U.S. Department of Agriculture

Natural Resources Conservation Service

**FARMLAND PROTECTION**

**POLICY ACT**

**ANNUAL REPORT**

**FOR**

**FY 2007**

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

**March 2008**

**[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 6**

**Figures:**

Figure 1- FY 2007 FRPP Financial Assistance Dollars Obligated 7

Figure 2- FY 2007 FRPP Acres Protected 7

**Tables:**

Table 1- FPPA and Important Farmland Numbers, 1997-2007 2

Table 2- Top Ten States Acres of Farmland Converted 3

Table 3- Acres of Farmland Proposed for Conversion by State 4

Table 4- Breakdown of Acres and AD-1006 forms received by 5 Federal
Agencies in 2007

The fiscal year (FY) 2007 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 1997-2007.

Table 1 -- FPPA and Important Farmland Numbers 1997-2007

+-----------------+-----------------+-----------------+-----------------+
|                 | \% 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              |
+-----------------+-----------------+-----------------+-----------------+
| 2007            | 39%             | 74,220          | 25              |
+-----------------+-----------------+-----------------+-----------------+

In FY 2007, NRCS received 2,552 AD-1006 forms from 25 Federal agencies
requesting assistance to evaluate the impact of proposed conversions of
lands that would result from their projects. A total of 190,004 acres of
land from 43 States were proposed for conversion to nonagricultural
uses. Thirty-nine percent of the acres reviewed were identified as
important farmland (as defined in 7 CFR Part 657). Of the 74,220
important farmland acres reviewed, 62,784 were prime or unique farmland
and 11,436 were State or locally important soils. Of the farmland acres
proposed for conversion, Florida and Texas reported the greatest number
of acres with over 13,800 and 8,900 acres respectively. Ten States
reported no acres, and six States reported less than 100 acres with
Federal impact actions that proposed farmland conversion (Tables 2 and
3).

In FY 2007, the Federal Highway Administration reported the greatest
amount of important farmland proposed for conversion with 21,432 acres.
The Army Corps of Engineers reported the second greatest amount of
proposed conversion, 18,508. These two agencies account for 54 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                             13,801

  Texas                               8,979

  Indiana                             5,196

  Louisiana                           4,899

  Illinois                            4,351

  Arkansas                            3,981

  South Dakota                        3,146

  California                          2,810

  North Carolina                      2,474

  Missouri                            2,321
  ----------------------------------- -----------------------------------

**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**      2          0.00%        2           0.00%        **MT**       222           0.12%        39           0.05%

  **AL**      2,817      1.48%        1,954       2.63%        **NC**       4,717         2.48%        2,474        3.33%

  **AR**      10,911     5.74%        3,981       5.36%        **ND**       514           0.27%        320          0.43%

  **AZ**      2,823      1.49%        2,029       2.73%        **NE**       585           0.31%        473          0.64%

  **CA**      5,205      2.74%        2,810       3.79%        **NH**       109           0.06%        40           0.05%

  **CO**      1,147      0.60%        987         1.33%        **NJ**       0             0.00%        0            0.00%

  **CT**      10         0.01%        10          0.01%        **NM**       35            0.02%        0            0.00%

  **DE**      1,140      0.60%        522         0.70%        **NV**       37,333        19.65%       0            0.00%

  **FL**      47,525     25.01%       13,801      18.59%       **NY**       1,137         0.60%        241          0.32%

  **GA**      680        0.36%        370         0.50%        **OH**       1,372         0.72%        1,201        1.62%

  **HI**      0          0.00%        0           0.00%        **OK**       888           0.47%        442          0.60%

  **IA**      1,258      0.66%        930         1.25%        **OR**       943           0.50%        900          1.21%

  **ID**      1,360      0.72%        650         0.88%        **PA**       3,256         1.71%        1,338        1.80%

  **IL**      4,555      2.40%        4,351       5.86%        **RI**       0             0.00%        0            0.00%

  **IN**      9,300      4.89%        5,196       7.00%        **SC**       2,976         1.57%        2,055        2.77%

  **KS**      3,017      1.59%        1,345       1.81%        **SD**       3,477         1.83%        3,146        4.24%

  **KY**      449        0.24%        258         0.35%        **TN**       3,207         1.69%        2,076        2.80%

  **LA**      5,358      2.82%        4,899       6.60%        **TX**       15,331        8.07%        8,979        12.10%

  **MA**      0          0.00%        0           0.00%        **UT**       1,321         0.70%        18           0.02%

  **MD**      0          0.00%        0           0.00%        **VA**       518           0.27%        321          0.43%

  **ME**      474        0.25%        375         0.51%        **VT**       0             0.00%        0            0.00%

  **MI**      511        0.27%        14          0.02%        **WA**       351           0.18%        211          0.28%

  **MN**      4,473      2.35%        1,944       2.62%        **WI**       518           0.27%        275          0.37%

  **MO**      3,430      1.81%        2,321       3.13%        **WV**       0             0.00%        0            0.00%

  **MS**      1,756      0.92%        270         0.36%        **WY**       0             0.00%        0            0.00%

                                                               **Totals**   **190,004**   100.00%      **74,220**   100.00%
  ----------- ---------- ------------ ----------- ------------ ------------ ------------- ------------ ------------ ------------

**Table 4 - Breakdown of Acres and AD-1006 Forms Received by Federal
Agencies in FY 2007**

  ---------------- -------------------------- ------------ ------------- ------------ ------------ ------------
  **Department**   **Federal Agency**         **AD1006     **Total       **Total      **Prime or   **State and
                                              requests     land - acres  important    Unique       local
                                              received**   proposed**    farmland -   (Acres)**    farmland -
                                                                         acres                     acres
                                                                         proposed**                proposed**

  DHS              **Federal Emergency        17           1,296         593          575          18
                   Management Agency**                                                             

  DOA              **Army Corps of            50           52,131        18,508       18,474       34
                   Engineers**                                                                     

  DOC              **Econ Development         2            57            43           18           25
                   Administration**                                                                

  DOD              **Department of Defense**  8            62            27           27           0

  DOE              **Fed Energy Regulatory    25           2,973         632          632          0
                   Commission**                                                                    

  DOE              **Department of Energy**   9            37,381        25           25           0

  DOI              **Bureau of Indian         21           2,289         837          365          472
                   Affairs**                                                                       

  DOI              **Bureau of Land           2            365           0            0            0
                   Management**                                                                    

  DOI              **Department of Interior** 3            146           123          123          0

  DOI              **Fish & Wildlife          4            108           13           13           0
                   Service**                                                                       

  DOI              **Indian Housing           91           526           211          211          0
                   Authority**                                                                     

  DOI              **National Park Service**  1            26            26           26           0

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

  DOJ              **Bureau of Prisons**      4            259           59           59           0

  DOJ              **Dept. of Justice**       0            0             0            0            0

  DHHS             **Dept. of Health & Human  2            20            20           12           8
                   Services**                                                                      

  DOT              **Dept. of                 211          4,410         2,597        2,257        340
                   Transportation**                                                                

  DOT              **Fed Aviation             49           7,740         5,835        4,305        1,530
                   Administration**                                                                

  DOT              **Federal Highway          336          33,473        21,432       16,348       5,084
                   Administration**                                                                

  DOT              **Federal Railroad         1            0             0            0            0
                   Administration**                                                                

  EPA              **Environmental Protection 111          3,555         1,691        1,067        624
                   Agency**                                                                        

  HUD              **Housing Urban            214          1,588         667          560          107
                   Development**                                                                   

  HUD              **Federal Housing          482          14,647        5,693        5,467        226
                   Administration**                                                                

  USDA             **Farm Service Agency**    1            17            11           4            7

  USDA             **Forest Service**         0            0             0            0            0

  USDA             **Natural Resources        124          8,976         5,213        3,438        1,775
                   Conservation Service**                                                          

  USDA             **Rural Development**      645          14,554        9,154        8,397        757

  USDA             **Rural Utilities          109          3,405         810          381          429
                   Service**                                                                       

  ** **            **TOTALS**                 **2,522**    **190,004**   **74,220**   **62,784**   **11,436**
  ---------------- -------------------------- ------------ ------------- ------------ ------------ ------------

#### *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.

From 1996-2007, a total of \$526.7 million was appropriated to FRPP.
During that time, 49 States have received over \$511.8 million in
financial assistance from FRPP funds. Easements on 1,914 farms and
ranches have been purchased using FRPP funds. It is estimated that
389,394 acres of prime, unique, and important farmland soil on the urban
fringe have been or will be permanently protected from conversion to
nonagricultural uses with these easements. Approximately 536,936 acres
on 2,764 farms, with an estimated cumulative easement value of nearly
\$1.63 billion, have or will have easement contracts in the near future.
To date, all acquired easements and other interests proposed for
acquisition are for perpetuity.

The following two figures display information on programmatic
accomplishments through FRPP cooperative agreements that obligated \$70
million in FY 2007 FRPP funds to protect 54,488 acres on 299 farms.

**Figure 1 - FY2007 FRPP Financial Assistance Dollars Obligated**

![](media/image1.jpeg){width="5.330555555555556in" height="4.11875in"}

**Figure 2 - FY2007 FRPP Acres Protected**

![](media/image2.jpeg){width="5.339583333333334in"
height="4.133333333333334in"}

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/> .

In FY 2007, NRCS contributed \$175,000 to match American Farmland
Trust's investment in the Farmland Information Center. FIC answer
service staff provided direct technical assistance to 756 individuals
from 49 states, the District of Columbia, Canada, Puerto Rico, Spain,
Germany and Uganda. More than 88,465 Web visitors generated 3,051,248
hits on the FIC Web site. During the year, FIC staff continued to expand
Web site content adding legislative updates, local laws and more sample
documents. Staff also updated materials including the Purchase of
Agricultural Conservation Easement (PACE) tables and fact sheets,
Agricultural Districts and Cost of Community Services fact sheets, and
summary of FRPP allocations.

In August 2007, American Farmland Trust completed a feasibility study
surveying 242 entities including NGOs, local governments and state
agencies that have received funds from the USDA's Farm and Ranch Lands
Protection Program (FRPP). Findings included: FRPP funded easements are
being monitored on an annual basis and are subject to very few legal
challenges. The study provides a comprehensive foundation and snapshot
for conducting further analysis of survey findings and program recipient
policies.

In September 2007, the Norm Berg Collection became available through the
FIC \[<http://www.farmlandinfo.org/norm_berg_collection/>\]. The
collection includes nearly 200 speeches and articles written by Berg
from the mid-1960s to the late 1970s, when he was in leadership
positions at the Soil Conservation Service, testimony delivered by Berg,
federal laws, biographical sketches and tributes prepared by esteemed
colleagues and friends.

In addition to maintaining and expanding the FIC, AFT continues to work
with Land Grant Universities to test tools that help compare the costs
of purchasing an easement to the benefits the farm could provide in the
future. AFT has been documenting the impacts of PACE programs in a
multiyear USDA NRI study involving 15 agricultural counties on the urban
edge. This study builds upon previous findings from the NRCS funded
(2002-2004) National Assessment of Agricultural Conservation Easement
Programs.