today, only 1.9 percent of Americans lives on farms. We need to ensure that agriculture remains economically viable. We therefore have a number of recommendations that we feel are necessary to help our farmers survive and thrive into the 21^st century.

We strongly support the reauthorization of the $50 million Federal Farmland Protection Program for fiscal year 2000. We express our appreciation to Senator Santorum for his efforts for establishing the Federal Farmland Protection Program in 1996. Bucks County was fortunate to have received $200,000 in federal grant money, which helped enable us to purchase five easements totaling 490 acres. The reauthorization of this vitally important program will provide us the ability to preserve more farms on our application list each year.

We strongly would encourage the Senate Agriculture Committee to consider providing an even greater funding level above the proposed $50 million. Estimates to preserve all the farms on our application list in Bucks County are $20 million alone at today's prices. Statewide, the backlog of farmer applications to all of the county farmland preservation programs throughout Pennsylvania is over 1,500 farms. This equals about 200,000 acres. An increase in federal funding will preserve more farms throughout Pennsylvania.

We also would like the Agriculture Committee to consider targeting funds to be used for operating state and county farmland preservation programs. Administration expenses for farmland preservation programs can be prohibitive to many local and county governmental bodies.

We support the reduction in the capital gains tax. Farmers, ranchers, and all Americans should be able to keep more of the money they earn. Short of a complete repeal of the capital gains tax, capital held for more than a year should be subject to lower taxation.

We support the elimination of estate taxes because taxes due at death can force farm families to sell assets needed to run their operations. Sometimes the tax burden can be so great a farm is forced out of business. Some families are able to manage estate taxes through estate tax planning and life insurance, but these tolls can be very expensive and use money needed to operate the farm. We support measures in Congress to increase the estate tax exemption to $1 million in 1999, and end estate taxes by reducing rates 5 percent a year until the tax is eliminated.

We support incentives and market-based options for the restoration and protection of wetland areas and changes in the nationwide wetlands permit proposal to allow traditional agricultural activities. The costs associated with wetlands conservation must not be borne solely by landowners.

We support initiatives that would give Americas farmers freer and fairer trade arenas in which to sell their products. Many nations unfairly restrict the importation of United States agricultural products. All agricultural products should also be exempt from embargoes and unilateral sanctions except in the case of armed conflict.

Through the preservation of farms, we will have saved a significant portion of the irreplaceable character and history of many areas of Bucks County. We have permanently saved prime farmland; an invaluable, vanishing resource here in Bucks County, America, and the world. Moreover, we are investing in our future and the future of our children.

Thank you again for the opportunity to testify on this most important issue.