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Opinion March 12, 2008
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Cost of Community Service
By Gerry Cohn

As western North Carolina continues to swell with new residents, booming development and a changing farm economy, there are increasing pressures on agricultural communities Counties eager to promote economic growth are looking to cash in on a building boom to increase revenues and fund needed services. Farms, it is widely believed, are standing in the way of progress for areas preparing for the future: high end retirement and high tech jobs. However, before we give up on agricultural past completely, keep in mind the many benefits that farms bring to the local community: fresh and healthy locally grown foods, economic activity for farmers and input providers, rich cultural heritage, protection of our wildlife and water quality, beautiful open spaces, and most surprisingly, savings on your property taxes.

What? How can farms and forests keep everyone's taxes down? Won't turning these farms into housing developments bring in more revenue for the county? Yes, they would, but revenue is only half of the picture. New houses bring new residents who demand new services like schools, water and sewer, and fire and police. And a series of studies from NC State University have determined that residential development typically costs counties more than it provides in tax revenue.

Cost of Community Services (COCS) studies, developed by American Farmland Trust, are a snapshot of a county's budget in a given year, dividing land into three classes: commercial/ industrial, residential, and farm/ forest. Costs and revenues from each county department are then allocated by staff to each class of land, giving simple figures to compare the net gains to the county budget for each category.

Over the past five years, COCS studies have been completed in six NC counties. On average, the residential sector requires $1.31 in services for each dollar that it provides. Commercial and industrial land uses are the largest net contributors to the public purse, costing only 32 cents in services for each dollar they bring in. And despite being taxed on the basis of current use, farm and forest properties are found to be a net contributor to the local budget, requiring only 65 cents to provide services for each dollar of revenue that they contribute to the county coffers.

Each county must determine its own mix of commercial, residential, and agricultural land use as it balances economic growth with needs to maintain quality of life. However, it is clear that maintaining our farms and forests is a wise investment in our future. There are many ways that citizens can support the long-term health of our landscape: buy local farm products, educate yourselves about conservation easements and other tools to protect land for future generations (conservation easements can also provide income and estate tax benefits), and talk with your elected officials about the importance of farmfriendly planning and economic development policies. Because once it's paved over, it's gone forever.

Gerry Cohn is the Southeast States Director for American Farmland Trust (www.farmland. org). His office is located in Hillsborough.
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