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2 CONSERVATION TRUST i FOR NORTH CAROLINA TO: County Governments with Farmland Preservation Programs August, 2000 Soil and Water Conservation Districts Qualified, private, nonprofit conservation organizations FRpM: Charles E. Roe, Executive Director Conservation Trust for NC SUBJECT: Guidance to apply far pant award from the North Carolina Departmern of A,gxiculttilre and Consumer 5ervice's Farmland Preservation Program The Conservation Trust far North Carolina is contracted by the N.C. Department of Apiculture and Consumer Services to assist in administering the Farmland Preservation Trust Fund grrant program far fiscal year 2040.01, as for the previous two years. Tk-e N.C. General Assembly in its 2000 session appropriated $1,540,000 to the Farmmland Preservation Trust Fund for the acquisition of permanent agricultural conservation easements for purpose of protecting rural lands, principally used for agricultural purposes, and particularly in the vicinities of urban growth areas and near high-priority waterways and other environmentally sensitive areas. In the two previous years, from total appropriations of 5750,000 in 1998 and 1999, twelve grants wore awarded to qualifiied counties and nonprofit, land conservation organizations to protect parts of twelve faints through acquisition of agricultural conservation easements--both by purchase of non agriailtural development rights (generally by "bargain sales" at considerably less than the appraised values) or by covering transactional expenses for donated conservation easements. Although the N.C. General Assembly has tripled the amount available for farmland preservation grants this year, it is anticipated that many grant requests will be received and few grants will be awarded for large portions of the actual non-agricultural development value of farms, particularly in urban growth fringe areas. The largest single grant award made in 1999 was for $125,000, but the fans owner voluntarily donated the bulk of the non agricultural development value of the farm, which was appraised in excess of 52 million. In 1998 and 1999 the highest match ratio for grar-t awards was 1:1 (SO percent) in which the county provided the balance of the easennent purchase price with local funds. The General Assembly in its 2000 session amended the enabling statute for the North Carolina Farmland Preservation Trust Fund (G.S. 106-744(c)) to establish minimum matching requirements fe7r applicant counties and private, nonprofit conservation organizations. The n~mum amount of gents from the Farmland Preservation Trust Fund far purchase of agricultural conservation easements, including transactional costs, is nvw seventy percent (70%) for nonprofit conservation vrgani~~tions and for counties UNLES5 a courriy has formally adopted a countywide farmland protection plan (defined by the statutory amendment, SEE ATTACHMENT). Note that for those counties that have adopted farmland protection plans, those that aze designated "enterprise tier one, two, ar three" (based on economic criteria) are exempt from any local match requirement; and those counties with a