Investing in the Future of Farming: Understanding Purchase of Development Rights (PDR)

As farmland across the U.S. continues to disappear under the weight of suburban sprawl and commercial development, many communities are taking action to protect their agricultural heritage. One of the most effective and widely adopted tools in this effort is the Purchase of Development Rights (PDR) program.

PDR programs provide a way for landowners to protect their land while receiving financial compensation—creating a win-win for farmers and communities alike.

What Is a Purchase of Development Rights (PDR) Program?

A Purchase of Development Rights (PDR) program pays landowners to permanently give up the right to develop their property for non-agricultural uses. In practice, this is accomplished through a conservation easement, which is recorded with the deed and restricts future development.

The landowner retains ownership, continues to farm the land, and can sell or pass it on—but the land must remain in agricultural use.

How PDR Works

Step-by-Step Overview:

1. Application
   A landowner voluntarily applies to a PDR program run by a local, state, or federal agency.
   
   

2. Evaluation
   Properties are ranked based on criteria such as soil quality, proximity to other protected lands, threat of development, and conservation value.
   
   

3. Appraisal
   An independent appraiser determines the fair market value of the development rights—the difference between the unrestricted and restricted value of the land.
   
   

4. Negotiation and Agreement
   The government or land trust negotiates a purchase price with the landowner, and the conservation easement is drafted.
   
   

5. Recording and Monitoring
   The easement is legally recorded, and the land is monitored annually to ensure compliance with the agreed-upon restrictions.

Benefits for Landowners

PDR programs offer tangible and lasting benefits to farmers and ranchers:

• Immediate Financial Compensation
  Farmers are paid for development rights they may never have used, providing capital that can help them invest in their operations or plan for retirement.
  
  

• Continued Ownership and Use
  Landowners retain full ownership of the land and can continue to farm, lease, or pass it on to heirs.
  
  

• Estate Planning Tool
  Reduced land value can lower estate taxes, helping families keep farmland in agriculture across generations.
  
  

• Maintaining Land Affordability
  By removing development potential, the land’s market value drops—making it more accessible to beginning farmers and agricultural buyers.

Benefits for Communities

PDR programs don’t just help individual landowners—they deliver broad public benefits:

• Preserves Local Food Sources
  Protected farmland supports regional food systems and food security.
  
  

• Maintains Scenic Rural Landscapes
  Helps define community character and attract tourism and recreation.
  
  

• Supports Local Economies
   Keeps agricultural operations in business, preserving jobs and tax revenue.

Who Runs PDR Programs?

PDR programs can be run at the local, state, or federal level, often with partnerships among all three.

Federal:

• USDA Agricultural Conservation Easement Program (ACEP)
  Provides matching funds to states, counties, and nonprofits to purchase agricultural easements.
  
  

State Examples:

• New Jersey’s Farmland Preservation Program
  One of the oldest and most comprehensive PDR programs in the country.
  
  

• Maryland Agricultural Land Preservation Foundation (MALPF)
  Helps counties match state funds to preserve farmland in high-growth areas.
  
  

• Florida Rural and Family Lands Protection Program
  Focuses on working ranchlands and agricultural landscapes.
  
  

Local and County-Level Examples:

• Boulder County, Colorado
  Uses sales tax revenue to fund land preservation and easement acquisition.
  
  

• Sonoma County, California
  Operates a well-funded PDR program that protects vineyards, dairies, and rangeland.

Legal and Stewardship Considerations

• Permanent Restrictions
  Once a PDR easement is recorded, it binds all future owners. The land can be sold, but it cannot be developed beyond the terms of the agreement.
  
  

• Monitoring and Enforcement
  Easement holders (usually a government agency or land trust) must conduct regular inspections to ensure compliance.
  
  

• Custom Terms
  Easements may allow certain structures (like barns or worker housing) or limit other uses (like commercial solar installations), depending on local priorities and negotiations.

Common Questions

Q: Can I still build a home on my farm?
A: Maybe—many PDR agreements allow for one or more “residential building envelopes,” especially if they’re already part of the farmstead.

Q: What if I want to sell the land?
A: You can sell preserved land, but the development restrictions remain in place forever.

Q: Can I still make a profit farming the land?
A: Yes. In fact, the income from the PDR can help you improve profitability by reinvesting in equipment, soil health, or diversifying your crops.

Conclusion

The Purchase of Development Rights is a powerful and practical tool for preserving farmland while respecting private property rights. By offering compensation to landowners in exchange for permanent conservation, PDR programs protect working landscapes, strengthen rural economies, and ensure future generations can farm the land we depend on.

At a time when the pressure to convert farmland to subdivisions and strip malls is stronger than ever, PDR programs represent a smart investment in a sustainable, food-secure future.

Ready to learn more or apply to a PDR program in your area? Contact your local conservation district, land trust, or state agriculture department to find out what options are available.

Up next: Balancing Growth and Preservation: How Transfer of Development Rights Work