Title
Vote to approve the Letter of Funding Commitment for the NC Department of Agriculture and Consumer Services’ Local Agricultural Growth Zone grant application
Abstract
Introduction/Background: Chatham Soil and Water Conservation District is seeking to leverage the existing Article 46 Farmland Preservation and Enhancement funds to increase Chatham’s farmland conservation easement programing activity through the application of the Local Agricultural growth Zones program through the Department of Agriculture.
The purpose of the Local Agricultural Growth Zones (AGZ) Application is to allow counties and conservation nonprofit organizations to enhance local investments in the acquisition of agricultural conservation easements by applying for matching funds from the state. Different regions in North Carolina have varying agricultural landscapes, land use pressures, and community needs. Accordingly, local AGZs allow for strategic approaches to farmland preservation at the community level.
Qualifying entities (county governments or private conservation nonprofit organizations) may request up to $2 million per Local AGZs application, which, if awarded, will serve as a dollar-for-dollar match to local dollars spent toward conservation easement efforts.
Local AGZ applications must include a cash contribution for agricultural conservation easement purchase equal to or greater than the Agriculture Development and Farmland Preservation (ADFP) Trust Fund grant request for agricultural conservation easement purchase. Future projections for cash contributions for agricultural conservation easement purchase may be considered.
Higher consideration will be given to Local AGZ applications with secured cash contributions for agricultural conservation easement purchase and other funds available to complete agricultural conservation easement projects.
Local AGZ applications may request ADFP Trust Fund grant funds for transactional costs to complete the agricultural conservation easements. Grant requests for transactional costs are limited to 10 percent of the total Local AGZ request, and each line item is capped at the maximum cost average for the region.
Local AGZs are restricted within the boundaries of one county. Applications may include priority zones or focus areas within a county.
Discussion/Analysis: The stated purpose of the AGZ program aligns with the farmland conservation easement efforts put forth by Chatham Soil and Water and its initial intended use of Article 46 funds. It is estimated that the Article 46 revenue share in FY 2025 for Farmland Preservation and Enhancement will be approximately $350,000. Accordingly, the proposed application seeks to request the same amount in awarded funds through this program, increasing the total available funds for this activity to $700,000 for the term of the grant program.
The remainder of the Discussion/Analysis portion of this abstract is information attributed to the Local Agricultural Growth Zones Information Package published by the NC Department of Agriculture and Consumer Services.
Local Agricultural Growth Zones Information Packet.pdf (ncadfp.org) <https://ncadfp.org/documents/Local%20Agricultural%20Growth%20Zones%20Information%20Packet.pdf>
According to research by the American Farmland Trust, large blocks of permanently protected land are one of the most effective sprawl management tools. AGZs are local or regional areas of concentrated agricultural conservation easements.
Large blocks of protected farmland can be a physical barrier to urban and suburban sprawl. AGZs are permanently protected from development, creating a buffer between urban areas and agricultural lands. These protected farms and forests can slow down encroachment and preserve the rural character of an area.
The fragmentation of farmland results in inefficient land use patterns, increased infrastructure costs, and loss of prime agricultural soils. Fragmentation of working lands is a threat to the agricultural economy of communities because it makes it more difficult for farmers to manage their operations and reduce the economic viability of their farms. AGZs reduce the fragmentation of working landscapes by protecting land resources in concentrated areas.
The local agricultural economy can benefit from reduced fragmentation through increased efficiencies in production, distribution, and marketing. When large blocks are farmland are protected, it supports the long-term viability of agribusinesses and contributes to the community's overall economic health.
Large blocks of protected farmland are most effective when they are coordinated with other planning efforts at the local, regional, and state levels. This includes comprehensive land use planning, zoning, and other policy mechanisms that promote smart growth, land preservation, and sustainable agricultural practices. Coordinated planning efforts can help to ensure that large blocks of protected farmland are strategically located in areas that are vulnerable to sprawl and that they are managed in a way that maximizes their impact on mitigating sprawl and preserving agricultural viability.
How does this relate to the Comprehensive Plan:
Preserving the rural character of Chatham County and the preservation of agriculture within the county are fundamental concepts of Plan Chatham. The proposed grant application and funding commitment aligns with these concepts and promotes other goals of the county’s Comprehensive Plan, such as the diversification of the county’s tax base and promoting urban growth and development within the incorporated jurisdictions in Chatham.
Budgetary Impact: No budgetary impact is anticipated if awarded. The awarding of this grant will not result in any additional revenue coming into the county’s financial picture, as the grant funds will be retained by the Department of Agriculture. Expenses related to these activities will be handled as a two-party payment method, where Chatham and the Department of Agriculture will each pay 50% of associated costs directly.
Recommendation: Approve the Letter of Funding Commitment for the NC Department of Agriculture and Consumer Services’ Local Agricultural Growth Zone grant application.