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Elements of Agricultural Land Preservation Hawaii Technique Comments Status in Hawaii Agriculture Zoning Most effective if it minimizes farmland conversion and prevents the intrusion of nonfarm uses into the areas designated for agriculture Available in all counties Not regional approach as we do not have townships or city boundaries Special Consideration Multiple jurisdictions is cumbersome Rural designation Often synonymous with agriculture zone in Hawaii Rural in Hawaii is R2 R3 Smaller lots in most places Larger cluster or open space designates for transition Open land for transition Additional Tasks AP2 infrastructures Not have infrastructure but reducing in zones Drive political demand for other uses with market Ag district of overlay where farmers are enterprise Remedy Proposed Agriculture Enterprise Zone Agriculture Tax Dedication Exemption from GET State enabled, county implemented Cumbersome with many bureaucratic rules No incentive to make commitment Enforcement need receipts

Technique Comments Status in Hawaii Agricultural Not commonly County set the subdivision found elsewhere standards for development Comprehensive County Plans Conservation easements Comprehensive planning allows counties to create a vision for their future. They typically identify areas targeted for a variety of different land uses, including agriculture, forestry, residential, commercial, industrial and recreational services. Allows qualified public agencies and private conservation org to accept, acquire and hold less-than-fee simple interests in land for purposes of conservation and preservation County generate general plans Community plans Identify urban growth boundaries Very broad Special Consideration Additional Tasks from their products to qualify for tax reduction Remedy Proposed

Technique Right to Farm State Rural Zoning Site Development Plan Transfer of Development Rights Comments Intended to protect farmers and ranchers from nuisance lawsuits. It is a state policy assertion that commercial agriculture is an important activity. Zoning is a local government land use control. Zoning ordinances segment counties, cities, into areas devoted to specific land use and establish standards and densities for development. Allows landowners to transfer the right to develop one parcel of land to a different parcel of land. Generally, TDR programs are Status in Hawaii Special Consideration Additional Tasks State Law May need to be a tiered approach to meet specific agricultural needs Kona coffee similar to Napa Valley Commodity ag use with increased impact on use/right to farm County implementation Maui Oahu State enabled counties adopt by ordinance Implementation on two tiers Sate County CCHNL not focued on agriculture, sending area OK Receiving area has greater density-higher residential area Hawaii never got to density area need strong Remedy Proposed

established by local zoning ordinances. TDR is used to shift development from agricultural areas to designated growth zones closer to municipal services. planning and review Parking Streamlining Unique design TDR development Not look different from next door Benefits for density o Water, sewer capacity o Discharge into sewer o Greater capacity, buy more

Business Support for Agriculture Status Agricultural Development State Corporation Agricultural Cooperatives (private) Agriculture loans State, federal, private Agriculture parks State, county Agriculture water Development plan in progress Agricultural water systems Systems operational Public Private Comment Department of Ag programs State Economic Development Boards (EDB) County wide HIEDB MEDB KEDB EH Enterprise Zone Farm Credit Service Farmers markets CCHNL Ordinance 64 Kauai Federal Land Bank (PCA) Federal Programs US DOA FSA NCRS Hawaii Farm Bureau Federation Market State

development/research Small Business Development Centers (SBDC) University of Hawaii CTAHR County Statewide Extension programs What are we missing? How well is it working? Is it truly working as designed? Promotion/support of agriculture as an economic development tool -- it is seen as reg.??? Lack of Ability to Implement business plan- not service-orientated to customers - "family farm" current laws are not set up to be friendly to new agricultural entrepreneurs What do we have - framework? not working - why? what would make it work? Promotion/Support meeting the need for a better distribution system need the coordination of DOA statistical information with distribution farmers are not organized to get to the market value-added not getting farmers at the needed time There is a need for better coordination from production to market with small entrepreneurs agricultural cooperatives - under association Marketing person to assist in production schedule

End result would be selling at better price Cooperatives have many benefits, preclude price fixing and other factors TDR - set-up system sending areas - OK receiving area > density - higher residential area Hawaii never got to density areas - need strong planning and review parking streamlining Unique deisgn - TDR development not look different from next door benefits for density: o water, sewer capacity - limiting o discharge into sewer - x capacity - buy more What is it that people want in the development area? We need to build the benefits around that How do you deliver TDR when under multiple jurisdiction? TDR that does not control - implements on 2 tiers (State and County)? All TDR must be under single jurisdiction (county or township) Cross jurisdictional areas are difficult none work on multi-jurisdictional Question: What criteria to buy development rights? Ag Zone? Large info on case studies Response: Each county has to set up its own criteria specific to its own county (point systems) number of prime lands size Where are they in relationship to other lands? o Montana More points close to urban areas o Lancaster County, PA. Set up a point system for evaluation More points given to urban More points for class 1 soils

o Adams County What s good soils to class 1 soils Higher points when farther from urban, close to Gettysburg for example, as a way to provide greenbelt Criteria is based on what values you want to develop? What do you want for your community? Most strategic lands Protected for what is desired Scenic vistas for tourism Crops and their proximity to other farms TDR 2 jurisdictions Help identify benefits/incentives > 2 different goals Have to implement > develop mechanism to bank Identify how and why should landowners participate Valuation- System for how to value land very complicated PDR allowed some development o Skagit Valley, WA within agricultural zone Zoning Agriculture to agriculture --path of development to value how does it work? o Appraisal process general size category works if similar property sold, etc. o Point-based system > criteria > also for value attributes analyzing for evaluating similar to what the community wants to protect o Value on what community wants to protect Examples Montgomery County not use appraisal uses point systems Easement point system tied to money management practices, business plan, and proximity to urban areas Question: Does it approximate market value range 20% to 90% value? Response: Mechanism works best where there is good regulation or county planning. Important community vision/comprehensive plan, etc. Should go into local areas

County/state work best when counties identify what they want (e.g. Maryland, Pennsylvania) o State enable o County implement zoning Question: How are funds available for these efforts? o Dedicated income for preservation of agricultural lands o 2 cent cigarette tax o Federal cost share Maryland o Transfer tax Bond authorization multi-year- Value Other types of value Access Allow charitable contribution as tax 1031 tax exchange-- like kind exchange OK by IRS sell > State > Attraction> Business in agricultural area Incentives- Time is a value o Streamlining can be a significant incentive What is not working Ag Zone AP2 infrastructures Desired description of AP2 Not that have infrastructure but reducing in the zone > drive political demand for other uses with more develop;ment AP2 agricultural district of overlay where the farmers Enterprise Special designation - Ag Enterprise Zone- Exemption from General Excise Tax Ag Zoning Not incorporate townships no city boundaries

Not regional approach must be more regional approach more comprehensive Hawaiian Ocean View want county services 1 acre agriculture lava lots o Heavy burden on the county Rural designation (Rural often synonymous with Agricultural) Rural in Hawaii R 2 R3 Smaller lots in most places larger cluster or open space designates for transition open land for transition Zoning Yolo County, California o Up zoning-- how paid in information package Have to zone > 1-1 acre mitigation that is agricultural in nature or pay into fund to purchase land Standards Code of the West if more of these areas not have services o Agricultural subdivision new term o Concurrence of public facilities TDR what are banks used for? Encumber land what incentives incentive to provide additional density / another floor on building / another condo they already own New Jersey Highland have a bank o State buys easement until a time of greater need o permanent redistribution of development allowance from one area to another PDR retire TDR redistribute Term easement: purchasing land for a period of time Arizona new law not sure how it works AFT believes buying a permanent easement rather than term Promote conservation / wildlife habitat if farmer not planning to do for 5-10 years Landowner large not farmers Typically not looking at owners Start building incentives TDR o Within ownership o Term easement encouragement to long term leasing

Example: if farm has large land holding 200 acres for urban development 800 acres agricultural easement for long period of time Allowance for development up zoning in exchange for transfer for the land area that will protect the agricultural lands (there is no true protection now) New Jersey agricultural district o eligible cost share (state) rac o pratices in agricultural district Ag lands in Hawaii are not easily transferred at the State level > not necessary in part of community level there is legislation in place to support this Voluntary program- In Hawaii, landowners generally want to develop prime lands Which land worth preserving? Have to identify lands State does not have authority at this time Under current process, land is under the Land Use Commission and the Agriculture Board, always AB The amount of restrictions keep it under agriculture 1978 through the Constitutional Convention, the Protection of Agricultural Land was placed in the constitution. It has always been viewed as a land use issue and not implemented. Our goal is to broaden the focus to look at agriculture where land is one of the uses. Farms are not farms without farmers. Maybe some of the prime agricultural lands are not in agriculture Require each community to protect lands adopted by State legislature o LUC may be the point identification A o Land classified as ABC may not be the best approach, and may not work Right to farm what are additional incentives? Tiered approach right to farm issues Kona coffee Napa Valley liberalize to promote those areas

Commodity ag used > impact on use/right to farm More flexible tools Next Steps: Group will send tools to Bob o Will look at what tools is optimal o Look at regional approach tools to promote areas o Small group can begin to develop draft of legislation o Get feedback from larger AWG o Information is scattered o Identify issues that may gain consensus as first and second priority Action: By August create position paper, request assistance from Bob for needed clarification 1. Develop concepts / areas of concentration > TDR > Clusters 2. Create a proposals Meetings AWG Subcommittees June 26 (1-4) AWG subcommittees July 24 (1-4) AWG August TBA Hurdle for Federal matching fund is the need state plan It is not a comprehensive plan NRCS needs to put plan other state put together plans Seeks information on how to spend money, match, strategic approach, how used, etc.