Quick Overview #1 - The Resource Conservation Agreement

Partners in Conserving America's Resources

The Resource Conservation Agreement

Quick Overview #1

THE RESOURCE CONSERVATION AGREEMENT - HOW IT WORKS

This innovative concept evolved during consensus-building discussions in Florida between private landowners, conservation interests, agriculture groups and government agencies over a five-year period. Here's how it works:

1. The Resource Conservation Agreement (RCA) is a long-term service contract. It will provide landowners with incentives to protect and maintain, and even improve, the natural resources that exist on their lands.

a) The agreements will designate important natural resources on a property for special attention and care, proscribing recommended management practices for the landowner to carry out under the service contract in order to maintain, care for and improve these resources.

b) Landowners also can be hired to remove exotics and continue management of land and water resources in a way that prevents exotics from being re-introduced; install BMPs or other recommended practices to eliminate impacts on natural areas outside their property boundaries, use their property for water retention, dedicate portions of their property as buffer strips or filter strips, and leave open space between developed areas and natural areas.

c) In short, if there is something society wants a landowner to do, the Resource Conservation Agreement offers a way to "hire" a landowner to do it on a long-term basis.

2. The RCA contracts will span a minimum of 20 years. They also will be automatically renewing ÷ a landowner will have to give written notice of his or her desire to terminate the contract after the initial 20-year period; otherwise the contract could continue indefinitely, so long as compensation for the services rendered by the landowner continues.

3. Compensation will include:

Base payment of $3,200 per year for all properties enrolled by an owner. All landowners enrolling in the program will receive this payment regardless of their property size. This payment is designed to make the program worthwhile — and attractive — for landowners whose properties contain important habitats and/or ecological resources, but whose holdings comprise 320 acres (a half section of land) or less.

Annual per acre stewardship fees, similar to those now offered by the USDA’s Conservation Reserve Program, would be paid. These fees would be based on the management services provided by the landowner and would be paid annually. It is presently estimated that these fees will average about $20-$25 per acre per year.

Participating landowners also will qualify for federal tax incentives, such as annual income tax deductions, state and local property tax credits, capital gains tax exclusions and significant estate tax cuts, once the RCA program is fully implemented.

4. The agreements will compensate the landowner for all services provided. Incentives, in the form of "bonus payments," will be provided for improvements that are made to the natural resources covered by the agreements. Reviews of the agreements to determine if "bonus payments" are to be paid will be made every five years.

5. Incentives will be offered to landowners for converting their agreements into permanent conservation agreements. The agreements also will provide the contracting agency the right-of-first-refusal if the land is put up for sale.

6. The agreements will provide no interest in property. They simply will be contracts for specific services. The fees paid will be based on the services provided.

7. The Resource Conservation Agreement differs from all existing programs because: a) it is designed to combine conservation activities and practices directly into the daily agricultural operations that take place on a property with the goal of enhancing the compatibility between ag and the environment; and b) its primary focus will be on maintaining the ecological integrity of natural resources that already exist on a property, rather than on restoring damaged resources.

A model Resource Conservation Agreement is now being negotiated on a 5,500 acre ranch in Central Florida. Landowners who control another 105,000 acres have asked to be given the opportunity to participate once funding for the program becomes available.

For more information write: Florida Stewardship Foundation, One Park Place, Suite 240, 621 NW 53^rd Street, Boca Raton, Florida 33487. Phone: 561-995-1474. FAX: 561-995-1475. E-mail: info@fl-stewardship.com

A complete description of the Resource Conservation Agreement documentation is available for viewing and download at http://fl-panther.com/RCA_open.htm.