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NC DEPARTMENT OF AGRICULTURE AND CONSUMER SERVICES FARMLAND PRESERVATION DIVISION NC AGRICULTURAL DEVELOPMENT AND FARMLAND PRESERVATION TRUST FUND 2014-2015 ANNUAL LEGISLATIVE REPORT October 1, 2015 Agriculture Commissioner Steve Troxler Chief Deputy Commissioner N. David Smith Pursuit to G.S. 106.744 (i) The Advisory Committee shall report no later than October 1 of each year to the Joint Legislative Commission on Governmental Operations, the Environmental Review Commission, and the House of Representatives and Senate Appropriations Subcommittees on Natural and Economic Resources regarding the activities of the Advisory Committee, the agriculture easements purchased, and agricultural projects funded during the previous year. (1991, c. 734, s. 1; 2000-171, ss. 1, 2; 2005-390, ss. 4, 17; 2006-252, s. 2.12; 2007-495, s. 23; 2009-303, ss. 1, 2, 3; 2009-484, s. 12.)

Table of Contents Why Preserve Farms and Forests in North Carolina? 3 NC ADFP 10 th Anniversary 4 Advisory Committee and Staff 5 Voluntary Agricultural Districts Program 6 Farmland Protection Plans Program 7 NC ADFP Trust Fund Grants, Match, and Acres Figures 8 NC ADFP Trust Fund Military Buffers Conservation Easements 9 Cycle VIII Overview 10-13 2

Why Preserve Farms and Forests in North Carolina? The NC ADFP Trust Fund Saves the Family Farm for Future Generations -Agriculture and agribusiness is North Carolina s top industry, accounting for almost one-fifth of the state s economy and employees. -Agriculture and agribusiness amounts for more than 17 percent, or $76 billion, of the $456 billion gross state product. -Working lands provide fresh, local foods to North Carolina residents and quality products to the agriculture, forestry and fiber industries. -Agriculture is a compatible industry with the military and military training, which is second in economic importance in the state at $26 billion. -Working lands provide scenic rural landscapes for tourism, the third largest economic sector in North Carolina. -Farms and forests are critical in providing a healthy environment. Working lands are actively managed by farmers, providing key benefits like erosion control, carbon sequestration and waterway buffers. -Cost of community services studies in the state show that agricultural lands use less tax dollars than they generate. Working lands are a net provider of local tax dollars, rather than a net user. 3

This Year Marks the 10th Anniversary of the NC ADFP Trust Fund Join Commissioner Troxler and the ADFP Trust Fund staff in celebrating the 10th anniversary of the ADFP Trust Fund! In March 2005, Agriculture Commissioner Steve Troxler delivered his "Agricultural Development and Farmland Preservation Strategy" to the General Assembly. Governor Mike Easley signed House Bill 607 into law on September 13, 2005, establishing the North Carolina Agricultural Development and Farmland Preservation Trust Fund. Since 2005, the ADFP Trust Fund has preserved 10,321 acres of farms and forestlands. There have been 90 conservation easement projects awarded. The ADFP Trust Fund has provided funding for 47 agricultural development projects, including farmers markets, livestock facilities, marketing programs, shared-use equipment programs, and other agriculture and agribusiness initiatives. Additionally, funding from the ADFP Trust Fund has established 15 Voluntary Agricultural Districts programs and 38 Farmland Protection Plans for counties throughout the state. 4

Advisory Committee and Staff NC ADFP Trust Fund Advisory Committee Chair - Steve Troxler Commissioner of Agriculture Jimmy Gentry NC State Grange Pryor Gibson NC Forestry Association William Holbrook Farmer appointed by the President Pro Tempore of the NC Senate Clarence Hood Farmer appointed by the Speaker of the NC House of Representatives B. Ray Jeffers NC Association of County Commissioners Jimmy Johnson NC Department of Environment and Natural Resources Scott Marlow Rural Advancement Foundation International Tom Melton Dean of the College of Agricultural and Life Science at NC State University Edgar Miller Conservation Trust for NC Erica Peterson NC Agribusiness Council Stuart Pierce Farmer appointed by the Governor Dean of the School of Agriculture and William Randle Environmental Sciences at NC A&T University John Skvarla Secretary of Commerce Darelle Tennie NC Black Farmers and Agriculturalists Association Manly West NC Association of Soil and Water Conservation Districts Steve Woodson NC Farm Bureau Federation NC ADFP Trust Fund Staff David Smith Chief Deputy Commissioner david.smith@ncagr.gov Dewitt Hardee Program Director dewitt.hardee@ncagr.gov Evan Davis Document Specialist evan.davis@ncagr.gov John Ray Davis Field Staff Sim DeLapp Field Staff Elizabeth Heath Office Manager elizabeth.heath@ncagr.gov Jonathan Lanier Assistant General Counsel jonathan.lanier@ncagr.gov David Mitchell Budget Officer david.w.mitchell@ncagr.gov Janine Owens Paralegal janine.owens@ncagr.gov Paul Walker Field Staff Lester Weaver Field Staff 5

Voluntary Agricultural Districts The Voluntary Agricultural Districts (VAD) program encourages the preservation and protection of farmland by allowing landowners to publicly recognize their farms. The VAD program is a county-level ordinance that establishes an Agricultural Advisory Board that provides a voice for farm, forestry and horticultural interests in local government. Farms enrolled in the VAD program may reduce the threat of nuisance conflicts, may allow for waivers for water and sewer assessment and may provide public hearings for proposed condemnations. Program provisions vary by county. Enhanced VAD member benefits are the entire above, plus: May receive up to 25% of its gross sales from the sale of nonfarm products and still qualify as a bona fide farm and eligible to receive a higher percentage of cost share funds under the Agriculture Cost Share Program. The EVAD conservation agreement is irrevocable for 10 years. The conservation agreement is automatically renewed for three (3) years absent a written notice to the county revoking the conservation agreements. Farms Enrolled in the VAD Program Statewide 9,343 Acres of Farmland Enrolled in the VAD Program Statewide 767,105 Farms Enrolled in the Enhanced VAD Program Statewide 505 Acres of Farmland Enrolled in the Enhanced VAD Program Statewide 40,566 Total Farms Enrolled in the VAD and EVAD Program Statewide 9,848 Total Acres of Farmland Enrolled in the VAD and EVAD Program Statewide 807,671 Total Acres Enrolled in the VAD and EVAD Program Statewide Increased by 80,386 Acres, or 11.1% Total Farms Enrolled in the VAD and EVAD Program Statewide Increased by 1,422 Farms, or 16.9% 6

Farmland Protection Plans Guiding Counties to a Viable Agricultural Future Farmland Protection Plans are strategic proposals that define how to maintain a viable agricultural economy in a county. These plans describe existing agricultural activity in a county, list challenges to continued family farming in the county, list opportunities for enhancing the local agricultural economy, create a schedule for implementing the plan and identify possible funding sources for long-term support of the plan. Farmland Protection Plans are approved by the North Carolina Department of Agriculture and Consumer Services and endorsed by the county Board of Commissioners. 52 48 7

NC ADFP Trust Fund Grants, Match and Acres Figures Figures include conservation easements, development projects and agricultural plans. Cycle Confirmed Anticipated Grant Funds Under Match Match Expended Contract Pilot $3,418,700.00 $0.00 $44,000.00 $0.00 Cycle I $8,897,643.68 $0.00 $7,001,806.39 $0.00 Cycle II $13,206,169.33 $0.00 $3,230,088.53 $0.00 Cycle III $6,001,118.74 $0.00 $2,151,866.32 $0.00 Cycle IV $3,585,116.97 $678,436.73 $1,360,097.65 $378,370.12 Cycle V $2,220,888.03 $682,484.00 $1,423,025.09 $361,045 Cycle VI General Appropriations $0.00 $1,845,358.24 $119,744.00 $541,298.50 Cycle VI - TVA $1,391,818.11 $4,022,278.84 $474,099.23 $454,757.67 Cycle VII-General Appropriations $0.00 $1,019,968.00 $11,200.00 $585,404.00 Cycle VII-TVA $19,506.20 $1,706,442.28 $66,778.47 $1,338,201.53 Cycle VII-Sentinel Landscapes $0.00 $171,828.06 $114,780.00 $169,930.00 Totals $38,740,961.06 $10,126,796.15 $15,953,485.68 $5,437,023.48 Cycle Easement Acres Recorded Pilot 394.5 Cycle I 3,295.0 Cycle II 3,167.5 Cycle III 1,207.0 Cycle IV 576.7 Cycle V 819.1 Cycle VI - GA 92.06 Cycle VI - TVA 333.9 Cycle VII - Military 435.6 Totals 10,321.4 Cycle Acres Under Contract for Easements Cycle IV 172.0 Cycle V 228.8 Cycle VI - GA 402.5 Cycle VI - TVA 600.7 Cycle VII - GA 423.0 Cycle VII - TVA 589.0 Cycle VIII MIL 2,221.0 Totals 4,637.0 8

NC ADFP Trust Fund Military Buffers Conservation Easements Protecting Against Military Base Encroachment and Reduction in Airspace In 2014, the General Assembly appropriated $1 million in nonrecurring funding to match federal funds for the purchase of development rights from agricultural operations located near military bases in North Carolina. These funds were required to match funding from the federal government for that purpose on at least an equal basis. 2015 Contracted ADFP Trust Fund / Military Easement Projects Project Grantee Type Hawkes Farm Easement Weyerhaeuser Parker Easement McDonald Farm Easement The Nature Conservancy The Nature Conservancy The Nature Conservancy Perpetual Easement Perpetual Easement Perpetual Easement Military Affiliation Army Fort Bragg Air Force Seymour Johnson AFB Army Fort Bragg County Acres ADFP Grant Federal Funds Other Funds Total Cost Hoke 42 $97,950 $101,450 $1,000 $200,400 Washington 2,070 $817,550 $817,550 - $1,635,100 Richmond 109 $84,500 $86,900 $1,000 $172,400 Totals 2,221 $1,000,000 $1,005,900 $2,000 $2,007,900 Fort Bragg Hawkes Property 9

ADFP Trust Fund Cycle VIII Grant Requests 10

ADFP Trust Fund Cycle VIII Agricultural Plans Application Summary 11

ADFP Trust Fund Cycle VIII Agricultural Development Projects Application Summary 12

ADFP Trust Fund Cycle VIII Perpetual Conservation Easements Application Summary 13