SAN JOSE — Santa Clara County supervisors Tuesday unanimously agreed to spend $20 million to start a program that aims to prevent farmland from being sold to developers.
“This is all great but people aren’t going to know you’re serious (about preserving farmland) until you put dollars behind it; then it becomes a real program,” said Supervisor Dave Cortese, who proposed the program with Supervisor Mike Wasserman.
The program initially will be financed with money left over from the 2019-20 fiscal year budget.
Over the past three decades, Santa Clara County has lost 21,171 acres of farmland and rangeland to development, according to an agricultural plan approved last year. The county estimates an 28,391 more acres could be lost, mostly in its rural southern region, unless steps are taken to buck the trend.
The county already has a $100,000 state grant to begin developing the so-called Agricultural Conservation Easement (ACE) program, which targets 12,000 acres of farmland at high risk of being converted to other uses, largely in Coyote Valley, Morgan Hill and San Martin.
An easement is the right to use someone else’s land for a specific purpose, in this case development rights that won’t change regardless of whether a new owner buys the land. Because limiting the development of a property lowers its value, the county essentially would pay private landowners compensation for the loss of development potential.
An agricultural task force appointed by supervisors estimates the program will cost $500 million, or $20 million annually for the next 25 years.
The goal of the program is to not only preserve agricultural land for farmers and workers, but also strengthen the regional food supply, protect open space and reduce greenhouse gases, according to the agricultural plan.
Andrew Mariani, whose family owns Andy’s Orchard in Morgan Hill, told supervisors most of the farms surrounding his family’s orchard have since been turned into multifamily housing developments.
“We’re not wealthy gentlemen farmers — our land is our major asset and only source of income and nest egg,” said Mariani.
In addition to housing, a new elementary school will be built, requiring a new road that’ll cut through his orchard, Mariani said.
Supervisors also approved other pilot programs designed to help sustain farmers, such as teaching skills to those starting out and helping connect farmers with local businesses.
“One of the important things the agriculture plan calls for is connecting producers in south county with…our tech campuses in Silicon Valley,” said Andrea Mackenzie, general manager of the Santa Clara Valley Open Space Authority, which is partnering with the county to develop the easement program.
“If even a fraction of those (meals served in Silicon Valley) could be procured through local farms and ranches, that would put farming industry on more solid footing,” Mackenzie added.
As part of its initiatives to reduce climate change, the state has been issuing grants for the purchase of agricultural conservation easements. This fiscal year, Santa Clara County received a $15 million grant, a third of the money allocated statewide, to preserve 252 acres of farmland in San Martin.
“Those lands provide so many important services, like sequestering carbon, filtering air, slowing storm waters and reducing flooding in cities like San Jose,” Mackenzie said. “And these services are not free.”
A number of farmers and advocates from south county called on the supervisors Tuesday to work toward a long-term funding source such as a sales tax or parcel tax to sustain the new agricultural easements program.
County CEO Jeff Smith said the program could cost as much as a billion dollars over time, depending on how quickly property values rise in the region.
“The fund balance isn’t going to be a reliable mechanism. This year the fund balance is going to be less than seven million dollars,” Smith said.
Supervisor Cindy Chavez called for a broader discussion down the road about the board’s priorities, noting that the county is in the middle of a $235 million purchase of two hospitals and has other budget priorities.
Supervisor Susan Ellenberg asked staff whether there is an urgent need for the county to begin allocating money now for the program, or if it can wait until after a tax increase is placed on the ballot in 2020.
“We hear constantly of conversions happening,” county planning manager Rob Eastwood said. “We have small lots that go on the market where someone can build a house and convert that under today’s rules.”
Because of the region’s expensive land, Eastwood said relying on state grants isn’t reliable long-term.
Cortese, who grew up in a Santa Clara Valley farming family, said taking an incremental approach only puts more farmland to at risk.
“Even less farmland will be around than the number of people in this room today,” Cortese said. “I do think if the board isn’t willing to do that, there will be a referendum, and it will pass handily.”
Contact Thy Vo at 408-200-1055 or tvo@bayareanewsgroup.com.
