Bill > A1226

Introduced Session

This bill would authorize a county governing body, or the appropriate county or subregional agriculture development board (board), as directed by the county governing body, to acquire fee simple title to, and to sell or lease, certain lands situated in an agricultural development area for use by an agricultural support business. "Agricultural support business" is defined, by the bill, to mean a for-profit or not-for-profit business or enterprise, including, but not limited to, one operated cooperatively by a collective group of farmers, which supplies needed equipment, supplies, or services to the surrounding agricultural community and, thereby, has a direct and positive impact on agriculture. The term would include, but not be limited to, the following types of businesses or enterprises: a veterinary practice and any other type of practice, shop, store, or facility that supplies necessary food, temporary shelter, or medical care or support for farm animals; any shop, store, or other facility that supplies seeds, fertilizers, agricultural tools or equipment, or agricultural vehicles or machinery to the surrounding agricultural community; any practice, shop, store, garage, or other facility that engages in the repair or servicing of tractors or other agricultural vehicles, equipment, tools, or machinery; any tack shop, store, or other facility that sells equestrian supplies, apparel, equipment, horse care products, grooming supplies, horse blankets and sheets, model horses, or equine-related books, magazines, and videos; any shop, store, or other facility that sells or provides storage for natural or synthetic agricultural chemicals or other substances that are used to protect, or promote the growth of, plants or animals, including, but not limited to, fertilizers, pesticides, herbicides, growth regulators, animal feed supplements, urea, animal vaccines or antibiotics, or raw materials used in agriculture-related chemical processes; and any auction house or other facility that is used to temporarily house, showcase, or sell produce or livestock being offered for sale at auction. Under the bill's provisions, a county would be authorized to acquire unpreserved land in an agricultural development area, for use by an agricultural support business, so long as the land so acquired does not constitute preserved farmland (i.e., is not subject to a development easement conveyed, or to agricultural deed restrictions imposed, for farmland preservation purposes), and the governing body of the county, or the appropriate board, determines that the use of such land by an agricultural support business would benefit and promote the long-term viability of agricultural operations being undertaken in the agriculture development area, including on preserved farmlands situated therein, and would, thereby, facilitate and enhance the preferred use of the area for agriculture. The acquisition of land, by a county, for these purposes, may not be effectuated through the exercise of eminent domain, or through condemnation proceedings, but is to be effectuated through purchase, gift, devise, exchange, or other appropriate means, as authorized by resolution of the governing body, adopted pursuant to the "Local Lands and Buildings Law," P.L.1971, c.199 (C.40A:12-1 et seq.). The bill would authorize a county governing body or board to establish one or more agricultural support working groups, composed of farmers, agricultural support business owners or operators, and appropriate agricultural and environmental experts, to advise the governing body or board regarding the appropriateness of land acquisitions being considered, proposed, or effectuated pursuant to the bill. Any such agricultural support working group may be authorized to: (1) study, and provide the governing body or board with its findings and recommendations regarding, the feasibility, need for, and appropriateness of acquiring land in an agriculture development area for use by an agricultural support business; (2) identify particular parcels of land in an agriculture development area, the use of which by an agricultural support business would be most consistent with, and would best facilitate, current and future agricultural activities being undertaken in the agriculture development area; and (3) undertake any other reviews, or engage in other investigatory and deliberative actions, as may be necessary to facilitate the requisite determinations being made by the governing body or board with respect to the acquisition of land under the bill. The bill would further provide that, whenever a county acquires unpreserved land in an agriculture development area, for the bill's purposes, or whenever the governing body determines that unpreserved land currently owned by the county in an agriculture development area, with or without improvements, is no longer needed for county purposes, the county may, by resolution, authorize the private sale and conveyance of such unpreserved land, or any part thereof, to an agriculture support business for such consideration as may be mutually agreed upon, including for consideration that is less than the fair market value of the land, provided that the agreement of sale contains express restrictions, which are recorded in the deed, and which: (1) require the land, and any improvements thereon, to be used exclusively, by the buyer, for purposes of the agricultural support business; (2) provide for the fee simple title to revert to the county upon any violation of the agreement's use restrictions by the buyer and following the provision of written notice thereof to the buyer and any associated hearing on the matter, which may be requested by the buyer within 30 days after receipt of the written notice of violation; and (3) specify that, in any case involving the future sale of the property, the county is to have the right of first refusal to adopt and accept the terms and conditions of the proposed purchase agreement. The bill would also enable a county, by resolution, to authorize the lease of such unpreserved land, or any part thereof, to an agriculture support business for such period, consideration, and other terms and conditions as may be mutually agreed upon, including for consideration that is less than the going lease rate for similarly situated properties, provided that the lease agreement contains express restrictions that: (1) require the land, and any improvements thereon, to be used, by the lessee, exclusively for purposes of the agricultural support business; (2) provide for the lease agreement to be subject to immediate termination, for any violation of the lease's use restrictions, following the provision of written notice of the violation to the lessee and any associated hearing on the matter, which may be requested by the lessee within 30 days after receipt of the written notice of violation; and (3) prohibit the lessee from assigning or transferring the lease to any other person without the prior consent and approval of the lessor county or board. The acquisition, sale, or lease of unpreserved land in an agriculture development area, which is undertaken for the bill's purposes, may be effectuated either by the county governing body or by the appropriate board, on the governing body's behalf, as directed by the governing body. Each board would additionally be required to make appropriate recommendations to the governing body of the county regarding the county's acquisition, resale, and lease of unpreserved land in an agricultural development area, and undertake appropriate action to monitor and enforce the compliance of agricultural support businesses with the deed or lease restrictions that are imposed, pursuant to the bill, in association with their purchase or lease of unpreserved land in an agricultural development area. The availability and accessibility of agricultural support businesses is essential and integral to ensuring the ongoing viability and success of agricultural operations occurring in the State, and the siting and operation of such businesses in agriculture development areas, in accordance with the restrictions imposed by the bill, would effectively compliment, and be fully consistent with, the preferred, but non-exclusive, use of such areas for agriculture.

AI Summary

Committee Categories

Alex Sauickie (R)*, 

Introduced, Referred to Assembly Commerce, Economic Development and Agriculture Committee (on 01/09/2024)

Official Document