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Texas Agriculture Archive

March 21, 2003

Purchase of Development
Rights Program explored...

 

Representative Charlie Geren (R-Fort Worth) has filed legislation creating a state program to allow for a "Purchase of Development Rights (PDR)" on agricultural and open-space land. The purpose for the creation of this program is to keep agricultural and open-space lands from being sold by a family for development.

HB 895 establishes the Texas Purchase of Development Rights program, which enables entities such as land trusts to purchase development rights for conservation purposes, including agricultural, from willing private landowners. In recognition of the financial status of Texas' budget, no funding mechanism is authorized in HB 895. Eventually, funding will be needed to fully implement the program.

Texas is dependent on the ability of private landowners to be stewards of the land, water and wildlife because more than 90 percent of the state is privately owned. But Texas landowners who want to keep their land for heirs have few economically viable options to keep their working lands on an equal basis with land sold for development.

Other states have used PDR programs to slow the fragmentation of farms, ranches and wildlife habitat. A statewide PDR program for Texas would allow landowners to voluntarily and permanently protect thousands of acres of land for water, wildlife, open space and agriculture. It would provide them the economic option of selling their development rights and turning part of a fixed asset (their land) into a liquid asset (cash).

Just as other property rights attached to land have been bought and sold in Texas, the right to develop and subdivide land can also be purchased. A PDR program buys development rights from willing landowners, compensating them for agreeing to limit subdivision and development of the property in the future. The landowner can continue to farm, ranch, hunt or use the property for recreation. Since the land remains privately owned and operated, the costs and benefits of land management remain with the landowner. Like all other private land, PDR parcels remain on the tax rolls. The sale of development rights is permanent, and cannot be re-sold at a later date.

Texas Farm Bureau does not have a policy position regarding a statewide Purchase of Development Rights program. However our policy does support the right of landowners to sell the development rights of their property.

The Texas Farm Bureau Legislative staff in Austin can be reached at 512/472-8288.