North Carolina § 106-744 - Purchase of agricultural conservation easements; establishment of North Carolina Agricultural Development and Farmland Preservation Trust Fund and Advisory Committee.

§ 106-744. Purchase of agricultural conservation easements; establishment of North Carolina Agricultural Development and Farmland Preservation Trust Fund and Advisory Committee.

A county may, with the voluntary consent of landowners, acquire by purchase agricultural conservation easements over qualifying farmland as defined by G.S. 106-737. For purposes of this section, "agricultural conservation easement" means a negative easement in gross restricting residential, commercial, and industrial development of land for the purpose of maintaining its agricultural production capability. Such easement: May permit the creation of not more than three lots that meet applicable county zoning and subdivision regulations; May permit agricultural uses as necessary to promote agricultural development associated with the family farm; and Shall be perpetual in duration, provided that, at least 20 years after the purchase of an easement, a county may agree to reconvey the easement to the owner of the land for consideration, if the landowner can demonstrate to the satisfaction of the county that commercial agriculture is no longer practicable on the land in question. There is established a "North Carolina Agricultural Development and Farmland Preservation Trust Fund" to be administered by the Commissioner of Agriculture. The Trust Fund shall consist of all monies received for the purpose of purchasing agricultural conservation easements or funding programs that promote the development and sustainability of farming and assist in the transition of existing farms to new farm families, or monies transferred from counties or private sources. The Trust Fund shall be invested as provided in G.S. 147-69.2 and G.S. 147-69.3. The Commissioner shall use Trust Fund monies for any of the following purposes: For the purchase of agricultural conservation easements, including transaction costs. For the costs of public and private enterprise programs that will promote profitable and sustainable family farms through assistance to farmers in developing and implementing plans for the production of food, fiber, and value-added products, agritourism activities, marketing and sales of agricultural products produced on the farm, and other agriculturally related business activities. To fund conservation agreements to bring into or maintain farmland in active production of food, fiber, and other agricultural products. For the costs of administering the program under this Article, including the cost of staff and staff support. The Commissioner shall distribute Trust Fund monies for only the purposes under subsection (c) of this section, including transaction costs, as follows: To a private nonprofit conservation organization that matches thirty percent (30%) of the Trust Fund monies it receives with funds from sources other than the Trust Fund. To counties according to the match requirements under subsection (c2) of this section. To the Department of Agriculture and Consumer Services for the purchase of agricultural conservation easements or agreements to be held by the Department. A county that is a development tier two or three county, as these tiers are defined in G.S. 143B-437.08, and that has prepared a countywide farmland protection plan shall match fifteen percent (15%) of the Trust Fund monies it receives with county funds. A county that has not prepared a countywide farmland protection plan shall match thirty percent (30%) of the Trust Fund monies it receives with county funds. A county that is a development tier one county, as defined in G.S. 143B-437.08, and that has prepared a countywide farmland protection plan shall not be required to match any of the Trust Fund monies it receives with county funds. The Commissioner of Agriculture shall adopt rules governing the use, distribution, investment, and management of Trust Fund monies. This section shall apply to agricultural conservation easements falling within its terms. This section shall not be construed to make unenforceable any restriction, easement, covenant, or condition that does not comply with the requirements of this section. As used in subsection (c2) of this section, a countywide farmland protection plan means a plan that satisfies all of the following requirements: The countywide farmland protection plan shall contain a list and description of existing agricultural activity in the county. The countywide farmland protection plan shall contain a list of existing challenges to continued family farming in the county. The countywide farmland protection plan shall contain a list of opportunities for maintaining or enhancing small, family-owned farms and the local agricultural economy. The countywide farmland protection plan shall describe how the county plans to maintain a viable agricultural community and shall address farmland preservation tools, such as agricultural economic development, including farm diversification and marketing assistance; other kinds of agricultural technical assistance, such as farm infrastructure financing, farmland purchasing, linking with younger farmers, and estate planning; the desirability and feasibility of donating agricultural conservation easements, and entering into voluntary agricultural districts. The countywide farmland protection plan shall contain a schedule for implementing the plan and an identification of possible funding sources for the long-term support of the plan. A countywide farmland protection plan that meets the requirements of subsection (e) of this section may be formulated with the assistance of an agricultural advisory board designated pursuant to G.S. 106-739. There is established the Agricultural Development and Farmland Preservation Trust Fund Advisory Committee. The Advisory Committee shall be administratively located within the Department of Agriculture and Consumer Services and shall advise the Commissioner on the prioritization and allocation of funds, the development of criteria for awarding funds, program planning, and other areas where monies from the Trust Fund can be used to promote the growth and development of family farms in North Carolina. The Advisory Committee shall be composed of 19 members as follows: The Commissioner of Agriculture or the Commissioner's designee, who shall serve as the Chair of the Advisory Committee. The Secretary of Commerce or the Secretary's designee. The Secretary of Environmental Quality or the Secretary's designee. Three practicing farmers, one appointed by the Governor, one appointed by the President Pro Tempore of the Senate, and one appointed by the Speaker of the House of Representatives. The Dean of the College of Agriculture and Life Sciences at North Carolina State University or the Dean's designee. The Dean of the School of Agriculture and Environmental Sciences at North Carolina Agricultural and Technical State University or the Dean's designee. The chair of the Rural Infrastructure Authority within the Department of Commerce or the chair's designee. The Executive Director of the Conservation Trust for North Carolina or the Executive Director's designee. The Executive Director of the North Carolina Farm Transition Network or the Executive Director's designee. The President of the North Carolina Association of Soil and Water Conservation Districts or the President's designee. The Executive Director of the Rural Advancement Foundation International - USA or the Executive Director's designee. The Executive Director of the North Carolina Agribusiness Council or the Executive Director's designee. The President of the North Carolina State Grange or the President's designee. The President of the North Carolina Farm Bureau Federation, Inc., or the President's designee. The President of the North Carolina Black Farmers and Agriculturalists Association or the President's designee. The President of the North Carolina Forestry Association or the President's designee. The Executive Director of the North Carolina Association of County Commissioners or the Executive Director's designee. The Advisory Committee shall meet at least quarterly. The Department of Agriculture and Consumer Services shall provide the Advisory Committee with administrative and secretarial staff. Members of the Advisory Committee shall be entitled to per diem pursuant to G.S. 138-5 or G.S. 138-6, as appropriate. The Advisory Committee shall make recommendations to the Commissioner on the distribution of monies from the Trust Fund at least annually. The Commissioner shall take the recommendations of the Advisory Committee into consideration in making decisions on the distribution of monies from the Trust Fund. The Advisory Committee shall report no later than October 1 of each year to the Joint Legislative Oversight Committee on Agriculture and Natural and Economic Resources, the Environmental Review Commission, the chairs of the Senate Appropriations Committee on Agriculture, Natural, and Economic Resources, and the chairs of the House of Representatives Appropriations Committee on Agriculture and Natural and Economic Resources regarding the activities of the Advisory Committee, the agriculture easements purchased, and agricultural projects funded during the previous fiscal year. This section shall not be construed to invalidate any farmland preservation program. This section shall not be construed to diminish the powers of any public entity, agency, or instrumentality to acquire by purchase, gift, devise, inheritance, eminent domain, or otherwise and to use property of any kind for public purposes. This section shall not be construed to authorize any public entity, agency, or instrumentality to acquire by eminent domain an agricultural conservation easement. History (1991, c. 734, s. 1; 2000-171, ss. 1, 2; 2005-390, ss. 4, 17; 2006-252, s. 2.12; 2007-495, s. 23; 2009-303, ss. 1, 2, 3; 2009-484, s. 12; 2013-360, s. 15.26(a); 2015-241, s. 14.30(v); 2015-263, s. 13(b); 2020-78, s. 5.1(c).) Editor's Note. - Session Laws 2001-424, s. 17.3, provides: "The sum of two hundred thousand dollars ($200,000) appropriated in this act [Session Laws 2001-424] to the Department of Agriculture and Consumer Services for the North Carolina Farmland Preservation Trust Fund established in G.S. 106-744 shall be used to continue the purposes for which the Fund was established." Session Laws 2002-126, s. 11.6, provides: "Notwithstanding the provisions of G.S. 106-744(b) , funds appropriated in this act to the Department of Agriculture and Consumer Services for the Farmland Preservation Trust Fund for the 2002-2003 fiscal year shall be used for the purchase of agricultural conservation easements that are perpetual in duration and that shall not be reconveyed under any circumstances." For similar provisions, see 2000-67, s. 12.1, regarding funds from fiscal year 2000-2001. Session Laws 2002-126, s. 1.2, provides: "This act shall be known as 'The Current Operations, Capital Improvements, and Finance Act of 2002'." Session Laws 2002-126, s. 31.3, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2002-2003 fiscal year, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2002-2003 fiscal year. For example, uncodified provisions of this act relating to the Medicaid program apply only to the 2002-2003 fiscal year." Session Laws 2002-126, s. 31.6 is a severability clause. The words "and Advisory Committee" were added to the end of the section heading at the direction of the Revisor of Statutes. Session Laws 2005-390, s. 4, recodified G.S. 106-744 as Part 4 of Article 61 of Chapter 106 . Session Laws 2005-390, s. 19, provides: "The first report required pursuant to G.S. 106-744(i) , as enacted by Section 19 of this act, is due on or before 1 May 2006." For provisions of Session Laws 2006-223 preamble and ss. 1 through 12, which created the Land and Water Conservation Study Commission, see notes at G.S. 113-44.15 and G.S. 143-211 . Session Laws 2009-303, s. 4, provides, in part, that "the change in membership of the Agricultural Development and Farmland Preservation Trust Fund Advisory Committee under G.S. 106-744 , as amended by Section 3 of this act, shall occur prior to the next quarterly meeting of the Advisory Committee that occurs on or after [July 17, 2009]." Session Laws 2015-241, s. 1.1, provides: "This act shall be known as 'The Current Operations and Capital Improvements Appropriations Act of 2015.'" Session Laws 2015-241, s. 33.6, contains a severability clause. Session Laws 2020-44, s. 1(c), provides: "Notwithstanding G.S. 106-744 and no later than August 15, 2020, the Department of Agriculture and Consumer Services shall transfer the sum of one million two hundred seventeen thousand eighty-eight dollars ($1,217,088) in nonrecurring funds from the cash balance in the Agricultural Development and Farmland Preservation Trust Fund (Budget Code: 63701) to the Department's Food and Drug Division (Budget Code: 13700; Fund Code: 1100). The funds transferred in this subsection are appropriated for the 2020-2021 fiscal year and shall be used for equipment, moving costs, and other nonrecurring expenses associated with the opening of the Department's Agricultural Sciences Center." Session Laws 2020-78, s. 22.1, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2019-2021 fiscal biennium, the textual provisions of this act apply only to the 2019-2021 fiscal biennium." Session Laws 2020-78, s. 22.3, is a severability clause. Effect of Amendments. - Session Laws 2005-390, s. 17, effective September 13, 2005, added "establishment of North Carolina Agricultural Development and Farmland Preservation Trust Fund" to the section heading; deleted "located within a voluntary agricultural district as defined by G.S. 106.738" from the end of subsection (a); added subdivision (b)(1a); rewrote subsection (c) as present subsections (c) and (c1); substituted "(c2)" for "(c1)" in subdivision (c1)(2); redesignated former subsections (c1) and (c2) as present subsections (c2) and (c3); substituted "(c2)" for "(c1)" in subsection (e); added subsections (g) through (i); and made minor punctuation changes. Session Laws 2006-252, s. 2.12, effective January 1, 2007, in subsection (c2), substituted "a development tier two or three county, as these tiers are defined in G.S. 143B-437.08 ," for "an enterprise tier four county or an enterprise tier five county, as these tiers are defined in G.S. 105-129.3(a)" in the first sentence, and substituted "development tier one county, as defined in G.S. 143B-437.08 ," for "an enterprise tier one county, an enterprise tier two county, or an enterprise tier three county, as these counties are defined in G.S. 105-129.3(a)" in the third sentence. Session Laws 2007-495, s. 23, effective August 30, 2007, corrected a misspelling in the section heading; and inserted "the Environmental Review Commission" in subsection (i). Session Laws 2009-303, ss. 1 to 3, effective July 17, 2009, in subsection (c), inserted "purposes" at the end of the introductory language; in subdivision (c)(1), inserted "For" at the beginning; in subdivision (c)(2), inserted "For the costs of" at the beginning; in subdivision (c)(4), inserted "For" at the beginning; in subsection (c1), substituted "only the purposes under subsection (c) of this section" for "such purchases" in the introductory language; and rewrote subdivision (g)(11). Session Laws 2009-484, s. 12, effective January 1, 2010, substituted "October 1" for "May 1" in subsection (i). Session Laws 2013-360, s. 15.26(a), effective July 1, 2013, rewrote subdivision (g)(7), which formerly read "The Executive Director of the North Carolina Rural Economic Development Center, Inc., or the Executive Director's designee." Session Laws 2015-241, s. 14.30(v), effective July 1, 2015, substituted "Secretary of Environmental Quality" for "Secretary of Environment and Natural Resources" in subdivision (g)(3). Session Laws 2015-263, s. 13(b), added subdivision (c1)(3). For effective date and applicability, see editor's note. Session Laws 2020-78, s. 5.1(c), effective July 1, 2020, rewrote subsection (i). Legal Periodicals. - For article, "Pipeline Companies Target Small Farmers and Use Eminent Domain for Private Gain," see 38 N.C. Cent. L. Rev. 125 (2016). §§ 106-745, 746: Reserved for future codification purposes.