Exploring the Influence of Vacation Homes on Agriculture Land Use: A Researcher’s Study

Charles Towe, associate professor of agricultural and resource economics in the College of Agriculture, Health and Natural Resources, noticed a shift in land use in Columbia County, New York, where his family farms.

Towe observed that there was potential agricultural land in New York state that was not being utilized, and he knew of farmers who were unable to find land in their area. This prompted him to investigate the trend of decreasing agricultural productivity.

“I was trying to solve the problem of how do we have hundreds and hundreds of acres of land idle, and farmers looking for land saying, ‘I can’t find any land around’,” Towe stated.

Towe recently published his findings in Land Economics.

He discovered that of the 800 agricultural areas in Columbia County, an area near the Catskill Mountains, around 25% were owned by non-residents. Of the non-residents, who are individuals whose primary residence is somewhere other than their property in Columbia County, most were from New York City, which is around two hours away by car. Towe concentrated his investigation on New Yorkers to comprehend their effect on land use in his community.

“It appears that there is a preference for the amenities that an ag parcel here provides for second homeowners coming out of the city,” Towe explained.

Since 2001, non-resident ownership of farmland in Columbia County has increased by 22.7%. This upward trend may be connected to the use value taxation credit provided by the state of New York. The credit, which has been in existence for decades, enables property owners to get a break on their property taxes if they devote a portion of their land to agricultural purposes.

However, there are few criteria for what this use should look like. Although the credit does benefit farmers, many non-resident owners use part of their land to produce low-cost hay for animal bedding, but not much else. Others may rent their land to local farmers to receive the credit.

After studying two USDA databases on land use records from the last ten years, Towe discovered that when non-residents buy agricultural land in this area, 10-11% of the land is removed from the agricultural sector altogether. An additional 10-11% is used for low-value hay.

In 2019, Towe conducted a similar study for the Connecticut Department of Agriculture to evaluate Connecticut’s Public Act 490, which provides tax breaks for agricultural land. The Act was created in 1963 to preserve the state’s farms, forests, and open land.

Just like in New York, Towe found that the most common crop grown on farmlands that the owner rented out was hay, accounting for around 40%.

“At the end of the day, if you want to buy land and use it in your way, that’s your right,” Towe said. “But perhaps certain pro-agricultural tax policies should be revisited to verify that these are not being abused.”

Towe claims that this is the “first log on the stack” of examining the questions surrounding land use change with non-resident owners and the costs and benefits to the local community.

“There’s a lot happening here that’s kind of hard to put a finger on,” Towe said.

The next research that Towe is conducting will examine data from short-term vacation rentals in the area. Local attitudes frequently view these kinds of rentals as harmful to the local community. However, the entire picture is probably more complex since additional rental income makes more expensive homes more affordable to residents and brings tourist spending to the area.

“We’re attempting to make an economic connection between urban and rural communities because the country feels like it needs it,” Towe explained. “I believe the takeaway from this is that we’re really attempting to say, ‘What are the impacts, what are the positives and negatives of being in this second home market?'”

 

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Denial of responsibility! TechCodex is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.