An examination of a development rights purchase program for Alaska Agricultural lands: Final Report

Abstract

Many Alaskans are concerned about the conversion of highly productive agricultural lands to nonagricultural uses now occurring in the state. Land on the urban fringes of Anchorage and Fairbanks that once produced vegetables and grains or supported dairy farms appear is the most vulnerable to this conversion. As major population centers grow, residential, shopping center and industrial land uses displace agriculture because they render greater returns. This displacement is viewed by some as not being in society's best interest. Those concerned about the loss of agricultural lands argue that these lands are some of the best agricultural lands in the state and are vital to maintaining the agricultural economy of the state. In addition, it is suggested that their preservation will help to maintain a much desired way of life and to provide needed open space. The state and municipal governments in Alaska have made attempts to intervene in the land market to slow down or stop agricultural land conversion. Methods employed to date include tax incentives and the sale only of the agricultural rights on state or municipal lands. This report discusses the feasibility of an alternative means of preserving agricultural lands, namely, the public purchase of development rights from private landowners. Under this voluntary arrangement, private agricultural landowners would be compensated for giving up their option to develop their land for nonagricultural purposes.