Frederick County Agricultural Preservation
Critical Farms Program

Easement Purpose:
To supplement local agricultural land preservation efforts by providing necessary funding to enable a farmer to purchase land for farming purposes.

Type of Easement:
Purchase of an option to acquire the property's development rights. Option is exercised at the end of 5 years, during which time the owner must actively pursue sale of development rights under a governmental land preservation program (MALPF). If the easement is sold to the state the owner must pay back Frederick County the option's full price. The landowner also may buy back the option at the end of 5 years by repaying the original option price plus interest.

Eligibility Factors and Criteria:
Property must be under contract of sale or recently purchased (within 6 months) by a full-time farmer. A minimum of 75% of the land must be zoned Agricultural and also must meet the standards for inclusion in the state (MALPF) program.

Minimum Size Property:
50 acres, unless contiguous to an existing easement. Other exceptions may be considered.

Limitations on Development:
No development for non-agricultural uses, but the original easement seller may reserve one building lot for him/herself and each of his/her children. New farm structures and tenant houses are permitted if such buildings are integral to the continued operation of the farm.

Potential Tax Benefits:
· Income - No Income Tax benefits. However, the difference between the easement value and the actual offer may be considered a charitable contribution.
· Property - Property Tax benefits are proposed and are pending approval.
· Estate - While the land value component is reduced, the cash value component of the estate is increased. Estate planning instruments can transfer cash so that the land value advantage is not minimized.

Option Value:
The option price paid is 75% of the easement value. Easement value is the difference between the fair market value and the agricultural value as determined by an appraisal.

Stewardship:
Seller agrees to allow periodic inspection of the property and to implement a soil and water conservation plan.

Source = Frederick County Planning Department