State rules guiding the issuance of bonds vary. General obligation bonds may require approval by the legislature or voters or both. Almost half of the states limit issuance of bonds through constitutional or statutory requirements. For more information contact state bond authorities and independent underwriting experts. Benefits Bonds allow programs to commit large sums to farmland protection while land is still available and relatively affordable.
Bonds distribute the cost of acquisition over time.
Drawbacks Interest paid on bonds increases the overall cost of the program. Property taxes are levies on the value of real estate. Municipalities use dedicated increases in the tax rate to pay for easement acquisitions and to cover debt service on bonds. States create general guidelines and may set limits for computing tax rates and assessing properties. Public referenda usually are required to ratify a dedicated property tax increase.