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e <br />18. If development rights were sold, could the property still be <br />annexed? <br />Yes. The sale of development rights would not affect whether <br />or not the property were annexed. However, if a number of <br />adjoining farmland owners all joined the program, annexation <br />would become less likely, since the statutory requirements in <br />the annexation law would become difficult to meet. <br />19. If a landowner is buying his /her property on contract or has a <br />mortgage, could he /she still enter the program? <br />Yes. However, the type of contract or mortgage that the <br />landowner holds would determine the terms of his /her <br />transaction with the County. In any event, a subordination <br />agreement or waiver would have to be secured from the mortgage <br />or lien holder prior to closing on the property. <br />20. What has been the experience of farmers who try to obtain <br />loans once the development rights have been sold? <br />In other locations with PDR programs, this has not been a <br />problem. Whether or not a bank makes a loan is based on the <br />ability of the farm to pay off the loan and that, in turn, is <br />based on the farm's income. If the value is there, the bank <br />will make the loan. In many cases, the money acquired from the <br />sale of development rights is used to improve the farming <br />operation. This enhances the farm's value and thus the ability <br />to obtain more loans. <br />Page - 17 <br />