Code of Maryland Regulations (COMAR)

[This text was updated October 31, 2005, to include Chapters 04 and 05, effective November 7, 2005.  Please note that, because of an oversight, the original 15.15.01.18, supplanted by Chapter 05, was not removed from COMAR.  That oversight is being addressed, and the text presented here excludes 15.15.01.18 and renumbers the remaining provisions under Chapter 01 as will be done when the oversight has been rectified.]

15.15.01.00

Title 15.  DEPARTMENT OF AGRICULTURE

Subtitle 15.  MARYLAND AGRICULTURAL LAND PRESERVATION FOUNDATION

Chapter 01.  Guidelines for the Maryland Agricultural Land Preservation Program

Authority:  Agriculture Article, §§2-504, 2-509, and 2-513, Annotated Code of Maryland

15.15.01.01

.01 General.

The Maryland Agricultural Land Preservation Program was created by the Maryland General Assembly to preserve productive agricultural land and woodland which provides for the continued production of food and fiber for the citizens of the State.  This program is administered by the Board of Trustees of the Maryland Agricultural Land Preservation Foundation (the Foundation).  The preservation of agricultural land will curb the spread of urban sprawl and protect agricultural land and woodland as open space land.

.01-1 Program Summary.

A.    The Maryland Agricultural Land Preservation program is voluntary on the part of landowners and is dependent upon the cooperation of local government.  This program requires local governments to appoint agricultural preservation advisory boards that assist in the creation of agricultural preservation districts where the subdivision and development of land is restricted by agreement between the landowner and the Agricultural Land Preservation Foundation, and where agricultural and woodland production activities are encouraged and protected.  If a landowner requests that this property be included in a district, that property must meet minimum criteria as established by the Agricultural Land Preservation Foundation.  If an easement has not been sold to the Foundation, a landowner may terminate after 5 years his property's inclusion in a district.  Notice to terminate must be given 1 year in advance of the termination date.

B.    A landowner who includes his land within a district will receive the following benefits:

(1)   Direct and indirect support of agriculture;

(2)   Insulation of normal agricultural activities from nuisance complaints; and

(3)   Eligibility to make an application to sell an agricultural land preservation easement to the Foundation.

C.    Once land is in an agricultural preservation district, a landowner may make application to sell an easement to the Maryland Agricultural Land Preservation Foundation.  The application will indicate the price of any easement offered.  The maximum value of this easement is determined as the difference between the land's agricultural use value and its fair market value as determined by appraisals.  However, the Foundation has the discretion to select those easements which it shall purchase.  Purchased easements may be reviewed after a 25-year period, and if profitable farming is found not to be feasible, an easement may be terminated by repurchase.

.01-2 Definitions.

A.    In these regulations, the following terms have the meanings indicated.

B.    Terms Defined.

(1)   "Adjoining" means having a common border.

(2)   "Agricultural land preservation easement" or "easement" means a negative servitude which restricts a landowner's right to use the land for any commercial, industrial, or residential purpose except as otherwise permitted by Agriculture Article, §2-513, Annotated Code of Maryland.

(3)   "Agricultural use" means any use of land which directly contributes to the production, processing, or storage of agricultural products.

(4)   "Contiguous" means having a common border.

(5)   "Profitable farming feasibility" means the:

(a)   Potential for yielding an excess of returns over expenditures through agricultural production and transactions as influenced and determined by productive capability of the subject land;

(b)   Existence and proximity of markets for agricultural products; and

(c)   Relative profitability of agricultural pursuits on adjacent and nearby lands.

(6)   "Severe economic hardship" means:

(a)   A state of financial peril of a landowner as evidenced by bankruptcy proceedings;

(b)   The results of natural disaster or farm owner/operator disability; or

(c)   As determined by the Board of Trustees on a case-by-case basis.

(7)   "Subdivision" means the division of land into two or more parts or parcels.

15.15.01.02

.02 Agricultural Preservation Advisory Boards.

A.    In each county containing productive agricultural land, the county governing body shall appoint a five-member agricultural preservation advisory board as provided by law (Agriculture Article, §2-504.1).

B.    The appointment of an agricultural preservation advisory board shall be a prerequisite to program eligibility for landowners in each county.

C.    Agricultural preservation advisory boards shall have the following responsibilities and duties:

(1)   To advise the county governing body with respect to the establishment of agricultural preservation districts and the approval of purchases of easements by the Foundation within the county;

(2)   To assist the county governing body in reviewing the status of agricultural preservation districts and land under easement;

(3)   To advise the Foundation concerning county priorities for agricultural land preservation, and to develop, for consideration by the county governing body, criteria which may expand upon Foundation criteria and priorities relative to size, productive capability, and location of land eligible in the program;

(4)   To promote the preservation of agriculture within the county by offering information and assistance to farmers with respect to the establishment of agricultural preservation districts and the purchase of easements; and

(5)   To perform any other duties as assigned by the county governing body.

15.15.01.03

.03 Agricultural Preservation Districts.

A.    Conditions for Establishment.

(1)   To establish a district, a landowner shall:

(a)   File a petition as provided under §B of this regulation; and

(b)   If the petition is approved as provided under this regulation, execute a district agreement in the form prescribed by the Foundation, agreeing, among other things, that the following covenants, conditions, and restrictions contained in it run with the land covered by the agreement for so long as the agreement remains in effect:

(i)    The landowner agrees to keep the land in agricultural use in a district for, except as otherwise permitted by law, a minimum period of 5 years from the date the district agreement is recorded in the land records of the county where the district is located,

(ii)   The landowner agrees not to use the land for any commercial, industrial, or residential purpose, except as otherwise permitted by Agriculture Article, §2-513, Annotated Code of Maryland,

(iii)  The landowner agrees not to subdivide the land for any purpose unless the Foundation first has approved the proposed subdivision, and

(iv)  The landowner agrees not to construct buildings or structures on the land that are not designed or intended to be used for agricultural purposes unless the Foundation first has approved the proposed construction.

(2)   The Foundation may only purchase an easement on land in a district.

B.    Petition for Establishment.

(1)   One or more owners of land actively devoted to agricultural use within an eligible county may voluntarily file a petition with the county governing body requesting the establishment of an agricultural preservation district composed of the land owned by the petitioners.

(2)   The petition shall include a general description of each land parcel including acreage and the current use of the land and shall be accompanied by a map or plat of each subject parcel at a scale no smaller than 1 inch equals 600 feet (copy of tax map will meet requirement).

(3)   The petition also shall be accompanied by a district agreement for each subject parcel signed by the landowner or landowners.

(4)   The petition and district agreement shall be submitted to the local governing body.

C.    Agricultural Preservation District Establishment-----Procedures.

(1)   Referral of Petition.

(a)   Upon receipt of a petition to establish an agricultural preservation district, the local governing body shall refer the petition and accompanying materials to both the agricultural preservation advisory board and to the county planning and zoning body.

(b)   Within 60 days of the referral of a petition, the agricultural preservation advisory board shall inform the county governing body whether the land in the proposed district meets the qualifications established by the Foundation under §D of this regulation, and whether the advisory board recommends establishment of the district.

(c)   Within 60 days of the referral of a petition, the county planning and zoning body shall inform the local governing body whether establishment of the district is compatible with existing and approved county plans, programs, and overall county policy, and whether the planning and zoning body recommends establishment of the district.  In the process of review, the local planning and zoning body shall consider compatibility of district establishment with State and local plans and programs.

(2)   If either the agricultural preservation advisory board or the planning and zoning body recommends approval, the county governing body shall hold a public hearing on the petition.  Adequate notice of the hearing shall be given to all landowners in the proposed district, to landowners adjacent to the proposed district, as far as feasible, and to the Foundation.  If neither body recommends approval of the petition, the local governing body shall deny the petition and notify the landowner or landowners and the Foundation stating the reasons for the denial.

(3)   Approval of Petition.

(a)   Within 120 days after the receipt of the petition, the county governing body shall render a decision on whether the petition shall be recommended to the Foundation for approval.

(b)   If the county governing body decides to recommend approval of the petition, this body shall so notify the Foundation and forward to the Foundation the petition and all accompanying materials, including the recommendations of the advisory board and county planning and zoning body, and a composite property boundary map of the proposed district.

(c)   If the county governing body recommends denial of the petition, it shall so inform the Foundation and the petitioner or petitioners, stating the reasons for this denial.

(4)   The Foundation may approve a petition for the establishment of an agricultural preservation district only if:

(a)   The land within the proposed district meets the qualifying criteria established under §D of this regulation;

(b)   Approval of the petition has been recommended by the county governing body; and

(c)   Establishment of the district is approved by a majority of the Foundation Board of Trustees at-large, by the Secretary, by the State Treasurer, and by the Comptroller.

(5)   The Foundation shall render its decision on a petition to establish an agricultural preservation district within 60 days of the receipt of the petition, and shall inform the county governing body and the petitioner (or petitioners) of its decision.

(6)   If the Foundation approves the petition, the agricultural preservation district shall be established by the county governing body.  However, the establishment may not take effect until all parties have executed agricultural preservation district agreements and until these agreements have been recorded in the land records of the county.  The Foundation shall do the recording.  The Foundation shall notify the landowner and the local governing body of the effective date of district establishment.

(7)   Ordinance.

(a)   Each county shall establish an ordinance relative to all agricultural preservation districts.

(b)   The ordinance shall provide that, within the district:

(i)    Any farm use of land is permitted;

(ii)   Operation at any time of machinery used in farm production or the primary processing of agricultural products is permitted; and

(iii)  Normal agricultural operations performed in accordance with good husbandry practices, which do not cause bodily injury or directly endanger human health, are permitted, including the sale of farm products produced on the farm where the sales are made.

(8)   Local governments are encouraged to minimize regulatory requirements for non-residential farm structures and related agricultural improvements.

(9)   The establishment of a district does not grant the public any right of access or right of use of subject properties.

D.    Agricultural Preservation Districts-----Qualifying Criteria.

(1)   Productive Capability Criteria.

(a)   Agricultural preservation districts shall consist of land which is either used primarily for the production of food or fiber or is of such open space character and productive capability that continued agricultural production is feasible.

(b)   Soils Criteria.

(i)    The majority of the land of any district shall consist of U.S.D.A. Soil Capability Classes I, II, and III;

(ii)   The majority of the land area of any district shall consist of U.S.D.A. Woodland Groups 1 and 2 which are applied to wooded areas only;

(iii)  The majority of the land area of any district less the acreage contained within the 100-year floodplain as delineated on Flood Hazard Boundary Maps produced by the Federal Emergency Management Administration and State or federal designated wetlands shall consist of U.S.D.A. Soil Capability Classes I, II, and III on cropland and pasture or Woodland Groups 1 and 2 on wooded areas only;

(iv)  A minimum of 60 percent of the land area of any district shall consist of U.S.D.A. Soil Capability Classes I, II, and III on cropland and pasture and Woodland Groups 1 and 2 on woodland areas; or

(v)   A minimum of 60 percent of the land area of any district less the acreage contained within the 100-year floodplain and State or federal wetlands shall consist of U.S.D.A. Soil Capability Classes I, II, and III on cropland and pasture and Woodland Groups 1 and 2 on wooded areas.

(c)   Exceptions to §D(1)(b)(i)-----(v) of this regulation may include land areas of lower soil capabilities, but with a rating similar to Classes I, II, and III on cropland and pasture and Woodland Groups I and II on woodland areas.  Land with lower soil capabilities may qualify to be in a district if the soils on the applicant's farm otherwise comply with all the requirements of this section and the applicant submits to the Foundation a letter from the appropriate U.S. Department of Agriculture district conservationist that states that the soils on the applicant's farm have a cropland or pasture rating similar to Classes I, II, and III, or Woodland Groups I and II.  Farm areas with extensive specialized production, including but not limited to dairying livestock, poultry, fruit, or berry production may also be considered by the Foundation to be included in a district.

(2)   District Size Criteria.

(a)   An agricultural preservation district shall be 100 contiguous acres.  However, a parcel of less than 100 acres may qualify as a district if:

(i)    It adjoins a 100-acre parcel which has been approved by the Foundation as an agricultural preservation district;

(ii)   It is added to one or more adjoining parcels which together have been approved by the Foundation as agricultural preservation districts;

(iii)  The land has extraordinary agricultural capability as provided by §D(5) of this regulation and is of significant size; or

(iv)  It adjoins land subject to a recorded instrument which permits agricultural activities and contains restrictions that are the same as or more stringent than those found in the Foundation's deed of easement, and the collective mass of these lands total at least 100 acres.

(b)   The Foundation may not purchase an agricultural preservation easement from a landowner of a district of less than 100 acres unless:

(i)    It is contiguous to a district or districts on which a 100-acre easement has been purchased;

(ii)   The landowners in the adjoining districts which are each less than 100 acres but total at least 100 acres accept the Foundation's offer to purchase an easement;

(iii)  The land has extraordinary agricultural capability as provided by §D(5) of this regulation and is of significant size; or

(iv)  It adjoins land subject to a recorded instrument which permits agricultural activities and contains restrictions that are the same as or more stringent than those found in the Foundation's deed of easement, and the collective mass of these lands total at least 100 acres.

(3)   Locational Criteria.  Land within the boundaries of a 10-year water and sewerage service district may be included in an agricultural preservation district only if that land is outstanding in productivity and is of significant size.  Note:  Refer to County Water and Sewerage Plan.

(4)   Agricultural land which is otherwise qualified for district establishment and is comprised predominantly of land of lower general capability also may meet minimum qualifying criteria if the following conditions are met to the satisfaction of the Foundation:

(a)   The agricultural preservation advisory board of the county in which the land is located shall obtain general information from the Agricultural Extension Agent and specific written information from the soil conservation district in the county, and such other sources as might be applicable, addressing the long-term productivity of the land and farm management practices, and shall forward this documentation to both the local governing body and to the Foundation; and

(b)   The agricultural preservation advisory board shall state in its recommendations, with the advice of the applicable soil conservation district, that an approved soil conservation plan is being implemented.

(5)   For the purpose of this chapter, land has "extraordinary agricultural capability" if it:

(a)   Has a soil conservation plan approved by a local soil conservation district, fully implemented according to a schedule in the plan;

(b)   Is located in an area designated by a county for agricultural preservation;

(c)   Is recommended by the majority of the Foundation's Board of Trustees after an on-site inspection is conducted by one or more members of the Foundation; and

(d)   Meets either of the following:

(i)    Has at least 60 percent of the land area consisting of U.S.D.A. Soil Capability Classes I, II, and III, or U.S.D.A. Woodland Groups 1 and 2 which are applied to wooded areas only, or

(ii)   Has a minimum of 72 percent of the land area less any acreage included within the 100-year floodplain and less any acreage included in State or federal wetlands consisting of a combination of U.S.D.A. Soils, Class I, II, and III on cropland and pasture and Woodland Groups 1 and 2 on wooded areas.

E.     Additions to Existing Districts.  The procedures for adding land to existing districts shall be the same as for the initial establishment of districts.  There is no minimum size criteria for the addition of land parcels contiguous to an agricultural preservation district.

F.     Exclusion of Lots in Districts.

(1)   A landowner may request to have excluded from a district certain portions of the owner's property, constituting lots of either 1 acre or less, or, when permitted by Agriculture Article, §2-513, Annotated Code of Maryland, 2 acres or less, if the purpose for excluding the property is to construct a dwelling house for the owner or the owner's children.

(2)   In making this request, the landowner shall follow the procedures described in Regulation .16 of this chapter.

(3)   In reviewing the landowner's request, the Foundation shall examine the:

(a)   Location of the lot to be excluded;

(b)   Potential impact the lot's exclusion may have on the agricultural use of the remaining property; and

(c)   Owner's future right, if not already forfeited under §F(4) of this regulation, to have lots released from the Foundation's easement, should an easement be subsequently acquired by the Foundation.

(4)   Lots Released from Foundation's Easement.

(a)   Lots excluded under this section from property an owner has placed in a district affects the owner's future right under Agriculture Article, §2-513(b), Annotated Code of Maryland, to have lots released from the Foundation's easement, should the Foundation subsequently acquire an easement in that property.

(b)   For each lot excluded from a district under this section, the number of lots a landowner would otherwise be entitled to have released, should the Foundation acquire the easement, will be reduced by one.

(c)   As a precondition to releasing a lot from a district under this section, the owner shall sign a statement agreeing to and acknowledging the forfeiture of the owner's right as described in this subsection, to have lots released from the Foundation's easement, should the Foundation acquire an easement.

G.    Continuation of Districts.  Agricultural districts shall continue in effect indefinitely unless terminated in accord with any of the procedures provided in Regulation .04 of this chapter.

H.    Access.  In determining questions about easements, rights-of-way, licenses, and other similar servitudes in land subject to a district agreement, the Foundation shall follow the same rules that are applicable to the establishment of these servitudes in land subject to a preservation easement set forth under Regulation .17F of this chapter.

15.15.01.04

.04 Termination and Alteration of Districts.

A.    The provisions of this regulation are applicable only to land in agricultural preservation districts on which an easement is not held by the Foundation.

B.    After 5 Years.  A landowner may terminate his property's inclusion in an agricultural preservation district at any time after 5 years from the establishment of the district.  Notice of intention to terminate may be submitted to the Foundation at the end of the fourth year of the district's establishment, or anytime after, with a 1-year notice.

C.    Severe Economic Hardship.

(1)   Foundation and County Approval Needed.  If severe economic hardship occurs, the Foundation with the concurrence of the county governing body may release the landowner's property from an agricultural preservation district at any time.

(2)   Petitioning the Foundation.

(a)   To obtain the relief available under §C(1) of this regulation, the landowner shall petition the Foundation, stating succinctly the severe economic hardship that the landowner is sustaining, and providing the Foundation with the following information:

(i)    A recent financial statement which shows the owner's complete assets and liabilities and a statement that the information contained in the financial statement is true and accurate;

(ii)   Other information attesting to the severe economic hardship that the landowner is sustaining, including by way of example, information from mortgagees, lien holders, creditors, attorneys, the Internal Revenue Service, or other third-party interests who are qualified to address the economic condition of the landowner.

(b)   Copy to County.  The landowner shall send a copy of this petition and the information required under §C(2)(a) of this regulation to the appropriate county governing body.

(c)   Disclosure of Information.  To the extent permitted by law, the Foundation shall deny public access to the information the landowner has supplied the Foundation under §C(2)(a) of this regulation.  Nothing in this regulation shall preclude the Foundation from discussing this information with the appropriate county governing body, whose concurrence is required in any property release under this section.

(d)   If the Foundation approves the petition to release the landowner's property from a district, the Foundation shall prepare the release.

C.    Land Within District No Longer Meeting Qualifications.  The Foundation may approve alteration or abolishment of the district, if the following occur:

(1)   The use of land within the district has so changed as to cause land within the district to fail to meet the qualifications under Regulation .03D of this chapter;

(2)   The Foundation has assessed the potential impacts of alteration on remaining lands in the district;

(3)   The alteration or abolition of the district has been recommended by the county governing body after review by the agricultural preservation advisory board and county planning and zoning body, and a public hearing has been held; and

(4)   The alteration or abolition is approved by a majority of the Foundation Board of Trustees at large, by the Secretary, and by the State Treasurer.

15.15.01.05

.05 Application to Sell Agricultural Land Preservation Easement.

A.    An owner of agricultural land located within an agricultural land preservation district may offer by written application to sell to the Foundation an easement on the entire contiguous acreage of land within that district.

B.    The owner shall submit a written application to sell an easement to the Foundation not later than July 1 of the fiscal year in which the application is to be considered and include with the application:

(1)   An asking price for which the owner is willing to sell an easement;

(2)   A complete description of the subject land;

(3)   A certification from the local soil conservation district that it has prepared or revised within the last 10 years a soil conservation and water quality plan that:

(a)   Identifies the existing erosion and water quality problems on the subject land and the means (that is, the practices and other conservation measures) necessary to address them, and

(b)   Contains a schedule for implementing the means to address the problems;

(4)   An acknowledgement by the landowner that if the Foundation acquires an easement on the subject land, the owner shall implement the conservation practices stated in the soil conservation and water quality plan in accordance with the stated schedule; and

(5)   A statement that a forest management plan approved by a registered forester exists on the property if 50 percent or more of the acreage of the applicant's land in the agricultural preservation district is woodland.

15.15.01.06

.06 Maximum Number of Applications.

A.    The Board shall determine the maximum number of applications it may consider in each offer cycle.

B.    Applications received after the maximum number has been reached may be considered in the next available cycle.

15.15.01.07

.07 Date on Which the Foundation Shall Receive Applications.

In each offer cycle, the Foundation shall hold all applications to be considered until July 1, when it officially shall receive the applications.

15.15.01.08

.08 Notice to Landowner of Receipt and Sufficiency of Application to Sell.

Within 30 days after the receipt of an application, the Foundation shall notify the landowner whether the application is sufficient.  If the application is insufficient, the Foundation shall specify the reason for insufficiency and grant the owner an additional 30 days to remedy the insufficiency.  If the application is made sufficient within 30 days of the notification by the Foundation, the application shall be considered as if it had originally been submitted in a timely and sufficient manner.

15.15.01.09

.09 Approval or Disapproval of Application by County Governing Body.

A.    Within 30 days after receiving an owner's application to sell an easement, the Foundation shall notify the governing body of the county containing the subject land that it has received an application.

B.    Within 60 days after receiving the notification referenced in §A of this regulation, the county governing body shall advise the Foundation as to local approval or disapproval of the application.

C.    The Foundation shall grant a county governing body a 30-day extension of this response period if the county governing body applies to the Foundation for an extension and states its reasons.

D.    In deciding whether to approve the application, the county governing body shall receive the recommendation of the county agricultural preservation advisory board.

E.     In making its recommendation, the county agricultural preservation advisory board shall take into consideration criteria and standards adopted by the Foundation under current local regulations, local patterns of land development, and any locally established priorities for the preservation of agricultural land.

F.     The county agricultural preservation advisory board shall provide a public hearing concerning any application to sell an easement if a hearing is requested by a majority of the county agricultural preservation advisory board, or by a majority of the county governing body, or by the applicant.

G.    The Board of Trustees of the Foundation may not approve an application to sell which has not been approved by the governing body of the county containing the subject land.

15.15.01.10

.10 Value of Easement.

A.    Maximum Value.

(1)   Computation.  The maximum value of any easement to be purchased shall be the asking price, or the difference as of the valuation date between the fair market value of the land and the agricultural value of the land, whichever is lower.

(2)   Valuation date.  The valuation date for each property within an agricultural land preservation district being appraised in a given offer cycle shall be July 1, the last day in each offer cycle that an application may be submitted for consideration.

B.    Fair Market Value.

(1)   The fair market value of the land is the price as of the valuation date for the highest and best use of the property which a vendor, willing but not obligated to sell, would accept for the property, and which a purchaser, willing but not obligated to buy, would pay for the property if the property was not subject to any restriction imposed under these regulations.

(2)   The Department of General Services shall determine the land's fair market value based on one or more appraisals by the State appraisers, and appraisals, if any, submitted by the landowner.  The entire contiguous acreage shall be included in this determination, less 1 acre per single dwelling.

(3)   In determining the fair market value of land, improvements to the land may not be considered.

(4)   If the subject property is less than 100 acres and its fair market value is being determined under the direct sales comparison approach, the adjustments for size between the subject property and the comparison properties shall be calculated as though the subject property is 100 acres.

C.    Agricultural Value.  The agricultural value of land shall be determined by the formula provided under COMAR 15.15.02.

D.    Appeal Route.  In the establishment of an easement value, the following steps of appeal are available:

(1)   If the landowner and Foundation do not agree on the value of the easement as determined by the State, either party may request that the matter be submitted to the property tax assessment appeals board where the property is located for arbitration;

(2)   Either party may appeal the property tax assessment appeal board's determination of the easement value by petitioning the Maryland Tax Court for a de novo hearing;

(3)   Either party may appeal from the Tax Court's final order to the circuit court of the county where the property is located.

E.     Effect of Board's Determination in a Purchase of the Easement.  Unless the parties agree to a lesser value or an appeal is noted to the Maryland Tax Court, the parties are bound for a period of 2 years by the property tax assessment appeal board's determination of the easement value.

F.     Consideration of Application Following Appeal.

(1)   If, following an appeal, the round of easement offers has closed for the offer cycle that the landowner originally applied to sell the easement, the Foundation shall consider the landowner's application in the next available offer cycle as provided in §F(2) or (3) of this regulation.

(2)   Foundation Would Have Made Offer.

(a)   If the value of the easement as finally determined on appeal is such that the landowner would have received an offer in the offer cycle that he applied to sell the easement, the Foundation, subject to §F(2)(b) and (c) of this regulation, shall offer the landowner a sum equal to the value determined on appeal or the original asking price, whichever is lower.

(b)   The Foundation may make an offer only if:

(i)    Funds are available;

(ii)   A majority of the board members at-large approve the offer;

(iii)  The State Treasurer and the Secretary have recommended that the offer be made; and

(iv)  The value determined on appeal is greater than the State's appraised value of the land.

(c)   If the conditions of this section have been met, the Foundation shall make the offer:

(i)    After paying the current year's appraisal costs for the county where the property is located; and

(ii)   If possible, before making the first ranked current offer cycle applicant in that county an offer.

(3)   Foundation Would Not Have Made Offer.

(a)   If the value of the easement as finally determined on appeal is such that the landowner would not have received an offer in the offer cycle that he had applied to sell the easement, the Foundation, subject to §F(3)(b) and (c) of this regulation, may consider his application to sell along with the new applications.

(b)   The Foundation may not consider the landowner's application if:

(i)    The landowner has not requested in writing that the Foundation do so; and

(ii)   The value determined on appeal is less than or equal to the State's appraised value of the land.

(c)   The Foundation shall treat the landowner's written request as a formal application.

15.15.01.11

.11 Rejection of Foundation's Offer.

A.    A landowner whose application to sell an agricultural land preservation easement has been rejected for a reason other than insufficient funds may not reapply to sell an easement on the same land or on the same terms until 2 years have passed after the date of the original application.

B.    However, if the landowner's asking price is lower than that indicated in the original application, the landowner may apply to sell an easement on that same land in the next available offer cycle or any cycle after that.

15.15.01.12

.12 Sales Applications for Land Subject to Mineral Rights.

Only those applications for land which is subject to existing mining or mineral rights sale or lease, in which the landowner or mineral rights owner or lessee will subordinate their interest to the Foundation's interest with the following exceptions and limitations:

A.    Alterations to surface contours and conversion from agricultural and open space use to mineral extraction use, or both, may occur only as specified by the Foundation in advance of easement acquisition and in accord with remaining mineral rights subsequent to releases, on a case-by-case basis;

B.    Mineral extraction shall be, and remain strictly ancillary to, the agricultural use of the property and shall be limited to the extraction of sand and gravel, shale, limestone, crude petroleum and natural gas, clay, ceramic, and fertilizer minerals and deep-mined minerals, including bituminous coal; and

C.    Reclamation of the subject parcel shall be accomplished in accord with Maryland statutes and regulations.

15.15.01.13

.13 Tender of Offer to Buy After Approval of Application.

Upon approval of a majority of the Board members at-large, and upon the recommendation of the State Treasurer and the Secretary, an application to sell shall be approved, and an offer to buy which contains the specific terms of the purchase shall be tendered to the landowner.  An offer to buy may specify terms, contingencies, and conditions not contained in the original application.

15.15.01.14

.14 Time of Tender; Acceptance or Rejection.

A.    With respect to allotted purchases, the Foundation shall tender any offer to buy containing the specific terms of the purchase for the:

(1)   First offer cycle, on or before January 31; and

(2)   Second offer cycle, on or before July 31.

B.    With respect to additional offers to buy tendered, the Foundation may not tender these offers earlier than 30 days after the completion of allotted purchases in each offer cycle.

C.    A landowner has 30 days from the date of any offer to buy in which to accept or reject the offer.

15.15.01.15

.15 Schedule of Payment.

A.    At the time of settlement of the purchase of an easement, the landowner and the foundation may agree upon and establish a schedule of payment such that the landowner may receive consideration for the easement in a lump sum, or in installments over a period of up to 10 years from the date of settlement.

B.    If a schedule of installments is agreed upon, the Comptroller shall retain in the Maryland Agricultural Land Preservation Fund an amount of money sufficient to pay the landowner according to the schedule.

C.    The landowner shall receive annually interest on any unpaid balance remaining after the date of settlement.  This interest shall be at the same rate as any interest earned on the funds retained pursuant to §B of this regulation, less 1/4 of 1 percent.

15.15.01.16

.16 Notice of Rejection of Application; Reapplication.

A.    On or before June 30, following the first offer cycle, or on or before December 31, following the second offer cycle, the Foundation shall notify every landowner whose application had been rejected during that offer cycle.  The Foundation shall specify the reasons for that rejection.

B.    A landowner whose application has been rejected for a reason other than insufficient Foundation funds may not reapply to sell an easement on the same land on the same terms until 2 years after the date of the original application.

15.15.01.17

.17 Use of Land on Which an Easement is Purchased.

A.    Provisions to be Included in Easement and County Regulations.  Agricultural land preservation easements may be purchased for land in agricultural use which meets the qualifying criteria established under Regulation .03D of this chapter if the easement and county regulations governing the use of the land include the following provisions:

(1)   Any agricultural use of land is permitted;

(2)   Operation of machinery used in farm production or the processing of agricultural products is permitted;

(3)   Normal agricultural operations performed in accordance with good husbandry practices, which do not cause bodily injury or directly endanger human health, are permitted, including sale of farm products produced on the farm where the sales are made, and may generally include up to 25 percent in gross sales of farm products produced locally on other farms.

B.    Prohibitions.  Except as permitted by Agriculture Article, Title 2, Subtitle 5, Annotated Code of Maryland, a landowner who has sold an agricultural preservation easement to the Foundation is prohibited from using that land for any commercial, industrial, or residential purpose.

C.    Dwellings.

(1)   Application.  Before a lot may be released from an easement's restrictions for the construction of a dwelling house, the landowner shall submit an application to the Foundation that:

(a)   The landowner has signed;

(b)   Contains a declaration that the lot and dwelling house are only for the use of the landowner or the landowner's child, whichever is the case (if the use is for the landowner's child, identify the child);

(c)   Includes signed statements indicating approval of the release from both the local agricultural land preservation advisory board and the county planning and zoning department;

(d)   Includes a description of the land to be disturbed by both the dwelling and access to that dwelling, so as to gauge the impact that the dwelling and any access to that dwelling will have on the farm; and

(e)   Includes a survey plat or tax map on which the precise location of the proposed lot is noted.

(2)   Corporation's or Similar Entity's Request for Children's Lot.  The Foundation may not approve an application from a corporation, partnership, or other similar entity to have a child's lot released from an easement's restrictions unless the:

(a)   Entity's membership is comprised of family members who are actively engaged in the daily agricultural operations on the land; and

(b)   Entity is otherwise eligible to have a lot released.

(3)   Owner's Lot.  A landowner is entitled to have only one owner's lot released from the easement's restrictions regardless of how land is titled (that is, as tenants in common, in joint tenancy, or in a corporation's or partnership's name).

D.    Tenant House.  A landowner also may construct housing for tenants fully engaged in the operation of the farm.  The procedure for the approval of a tenant house is provided by COMAR 15.15.03.

E.     Public Not to be Granted Right of Access or of Use.  Purchase of an easement by the Foundation does not grant the public any right of access or right of use of the subject property.

F.     Granting Easements and Rights-of-Way.

(1)   General Rule.  After a landowner has sold an agricultural preservation easement to the Foundation, the landowner may not grant or permit another to establish an easement, right-of-way, or other servitude in that land without the Foundation's written permission.

(2)   Exceptions to General Rule.  The Foundation may permit an easement or right-of-way to be granted in land subjected to a preservation easement under the following circumstances:

(a)   If it is to service a lot released from preservation easement restrictions under Agriculture Article, §2-513, Annotated Code of Maryland;

(b)   If it is to service a neighboring farm, provided, however, that its use is restricted to the movement of farm equipment or other items associated with farming.

G.    Permitted Uses.

(1)   The Foundation may not purchase a preservation easement unless, as provided under Agriculture Article, §2-513, Annotated Code of Maryland, the easement instrument and the regulations in the county in which the easement is to be purchased permit the following uses on that land:

(a)   Any farm use of land is permitted;

(b)   Operation at any time of any machinery used in farm production or the primary processing of agricultural products is permitted; and

(c)   All normal agricultural operations performed in accordance with good husbandry practices which do not cause bodily injury or directly endanger human health are permitted including, but not limited to, sale of farm products produced on the farm where these sales are made.

(2)   A landowner may not use land subjected to a preservation easement for any purpose that is otherwise prohibited, inconsistent with, or contrary to State or local law, or the restrictions imposed by the preservation easement.

(3)   In determining whether a particular use is inconsistent with or contrary to the preservation easement, the Foundation shall consider the following factors:

(a)   Whether it is a commercial, industrial, or residential use;

(b)   Whether it will likely have a negative impact on the agricultural operations of the farm on which it is to be implemented;

(c)   Whether it has an historical relationship to farming (for example, goose hunting); and

(d)   Whether it is temporal, seasonal, or permanent in nature.

H.    Documentation Required For Agricultural Subdivision.

(1)   A landowner may not subdivide land subject to restrictions of an agricultural land preservation district or easement without written approval from the Foundation.

(2)   A landowner shall submit a written request for approval to the Foundation.

(3)   All requests for agricultural subdivisions shall be decided on a case-by-case basis.

(4)   A request shall be considered by the Foundation if:

(a)   An application for agricultural subdivision has been fully and accurately completed and signed by all landowners;

(b)   The landowner provides an unmarked copy of the tax map outlining the entire district or easement property;

(c)   A second copy of the tax map is provided that clearly indicates the property boundaries of the district or easement and the area proposed to be agriculturally subdivided, including access to all pre-existing dwellings, lot exclusions, tenant houses, and farm buildings;

(d)   The county program administrator submits written verification to the Foundation describing the current overall farm operation, as well as the current and intended use of the proposed agricultural subdivision;

(e)   The local tax assessment office submits written documentation to the Foundation that the subdivided portion and the remaining portion of the original parcel continue to qualify for agricultural use assessment under Tax-Property Article, Annotated Code of Maryland;

(f)    The local agricultural land preservation advisory board submits a letter to the Foundation addressing the potential for continued agricultural use of the property and approving the request;

(g)   The proposed subdivision is intended for an agricultural purpose and both the parcel to be subdivided and the remaining parcel are able to sustain long-term agricultural production, independent from the other; and

(h)   The requested subdivision is consistent with county planning and zoning regulations, as evidenced by a letter of approval and recommendation or statement of conformity received from the local planning and zoning office or the county program administrator.

I.      Property Requirements For Agricultural Subdivision.

(1)   The subdivided portion and all remaining parcels shall be at least 50 acres, and each parcel shall meet the minimum soils requirement, as provided by Regulation .03D of this chapter, for district establishment; and

(2)   A request for an agricultural subdivision may not be considered by the Foundation for land that is less than 100 acres, unless the property is subject to an agricultural preservation easement.

J.     Exceptions to Property Size.

(1)   The Foundation may permit a subdivision of less than 50 acres of easement property if:

(a)   One of the following exists:

(i)    It is for the purpose of straightening a boundary; or

(ii)   The parcel to be subdivided is conveyed to an adjoining easement property, the remaining parcel is at least 50 acres, and if the adjoining easement property is not a Foundation easement, it shall be restricted by a recorded instrument that permits agricultural activities and contains restrictions that are the same as or more stringent than those found in the Foundation's deed of easement; and

(b)   The remaining portion of the original parcel meets the minimum soils criteria, as provided in Regulation .03D.

(2)   The Foundation may permit the subdivision of an easement property that is less than 100 acres if:

(a)   The parcel to be subdivided is conveyed to an adjoining easement property; and

(b)   The remaining portion of the original parcel consists of at least 50 acres.

K.    Special Exceptions.  If the request for an agricultural subdivision is being made as a special exception, the following documentation is required:

(1)   A recommendation to either endorse or deny the request for the subdivision from the local agricultural land preservation advisory board; and

(2)   When the request is not for a boundary line adjustment, letters of support from organizations such as the Soil Conservation Service and Forest Service that can attest to the long-term productive capabilities of both the proposed agricultural subdivision and the remaining parcel.

15.15.01.18

.18 Acceptance of Easements by Donation, Gift, Bequest, or Grant.

A.    The Foundation may accept easements or other rights to restrict the use of agricultural land and woodland in accord with the criteria and procedures of this regulation.

B.    Criteria.

(1)   Agricultural land and woodland parcels on which easements are accepted shall be:

(a)   Primarily used for the production of food or fiber;

(b)   Of such size, configuration, and natural capability to assure continued economically viable agricultural production or be located contiguous to other similarly productive land; and

(c)   Land within the boundaries of a 10-year water and sewerage service district only if the land is outstanding in productivity and is of significant size.

(2)   The acceptance of an easement by donation, gift, bequest, or grant may not be contingent upon inclusion of the land in an agricultural preservation district.

C.    Procedures for Acceptance of Easement Donations.  The Foundation shall forward any donation offers to the applicable local governing body for review and comment.  The Foundation shall determine easement acceptability in accord with the criteria as provided in §B of this regulation and findings from a field visit to the property.  Further acceptance is contingent upon a satisfactory legal review.

D.    Deed Form.

(1)   Donated easements may be in perpetuity or for a specified term.  Special provisions, unique to the land or to the wishes of the donor, may be incorporated in the easement form for consideration by the Foundation.

(2)   Restrictions.

(a)   However, the restrictions in this subsection are generally applicable to the encumbered land in any deed for an easement by donation.

(b)   Any agricultural use of the land is permitted.  However, industrial or commercial use is not permitted with the exception of uses related to the primary processing of agricultural and/or woodland products and the direct sale of locally produced agricultural and woodland products to the public.

(c)   Subdivision for residential and commercial purposes is not permitted.  However, upon written application to and approval by the Foundation, conveyance of a lot for the owner and for each of his children for the purpose of construction of one dwelling intended for his or their use may be permitted.

(d)   The property may be subdivided only with the written approval of the Foundation.

(e)   Signs, billboards, or outdoor advertising structure may not be displayed on the property, except that one sign, not exceeding 4 feet by 4 feet, may be displayed to state the name of the property and the name and address of the occupant, to advertise an activity permitted above, and to advertise the property for sale or rental.

(f)    No dump of ashes, sawdust, bark, trash, rubbish, or any other material, except that which is for regular agricultural use, may be permitted on the property.

(g)   Agricultural lands shall be managed in accordance with sound agricultural and soil and water conservation practices, in a manner which will not be of significant detriment to agricultural production capability on the land.

(h)   Woodlands shall be managed in accordance with sound forestry practices, and trees may be selectively or clear cut from time to time in a manner that will not alter the character of the land or diminish its productive capability.

(i)    The grantee and its representatives, after appropriate notice to the grantors and any person residing on the property, may enter the property from time to time for the purpose of inspection and enforcement of the terms of the easement granted herein.  However, the grantee may not have the right to inspect the interior of any dwelling on the subject property.

(j)    In case of doubt concerning the appropriateness or permissibility of agricultural or related uses of encumbered property, the property owner may submit a written request for consideration and approval of the use to the Board of Trustees of the Maryland Agricultural Land Preservation Foundation.

15.15.01.19

.19 Determination by Foundation of Applications To Be Approved.

A.    In determining which applications to approve for the purchase of the easements offered, the Foundation shall approve only those applications which have received approval of the applicable local governing body in which the subject land meets the qualifying criteria of Regulation .03D of this chapter on lands which are currently within an agricultural preservation district.

B.    Approval of Easement Sale Applications.

(1)   Ratios of 1.0 or Lower.  All applications for the sale of easements shall be assigned a rank in ascending order with respect to the proportion obtained by dividing the asking price by the State appraisal easement value.  The resulting rank shall be the sole criterion for establishing the priority for approved applications with ratios of 1.0 or lower.  If between two or more landowners, the proportions obtained are equal, the following land characteristics shall affect the priority of acquisition:

(a)   Highest productive capability;

(b)   Greatest urban pressure; and

(c)   Largest parcel.

(2)   Ratios of Greater than 1.0.  All applications for the sale of easements shall be assigned a point total resulting from the following easement priority formula.  Applications shall be ranked in descending order of respective point totals and this shall be the sole criterion for establishing the priority for the approved applications that include asking price/appraised value ratios greater than 1.0.

(3)   Points.  The following points shall be assigned to soil capability, based on the land classification system as developed by the U. S. Department of Agriculture, Soil Conservation Service.  The following standard priority ranking system applies to ratios greater than 1.0 if the total district acreage is:

(Maximum 20 Points)

(a)   50 percent or more Classes I and II -------- 20 points;

(b)   50 percent or more Classes II and III ------ 16 points;

(c)   50 percent or more Class III --------------- 12 points;

(d)   50 percent or more Woodland Group 1 -------- 20 points;

(e)   50 percent or more Woodland Group 2 -------- 12 points;

(f)    Less than 50 percent Class I, II, and III soils or Woodland Groups 1 and 2, but 50 percent or more of the productive area of the district is devoted to specialized food production such as orchard, vineyard, poultry, livestock, or other agricultural commodities intended for human consumption which can be produced on poorer soils without the eventual degradation of the productive capability of the land; or agricultural land which is otherwise qualified for district establishment and is comprised predominantly of lower general capability which was subject to Foundation approval based on documented productivity ------------------- 12 points;

(g)   Less than 50 percent Class I, II, and III soils or Woodland Groups 1 and 2, but 50 percent or more of the productive area of the district is devoted to non-food production such as nursery, horses, tobacco, or other non-food agricultural commodities which could be produced on poorer soils without the eventual degradation of the productive capability of the land------8 points.

(4)   Points.  The following points shall be assigned based upon agricultural preservation area and district size (maximum 25 points):

(a)   Preservation area.  Agency Note:  An agricultural preservation area is the amount of contiguous land under district agreement which may include separate ownership and land which is permanently preserved for agriculture through a county, State, federal, or private organization.

(i)    1,000 acres or larger --- 10 points,

(ii)   500—999 acres --- 8 points,

(iii)  100—499 acres --- 5 points;

(b)   District:

(i)    175 acres or larger --- 10 points,

(ii)   100—174 acres --- 8 points,

(iii)  50—99 acres --- 2 points;

(c)   If the District adjoins a district on which a development rights easement has been acquired or the adjacent land has been permanently preserved for agriculture through county, State, federal, or private organization --- 5 points.

(5)   Points.  Points shall be assigned based upon the threat to the continuance of agriculture.  The following points apply to the percentage of existing or formally proposed nonagricultural land use acreage within a 1.5 mile radius of the district (maximum 30 points):

(a)   41—50 percent developed and district is contiguous to the undeveloped portion --- 10 points;

(b)   31—40 percent developed and district is contiguous to the undeveloped portion --- 8 points;

(c)   21—30 percent developed and district is contiguous to the undeveloped portion --- 6 points;

(d)   10—20 percent developed and district is contiguous to the undeveloped portion --- 4 points;

(e)   The following points apply to the proximity to the county's existing sewer service or sewer service planned within the next 10 years:

(i)    Less than 1 mile --- 15 points,

(ii)   1—2 miles --- 12 points,

(iii)  2.1—4 miles --- 9 points,

(iv)  4.1—6 miles --- 6 points;

(f)    The following points apply to the proximity to community or suburban development areas outside the county's existing or ten year sewer service boundary:  Agency Note:  A community or suburban development area is an area of existing and formally proposed residential development greater than 500 contiguous acres.

(i)    Less than 0.5 miles --- 5 points,

(ii)   0.6—1.0 miles --- 4 points,

(iii)  1.1—2.0 miles --- 3 points,

(iv)  2.1—3.0 miles --- 2 points.

(6)   Points.  The following points apply to the priority recommendations of local governing bodies for applications based on a formal objective evaluation process approved by the Foundation (maximum 25 points):

(a)   Applications designated high priority --- 25 points;

(b)   Applications designated medium priority --- 10 points;

(c)   Applications designated low priority --- 5 points.

C.    The Foundation shall only approve those applications that have been approved by the applicable local government.

15.15.01.20

.20 Maryland Agricultural Land Preservation Fund and Local Funds.

A.    Definitions.

(1)   "Total amount to be allotted" means the amount, as certified by the Comptroller, which remains in the Maryland Agricultural Land Preservation Fund at the beginning of the fiscal year after payment of all expenses of the Foundation and the Board of Trustees during the previous fiscal year, and after subtraction of funds committed for payment as consideration for easements purchased during previous fiscal years, and after subtraction of any money remaining in the Fund as a result of a transfer of local program open space funds.

(2)   "General purchases of easements" means purchases of agricultural land preservation easements in which the governing body of the county in which the land is located is not required to make a contribution to the Maryland Agricultural Land Preservation Fund.

(3)   "Matching purchases of easements" means purchases of agricultural land preservation easements in which the governing body of the county in which the land is located is required to make a contribution to the Maryland Agricultural Land Preservation Fund of an amount equal to at least 40 percent of the value of the easement for each purchase.

(4)   "Allotted purchases" means general or matching purchases made pursuant to offers to buy tendered by the Foundation on or before January 31 in the first offer cycle and on or before July 31 in the second offer cycle.

(5)   "County" means any county containing productive agricultural land which is being actively farmed and which meets the criteria for land on which easements may be purchased.

(6)   "Eligible county" means a county as defined in §A(5) of this regulation which has secured approval from the Foundation for a local agricultural land preservation program (applicable only to local matching programs).

B.    Sources.  The Maryland Agricultural Land Preservation Fund shall comprise money made available to the fund by general or special fund appropriations, and money made available to the fund by grants or transfers from governmental or private sources.

C.    Disbursements.  The Comptroller of the Treasury may not disburse any money from the Maryland Agricultural Land Preservation Fund ot