If the Open Space Preservation Act were enacted, a farmer could finally sell his farm to another farmer without paying the exorbitant capital gains tax. Mr. Chairman, I can assure you from my experience in the Pennsylvania State Legislature that farmers greatly appreciate the opportunities that our Commonwealth's farmland preservation programs have provided. As a whole, farmers are proud of their profession. They like farming, and want to continue to farm for as long as they can. At the same time, they realize that agriculture is a tough profession in which to be economically successful.
Many farmers look upon their farm as their means for retirement security.
Preservation programs nationwide have allowed farmers to receive reasonable compensation for their land, while allowing them to continue in agriculture. The proceeds from their easement sales may be used to purchase additional farmland or farm equipment, or may just be used to provide a retirement nest egg. In any event, farmland preservation has provided farmers a greater opportunity to be financially secure and continue their profession. Although the compensation provided from agriculture conservation easement sales is welcomed, it is not the only reason farmers participate in the program. If money were the only motivator, farmers would sell their properties outright to a developer, and receive a much higher price than the preservation program.