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American Farmland Trust Southeast Regional Office.A�h Southeast Regional Office , nie.:rioa,, far sl x7, '1 °rt t NORTH CAROLINA NC Enacts Major Changes to Farmland Preservation Act In August, North Carolina passed its first major changes to the state's Farmland Preservation Act since 1986. H607, Enhanced Voluntary Agricultural Districts, expands the state's definition of agriculture, creates an advisory board and a broader array of tools for the state's purchase of agricultural conservation easements (PACE) program and establishes a new tier of benefits in the agricultural districts program. Crafted by a diverse coalition, this legislation reflects the changing nature of agriculture in the state, the importance of farm profitability in family farmers' future vision for their land, and the challenges and opportunities resulting from the end of the federal tobacco program. H607 combines two bills aimed at updating and expanding the NC Farmland Preservation Act (GS 1o6 -745). The North Carolina Department of Agriculture and Consumer Services (NCDA &CS), under the leadership of Commissioner Steve Troxler, outlined its vision for protection of the family farm in a plan submitted to the General Assembly in March. The plan emphasized the importance of an expanded definition of agriculture to reflect the multiple enterprises and activities that are sustaining many family farms. The NCDA &CS also sought to revamp and revive the state's Farmland Preservation Trust Fund, the primary source of funding for the PACE program. The program has only received $2.6 million since its inception and no allocation since 2003. With the new legislation, the fund is now called the Agricultural Development and Farmland Preservation Trust Fund, with a 19 member advisory committee to provide recommendations to the Commissioner of Agriculture. It also is expanded to fund a range of conservation agreements and enterprise programs that could improve profitability for the farming operation. H607 creates an expanded tier of options for participants in the popular Voluntary Agricultural Districts (VAD) program, which allows counties to adopt farmland preservation ordinances and to provide benefits to farmers willing to restrict development on their land for a 10 -year period. For farmers willing to forgo their right to withdraw from the VAD program before the end of the 10 -year agreement, the new legislation provides them with additional conservation cost -share assistance and priority for future state benefits. It also allows them tosell some non -farm products and maintain their agricultural zoning exemption. H607 also allows municipalities to adopt VAD ordinances and for cities and counties to amend their ordinances within their planning jurisdiction so they can provide benefits through an enhanced VAD program to promote continued agricultural land use. According to Paul Meyer, assistant general counsel for the North Carolina Association of County Commissioners, "This legislation will be helpful in strengthening the viability of working lands." The ideas for this new set of benefits arose from the Agricultural Viability workshops co- sponsored by the NCDA &CS and American Farmland Trust in December 2004, where farmers and local leadership identified the tools and incentives that would help them create a more stable investment climate for agriculture. Commissioner Troxler sees the partnerships created through this legislation as improving opportunities for family farmers throughout the state. "Passage of House Bill 6o7 is a major step in recognizing agriculture and rural communities as an economic force for the future of North Carolina," said Commissioner Troxler. "Agriculture is not a disappearing part of our heritage. Agriculture is transitioning to new crops, bringing new business opportunities and becoming a stable, viable choice for young farm families and their children." http://Yvww.fannland.org/southeast/nc—h607.htm 'J 09/12/2005