Preserving agricultural and forest land: a TDR approach
| Date | 12 July 2011 |
| Published date | 12 July 2011 |
| DOI | https://doi.org/10.1108/14635781111150402 |
| Pages | 566-574 |
| Author | Bill Mundy,Theodore Lane |
| Subject Matter | Property management & built environment |
Preserving agricultural and forest
land: a TDR approach
Bill Mundy
Mundy Farms, Seattle, Washington, USA, and
Theodore Lane
Thomas/Lane & Associates, Seattle, Washington, USA
Abstract
Purpose – The purpose of this paper is to explore the demand and supply relationship between
urban and non-urban land, the latter’s diminishing supply, arguments for and against its preservation,
methods in which preservation might be achieved and one method in particular, with which the
authors have considerable experience, that involves the purchase of development rights and density
credits.
Design/methodology/approach – The research design involved meetings with farmers, city and
county officials and members of several land conservation organizations, bringing together several
hundred agricultural and residential real estate transactions, quantitative analysis of the transaction
data using descriptive and hedonic methods, developing property attribute values and thereby
determining the value of agricultural development rights and urban density credits.
Findings – Agricultural development rights were valued, on average, at $9,000 per acre. Commercial
development rights were valued, on average, at $9.00 per square foot of floor area (FAR).
Practical implications – By acquiring agricultural development rights the process of agricultural
land being converted to urban purposes can be slowed or halted. Valuing and selling development
rights is a straightforward means of permitting urban density that is understood by developers and
easily, objectively and transparently quantified. It is also a good method of raising funds for the
acquisition of agricultural development rights.
Originality/value – The valuation process developed and employed does away with the need for
individual appraisals of rights to be acquired and sold. Therefore this is a very efficient process. Also,
it shows how farmers, preservationists and planners can be brought together to solve a common
problem.
Keywords Floor area ratio,Agricultural development rights,Urban density credits,
Farmland preservation, Urban growth boundaries, Agriculture,Forests, Development,
United States of America
Paper type Research paper
The conflict between urbanization and preservation
As urban areas expanded they have slowly “eaten into” agricultural and forest lands
around their edges. It has been a process of the demand for urban land shifting
outward (i.e., expanding) against a fixed supply of total land available for development
with a resulting reduction in agricultural and forest lands. The demand shift has been
influenced by the increased number of US households, increased household wealth and
the ability of households to incur debt. This has especially increased the demand for
single family detached homes – a demand that absorbs prodigious amounts of land, as
well as requiring land for household support services such as schools and shopping
centers[1].
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1463-578X.htm
JPIF
29,4/5
566
Received December 2010
Accepted March 2011
Journal of Property Investment &
Finance
Vol. 29 No. 4/5, 2011
pp. 566-574
qEmerald Group Publishing Limited
1463-578X
DOI 10.1108/14635781111150402
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