A portion of the application is completed by the municipality where the 

 land is located. Comments by the various boards on how the preservation of the 

 farm fits into the community's open space, zoning and planning objectives are 

 important to the Committee in its deliberation. In almost every instance, muni- 

 cipal comments are favorable towards preservation of the subject property and 

 other important agricultural land in the community as well. 



At monthly ALPC Committee meetings the staff presents information on soils, 

 acreage, jeopardy, significance of the farm and municipal comments. Following a 

 complete evaluation and discussion of the property, specific action is taken. 

 The entire process is an open one and applicants and members of the public are 

 welcome to attend. 



On farms with good soils that are financially and agriculturally viable and 

 are in jeopardy the decision-making process is generally a straightforward one; 

 however, often there are farms requiring considerable study and evaluation 

 before a decision can be rendered. 



In cases where the Committee and staff are uncertain of the proper course 

 of action, a "field team" of representatives from the APR staff, the USDA Soil 

 Conservation Service and Extension Service visit the farm and make a second eva- 

 luation of the property utilizing APR criteria. On several occasions during the 

 past year the team's findings have been instrumental in helping the Committee 

 resolve difficult evaluation of specific properties. 



The Appraisal Process 



Following the selection process, those farms the Committee wants to protect 

 are nominated for appraisal. All appraisals are handled by independent, pro- 

 fessional appraisers who are contracted to do the work by the APR staff. 



As mentioned earlier in this report, the value of the Agricultural 

 Preservation Restriction (development rights) is the difference between the 

 land's full market value and its agricultural value. The appraisal process is 

 completed in three steps: 1. determination of market value, 2. determination 

 of agricultural value, and 3. independent review of the market and agri- 

 cultural value. 



The appraisal process is the most important component of the APR Program, 

 because it is the value of the development rights that so often determines the 

 success (or failure) of the individual project. Accordingly, it is of the 

 highest priority that the appraisals are well thought out and accurate. The 

 objective of the Program is to pay a fair price for the restriction, but at the 

 same time ensure that the taxpayers' dollars are spent prudently and not wasted 

 on land that may not have development potential. In many cases percolation 

 tests are done to confirm whether the land can legally be developed under the 

 State's Environmental Code, and market demand for residential, industrial or 

 commercial use must be demonstrated in order to justify the full value of the 

 property. 



The agricultural value is determined by utilizing the income capitalization 

 approach based on the type of farming enterprise most likely to occur on the 

 property. Comparable sales of restricted land are also employed. The APR 

 Program's agricultural appraisers have recently undertaken a research project 

 aimed at improving the data base and methodology of the agricultural appraisal 

 process. 



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