No Land, No Water: Solutions and Programs for Mitigating Land Loss Alamo Area Council of Governments Blair Calvert Fitzsimons, Chief Executive Officer Texas Agricultural Land Trust May 27, 2015 1
Outline About the Texas Agricultural Land Trust (TALT) Why Conserve Rural Lands? Solutions & Programs 2
About TALT: Our Mission To conserve the Texas heritage of agricultural lands, native wildlife habitats, and natural resources. David Langford 3
About TALT: Our Philosophy Land Conservation = Good Business 4
About TALT: Background Private, non-profit 501(c)(3) founded in 2007 by leaders from several statewide agricultural and landowner organizations. The largest Texas-based land trust in terms of acreage under easement; ranks in the top 15 in the U.S.* Accredited by the national Land Trust Alliance Our Work: Negotiate conservation easements with willing landowners; have protected 225,000 acres throughout the state; Communicate to an urban public why land conservation benefits them; and Advocate for public policies and seek financial strategies that encourage and incentivize private lands stewardship. *Source: Land Trust Alliance census 5
What is a Conservation Easement? Runs with the land ; filed at the courthouse Limits future non-agricultural use of the land; Encourages the business of ranching or farming; Flexibility allows ranch or farm to adapt to changing economic conditions; Permits construction of new ag buildings and residential dwellings; Does not require public access; Landowner retains private ownership of the ranch or farm can sell, bequeath, lease the property; Allows for oil and gas activity as long as there is minimal permanent damage to the surface 6
About TALT: Our Concern For every 1,000 people who move to Texas, the state loses 280 acres. Texas is losing rural land at a faster rate than any other state. This loss impacts our water resources, quality of life, and ability to produce food. Note: Red indicates conversion from ag land to development. Source: Texas A&M Land Trends Study. 7
Why Conserve Rural Lands? Consequences of population encroachment Health of rural and agricultural communities Rural infrastructure: roads, schools, power, information Water quality and quantity Endangered species Other environmental concerns 8
Why Conserve Rural Lands? Land Conservation = Good Business 94% of land in Texas is privately-owned Texas is the second-largest agricultural state, providing 7% of the total U.S. agricultural income. Agriculture is Texas second-largest resource-based industry, generating $100 billion a year. Cows don t call 911 For every dollar paid in taxes, agricultural lands consistently require less in services Bottom line, open space helps to balance the books 9
WHY CONSERVE AG LANDS? LAND CONSERVATION =WATER Water Fuels Our Economy: Texas is home to one of the largest and fastest growing economies in the U.S. Sustaining this growth hinges on an abundant and affordable local water supply to generate electricity and provide water for: Industry Agriculture Municipalities Recreation One of the most immediate and cost-effective ways to ensure water security is through the conservation of private working agricultural lands. 10
Water Demand and State Plan State water plan expected to generate 9 million acrefeet/year Implementation Costs = $53 billion Up from $30.7 billion in 2007 11
Why Land Matters? Water conservation starts where the first rain drop falls. -President Lyndon B. Johnson Versus
Water Conservation 101 100% 75% Water conservation starts where the first rain drop falls. -President Lyndon B. Johnson Run-off 50% 25% 0% Land/Cover Type Infiltration
Land Conservation as Water Strategy? Should we consider the value of land conservation as a viable, costeffective water strategy? Is Land Infrastructure as important as city infrastructure? Strategy in State Water Plan? Yesterday is not ours to recover, but tomorrow is ours to win or lose. -President Lyndon B. Johnson
Land Conservation as Water Strategy New York Watershed Agricultural Council In 1989, the EPA mandated a water filtration plant for New York City. Price tag: $6B - $8B Annual operating costs: $200 - $300M Instead, New York City achieved the same result by partnering with dairy farmers to protect farms surrounding the lakes that provide the city s drinking water. Cost of protection: $540M 15
LAND CONSERVATION = ENDANGERED SPECIES 12 mussels 11 amphibians 20 fish 6 snails 1 mammals 14 insects 7 arachnids 4 crustaceans 11 birds 21plants TEXAS: 118 SPECIES UNDER REVIEW 16
Programs: Texas Farm & Ranch Lands Conservation Program Created by the Legislature in 2005 to help address fragmentation and the loss of ag lands in Texas Known as a Purchase of Development Rights (PDR) Program; modeled after programs in about 25 other states Makes grants to land trusts to purchase conservation easements from willing landowners Has not yet received a legislative appropriation; has been using Coastal Improvement Assistance Program funds Subject of a House Natural Resources Committee interim charge to investigate opportunities to incentivize the conservation of private working lands in order to protect water resources, and what role TFRLCP can play 17
Programs: Local/Regional/Resource Specific City of San Antonio $300 million Aquifer Protection Initiative to purchase conservation easements over the recharge zones of the Edwards Aquifer, originally passed in 2000, and re-authorized by the voters in 2005, 2010 and 2015 City of Austin/Hays County/Travis County - $120 million to protect water quantity and quality DoD REPI/U.S. Army ACUB Program to create open space buffers around military installations; Army is using at Fort Hood and elsewhere around the country Western Association of Fish & Wildlife Agencies (WAFWA) to protect Lesser Prairie Chicken habitat, funded by oil and gas companies 18
State and Local Programs in the US As of January 2014, at least 27 states have state-level PACE programs. Of these, 16 also have local PACE programs. 19
Scope of Funding Mechanisms ACUB Appropriations Bonds Bottle bill revenue Cigarette tax Credit card royalties Deed recording fees Development Impact Fees Farm for the Future Pilot Program Federal Coastal Impact Assistance Program Farm and Ranchland Protection Program FRPP (USDA) Interest on securities Law suit settlement funds License plate revenue Local government contributions Lottery proceeds Mitigation fees Municipal landfill fees Private contributions Property tax relief program withdrawal penalties Real estate transfer tax Sale of fee-simple purchased properties State sales and use tax Transportation funding Tobacco settlement funds
Texas Voter Support Since 1998 Texas voters have approved more than $2 billion for parks and land conservation through sales tax increases and local bonds. Texas local conservation ballot measure approval rating is 90% (75 out of 83) compared to a national average of 74%. 21
Proposed Project Water Quality & Quantity Issues in the Nueces River Basin Barksdale San Antonio Uvalde Crystal City Carrizo Springs Mathis 22
Proposed Project 23
Nueces River Basin Partnership The Texas Agricultural Land Trust (TALT) and the Nueces River Authority (NRA) seek to promote land conservation as a strategy to address water quality and quantity issues in the Nueces River Basin, as seen in the New York City example, and to implement proven, complementary conservation programs. TALT s role: To provide outreach on conservation easements that permanently protect water resources; and to work with landowners to negotiate conservation easements NRA s role: To provide outreach on the importance of properly functioning riparian areas for water quality and quantity; and to work with landowners to implement riparian restoration projects. The partnership will ultimately be expanded to include other NGO s and natural resource organizations working within the Nueces River Basin. 24
Additional Information Texas Agricultural Land Trust www.txaglandtrust.org Blair Fitzsimons, Chief Executive Officer Texas Agricultural Land Trust 4040 Broadway, Suite 350 San Antonio, Texas 78209 (210) 826-0074 bfitzsimons@txaglandtrust.org 25
Supplemental Slides 26
What is a Conservation Easement? Runs with the land ; filed at the courthouse Limits future non-agricultural use of the land Encourages the business of ranching or farming Flexibility allows ranch or farm to adapt to changing economic conditions Permits construction of new ag buildings and residential dwellings Does not require public access Landowner retains private ownership of the ranch or farm can sell, bequeath, lease the property Allows for oil and gas activity as long as there is minimal permanent damage to the surface 27
What is a Land Trust? A private 501(c)(3), non-profit organization Organized for the purposes of land conservation Approximately 30 land trusts in Texas The land trust holds the conservation easement 28 Wyman Meinzer
Valuation of Conservation Easements Before Conservation Easement $2,100,000 $700,000 Decrease in value 33% Value of the CE, paid to the landowner LAND VALUE $2,100,000 $1,400,000 Value after the Conservation Easement is placed on the land Hypothetical Property 29