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SL2005 -0390 Page 3 of 10 A person who farms land that is subject to a conservation agreement under G.S. 106-743.f that remains in effect is elighigh er r under G.S. G S. 143- 215.74(b) to receive the hier percenta2ye of cost share funds for the benefit of that farmland under the Agriculture Cost Share Program-established pursuant to Part 9 of Article 21 of Chapter 143 of the General Statutes for funds to benefit that farmland. O State departments, institutions, or agencies that award grants to farmers are encouraged to give priority consideration to any person who farms land that is subject to a conservation a¢reement under G.S. 106 -743.2 that remains in effect. if 71 106 - 743.5. Waiver of utility assessments. O In the ordinance establishing an enhanced voluntary agricultural district under this Part, a county or a city may provide that all assessments for utilities provided by that county or city are held in abeyance with or without interest, for farmland subject to a conservation agreement under G S 106 -743 2 that remains in effect until improvements on the farmland property are connected to the utility for which the assessment was made. (b) The ordinance may rovide that when the period of abe yance ends the assessment is payable in accordance with the terms set out in the assessment resolution. O Statutes of limitations are suspended during the time that any assessment is held in abeyance under this section without interest. (d) If an ordinance is adopted by a counjy or a city under this section then the assessment orocedures followed under Article 9 of Cha ter 153A or Article 10 of Chapter 160A of the General Statutes res ectivel shall conform to t e terms of this ordinance with res ect to qualifying farms that entered into conservation agreements while such ordinance was in effect. (e) Nothing in this section is intended to diminish the authority of counties or cities to hold assessments in abeyance under G.S 153A -201 and G.S. 160A- 237." SECTION 6. G.S. 153A- 340(b)(2) reads as rewritten: "(2) Except as provided in G.S. 106 -743.4 for farms that are subject to a conservation agreement under G.S. 106 - 743.2, bona Behr -fide farm purposes include the production and activities relating or incidental to the production of crops, fruits, vegetables, ornamental and flowering plants, dairy, livestock, poultry, and all other forms of agricultural products having a domestic or foreign market. For purposes of this subdivision, the production of a nonfarm product that the Department of Agriculture and Consumer Services recognizes as a "Goodness Grows in North Carolina" product that is produced on a farm subject to a conservation agreement under G.S. 106 -743.2 is a bona fide farm Purpose." SECTION 7. Article 19 of Chapter 160A of the General Statutes is amended by adding a new section to read: 160A- 383.2. Voluntary agricultural districts. A ci ma amend the ordinances applicable within its planning 'jurisdiction to. rovide flexibility to operations that are located within a city or county volunta a rcultural district or enhanced voluntary agricultural district adopted under Article 61 of Chapter 106 of the General Statutes Amendments to applicable ordinances may include provisions regarding on farm sales, pick- your -own operations, road signs, agritourism, and other activities incident to farming For purposes of this section, the term farming shall have the same meaning as set forth in G.S. 106 - 5811" SECTION 8. G.S. 143- 215.74(b)(9) reads as rewritten: "(9) When the applicant is either 1 a limited - resource f r er farmer, (ii) a beginning farmer, or (iii) a person farming land that is located in an enhanced voluntary agricultural district and is subject to a conservation agreement under G.S. 106 -743.2 that remains in effect, State funding shall be limited to ninety percent (90 %) of the average cost for each practice with the assisted farmer providing ten percent (10 %) of the cost, which may include in -kind support of the practice, with a maximum of one hundred thousand dollars ($100,000) per year to each applicant. The following definitions apply in this subdivision: a. Beginning farmer. — A farmer who has not operated a farm or who has operated a farm for not more than 10 years and who will materially and http: / /www.nega.state.nc.us/ Sessions /2005/Bills /House /HTML/H607v6.html 9/21/2005