On March 25th, 2018 National Land Realty teamed up with a land trust, the USDA, and an organization that helps link landowners with farmers who need land to help educate the public on the process of land acquisition for farming.

Southern Appalachian Highlands Conservancy, one of the local land trusts in Western North Carolina, hosted the “Farmer Workshop: Accessing Farmland in WNC” event at their community farm which is an excellent example of farmland conservation and is where they educate farmers through workshops, an incubator program, and through hands-on practice. Chris Link, who heads up the programs at the farm provided an overview of how land trusts operate and how they can be beneficial to the preservation of farmland across the country.

Suzanna Denison, director of WNC Farm Link, then provided attendees with an understanding of opportunities and challenges of those looking for farmland. As many of the small farmers are getting older most are unable to continue to manage the farm operations. And few have succession plans in place to continue operating the farm. This creates opportunity for new farmers to access land on existing farms. However, not all new farms have the financial ability to buy a farm, and many lenders do not understand the business of farming, so they have a tendency to not lend to farmers. For these reasons, WNC Farm Link helps match those looking for space, with those farmers who are looking for someone to continue operating the farm while they original owner maintains ownership of the land. Suzanna presented many lease case studies including cash leases where the landowner is paid a flat fee per year and crop sharing where some of the crops or profits are shared between the farmer and landowner. There was also a discussion on the pros and cons of both short-term and long-term leases and when each type may be more appropriate.

Next, Pat Snyder from National Land Realty in Western NC presented information on land purchases. The group first walked through the general process of purchasing land including: search and preparation, selection, offers and negotiation, due diligence and closing. Then Pat discussed how scarcity, utility, demand, and purchasing power affect the value of land and how buyers may be able to use this to their favor when searching for farmland. Regional trends of parcels sold, acres sold, and average price per acre in seven counties helped reinforce the valuation concepts presented and showed where deals may be possible. Pat also presented information and case studies on common concerns such as boundaries and legal access, as well as common tools that farmers may use to help offset some costs such as present use value tax deferment options and how conservation easements may help farms reduce taxation.

Finally, the course wrapped up with Phillip Moore from the USDA Farm Service Agency who discussed how they help farmers with financing. Phillip presented information on both their Direct Loan Program which offers operating, youth, emergency, and farm ownership loans and their Guaranteed Loan Program that enables other lending organizations to offer loans that are backed by the USDA. He provided examples of down payments, rates, and maximum loan amounts for the various programs, and answered questions from the group to help them understand which types of loan might be best in various scenarios.

This free half-day course provided the 18 participants with a wealth of knowledge on farm acquisition options. With a new understanding of options such the benefits of leasing or buying and greater awareness of the processes, funding options, and market dynamics, they are all more educated and able to make more informed decisions about how to achieve their farming goals. This course was one of many held by Southern Appalachian Highlands Conservancy and WNC Farm Link that focus on our farming communities and improving the lives of those in agriculture and their communities.

For more information on this event or Western North Carolina land acquisition topics, contact Pat Snyder, National Land Realty at psnyder@nationalland.com.