Paid for by Citizens for Colburn Committee. Authority John W. Phillips, Jr., Treasurer

Ehrlich announces tax break for farmers
By KONRAD SUROWIEC
Staff Writer - Star Democrat
August 9, 2006

PHOTO BY CHRIS POLK Maryland Governor Robert Ehrlich, center, speaks at Mulberry Hill Farm in Queen Anne. From the left are Sen. Richard Colburn, R-37-Mid Shore, Sen. Edward J. Pipkin, R-36-Upper Shore, Gov. Ehrlich and Maryland Secretary of Agriculture Lewis R. Riley.

QUEEN ANNE — Maryland is a popular place and the state’s population will continue to grow, said Gov. Robert Ehrlich. He called for a balanced approach that includes farmland preservation, growth in appropriate areas, and protecting the Chesapeake Bay watershed.

Ehrlich, speaking at the Barton family farm Tuesday, announced a new tax break that will be available in the summer of 2007 for farm owners who sell development rights to the Maryland Agricultural Land Preservation Foundation (MALPF) program. He said the state has budgeted $120 million over two years with the goal of protecting 30,000 acres of farmland through the purchase of preservation easements.

“Our vision is a Maryland that we know will grow, but will also protect our ag sector,” said Ehrlich.

Over 25 years, MALPF easements have been bought to preserve about 250,000 acres of farmland in the state’s 23 counties. In fiscal 2007, Ehrlich said there are 336 applications from landowners interested in selling preservation easements to the state. A news release from the governor’s office said the State Board of Public Works will consider the first 5,000 acres and $25 million in easement purchases today.

“We want to make it more attractive on the tax end,” said Ehrlich.

Starting in the summer of 2007, a new installment purchase agreement program will be available for landowners selling easements. The news release said the IPA program is a new tool to benefit the landowners selling development rights and the state, which buys the preservation easements. The IPA is a “tax advantaged financial arrangement that creates a tax-free income stream for landowners over a number of years,” the release said.

Ehrlich also announced the creation of a board that will work to promote the profitability of farming in Maryland by ensuring state agencies work in a cooperative manner with local government and industry groups.

The Governor’s Intergovernmental Commission for Agriculture will have up to 19 voting members, including the secretary of agriculture; representatives from the Maryland Agriculture Commission, Maryland Agricultural and Resource Based Industry Development Corp., Maryland Association of Counties, Maryland Municipal League, Maryland Association of County Health Officers, Maryland Association of County Planning Officers, Maryland Farm Bureau, and Rural Maryland Council; and up to 10 members of the general public with an interest or expertise in agriculture.

Maryland Secretary of Agriculture Lewis R. Riley presented a green and yellow “Century Farm” sign to Jim Barton, whose family has owned the farm, near State Route 309, for about 150 years. The Barton family put its farm in an agricultural preservation district in 1998, and later sold a preservation easement to the state.

“We’re glad the governor picked our farm to have this special announcement,” said Barton, who also is zoning administrator for Queen Anne’s County.

Ehrlich also announced the Maryland Department of the Environment (MDE), with input from local government, has developed two new guidance documents for towns to use in preparing their water and wastewater capacity management plans. The documents are intended to encourage regulatory compliance, balanced growth, and environmental protection. Water and waste capacity management plans are intended to provide reliable information for local government officials when they consider the need for new infrastructure to accommodate growth.

According to MDE, capacity management plans provide county and municipal officials and staff a better understanding of the status of their water and wastewater systems so they can avoid water shortages during drought conditions and wastewater overflows during wet weather.

“Queen Anne’s, we congratulate you. ... You’re the third largest in land preservation in the State of Maryland,” said Riley. He said Queen Anne’s also is Maryland’s largest grain-producing county.

Riley emphasized the MALPF program requires cooperation from local officials. “It’s not a state-mandated program. It’s a cooperative effort,” he said.

“It’s clear to me this this governor has opened a seat at the table for ag,” said State Sen. E.J. Pipkin, R-36-Upper Shore. He said agriculture is “absolutely critical to our long-term happiness and lifestyle” in Queen Anne’s County and the 36th legislative district.

Other officials at the event included State Sen. Richard Colburn, R-37-Mid-Shore; Queen Anne’s County Commissioners Ben Cassell and Joe Cupani, and County Administrator Paul Comfort; Maryland Secretary of Natural Resources Ronald Franks; MDE Deputy Secretary Jonas Jacobson; and Nelson Reichart, General Services assistant secretary for real estate.

Ehrlich also mentioned House Bill 1141, which calls for municipalities and counties to make cooperative efforts on planning for new growth. Colburn said the legislation is a good compromise because it appeared no bill would get passed in the 2006 session because the Maryland Municipal League and Maryland Association of Counties were at loggerheads over the annexation issue. He said municipalities with public water and sewer systems will have to have plans to show how they can sustain development.

“You need comprehensive water and wastewater plans for any future development,” said Colburn.

Both Riley and Ehrlich said the best way to preserve agriculture is to have profitable farms.

Sue duPont, a spokesman for the state department of agriculture, said the state budgeted $40 million in fiscal 2006 for the MALPF program to buy preservation easements for 10,000 acres, and the state budgeted $80 million in fiscal 2007 to buy easements for 20,000 acres.