anchor Description
This project provides funds for purchasing agricultural and conservation easements under the County Agricultural Land Preservation legislation, effective November 25, 2008, for local participation in Maryland's Agricultural and Conservation programs and through Executive Regulation 3-09 AM, adopted July 27, 2010. The County Agricultural Easement Program (AEP) enables the County to purchase preservation easements on farmland in the agricultural zones and in other zones approved by the County Council to preserve farmland not entirely protected by Transferable Development Rights (TDR) easements or State agricultural land preservation easements. The Maryland Agricultural Land Preservation Foundation (MALPF) enables joint County and State purchases of preservation easements on farmland. The Rural Legacy Program (RLP) enables the State to purchase conservation easements to preserve large contiguous tracts of agricultural land. The sale of development rights easements is proffered voluntarily by the farmland owner. The project receives funding from the Agricultural Transfer Tax, levied when farmland is sold and removed from agricultural status. Montgomery County is a State-Certified County under the provisions of State legislation, which enables the County to retain 75 percent of the taxes for local use. The County uses a portion of its share of the tax to provide matching funds for State easements. In FY10, the Building Lot Termination (BLT) program was initiated. This program represents an enhanced farmland preservation program tool to protect further land where development rights have been retained in the Agricultural Reserve (AR). This program utilizes various revenue sources, including agricultural transfer tax revenues, contributions, developer payments, investment income, and State aid.
anchorCost Change
Increase due to the addition of two fiscal years to this ongoing project. In addition, funds received, but not yet appropriated, are added to the project scope to support the purchase of additional TDRs.
anchor Justification
Annotated Code of Maryland Agriculture Article 2-501 to 2-515, Maryland Agricultural Land Preservation Foundation; Annotated Code of Maryland Tax-Property Article 13-301 to 13-308, Agricultural Land Transfer Tax; and Montgomery County Code, Chapter 2B, Agricultural Land Preservation; and Executive Regulation 3-09 AM.
anchorOther
FY27 estimated planning, design, and supervision expenditures include funding for a 1.0 FTE (full-time equivalent) Business Development Specialist. Appropriations are based upon a projection of the Montgomery County portion of the total amount of agricultural transfer tax, investment income, contributions, and developer payments. The agricultural transfer taxes are deposited into an investment income fund, and the interest is used to fund direct administrative expenses, the purchase of easements, and other agricultural initiatives carried out by the Office of Agriculture. The program permits the County to take title to the TDRs. These TDRs are an asset that the County may sell in the future which would generate revenue for the Agricultural Land Preservation Fund. The County can use unexpended appropriations for this project to pay its share (40 percent) of the cost of easements purchased by the State. Since FY99, the County has received State RLP grant funds to purchase easements for the State through the County. The State allows County reimbursement of three percent for direct administrative costs such as appraisals, title searches, surveys, and legal fees. Easement acquisition opportunities will be considered on a case-by-case basis while alternative funding sources are identified.
On July 29, 2025, the County Council approved Zoning Text Amendment (ZTA) 25-05. This amendment requires developers to contribute a specific amount to the Agricultural Land Preservation Fund (ALPF) when constructing buildings above the baseline density in the Commercial Residential zone. The amendment allows the Office of Agriculture to utilize the ALPF funds for purchasing Transfer of Development Rights (TDR) agricultural preservation easements, following guidance from the Agricultural Preservation Advisory Board. The Office of Agriculture plans to update the Executive Regulation to amend Chapter 2B, implementing the requirements established in ZTA 25-05. This update would enable the Office of Agriculture to purchase TDR easements in Fiscal Year 2027.
anchorFiscal Note
Land costs are for the purchase of easements. An FY20 supplemental appropriation was approved to recognize the availability of additional FY19 Agricultural Transfer Tax revenue of $744,000 and an FY20 Rural Legacy State grant of $2,705,000. The Office of Agriculture was able to settle easements from the Rural Legacy State grant received in FY21, of which $2,497,048 has been spent. An FY22 supplemental was approved to recognize contributions from Maryland-National Capital Park and Planning Commission for the acquisition of a farm encumbered by a County Agricultural Preservation easement of $953,055, as well as a Rural Legacy Program grant (State Aid) for the amount of $2,722,761. The Council added $500,000 in General Fund: Current Revenue in FY23 to support agricultural easement purchases. An FY23 supplemental appropriation was approved to recognize the availability of additional Agricultural Transfer Tax revenue of $1,336,000 and a Rural Legacy Program grant (State Aid) for the amount of $1,306,000. An FY25 supplemental appropriation for $739,758 Agricultural Transfer Taxes was approved.
anchorDisclosures
Expenditures will continue indefinitely.
The County Executive asserts that this project conforms to the requirement of relevant local plans, as required by the Maryland Economic Growth, Resource Protection and Planning Act.
anchorCoordination
Montgomery County Office of Agriculture, State of Maryland Agricultural Land Preservation Foundation, State of Maryland Department of Natural Resources, Maryland-National Capital Park and Planning Commission, Landowners.