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Writer wrong: Saving farms helps taxpayers

To the editor:

This letter is in reference to the letter to the editor (Sakonnet Times) written by Raymond Joubert regarding the Farm Forest and Open Space (FFOS) program and the purchase of development rights (PDR) program administered by the State of Rhode Island (Feb 9).

Mr. Joubert states that the program “shifts the burden of taxation to the less fortunate in town” and provides “very little advantage to citizens, except those with a view.” He specifically refers to a recent purchase in Little Compton.

The situation is really quite the opposite of what Mr. Joubert suggests. It is owners of large parcels of property who are subsidizing home owners and the above-mentioned programs make property taxes more fair. It has been proven that farmland and open space receives only 40 cents worth of service or less for each dollar paid in taxes whereas the average homeowner gets over $1.50 in services for each dollar spent.

Keeping towns rural and preserving open space keeps property taxes down. Case in point, one of the most rural areas of Rhode Island is Little Compton and Little Compton has one of the lowest property tax rates in the state. Compare the property taxes of Providence to any rural town and you will see a dramatic difference in real estate tax rates with the rural areas paying significantly lower rates.

The reason for this is simple. It does not cost much to educate plants and cows. But each home usually yields an average of two children who must be educated. In addition, open spaces require few other services from the town. Even at reduced property tax rates under the FFOS, landowners are paying a disproportionate amount of taxes compared to the services they receive. In each election year when there is a bond issue on the ballot to purchase development rights and open space, the bond issue is passed by a significant majority of voters and is usually the most popular bond issue. Most Rhode Islanders recognize the value of farmland and open space to increase the quality of life in Rhode Island and to keep property taxes low.

Furthermore, it is not just tax dollars that are used to purchase development rights on property. Most property purchased is a collaborative between the federal and state government and private land trusts and private donations. The property owner is seldom paid what the property is worth, especially when you take future value into consideration. Large landowners, such as famers, regard their property as their 401K plan. As they get older and can’t farm anymore, they can always sell their land to make a living.

When they sell their development rights the future value of the farm is given up. For instance the first farm for which the development rights were purchased is in Warren. The development rights were purchased for well under $1 million. Today that property would be worth over $5 million but it can only be sold as a farm and is therefore worth less than $1 million.

While a million dollars was a lot of money when the land was sold in the ’80’s, it is not that much money today. When the rights are sold, they are sold forever.

Rhode Island Farm Bureau

Bill Stamp, president; Al Bettencourt, executive director

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