With more farmers thinking about how to transition their operations to the next generation-including those who own farms preserved in perpetuity for agricultural production-the Pennsylvania Department of Agriculture is making new funding available to ensure those operations have an up-to-date succession plan.
According to state Agriculture Secretary Russell Redding, one in four of the more than 5,000 farms that have been preserved and protected from development has changed hands during the past 30 years. With the average age of the Pennsylvanian farmer at 58, it is expected that this proportion will increase significantly over the next decade.
As part of the 2016-17 budget package, $165,000 in existing but uncommitted funds were made available to help preserved farm owners offset professional service costs associated with succession planning. Individuals can apply for grants up to $3,000 that can be used as a one-to-one match to reimburse costs incurred by organizing and utilizing a succession planning team.
In order to be eligible for a grant, applicants must own land that is subject to an agricultural conservation easement and submit an application to the Department of Agriculture. Applicants must organize a farm succession planning team that consists of professionals in this particular field. Farm owners also must hold regular meetings with their succession team and keep accurate record for reimbursement purposes.
Pennsylvania has preserved more than 525,020 acres on 5,003 farms in 57 counties. It is the largest program of its type in the nation. The formal notice outlining the application process and eligibility requirements was published in the Pennsylvania Bulletin on Sept. 10, 2016 (Volume 46, Number 37), which is available at www.pabulletin.com.
The department began accepting applications on Oct. 1, 2016. Applications will be reviewed in the order they are received; grant funding is limited. Application forms can be obtained from the Center for Farm Transitions, Department of Agriculture, 2301 N. Cameron Street, Room 310, Harrisburg, PA 17110.
The Preserved Farm Resource Center was created to assist preserved farm owners with succession planning. The center aims to facilitate business succession planning for Pennsylvania’s growing number of preserved farms by focusing on building teams of facilitators, accountants, financial planners, and lenders who can provide expertise to farm owners.