Researcher: JKL Page 1 4/8/24
OLR Bill Analysis
sHB 5228
AN ACT CONCERNING THE PURCHASE OF CERTAIN LANDS AT
AGRICULTURAL VALUE.
SUMMARY
This bill revises the state’s farmland preservation programs (see
BACKGROUND) primarily to allow certain municipalities and
nonprofit organizations to acquire an option to purchase restricted
agricultural land (i.e., land for which the state has acquired the
development rights) at its agricultural use value (i.e., the appraised fair
market value of restricted agricultural land). To be eligible for an option
to purchase at agricultural value (OPAV), the municipality or nonprofit
must be authorized to hold land for conservation or preservation
purposes and must acquire the OPAV at its own expense.
Under the bill, an “OPAV” is a preemptive, perpetual option for the
municipality or nonprofit to purchase restricted agricultural land at its
agricultural use value (rather than the usually higher fair market value).
The bill allows the state’s restriction (i.e., encumbrance on the restricted
land’s development uses) to include a provision that allows the
municipality or nonprofit to acquire an OPAV at its own expense.
Once an OPAV is executed, the bill allows for it to be recorded on the
land records that include the state’s land restriction. Under the bill, an
OPAV exists in perpetuity, runs with the land, and binds future owners
of the land. The bill specifies that a municipality or nonprofit that
acquires an OPAV is solely responsible for enforcing it at its own
expense.
The bill also allows the agriculture commissioner to set up and
administer a grant program for eligible municipalities and nonprofits to
acquire options to purchase restricted agricultural land at agricultural
use value. 2024HB-05228-R000325-BA.DOCX
Researcher: JKL Page 2 4/8/24
Additionally, when there is a joint ownership agreement between the
state and a nonprofit, the bill allows the agreement to provide for
reimbursement of reasonable expenses incurred in acquiring the
development rights.
Lastly, the bill makes minor, technical, and conforming changes.
EFFECTIVE DATE: October 1, 2024
BACKGROUND
Farmland Preservation Programs
The law allows the state, through the Department of Agriculture, to
preserve agricultural land by acquiring the development rights to the
land so that it remains available only for agricultural use in perpetuity.
The department operates two programs for this purpose: the Farmland
Preservation Program (generally for farms of more than 30 acres) and
the Community Farmland Preservation Program (generally for farms
that do not meet the criteria for the Farmland Preservation Program).
When the state acquires the development rights to agricultural land,
a permanent restriction on non-agricultural uses is placed on the land’s
deed, but the farms remain in private ownership. The law also allows
the state and a municipality in which the land is located or a nonprofit
organization to jointly own development rights to agricultural land.
COMMITTEE ACTION
Environment Committee
Joint Favorable Substitute
Yea 34 Nay 0 (03/20/2024)