As conversations abound on how to use Maryland’s limited land, we examine Maryland’s primary land preservation tools.
For the past decade, Annapolis policymakers have been actively navigating transitioning away from carbon sources of energy and toward renewable sources, particularly solar. State leaders have pushed to retire fossil fuels and vastly expand renewables to support economic growth and environmental goals. Solar energy, a key technology in this transition, has received praise and attention, but also faces pronounced opposition due to its significant land requirements, especially on limited agricultural and environmentally sensitive lands.
One of the significant contentions facing the General Assembly is balancing environmental preservation with renewable energy development, two critical components to addressing climate change. In this week’s Deep Dive, we zoom in on both Maryland’s land preservation policy and the tools it has at its disposal.
Land Preservation Goals
There are 6,189,629 land acres in Maryland. The state is bound by several policies to conserve a significant share of this land to advance multiple policy goals – including to fight climate change and preserve it for future generations.
Maryland the Beautiful Act – During the 2023 Legislative Session, the General Assembly passed the Maryland the Beautiful Act (MBA), which among other things established that the intent of the General Assembly is to preserve 30% of state lands by 2030 and 40% of state lands by 2040. By the end of 2023, Maryland successfully preserved 1,859,331 acres, or just over 30%, reaching its 2030 target seven years early. By 2040, the state would need to protect nearly 2.5 million acres — state officials project this goal will be difficult.
This far-reaching legislation required the State agencies involved in its execution (effectively the State’s Smart Growth subcabinet) to develop and publish a plan for reaching the state preservation goals, which was released earlier this year. If current trends and investment persist, the state is on track to conserve 37% of land by 2040, leaving them approximately 185,000 acres short of their mandated target.
Chesapeake Bay Watershed Agreement In addition to the MBA, the Chesapeake Bay Watershed Agreement, ratified in 2015 and set to be reviewed and renewed in 2025, set a whole watershed protection goal of 2,000,000 acres of land, including 225,000 acres of wetlands and 695,000 of forested lands. This goal goes beyond Maryland and includes the District of Columbia, Delaware, New York, Pennsylvania, Virginia, & West Virginia – all part of the Bay extended watershed.
Maryland Protected Lands Dashboard – The Maryland Department of Planning, in coordination with the Maryland Department of Natural Resources and Maryland Department of Agriculture, set up a dashboard where constituents can review the real-time progress toward meeting state preservation goals.
State Tools
Conservation Easements – A conservation easement is an agreement that binds all future landowners, ensuring the permanent protection of the land. The landowner who gives an easement gives up various property rights in order to protect the land. Examples of the rights given up include the right to develop/subdivide the land and mine gravel. The landowner still maintains ownership of the land, under those terms. The organization accepting the easement agrees to monitor it to ensure compliance with its terms.
Transferable Development Rights – Transfer of Development Rights programs are a vehicle for preserving rural land and encouraging development in existing communities while leveraging private funds. Through these voluntary programs, developers buy development rights from rural landowners within designated areas, which county governments have identified for preservation. A perpetual conservation easement is then placed on the property. Developers can use their purchased development rights to build more residences, increase commercial square footage, or gain other marketable features in receiving areas, typically where higher-density development and infrastructure are planned and desired, as supported by related infrastructure.
State Programs
Program Open Space – One of the biggest and most essential tools in land preservation has been Program Open Space (POS). Established in 1969, POS has been a driving force in funding both state and county recreational and conservation efforts. The program is funded by a 0.5% State property transfer tax when someone buys a house or land. That revenue is then divided between the state and county share, and the substantial segment allocated to Program Open Space is distributed to each jurisdiction via a formula. Because POS funds depend on the health of the state real-estate market, funding can vary widely depending on the market’s activity. As of 2022, POS has prevented commercial development of over 415,000 acres of land statewide.
Rural Legacy Program – Maryland’s Rural Legacy Program (RLP) funds the preservation of large tracts of land to protect natural resources, agriculture, and forestry, supporting sustainable land use. Through public-private partnerships, local governments and land trusts decide how best to conserve landscapes crucial to the economy, environment, and quality of life. The program prioritizes ecologically valuable properties impacting the Chesapeake Bay and local waterway health.
The RLP encourages the identification of Rural Legacy Areas – delineated areas within a county that include both working farms and ecologically significant landscapes – and to competitively apply for funds to complement existing land conservation efforts or create new ones.
There is at least one Rural Legacy Area in every county of the state and the total acreage designated in all Rural Legacy Areas is 1,276,538 acres.
Since its enactment in 1997, the RLP has dedicated over $403.5 million to preserve 124,311 acres of valuable farmland, forests, and natural areas.
Maryland Agricultural Land Preservation Foundation – The Maryland Agricultural Land Preservation Foundation (MALPF) is one of the oldest preservation entities in the United States and has established itself as a national agricultural land preservation by preserving more agricultural land than any other state in the country.
MALPF purchases agricultural preservation easements that forever restrict development on prime farmland and woodland and has permanently preserved land in 23 of Maryland’s counties, representing a public investment of over $900 million. Since 1980, MALPF has purchased easements on over 2,500, permanently preserving over 350,000 acres.
Agricultural Transfer Tax and Surcharge – Maryland’s Agricultural Transfer Tax and Surcharge aim to protect farmland and prevent its development into more intensive uses. The state’s agricultural policies, which started decades ago, focus on preserving farmland and open spaces, recognizing the public benefit.
Maryland assesses farmland based on its agricultural use rather than its full market value, significantly lowering farmers’ property taxes and encouraging farming. Landowners trigger the Agricultural Transfer Tax when they sell farmland for non-agricultural use.
This tax deters development and funds farmland preservation programs. The law bases tax rates on the land’s size and features. Landowners can also use exemptions or file a declaration to keep land in agriculture for at least five years and avoid the tax.
The Agricultural Transfer Tax and Surcharge are imposed on the value of the land being removed from the agricultural use assessment. The rate of the tax and surcharge are as follows:
- 5% when the land being removed from agricultural use is 20 acres or more;
- 4% when the land being removed from agricultural use is less than 20 acres in size;
- 3% when the land being removed from agricultural use is less than 20 acres and contains site improvements such as well and septic.
- An additional 25% surcharge is calculated from the Agricultural Transfer Tax amount and added together for the total amount due. (Note: The Surcharge does not apply to transfers of two acres or less to a child or grandchild of the owner.)
The Agricultural Transfer Tax and Surcharge has historically played a key role in providing state financial incentives to keep land in agricultural production as opposed to succumbing to pressures from development.
Conclusion
Maryland excels in land conservation and preservation, but the coming years will challenge policymakers to maintain these efforts amid development pressures and other climate priorities. While nearly meeting current goals, focusing on solar projects, data centers, and electrification will test future priorities.
This article is part of MACo’s Policy Deep Dive series, where expert policy analysts explore and explain the top county policy issues of the day. A new article is added each week – read all of MACo’s Policy Deep Dives.
