U.S. Department of Agriculture

Natural Resources Conservation Service

**FARMLAND PROTECTION**

**POLICY ACT**

**ANNUAL REPORT**

**FOR**

**FY 2006**

REPORT FROM THE SECRETARY OF AGRICULTURE

TO THE COMMITTEE ON

AGRICULTURE, NUTRITION, AND FORESTRY

UNITED STATES SENATE

AND

THE COMMITTEE ON AGRICULTURE

UNITED STATES HOUSE OF REPRESENTATIVES

**April 2007**

**[TABLE OF CONTENTS]{.underline}**

I.  **Progress of Federal Agencies in Implementing the Farmland**

**Protection Policy Act (FPPA) 3**

#### Review and Revision of Federal Policies-Procedures Affecting Farmland Conversion 6

II. **Federal, State, and Local Efforts to Protect Farmland 7**

**Figures:**

Figure 1- FY 2006 FRPP Financial Assistance Dollars Obligated 7

Figure 2- FY 2006 FRPP Acres Protected 8

**Tables:**

Table 1- FPPA and Important Farmland Numbers, 1997-2006 4

Table 2- Top Ten States Acres of Farmland Converted 5

Table 3- Acres of Farmland Proposed for Conversion by State 5

Table 4- Breakdown of Acres and AD-1006 forms received 6 by Federal
Agencies in 2006

The fiscal year (FY) 2006 Farmland Protection Policy Act (FPPA) Annual
Report consists of three components:

I. Progress of Federal agencies in implementing farmland protection;

II. Review and revision of Federal policies and procedures affecting
    farmland conversion; and

III\. Federal, State, and local efforts to protect farmland.

#### *I. Progress of Federal Agencies in Implementing Farmland Protection*

According to the FPPA final rule, Federal agencies are required to
evaluate the impacts of Federally funded projects that may involve
converting farmlands to nonagricultural uses and to consider alternative
actions that would lessen the adverse effects of the land's conversion
(7 CFR Part 658 and 675). Federal agencies request assistance from the
Natural Resources Conservation Service (NRCS) in complying with the FPPA
by submitting a Farmland Conversion Impact Rating Sheet (Form AD-1006).
The Agency then conducts a Land Evaluation and Site Assessment (LESA) of
the project area. NRCS provides land evaluation information, while the
responsible Federal agency completes the site assessment portion of the
analysis. In order to implement the FPPA, Federal agencies address the
potential conversion of agricultural land when reviewing internal
projects or providing assistance to local communities.

Prime farmland is land that has the best combination of physical and
chemical characteristics for producing food, feed, forage, fiber, and
oilseed crops and is available for these uses (the land could be
cropland, pastureland, rangeland, forestland, or other land, but not
urban built-up land or water). Land used for a specific high-value food
or fiber crop is classified as unique farmland. Generally, additional
farmlands of statewide importance include those that are nearly prime
farmland and that economically produce high yields of crops when treated
and managed according to acceptable farming methods. In some local
areas, there is concern for certain additional farmlands, even though
these lands are not identified as having national or statewide
importance. These farmlands are identified as "local importance" by
local ordinance or adoption by local government. When jurisdictions
adopt local Land Evaluation and Site Assessment systems (LESA), Federal
agencies use these systems to review activities that may impact
farmland. Less than 10 percent of the reviews offered alternative sites
or were able to use a local LESA system for the conversion evaluation
and site assessment.

According to the 2001 USDA National Resources Inventory (NRI) data, in
the period between 1992 and 2001 about 6 million acres (28 percent) of
the new land developed was prime farmland. Between 1982 and 1992, about
4 million acres (29 percent) was prime farmland.

Correspondingly, the rate of prime farmland development increased from
an average of 400,000 acres per year between 1982 and 1992 compared to
600,000 acres per year between 1992 and 2001. For more information about
the NRI, visit <http://www.nrcs.usda.gov/technical/NRI/>.

The following table summarizes the land evaluated as a result of Federal
projects from 1997-2006.

Table 1 -- FPPA and Important Farmland Numbers 1997-2006

+-----------------+-----------------+-----------------+-----------------+
|                 | \% IMPORTANT    | IMPORTANT       | AGENCIES        |
|                 | FARMLAND        | FARMLAND        | SUBMITTING      |
|                 |                 | (within land    | REQUESTS        |
|                 | (of total land  | evaluated)      |                 |
|                 | evaluated)      |                 |                 |
+-----------------+-----------------+-----------------+-----------------+
| Year            | \% Total Acres  | Acres           | No. of Agencies |
+-----------------+-----------------+-----------------+-----------------+
| 1997            | 41%             | 61,172          | 16              |
+-----------------+-----------------+-----------------+-----------------+
| 1998            | 45%             | 114,382         | 13              |
+-----------------+-----------------+-----------------+-----------------+
| 1999            | 45%             | 83,452          | 13              |
+-----------------+-----------------+-----------------+-----------------+
| 2000            | 54%             | 134,975         | 22              |
+-----------------+-----------------+-----------------+-----------------+
| 2001            | 34%             | 102,604         | 26              |
+-----------------+-----------------+-----------------+-----------------+
| 2002            | 30%             | 75,151          | 26              |
+-----------------+-----------------+-----------------+-----------------+
| 2003            | 30%             | 76,892          | 28              |
+-----------------+-----------------+-----------------+-----------------+
| 2004            | 52%             | 60,040          | 38              |
+-----------------+-----------------+-----------------+-----------------+
| 2005            | 67%             | 73,007          | 25              |
+-----------------+-----------------+-----------------+-----------------+
| 2006            | 62%             | 65,989          | 26              |
+-----------------+-----------------+-----------------+-----------------+

In FY 2006, NRCS received 1,835 AD-1006 forms from 26 Federal agencies
requesting assistance to evaluate the impact of proposed conversions of
lands that would result from their projects. A total of 106,984 acres of
land from 41 States were proposed for conversion to nonagricultural
uses. Sixty-two percent of the acres reviewed were identified as
important farmland (as defined in 7 CFR Part 657). Of the 65,989
important farmland acres reviewed, 55,538 were prime or unique farmland
and 10,451 were State or locally important soils. Federal agencies
proposed projects resulting in conversion of 106,984 of farmland. Of the
farmland acres proposed for conversion, Florida and North Carolina
reported the greatest number of acres with over 26,000 and 8,000 acres
respectively. Nine States reported no acres, and five States reported
less than 100 acres with Federal impact actions that proposed farmland
conversion (Tables 2 and 3).

In FY 2006, the Federal Highway Administration reported the greatest
amount of important farmland proposed for conversion with 19,819 acres.
Rural Development reported the second greatest amount of proposed
conversion, 17,891. These two agencies account for 57 percent of all
proposed important farmland conversion (Table 4).

**Table 2 - Top Ten States with Acres of Farmland Proposed for
Conversion by Federal Projects**

  ----------------------------------- -----------------------------------
  **STATES**                          **ACRES**

  Florida                             26,740

  North Carolina                      8,171

  Texas                               5,956

  Georgia                             3,316

  Kansas                              2,871

  Illinois                            2,726

  Missouri                            1,552

  California                          1,486

  South Dakota                        1,415

  Minnesota                           1,392
  ----------------------------------- -----------------------------------

**Table 3 - Acres of Farmland Proposed for Conversion by State**

  ----------- ---------- ------------ ----------- ------------ -- ------------ ------------- ------------ ------------ ------------
  **State**   Total Land Percentage   Total       Percentage      **State**    Total Land    Percentage   Total        Percentage
              Acres      Land Acres   Important   Important                    Acres         Land Acres   Important    Important
              Proposed   Proposed     Farmland    Farmland                     Proposed      Proposed     Farmland     Farmland
                                      Acres       Acres                                                   Acres        Acres
                                      Proposed    Proposed                                                Proposed     Proposed

  **AK**      0          0.00%        0           0.00%           **MT**       686           0.64%        545          0.83%

  **AL**      1,246      1.16%        846         1.28%           **NC**       12,712        11.88%       8,171        12.38%

  **AR**      287        0.27%        20          0.03%           **ND**       159           0.15%        85           0.13%

  **AZ**      0          0.00%        0           0.00%           **NE**       674           0.63%        535          0.81%

  **CA**      4,338      4.05%        1,486       2.25%           **NH**       431           0.40%        3            0.00%

  **CO**      0          0.00%        0           0.00%           **NJ**       0             0.00%        0            0.00%

  **CT**      2          0.00%        2           0.00%           **NM**       128           0.12%        0            0.00%

  **DE**      0          0.00%        0           0.00%           **NV**       0             0.00%        0            0.00%

  **FL**      26,740     24.99%       26,740      40.52%          **NY**       240           0.22%        248          0.38%

  **GA**      5,339      4.99%        3,316       5.03%           **OH**       1,700         1.59%        1,167        1.77%

  **HI**      380        0.36%        445         0.67%           **OK**       619           0.58%        226          0.34%

  **IA**      1,293      1.21%        692         1.05%           **OR**       15            0.01%        17           0.03%

  **ID**      114        0.11%        91          0.14%           **PA**       462           0.43%        296          0.45%

  **IL**      3,021      2.82%        2,726       4.13%           **RI**       2,745         2.57%        10           0.02%

  **IN**      3          0.00%        2           0.00%           **SC**       300           0.28%        30           0.05%

  **KS**      4,043      3.78%        2,871       4.35%           **SD**       1,883         1.76%        1,415        2.14%

  **KY**      1,268      1.19%        1,076       1.63%           **TN**       2,995         2.80%        677          1.03%

  **LA**      1,567      1.46%        1,031       1.56%           **TX**       11,408        10.66%       5,956        9.03%

  **MA**      0          0.00%        0           0.00%           **UT**       0             0.00%        0            0.00%

  **MD**      1,155      1.08%        1,151       1.74%           **VA**       180           0.17%        84           0.13%

  **ME**      646        0.60%        194         0.29%           **VT**       80            0.07%        76           0.12%

  **MI**      90         0.08%        69          0.10%           **WA**       174           0.16%        103          0.16%

  **MN**      1,467      1.37%        1,392       2.11%           **WI**       560           0.52%        342          0.52%

  **MO**      2,141      2.00%        1,552       2.35%           **WV**       9,375         8.76%        0            0.00%

  **MS**      4,318      4.04%        301         0.46%           **WY**       0             0.00%        0            0.00%

                                                                  **Totals**   **106,984**   100.00%      **65,989**   100.00%
  ----------- ---------- ------------ ----------- ------------ -- ------------ ------------- ------------ ------------ ------------

#### Table 4 - Breakdown of Acres and AD-1006 Forms Received by Federal Agencies in FY 2006

  ---------------- -------------------------- ------------ ------------- ------------ ------------ ------------
  **Department**   **Federal Agency**         **AD1006     **Total Land  **Total      **Prime or   **State and
                                              Requests     Acres         Important    Unique       Local
                                              Received**   Proposed**    Farmland     Acres**      Farmland
                                                                         Acres                     Acres
                                                                         Proposed**                Proposed**

  DHS              **Federal Emergency        42           60            48           41           7
                   Management Agency**                                                             

  DOA              **Army Corps of            39           15,612        14,894       14,551       343
                   Engineers**                                                                     

  DOC              **Econ Development         0            0             0            0            0
                   Administration**                                                                

  DOD              **Department of Defense**  2            351           226          106          120

  DOE              **Department of Energy**   25           5,714         1,210        1,180        30

  DOI              **Bureau of Indian         12           446           302          51           251
                   Affairs**                                                                       

  DOI              **Bureau of Land           4            0             0            0            0
                   Management**                                                                    

  DOI              **Department of Interior** 12           6,509         2,582        2,582        0

  DOI              **Fish & Wildlife          3            183           167          132          35
                   Service**                                                                       

  DOI              **Indian Housing           70           407           126          126          0
                   Authority**                                                                     

  DOI              **National Park Service**  2            91            90           25           65

  DOI              **Office of Service        0            0             0            0            0
                   Mining**                                                                        

  DOJ              **Bureau of Prisons**      12           72            71           67           4

  DOJ              **Dept. of Justice**       2            3             3            3            0

  DOT              **Dept. of                 80           2,593         1,552        1,246        306
                   Transportation**                                                                

  DOT              **Fed Aviation             55           5,859         1,745        1,180        565
                   Administration**                                                                

  DOT              **Federal Highway          455          32,074        19,819       13,918       5,901
                   Administration**                                                                

  DOT              **Federal Railroad         0            0             0            0            0
                   Administration**                                                                

  EPA              **Environmental Protection 28           114           65           56           9
                   Agency**                                                                        

  HUD              **Housing Urban            191          663           538          428          110
                   Development**                                                                   

  HUD              **Federal Housing          21           1,330         1,199        781          418
                   Administration**                                                                

  USDA             **Farm Service Agency**    1            0             0            0            0

  USDA             **Forest Service**         3            9,644         0            0            0

  USDA             **Natural Resources        150          4,193         2,549        1,451        1,098
                   Conservation Service**                                                          

  USDA             **Rural Development**      509          19,942        17,891       16,946       945

  USDA             **Rural Utilities          117          1,124         912          668          244
                   Service**                                                                       

  ** **            **TOTALS**                 **1,835**    **106,984**   **65,989**   **55,538**   **10,451**
  ---------------- -------------------------- ------------ ------------- ------------ ------------ ------------

#### *II. Review and Revision of Federal Polices and Procedures Affecting Farmland Conversion*

In order to implement FPPA more efficiently and to implement
e-Government initiatives, NRCS has deployed a web-based version of the
Farmland Conversion Impact Rating Form (AD-1006). The web-based form is
located at **<http://fppa.nrcs.usda.gov/lesa/>.** The site allows
Federal agencies and agency representatives to register with NRCS and
receive site evaluations in a timely manner via the web. This is the
first step to fully automating the FPPA process.

#### *III. Federal, State, and Local Efforts to Protect Farmland*

The Farm and Ranch Lands Protection Program (FRPP), first authorized by
Congress in 1996, provides financial assistance to farmers and ranchers
enabling them to keep their land in agriculture. More specifically, the
FRPP provides matching funds to State, Tribal, and local governments and
non-governmental organizations with existing farmland protection
programs to purchase conservation easements from farmers and ranchers.
These entities purchase easements from landowners in exchange for a lump
sum payment, not to exceed the appraised fair market value of the land's
development rights. Participating landowners agree not to convert their
land to non-agricultural uses and to develop and implement a
conservation plan for any highly erodable land. Landowners retain all
rights to use the property for agriculture. Since program inception in
1996, 49 States have received nearly \$451.6 million in FRPP funds to
protect approximately 481,000 acres on 2,470 farms. It is estimated that
311,602 acres of prime and unique farmland have been or will be
permanently protected from conversion to nonagricultural uses with FRPP
easements.

The following two figures display information on programmatic
accomplishments through FRPP cooperative agreements that obligated \$70
million in FY 2006 FRPP funds to protect 57,930 acres on 277 farms.

**Figure 1 - FY2006 FRPP Financial Assistance Dollars Obligated**

![](media/image1.png){width="4.865277777777778in"
height="3.7569444444444446in"}

More information on FRPP can be found at
[http://www.nrcs.usda.gov/programs/frpp/](http://www.nrcs.usda.gov/programs/fpp/).

For States and local efforts under the provisions of the Farmland
Protection Policy Act, \[Section 1544(b), Public Law 97-88\], the
Farmland Information Center (FIC) provides general information,
technical assistance, and targeted research based on inquiries from
stakeholders to provide answers for communities trying to protect
agricultural land resources from unnecessary conversion to
nonagricultural uses. The Farmland Information Library is an electronic
library located on the web at: <http://www.farmlandinfo.org/> .

**Figure 2 - FY2006 FRPP Acres Protected**

![](media/image2.png){width="4.865277777777778in"
height="3.7569444444444446in"}

In FY 2006, NRCS invested \$200,000 to help maintain the FIC, and the
American Farmland Trust (AFT) matched this investment. Web traffic and
answer service use remained high. During July, August, and September
there were 686,745 hits on the FIC Web site generated during 57,615
visits by 19,424 unique visitors. At the same time, staff served 160
individuals from 38 States, the District of Columbia, and Canada. Direct
technical assistance was down 15 percent from last quarter, but up 10
percent from the same quarter last year. Since last October, staff
responded to 797 requests for information, up 4 percent from the
year-end total reported last year (766).

AFT works with Land Grant Universities to protect farmland and use pilot
communities to test tools that help compare the costs of purchasing an
easement to the benefits the farm could provide in the future. Efforts
to reach out to groups to improve stewardship of easements nationwide
are gaining momentum.

The AFT is also continuing to document the impacts of the Purchase of
Agricultural Conservation Easement program nationwide.