The purpose of the Agricultural Preservation Restriction program is to protect farmland.
There are many benefits to landowners who decide to enroll in APR and to the Commonwealth as well. Below are some of the many private and public benefits:
Landowner Benefits
Financial
- Providing landowners access to the equity in their land, making it possible to reinvest in their farms (e.g., purchase of more land, equipment, buildings, or the retirement of farm debt, or to provide for other family needs). The program helps to pay farmland owners the difference between the fair market value and the fair market agricultural land value of their farms in exchange for a permanent deed restriction that preserves the farmland. Essentially the development rights are purchased and extinguished. These payments typically range in the hundreds of thousands to millions of dollars.
- A federal tax deduction may be applied if the landowner sells the APR for less than its appraised fair market value. Qualifying farmers and ranchers who donate any portion of the value are eligible to deduct up to 100% of their adjusted gross income for as many as 16 years until the full donated value is deducted.
- In addition to the federal deduction, the Commonwealth Conservaton Land Tax Credit (CLTC) can compensate landowners up to $75,000 for the value of their donation.
- Property taxes are reduced if the land is not already enrolled in Chapter 61a. Massachusetts law requires land under APR be assessed at values no greater than those determined by the methods and provisions of section 10 of said chapter 61A. General Law - Part I, Title II, Chapter 20, Section 26
- For some families, one of the major advantages of donating an APR is that it helps pass land on to the next generation, by reducing federal and state estate taxes. Estate taxes can lead to the land being broken up or sold off, even when families want to keep the land intact. Estate taxes can make it especially challenging for families to hold on to working farm, ranch and forest land. The current high federal exemption levels are set to expire in 2026, when the exemption will drop to $5 million per estate. MA Estate tax thresholds are much lower. Massachusetts Estate Tax Guide | Mass.gov
- The landowner keeps ownership of the land continuing their ability to generate revenue through farming, forestry, and non-agricultural activities (with prior approval) such as weddings, rental of structures, hosting antique fairs, etc.
- The landowner retains the underlying agricultural value of the land, including any business value, infrastructure value, and dwelling value which can be sold to another farmer, beginning farmer, or non-profit organization that leases land to farmers.
- By joining the nearly 1,000 farmers already enrolled, landowners get exclusive access to additional funding that is only available to APR farmers. This includes capital infrastructure improvements such as barns, livestock housing, farmstands or processing facilities and resource improvements such as wells, establishing perennial crops, or fencing.
- Access to restoration funding that is only available to APR farmers for restoring fields that are out of production at no fault of the current owner.
- Access to technical assistance that is only available to APR farmers. This includes business planning, marketing, succession planning, and financial tracking.
- APR farmers also remain eligible for the many grants and financial assistance offered through MDAR including energy efficiency, infrastructure, equipment, business planning, marketing and promotion and more!
Estate and Succession Planning
- Ownership of the land is retained, allowing farmers to pass it down to future generations or sell it to another farmer.
- Working through the APR process can help aging farmers plan for the future, aligning with estate and succession planning and retirement options
Public Benefits
The state’s investment in the APR Program positively impacts farmers, the agricultural industry, state and local economies, consumers, and the general public in a number of ways:
- Land enrolled in APR provides opportunities for the next generation of farmers to purchase farmland at its fair market agricultural value.
- APRs strengthen the local farm community by keeping farmland in productive agricultural use and in the hands of farmers.
- ARPs contribute to food security by making fresh, healthy, local agricultural products available to people in Massachusetts.
- Land enrolled in APR contributes to the scenic beauty of the state, tourism, wildlife habitat, quality of life, recreational opportunities, and the preservation of natural resources that might otherwise be lost to development.
- Preserving land through APR aids in responding to the impacts of climate change by encouraging sustainable farming methods that significantly reduce our carbon footprint and aid in the protection of our water and wildlife resources.
- A major portion of APR participants spend all or most of their APR funds locally which creates a link between private and public benefit to help farmers, and stimulate local and state economies.
- Investments in protecting our agricultural lands drive our state’s $13 billion agricultural industry by keeping farms in active commercial use and employing 47,700 residents annually. Benefits of Land Conservation in Massachusetts - Quick Facts | Massachusetts Land Trust Coalition
- Protection of timberlands (of which many farmers own) maintains a $1.64 billion forest products industry.
- Public investments in land for conservation purposes yielded $4 in economic benefits for every $1 invested.
- Investments in land and water are a major driver of Massachusetts’ $30 billion tourism industry.
- Cost savings to the Community: In many communities the property taxes for residential properties do not cover the cost of community services such as fire, water, sewer, school, etc. – so open space is often fiscally advantageous from that perspective. There is quite a bit of research to support this in MA, New England, and Nationally.
- Additional cost savings via Green Infrastructure & Ecosystem Services: Open space provides green infrastructure and ecosystem services. These services are provided for FREE, in perpetuity by the natural processes provided by the open space land. Examples of such services and benefits include flood mitigation and storage, drinking water protection and filtration, protection of air quality, pollination services for agriculture, preservation of soils suitable for agriculture and forestry, wildlife habitat, and climate change mitigation.
- Public Health: The importance of open space was highlighted by the COVID pandemic and research shows that time in nature and/or outdoor recreation has many associated physical and mental health benefits for both adults and children. Open space can provide opportunity for access to nature, educational opportunities, and recreational benefits such as trails, hunting, skiing, snowmobile, etc.
- Historic preservation: Many open space and APR lands are historic and culturally important to the community, state, or even country.
- Maintaining rural character/scenic beauty of the community.
- Open space plans and master plans of communities have additional reasons that the community has identified for protecting ag/open space
- And many more reasons! Land Conservation Benefits | Mass.gov