Farmland Preservation Fund

tn now has permanent funding for conservation

Governor Lee asked the TN Dept of Agriculture to take further action to help farmers keep their land in farming.  Thanks to the votes of many legislators, including northeast Tennessee Senators and Representatives, we now successfully have passed the bill for a Farmland Preservation Fund at $25 million starting, to fund voluntary permanent conservation easements, held by a qualifying 501(c)3, like a land trust. Next steps:

  • Governor Lee signed the bill in summer 2025.
  • The TN Department of Agriculture in 2025-2026 will promulgate the rules for a PACE program that will benefit the agricultural community today and for the future.
  • Form a Fund Committee and create the administrative process.
  • Launch the Farmland Preservation Fund with statewide partners.
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A COMMITMENT TO FOREVER PRESERVATION IS FOR LANDOWNERS WHO LOVE THEIR FARM’S HISTORY AND WANT TO ENSURE THEIR LAND’S FUTURE WILL BE FOR FARMING AND FORESTRY.

Agriculture Represents....

Last year Agriculture and Forestry contributed an estimated $103 billion to Tennessee’s $930+ billion economy. Of the 10.8 million acres that is Tennessee farms, farmers are stewarding 40.8% of the state’s land base.

Looking towards the future, we need to invest in keeping agricultural careers viable and possible. The average age of a TN farmer is 59. Beginning farmers of all ages cite that land access is their number one concern. UT has brought together data from across the country to show that the state is third fastest in the nation losing farmland to development, and that this rate is increasing.

TENNESSEE RANKS #3 IN THE COUNTRY FOR FASTEST RATE OF FARMLAND LOSS.

Agriculture & Forestry as a Sector, is the #1 economic contributor to Tennessee’s economy, and all of it depends on land. The Tourism Sector also depends on our natural lands and food, and tourists generated $30.6 billion in spending last year.

If TN wants to have a strong agricultural economic future, it can take action by establishing a Fund to help farmers keep land as farm and forestry, in private ownership and in local tax roles.

State funding could pay a landowner directly for placing their land under easement, providing a means by which landowners can secure revenue from their assets and support their entire operation, while keeping their land. State funding could also fund the costs of a conservation easement transaction, which involves a survey, deed/title work, and legal insurance to cover the easement in the future through a land trust organization. Twenty-nine other states have such programs.

Resources:
Georgia Conservancy, American Farmland Trust, State PACE programs, Land Trust Alliance, Annual Report to Governor, USDA NRCS

How do states benefit from conservation easements?

As of December 2024, 29 states operate and fund “PACE” programs, including Texas, North Carolina, Florida, Colorado, Ohio, and Pennsylvania. PACE stands for Purchase of Agricultural Conservation Easements. Altogether these have paid an estimated 20,000 landowners to protect more than 3,600,000+ acres of farmland with a permanent easement that allows for agriculture and conservation uses, such as those that uphold water quality, wildlife habitat, and forestry. Beginning farmers in these states have been connected to more land options for getting started.

State Farmland Easement Programs:

  • 29 STATES
  • 20,000 LANDOWNERS
  • 3,600,000+ ACRES
  • $5.5 BILLION SPENT

There is so much demand by landowners to preserve their farmland that in some states for every 1 project that is accepted, 5 are waitlisted.

PACE programs funded by State dollars can be matched with federal NRCS dollars and private philanthropy dollars to make the funds go even farther. All states have created programs that are “forever” easements, meaning the easement will stay with the property in perpetuity, no matter who owns the property in the future.

conservation easements are time tested - and one tool

The conservation easement is a time-tested tool used by thousands of municipalities, states, and land trust organizations in the United States. The land deed is amended to restrict development while still allowing for agricultural uses and structures. It often includes allowance for new farm buildings and a homesite. Land under a conservation easement stays on local tax rolls and the landowner is free to sell or pass down the land to a new owner at any time with the conditions of the easement transferring along with the land. Many properties retain real estate value because of the open space, views, and utility for farm and forest.

We need to use many tools to preserve farmland for the future, on the local county and municipal level, on the state level, and in federal policy. Conservation easement funding is one tool.

CONSERVATION EASEMENTS ARE COMMON IN TENNESSEE: OF THE 1+ MILLION ACRES OF LAND THAT IS LEGALLY PRESERVED, 203,113 ACRES ARE UNDER A CONSERVATION EASEMENT.