Preserving Farms and Forests in Sussex County, Delaware: Public Value
Date
2007-07
Journal Title
Journal ISSN
Volume Title
Publisher
Department of Applied Economics and Statistics, University of Delaware, Newark, DE.
Abstract
This report describes results of the 2005 Delaware Community Land Preservation Survey. This survey was a carefully designed choice experiment, which assessed the amount that Delaware residents would be willing to pay in increased taxes and associated fees to preserve farm or forest land in their local communities. Survey results quantify the value that Delaware residents have for different types of farm
and forest preservation. Results indicate that the value of farm and forest preservation can be substantial, and can vary widely depending on the kind of land under consideration, the method used to prevent development, and the risk of future development on unpreserved parcels.
This study considers preservation of various farm types in six Sussex County communities. When considering additional preservation in the range of 20 to 200 acres, the average community value per acre of preserving, for example, a poultry farm with the purchase of development rights is $27,707 in total capitalized value.i This value reflects the benefits that residents derive from the preservation of
undeveloped land in their communities. Although these non-market public values are substantial, they represent an underestimate of total public value because they do not account for benefits accruing to residents in other communities, nor do they include the (otherwise easily measured) value of farm products. Non-market benefits of farmland preservation are composed mainly of residents’ non-market
values for amenities such as recreational access, scenic vistas, and community character. These values are not captured in prices paid for farm and forest land in market transactions. As a result, market prices underestimate the true value of farm and forest to Delaware residents.