Economics and Farmland Protection

by | Jan 17, 2012 | Uncategorized

Several years ago my local county board established an Agricultural Conservation Easement (ACE) commission to facilitate the protection and preservation of farmland.  Currently, about 60 to 70 percent of the county is used for agriculture.  Until about 4 years ago, land was being converted from agricultural use at a substantial rate as a result of a booming, suburban Chicago real estate market.  With the collapse of that market, the rate of land conversion has drastically decreased.  Still, county planners predict that by the year 2030 farmland will comprise about 45 percent.

Suburbia meets Farmland

While the Great Recession has contributed greatly toward slowing the rate of land-use conversion, it has also taken away the public funding source for the purchase of farmland conservation easements and development rights.  Finances at all levels of Illinois government are now under greater scrutiny and the picture is not pretty.  There are little, if any, public funds available for farmland preservation.

According to the ACE, a “large public interest” has led to the formation of a task force that will examine how farmland may be preserved by examining, characterizing, and promoting local food production.  Data are being collected relative to commodity and specialty crops, but so far the emphasis seems to be on small producers that grow for local farmers markets and restaurants.  A number of these producers have been surveyed to identify challenges to production, marketing, and distribution.  The task force will also look at the relationships between local infrastructure and local producers.  For example, to what extent do local businesses support local producers?  Or, are local zoning and health ordinances (such as signage restrictions and food handling requirements) a hindrance to local producers?  Another issue the task force will explore will be the impact of farmland preservation on agricultural sustainability.

Major players on the task force include representatives of: Openlands (a regional outfit promoting conservation and the protection of open and natural spaces), McHenry County Conservation District, Environmental Defenders of McHenry County, McHenry County Farm Bureau, and McHenry County Department of Planning and Development.  Local producers, county board members, and a representative of  Community Unit School District 200 also have been attending the ACE meetings.

The task force has begun collecting and analyzing data.  Many of the issues being looked at involve economics and marketing.  Indeed, one could make a case that the task force is conducting the market research that is currently too costly or time-consuming for an individual producer.  Yet, the task force seems heavy on environmentalists and absent an agricultural economist.  A proper economic analysis would certainly add credibility to any conclusions reached by the ACE task force.