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Purchase of Development Rights Program

Case Study: Lancaster, Pennsylvania

Lancaster County’s experience shows that farmland preservation, while ambitious, is achievable when backed by legal frameworks, committed funding, and supportive land-use policies. It stands as a powerful example of how local governments, nonprofits, and landowners can collaborate to protect agriculture, boost rural economies, and sustain local food systems—all while resisting the relentless tide of suburban sprawl.

Lancaster County: A Model for Preserving Farmland and Local Food Systems

Suburban sprawl threatens family farms nationwide, driving up land prices and squeezing out local food producers. Amid this pressure, Lancaster County, Pennsylvania, offers a standout model for keeping prime farmland doing what society most needs it to do: growing nutritious food. By strategically blending agricultural conservation easements with supportive policies like zoning restrictions and urban growth boundaries, Lancaster has protected more than 125,000 acres—nearly 200 square miles—of productive farmland for future generations. (1,2) Its approach addresses the twin challenges of escalating development costs and diminishing farmland and provides a roadmap other communities can follow.

What Are Agricultural Easements?

An agricultural conservation easement is a legal tool allowing a landowner to permanently restrict non-farm development on their property, while still retaining ownership and the right to continue farming. In Lancaster County, the Agricultural Preserve Board (a public entity) works alongside a private land trust, the Lancaster Farmland Trust, to acquire these easements, effectively locking in farmland use forever. Landowners are compensated—often below the full market rate—so that the land remains dedicated to agriculture instead of being sold to developers at a premium.(3)

Why Lancaster County?

Renowned for its exceptional soils and a proud culture of small-scale agriculture, Lancaster leads all Pennsylvania counties in the value of agricultural products sold at more than $1.8 billion in annual sales.(4) Its average farm spans just 81 acres, (5)  reflecting a landscape dotted with Amish and Mennonite operations that rely on traditional methods, including animal-powered equipment.(6) Despite its pastoral setting, the county faces intense development pressure from an expanding metropolitan region.(7) To combat the risk of suburbanization and protect local food systems, Lancaster County launched its agricultural easement program in 1983.(8) Today, it stands as one of the nation’s most successful examples of farmland preservation, leading the country in acres of farmland preserved by easement with over 88,000 acres secured by the county’s Agricultural Preserve Board and an additional 37,000 acres protected by the Lancaster Farmland Trust.(9,10,11) Notably, the Lancaster Farmland Trust caters to Amish farmers who, for religious or cultural reasons, prefer not to accept government funds.(12)

A Multi-Pronged Approach

  1. Complementary Policies
    Lancaster doesn’t rely on easements alone, and much of its success depends on the policy ecosystem that makes easements attractive to landowners. The County uses agricultural zoning, which typically restricts each dwelling to 20–50 acres of farmland,(13) minimizing sprawl. Meanwhile, urban growth boundaries limit the extension of sewer and water lines, steering large-scale development away from prime agricultural zones.(14) These tactics reduce what is often called “development pressure”—the economic lure of selling land for subdivisions—and keep farmland costs from skyrocketing. The County also manages to preserve farms facing high development pressure through bargain sales, in which the Agricultural Preserve Board will pay up to $4,000 per acre for an easement and the remaining cost of the easement is donated by the landowner, who uses the value of the donation as a tax deduction.(15)
  2. Strategic Easement Selection
    To decide which parcels to preserve, the Agricultural Preserve Board uses a competitive scoring system.(16) Soil quality, which accounts for 40% of the total score, ensures prime farmland remains farmed. “Clustering potential” (25%) encourages contiguous blocks of preserved land, so farms can operate in unbroken agricultural districts.(17) “Farmland potential” (22.5%) evaluates a farm’s economic viability, including size, conservation plans, and active crop or grazing land, while “development potential” (12.5%) measures how urgently a farm is threatened by sprawl.(18) By prioritizing parcels facing both high development risk and high agricultural value, Lancaster maximizes the long-term impact of every easement purchase. Between 2007 and 2016, the County doubled its number of preserved 1,000+ acre blocks, demonstrating the program’s effectiveness at preserving contiguous blocks of farmland.(19) By successfully preserving large tracts of farmland, the program has helped ensure the continued operation of Lancaster County's farm support businesses, such as seed suppliers and food processing facilities, which are crucial to farm viability in the County.(20)
  3. Diverse Funding Streams
    Lancaster’s success is also grounded in its robust, stable financing. Beyond federal support through the Agricultural Conservation Easement Program—Agricultural Land Easements (ACEP-ALE), the county employs local property taxes and “rollback taxes” (penalties on property leaving preferential agricultural use) to fund easement purchases.(21) Crucially, Pennsylvania itself dedicates significant revenue from a state cigarette tax and from a statewide Environmental Stewardship Fund to farmland preservation, making the Commonwealth second nationally in agricultural easement funding.(22) This dedicated funding frees easement programs from competing against other budget priorities year after year.

Why It Works—and How Others Can Adapt It

Lancaster County’s results demonstrate that farmland preservation is most effective when easement programs are as attractive as possible and, at the same time, alternative uses are made more difficult or expensive. By reducing development potential through zoning and growth boundaries, landowners face fewer incentives to sell farmland for suburban subdivisions, which in turn lowers the cost of buying easements. Simultaneously, the county’s nuanced scoring system ensures that precious funds target the most threatened and agriculturally valuable parcels. This blend of policy and public-private cooperation offers a template for other counties grappling with development pressures.

Indeed, communities nationwide looking to sustain local food systems, preserve rural character, and protect precious natural resources can draw inspiration from Lancaster’s bold, coordinated model. Whether a region is dominated by small farms or features more industrial-scale agriculture, limiting suburban sprawl, prioritizing high-value farmland, and securing stable, long-term funding streams can help ensure that the next generation of farmers inherits land that remains both productive and affordable.

Key Legal Instrument: Pennsylvania’s Agricultural Area Security Law

Pennsylvania’s Agricultural Area Security Law (Act of June 30, 1981, P.L. 128, No. 43) underpins the legal framework for agricultural conservation easements in the state.(23) Section 14.1 defines these easements as a perpetual right to prevent development for non-agricultural purposes, effectively safeguarding farmland for future production. This legislation also created the Agricultural Conservation Easement Purchase Fund, enabling state and county programs to pool resources for farmland preservation. By providing clear guidelines and dedicated funding mechanisms, the law has been central to Pennsylvania’s—and especially Lancaster County’s—farmland preservation success.

Citations

1. Ariel Looser, “Status of Local PACE Programs,” Northampton, MA: American Farmland Trust, Farmland Information Center, October 30, 2024, https://farmlandinfo.org/wp-content/uploads/sites/2/2021/02/AFT-local-PACE-program-fact-sheet-2024.pdf.

2.  “Lancaster Farmland Trust - Save the Lancaster You Love,” Lancaster Farmland Trust, retrieved  February 6, 2025, https://lancasterfarmlandtrust.org/.

3. Tom Daniels and Lauren Payne-Riley, “Preserving Large Farming Landscapes: The Case of Lancaster County, Pennsylvania,” Journal of Agriculture, Food Systems, and Community Development 7, no. 3 (2017): 1–15, https://doi.org/10.5304/jafscd.2017.073.004.

4. “2022 Census of Agriculture County Profile: Lancaster County Pennsylvania,” United States Department of Agriculture, National Agricultural Statistics Service, February 13, 2024. https://data.nass.usda.gov/Publications/AgCensus/2022/Online_Resources/County_Profiles/Pennsylvania/cp42071.pdf.

5. “2022 Census of Agriculture County Profile: Lancaster County Pennsylvania,” United States Department of Agriculture, National Agricultural Statistics Service, February 13, 2024. https://data.nass.usda.gov/Publications/AgCensus/2022/Online_Resources/County_Profiles/Pennsylvania/cp42071.pdf.

6. Tom Daniels and Lauren Payne-Riley, “Preserving Large Farming Landscapes: The Case of Lancaster County, Pennsylvania,” Journal of Agriculture, Food Systems, and Community Development 7, no. 3 (2017): 1–15. https://doi.org/10.5304/jafscd.2017.073.004.

7. Tom Daniels and Lauren Payne-Riley, “Preserving Large Farming Landscapes: The Case of Lancaster County, Pennsylvania,” Journal of Agriculture, Food Systems, and Community Development 7, no. 3 (2017): 1–15, https://doi.org/10.5304/jafscd.2017.073.004.

8. Tom Daniels and Lauren Payne-Riley, “Preserving Large Farming Landscapes: The Case of Lancaster County, Pennsylvania,” Journal of Agriculture, Food Systems, and Community Development 7, no. 3 (2017): 1–15, https://doi.org/10.5304/jafscd.2017.073.004.

9. Ariel Looser, “More than 4.1 Million Acres Protected by Farmland and Ranchland Protection Programs Nationwide,” American Farmland Trust (blog), January 23, 2025, https://farmland.org/more-than-4-1-million-acres-protected-by-farmland-and-ranchland-protection-programs-nationwide/

10. Ariel Looser, “Status of Local PACE Programs” (Northampton, MA: American Farmland Trust, Farmland Information Center, October 30, 2024), https://farmlandinfo.org/wp-content/uploads/sites/2/2021/02/AFT-local-PACE-program-fact-sheet-2024.pdf;

11. “Lancaster Farmland Trust - Save the Lancaster You Love,” Lancaster Farmland Trust, accessed February 6, 2025, https://lancasterfarmlandtrust.org/.

12. Tom Daniels and Lauren Payne-Riley, “Preserving Large Farming Landscapes: The Case of Lancaster County, Pennsylvania,” Journal of Agriculture, Food Systems, and Community Development 7, no. 3 (2017): 1–15, https://doi.org/10.5304/jafscd.2017.073.004.

13. “Agricultural Zoning District Guidelines for Lancaster County, Pennsylvania,” Lancaster County, Pennsylvania, October 2010, https://lancastercountyplanning.org/DocumentCenter/View/138/Agricultural-Zoning-District-Guidelines.

14. Tom Daniels and Lauren Payne-Riley, “Preserving Large Farming Landscapes: The Case of Lancaster County, Pennsylvania,” Journal of Agriculture, Food Systems, and Community Development 7, no. 3 (2017): 1–15, https://doi.org/10.5304/jafscd.2017.073.004.

15. Tom Daniels and Lauren Payne-Riley, “Preserving Large Farming Landscapes: The Case of Lancaster County, Pennsylvania,” Journal of Agriculture, Food Systems, and Community Development 7, no. 3 (2017): 1–15, https://doi.org/10.5304/jafscd.2017.073.004.

16. “Agricultural Conservation Easement Program Guidelines,” Lancaster County, PA: Agricultural Preserve Board, January 2010. https://co.lancaster.pa.us/DocumentCenter/View/142/Program-Guidelines-revised-Jan-2010.

17. “Agricultural Conservation Easement Program Guidelines,” Lancaster County, PA: Agricultural Preserve Board, January 2010. https://co.lancaster.pa.us/DocumentCenter/View/142/Program-Guidelines-revised-Jan-2010.

18. “Agricultural Conservation Easement Program Guidelines” (Lancaster County, PA: Agricultural Preserve Board, January 2010), https://co.lancaster.pa.us/DocumentCenter/View/142/Program-Guidelines-revised-Jan-2010.

19. Tom Daniels and Lauren Payne-Riley, “Preserving Large Farming Landscapes: The Case of Lancaster County, Pennsylvania,” Journal of Agriculture, Food Systems, and Community Development 7, no. 3 (2017): 1–15, https://doi.org/10.5304/jafscd.2017.073.004.

20. This is based on an interview with Tom Daniels, former Director of the Lancaster County Agricultural Preserve Board from 1989-1998 and current Professor at the Weitzman School of Design at the University of Pennsylvania.

21. “Unofficial Copy: Pennsylvania Farmland and Forest Land Assessment Act Of 1974,” Pub. L. No. Act of December 19, 1974, P.L. 973, No. 319, 72 P.S. §§ 5490.1-5490.13 P.S. (1974). https://www.pa.gov/content/dam/copapwp-pagov/en/pda/documents/plants_land_water/farmland/clean/documents/COPY%20OF%20THE%20ACT%20-%20Current%20through%20Act%2089%20of%202016%20-%20Effective%20072016.pdf.

22. Ariel Looser, “Status of State PACE Programs,” Northampton, MA: American Farmland Trust, Farmland Information Center, October 30, 2024. https://farmlandinfo.org/wp-content/uploads/sites/2/2023/10/AFT-state-PACE-program-fact-sheet-2024.pdf.

23. “Agricultural Area Security Law,” Pub. L. No. P.L. 128, No. 43 (1981), https://www.palegis.us/statutes/unconsolidated/law-information/view-statute?txtType=PDF&SessYr=1981&ActNum=0043.&SessInd=0.