HB 860
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
Third Reader - Revised
House Bill 860 (Delegate Gilchrist)
Environment and Transportation Education, Health, and Environmental Affairs
State Planning – Preservation of Agricultural Land – Goal
This bill establishes a State goal of preserving a total of 1,030,000 acres of productive
agricultural land by 2030 through (1) the Maryland Agricultural Land Preservation
Foundation (MALPF); (2) the Maryland GreenPrint Program; (3) the Rural Legacy
Program; (4) the Maryland Environmental Trust (MET); (5) the Next Generation Farmland
Acquisition Program (“Next Gen Program”); and (6) local land preservation programs. The
bill expresses that the intent of the General Assembly is to extend the deadline to meet the
State’s agricultural land preservation goal set under Joint Resolutions 16 and 17 of 2002,
from 2022 to 2030, and to include acres preserved through MET and the Next Gen Program
as contributing toward the goal.
Fiscal Summary
State Effect: It is unclear to what extent the goal established by the bill may increase State
spending for agricultural land preservation; however, additional State funding may be
needed to meet the goal, as discussed below. Revenues are not directly affected.
Local Effect: No direct impact. It is assumed that any additional funding provided for
agricultural land preservation as a result of the bill is limited to State funding. Local
agricultural land preservation efforts may, however, be indirectly affected by the
availability of any additional State funding.
Small Business Effect: Potential meaningful.
 Analysis
Current Law: Joint Resolutions 16 and 17 of 2002 created a statewide goal to, by 2022,
triple the number of acres (now considered to be a goal of 1,030,000 total acres) of
productive agricultural land preserved by (1) MALPF; (2) the Maryland GreenPrint
Program; (3) the Rural Legacy Program; and (4) local preservation programs.
Maryland Agricultural Land Preservation Foundation
The General Assembly created MALPF to preserve productive agricultural land and
woodland, limit the extent of urban development, and protect agricultural land and
woodland as open space. MALPF, with the assistance and cooperation of landowners and
local governments, purchases development rights easements as a means of protecting
agricultural land and woodland production activities.
Maryland GreenPrint Program
Chapter 570 of 2001 established the Maryland GreenPrint Program to create a statewide
green infrastructure network by acquiring property and property interests, including
easements, in a manner that complements other conservation programs. Chapter 570
terminated in 2006, although acres that were preserved under the program contribute
toward the State’s agricultural land preservation goal.
Rural Legacy Program
The Rural Legacy Program provides funding for local governments and conservation
organizations (such as land trusts) to purchase property and conservation easements within
designated rural legacy areas. Local governments and land trusts apply annually to the
Rural Legacy Board, which makes recommendations for designating rural legacy areas and
granting funds to preserve land in the rural legacy areas that are then reviewed and
approved by the Board of Public Works.
Maryland Environmental Trust
MET was established by statute in 1967 “to conserve, improve, stimulate, and perpetuate
the aesthetic, natural, health and welfare, scenic, and cultural qualities of the environment,
including, but not limited to land, water, air, wildlife, scenic qualities, [and] open spaces.”
The trust was created as a quasi-public entity and is both a unit of the Department of Natural
Resources (DNR) and governed by a private board of trustees. MET’s primary method for
protecting land is through soliciting donations of conservation easements from private
landowners, who may be eligible for both federal and State tax benefits that are available
for such donations.
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Next Generation Farmland Acquisition Program
The Next Gen Program is administered by the Maryland Agricultural and Resource-Based
Industry Development Corporation (MARBIDCO), which was established under
Chapter 467 of 2004 to help Maryland’s farm, forestry, seafood, and related rural
businesses to achieve profitability and sustainability. Under statutory authority to
administer rural land acquisition and easement programs, including programs to assist
young and beginning farmers, MARBIDCO administers the Next Gen Program, and the
recently begun Small Acreage Next Generation Farmland Acquisition Program (“SANG”),
which help young and beginning farmers purchase land, with the purchases made under
the programs resulting in, or typically leading to, permanent easements on the land.
State Expenditures: It is unclear to what extent State spending on agricultural land
preservation increases over the course of fiscal 2022 through 2030 as a result of the bill’s
changes, which (1) extend the deadline set under Joint Resolutions 16 and 17 of 2002 for
the State’s agricultural land preservation goal, from 2022 to 2030; (2) include acres
preserved through MET and the Next Gen Program as contributing toward the goal; and
(3) establish the goal in statute. Extending the deadline from 2022 to 2030, and establishing
the goal in statute, may increase the likelihood of the goal affecting agricultural land
preservation funding levels in fiscal 2022 through 2030.
The Maryland Department of Planning (MDP) indicates that, as of November 18, 2020,
approximately 829,491 acres of productive agricultural land have been preserved by
programs listed in the bill (not including the Next Gen Program), which is 80.5% of the
1,030,000 acre goal. The Next Gen Program, which first received funding in fiscal 2018,
generally only holds temporary easements (on 2,580 acres, currently) in connection with
the program’s “easement option purchases”; however, purchases under the program or
SANG either result in, or are expected to typically lead to, permanent easements on the
land, that are ultimately held by other entities, such as MALPF, MET, a county land
preservation program, or a private land conservation program or land trust.
According to MDP, between fiscal 2016 and 2020, approximately 71,500 acres of
productive agricultural land were preserved by the programs included under the bill
(excluding the Next Gen Program), approximately 14,300 acres preserved per fiscal year.
If it is assumed that an additional 14,300 acres are preserved each fiscal year, through
fiscal 2030, the State would fall 57,500 acres short of the 1,030,000 acre goal. MDP and
DNR, however, have indicated that the pace of preservation may accelerate under current
law because of policies already in place, which may lessen any need for additional funding
to meet the goal. Temporary easements held by the Next Gen Program at any given time,
and any permanent easements resulting from the program that are ultimately held by
programs or entities other than those listed in the bill (e.g., private land conservation
programs or land trusts), may also help in meeting the goal, as acres preserved “through
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the Next Gen Program.” It is assumed, for the purposes of this fiscal and policy note, that
any additional funding needed to meet the statutory goal is limited to State funding.
For context, the Governor’s fiscal 2022-2026 Capital Improvement Program (CIP)
includes $45.5 million in general obligation bonds and special funds (transfer tax revenues
and local participation funding) in fiscal 2022 for the Maryland Agricultural Land
Preservation Program administered by MALPF, with $263.1 million in total planned to be
spent over the course of fiscal 2022 through 2026. The CIP includes $19.0 million in
general obligation bonds and special funds for the Rural Legacy Program in fiscal 2022,
with $105.2 million total planned to be spent over the course of fiscal 2022 through 2026.
The Governor’s proposed fiscal 2022 budget includes $2.5 million in general funds for the
Next Gen Program.
Small Business Effect: Small business farms and small businesses who provide
appraisals, title work, surveys, or other due diligence for agricultural land preservation
easement purchases may meaningfully benefit to the extent the bill results in additional
funding for agricultural land preservation.
Additional Information
Prior Introductions: None.
Designated Cross File: SB 692 (Senator Young) - Education, Health, and Environmental
Affairs.
Information Source(s): Baltimore and Frederick counties; Maryland Department of
Agriculture; Department of Natural Resources; Maryland Department of Planning;
Maryland Agricultural and Resource-Based Industry Development Corporation;
Department of Legislative Services
Fiscal Note History: First Reader - February 16, 2021
rh/sdk Third Reader - March 30, 2021
Revised - Amendment(s) - March 30, 2021
Analysis by: Amberly Holcomb Direct Inquiries to:
(410) 946-5510
(301) 970-5510
HB 860/ Page 4


Statutes affected:
Text - Third - State Planning – Preservation of Agricultural Land – Goal: 2-002 State Finance and Procurement