MICHELLE RANCK Lancaster Fanning Staff LANCASTER (Lancaster Co.) The county’s farmland preser vation waiting list may soon be come shorter. Officials from the State Bu reau of Farmland preservations met with approximately 100 pro- Working together to preserve farmland are, from the left, presenter Pat O’Connell, Evergreen Capital Advisers, Princeton, N.J.; June Mengel, director, Lancaster County Ag Preserve Board; and Raymond Pickering, director, bu reau of farmland preservation, Harrisburg. Get ready for a new season of savings! Lock in your best diesel deal by April 16,2001. Enjoy the security of fixed-rate fuel all season! Call today for your 2001 Off-Road Diesel Plan enrollment form. We'll get you set up for savings on the exact quantity of low-cost fuel you'll want through November 15th. Rely on Carlos R. Leffler, Inc. to help manage costs on this key farm input. We offer a complete range of products and services for all your energy needs, too. 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To request your enrollment form, call: 1-877-496-8764 Fixed-price offer available only to customers within our service territory - including the Pa counties of Adams Berks Chester, Cumberland Dauphin Franklin Lancaster Lebanon Lehigh Montoomerv Perrv Schuvlk.il and York The Pay-As-You-Go price reflects 2e per gallon prompt-pay discount Fixed-price offers valid tor credit-approved customers registered by April 16,2001 Fixed n ice oroaram is available for off-road diesel fuel purchases made from April 1,2001 through November 15,2001 while supplies last Your fixed-rate plan will expire after taking the final delivery of the predetermined overall amount of fuel that you arrange for in the Farm Diesel Plan contract Premium oft-road diesel fuel is available for an additional payment ol 2{ per gallon ‘Rate Of Interest ’ In Preserving Farms Grows ducers from Lancaster County to discuss the new, voluntary In stallment Purchase Agreement (IPA) Program at the Farm and Home Center Wednesday eve ning. Although more than 1,500 farms have been preserved across the commonwealth, 1,600 are on the waiting list. Two years ago, a pilot program was established to accelerate the rate of farmland preserved. “The genesis of this program came from a realization in the department of agriculture that the capital gains tax can claim almost one quarter of the sale price when the landowner sells appreciated property,” said speaker Pat O’Connell, Ever green Capital Advisers, Prince ton, N.J. “This makes landowners re luctant to sell their easements if they wouldn’t get enough money to make it worth their while.” The solution, said O’Connell, is the installment purchase plan. The new IPA program should be popular with both parties. In short, the advantage is that producers receive more than if they would get paid cash at clos ing. On the other hand, counties could leverage funds to buy more easements up front rather than over time when there are less farms available. The program offers landown ers capital-gains tax deferral. Producers can sell easements using agreements that defer all or part of the purchase price for up to 30 years. > t “ s I£FFIER~ The increase comes from the interest payment made until the principal is paid. The second benefit is that the interest paid is not subject to fed eral or Pennsylvania state in come tax. Lastly, the seller can elect an installment method for reporting of capital gain from the sale. Capital gain from the installment sale may be deferred until the seller receives the purchase price. The agreement is a contract between the New Garden Gener al Authority and the property owner selling development rights. In the IPA, the Authority will pay the purchase price for an easement by the end of a peri od as long as 30 years. The land owner will be paid interest on the outstanding purchase price from agreement closing until the pur chase price is paid to the seller. “Counties could use state grants to buy acreage on trea suries to cover the payments due, and secure many IPAs with the treasuries. The county saves money up front, allowing it to reach a lot deeper into its waiting list that every county has of farmers who want to participate in these agreements,” said O’Connell. t.“ 4 k Lancaster Farming, Saturday, March 24,2001-A29 get more interest from the invest ment done by the county. Deferral of payment of the purchase price for up to 30 years is expected to allow counties to make as many as five times more purchases than could otherwise be made over the short term. Once the seller enters into the sale agreement, that interest rate is locked in as a minimum inter est rate. If the rate increase be tween the time the offer is made and the day of closing, they will receive a rate based on the mar ket immediately prior to closing. In the deed the owner agrees to use or maintain the property for agricultural purposes. Payment of interest would be twice a year until the purchase price is paid. The landowner can also receive cash as determined in the agreement. The IPA has no effect on own ership of the property. The land owner is free to sell the property at any time under the terms of the deed of easement. After selling the property the seller would continue to receive the interest payments due under the IPA. The IPA can be sold to an investor or given away after one year. Counties put aside The purchase price of the ease ment is established at the time that the seller signs the deed of less up front, so the seller can BUY MOW AMO SflMtl GoMsboro.NC 800/322-1871 Used, Rebuilt & New Tractor, Combine & Cotton Picker Parts • The World's Largest Inventory of Quality Used Parts • Warranty On All Parts • Parts In Stock & Ready to Ship • Same Day Shipping on orders received by 2pm » Right Pans Right Price! Online catalog - miiw.worthittgtonagparts.com Questions Answered (Turn to Page A3O)
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