Transfer
of Development Rights
These
programs allow landowners to transfer the right to develop one parcel
of land to a different parcel of land. TDR programs can protect
farmland by shifting development from agricultural areas to areas
planned for growth. When the development rights are transferred
from a piece of property, the land is restricted with a permanent
agricultural conservation easement which is purchased from the landowner.
Most TDR transactions are between private landowners and developers.
Local governments approve transactions and monitor easements.
TDR programs offer a potential solution to some of the problems communities
face when the create agriculture zoning and other regulations, which
can reduce equity.
When protective zoning is combined with a TDR program, urbanization
is prevented, fair market value of farmland is lowered, but the equity
is returned to the landowner by the selling of their development rights.