Two methods for preserving agricultural land at the urban fringe: Use-value assessment and transferable development rights

Abstract

Two methods for preserving agricultural land are analyzed in this paper: Use-value assessment and transferable development rights. A detailed case study of use-value assessment under the California Land Conservation Act analyzes patterns of land enrollment, landowner perceptions of the program, and development expectations. In addition, an economic analysis compares program benefits to the possible gains from land sales. The results suggest that landowner enrollment at the urban fringe was limited by excessively high development expectations. In contrast to widespread adoption of use-value assessment, the use of transferable development rights for preservation of agricultural land is virtually untried, although the measure is currently receiving widespread attention. The underlying concept of transferable development rights and proposed methods of implementation are presented and major issues and problems associated with such a program are examined. It is concluded that some proponents of transferable development programs appear to be unduly optimistic in their evaluation of prospective outcomes.