Farm and Ranch Lands Protection Program United States Department of Agriculture Natural Resources Conservation Service Farm and Ranch Lands Protection Program

Purpose The purpose of the FRPP – to purchase conservation easements for the purpose of protecting working agricultural lands and prime soils by limiting nonagricultural uses of the land.

Entity Eligibility Who is eligible? The 2002 Farm Bill expanded entity eligibility to include not only: State or Local Governments, and Federally Recognized Indian Tribes, But also: Non-Governmental Organizations (i.e. Land Trusts and Conservation Districts) The 2002 Act expanded FPP to include not only the traditional state and local governments as eligible entities, but also Federally recognized Indian Tribes and nongovernmental organizations. An eligible nongovernmental organization: Is organized principally for one or more of the following conservation purposes: the preservation of land for recreation, open space, historically important land areas and structures, and natural wildlife habitat; Is operated exclusively for charitable, religious, or education purposes, with no part of its net earnings paid to any private shareholder or individual and no substantial part of its activities influencing legislation or intervening in any political campaign for or against a public office candidate; or Normally receives more than 1/3 of its support in each taxable year from any combination of gifts, grants, contributions, or membership fees, and normally receives not more than 1/3 of its support in each tax year from the sum of its gross investment income.

Eligible Land To be eligible, farms or ranches must be privately owned and contain: at least 50% of prime or statewide important soils, OR a historical or archaeological resource. 50% or less forested acreage Subject to a pending offer. To be eligible, farms or ranches must be privately owned and contain: at least 50% of prime, unique, or statewide or locally important soil, or a historical or archaeological resource. Eligible land must be owned by landowners who certify that they do not exceed the Gross Income limitation eligibility requirements. What is the Adjusted Gross Income Limitation? Section 1604 of the Farm Security and Rural Investment Act of 2002 (Pub. L. 1-7-171) prohibits individuals and entities exceeding an average adjusted gross income limitation of $2.5 million from receiving USDA payments, unless 75 percent or more of their adjusted gross income is derived from farming, ranching or forestry production.  Subject to a pending offer, a written bid or contract extended to the landowner by the cooperating entity. Farms and ranches may qualify if they have historical and archaeological resources. To be considered for FRPP funding the farm or ranch must have a site that is: Listed in the National Register of Historic Places; or Formally determined eligible for listing in the National Register of Historic Places by the State Historic Preservation Officer or Tribal Historic Preservation Officer; or Formally listed in the State or Tribal Register of Historic Places of the State Historic Preservation Officer.

Past Funding Levels FY 2004- NC rec’d $2.3 million

The Request for Proposals (RFP) NRCS uses the public notice process to request FRPP applications. Notice is typically placed in the Federal Register in late winter to early spring. Although NRCS has the authority to acquire other interests in land, the RFP will seek to fund only perpetual conservation easements.

Funding Under FRPP, NRCS may provide up to 50% of the appraised fair market value, entities are required to supplement the NRCS share of the cost of the conservation easement. Landowner donations up to 25% of the appraised fair market value of the conservation easement may be considered part of the entity’s matching offer. The entity must provide in cash at least 25% of the appraised fair market value or 50% of the purchase price in cash.

The Application Process From the time the RFP is published, entities have 45 to 60 days to submit proposals. The NRCS State Office has 30 days to rank and evaluate proposals.

Looking Ahead FRPP authorization expired Sept. 2007 FRPP needs to be re-authorized in the 2007 Farm Bill Expect that to happen with some changes, hopefully minor Funding level expected at or a little above previous thresholds Program announcement for 2008 - ????

QUESTIONS???