Farm and Ranch Lands Protection Program (FRPP)

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Announcement of Program Funding

To request a proposal application and for more information about FRPP in Ohio, please contact:

Julia Zehner, Program Manager
200 North High Street, Room 522
Columbus, OH 43215
Phone: 614-255-2477
 

Program Overview

The Farm and Ranch Lands Protection Program (FRPP), formerly known as the Farmland Protection Program (FPP), is reauthorized in the Farm Security and Rural Investment Act of 2002 (Farm Bill) to protect working agricultural land from conversion to non-agricultural uses.

The program provides matching funds to State, Tribal, and local governments and non-governmental organizations with farm and ranch land protection programs to purchase permanent conservation easements. NRCS provides up to 50% of the purchase cost for easements.

To qualify for FRPP, the land offered must be part or all of a farm or ranch and must:
• Contains prime, unique or other productive farm or ranch land
• Contains historical or archeological resources listed or formally determined eligible for listing on the National, Tribal or State Register of Historic Places
• Be privately owned and is part of a working farm
• Have a pending offer for purchase of development rights or a conservation easement from a State, Tribal, or local farmland protection program
• Have a conservation plan approved or pending approval by NRCS and the local Soil and Water Conservation District
• Be owned by an individual or entity that does not exceed the Adjusted Gross Income (AGI) limitation when the deed is executed.

If the land cannot be converted to non-agricultural uses because of existing deed restrictions or other legal constraints, it is ineligible for FRPP.
The Farm and Ranch Lands Protection Program (FRPP) is reauthorized in the Farm Security and Rural Investment Act of 2002 (Farm Bill) to protect working agricultural land from conversion to non-agricultural uses.

The program provides matching funds to State, Tribal, and local governments and non-governmental organizations with farm and ranch land protection programs to purchase permanent conservation easements. NRCS provides up to 50% of the purchase cost for easements.

To qualify for FRPP, the land offered must be part or all of a farm or ranch and must:

• Contain prime, unique or other productive farm or ranch land
• Contain historical or archeological resources listed or formally determined eligible for listing on the National, Tribal or State Register of Historic Places
• Be privately owned and is part of a working farm
• Have a pending offer for purchase of development rights or a conservation easement from a State, Tribal, or local farmland protection program
• Have a conservation plan approved or pending approval by NRCS and the local Soil and Water Conservation District
• Be owned by an individual or entity that does not exceed the Adjusted Gross Income (AGI) limitation when the deed is executed.

If the land cannot be converted to non-agricultural uses because of existing deed restrictions or other legal constraints, it is ineligible for FRPP.

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Eligibility for FRPP

Eligible entities include State, Tribal, or local governmental or non-profit organizations with farmland protection programs.

To be eligible, the non-governmental organization must:

• Be organized principally for the preservation of land areas for recreation, open space, historical preservation, and natural habitat;
• Be operated exclusively for charitable, religious, or educational purposes, with no part of its net earnings paid to any private shareholder or individual, and no substantial part of its activities engaged in influencing legislation or intervening in any political campaign for or against a candidate for public office, and;
• Normally receive more than one-third of its support in each tax year from any combination of gifts, grants, contributions, or membership fees; and normally receive not more than one-third of its support in each tax year from the sum of gross investment income.

Entities must demonstrate the availability of funds equal to at least 50 percent of the appraised fair market value of the conservation easement. Landowner donations up to 25 percent of the appraised fair market value of the conservation easement may be considered as part of the entity’s matching offer. When a landowner donation is part of the FRPP request, the entity must have funds equal to or more than 25 percent of the appraised fair market value of the conservation easement. NRCS’ reimbursement will not exceed 50 percent of the appraised fair market value.

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How to Apply

Each year after funds are made available, the NRCS National Office issues a Request for Proposals, published in the Federal Register, detailing the current application guidelines and priorities. Interested entities then contact the Ohio NRCS State Conservationist for the application.

The application has three sections:

1. Background information about the applicant in which the applicants must provide:
   - An overview of their farmland protection program
   - The amount and source of funds available for easement acquisition
   - The policies and values used to set acquisition priorities
2. Questions regarding (Part 1):
    - soils
    - location relative to other protected areas
    - status of the farm’s conservation plan
    - development pressure
    - archaeological or historic resources
3. Questions that relate the farm’s long term viability (Part 2)

Applications must be submitted to the NRCS state office in Columbus within the 45-day Request for Proposals period. The FRPP subcommittee of the State Technical Committee reviews the applications and makes their recommendations to the State Conservationist. NRCS will prepare cooperative agreements for those selected for participation in the FRPP.

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FRPP Activity in Ohio

Since 2002, the first year of the program in Ohio, over 17,343 acres of farmland have been enrolled in FRPP. Over 90% of the protected land is classified as prime soils.

In Fiscal Year 2006, $1,920,063 has been awarded to the various entities for purchasing easements through their farmland protection programs.  To date, $12,982,334 has been provided to state, county, and land trust programs in Ohio through the FRPP.

For more information about FRPP in Ohio, please contact:

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Ohio’s Farmland Loss

Of Ohio’s 26,206,720 acres there are 11,597,600 acres are classified as prime farmland. Although Ohio ranks 39th in the nation in total state land area, Ohio is fifth in the nation in percent of state land area that is classified as prime farmland (source: 2000a National Resources Inventory). In a more alarming analysis of NRI data Ohio lost more acres of prime farmland during the period 1987 to 1997 than any other state in the Nation, with the exception of Texas.

Since 1987, Ohio has lost 627,100 acres of farmland of which 352,600 acres were prime farmland. The average size of an Ohio county is 300,500 acres, so during the ten year span, Ohio lost more than a county’s area of prime farmland.

Frequently Asked Questions

What is a conservation easement?

A conservation easement is an interest in land, as defined and delineated in a deed, whereby the landowner conveys specific rights, title, and interests in a property to a State, Tribal, or local government or non-governmental organization. The landowner retains those rights, title, and interests in the property, which are specifically reserved to the landowner in the easement deed, such as the right to farm.

How does a landowner participate in FRPP?

A landowner submits an application to an eligible entity -- a State, Tribal, or local government or a non-governmental organization that has a farmland protection program. In exchange for payment, participating landowners agree not to convert their land to non-agricultural uses and to develop and implement a conservation plan. Ohio’s NRCS State Conservationist, with advice from the State Technical Committee, awards funds to qualified entities to conduct their farm and ranch land protection programs. These entities acquire perpetual conservation easements from landowners.

How is the value of a conservation easement determined?

A qualified appraiser assesses the difference between the fair market value of the property, often using comparable sales, and its restricted value under the easement.

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What restrictions are found in a typical easement?

The easements generally restrict non-farm development and subdivisions. Some farm-related housing may be allowed. Generally, there are few restrictions on improvements and construction related to the farming operation. The easements become part of the land deed and are recorded in the local land records.

Are all agricultural conservation easements the same?

The basic purpose and structure of all agricultural conservation easements are the same. However, each easement is tailored to the specific farm being protected. Exact language in the easement may reflect future expansion plans of the landowners, including the needs of their heirs.

How do the easements affect other rights of ownership?

The landowner controls the land and use of the land according to the agricultural conservation easement. The land still is owned by the landowner and can be transferred, deeded, or sold, just as any other property. The easement does not require any provisions for public access, unless such access was negotiated as part of the easement purchase transaction.

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Does a conservation easement affect a farmer's ability to borrow money?

A farm loan usually is based on the ability of the farm operation to carry the loan. Therefore, a conservation easement, which only affects non-farm development activities, not the farm operation, should not have a bearing on the farmer's ability to borrow operating funds. If a lending institution holds a lien on a property, it must review the sale of the conservation easement just as it would need to approve any transaction on the property.

What are the local property tax implications of protecting farmland with conservation easements?

Because the landowner still owns the property, he or she still is responsible for paying any associated property taxes. Since many states have programs that tax farmland based on its use or farm value, the net effect of the easement on local property tax revenues is little to none.

How are the proceeds from the sale of a conservation easement treated for tax purposes?

The easement sale proceeds are treated as any other capital gain for Federal, State, and local income tax purposes.

Ohio FRPP Fact Sheet

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Farm and Ranch Lands Protection Program in Ohio

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