- May 1998 -
J. Dixon Esseks
Steven E. Kraft
Lettie M. McSpadden
with assistance from
Division of Public Administration
Northern Illinois University
Department of Agribusiness Economics
Southern Illinois University
Department of Political Science
Northern Illinois University
Vicki C. Clarke, Edward J. Furlong,
Keith A. Schildt, Harvey E. Schmidt, Brent B. Soderborg,
Kimberly L. Sullivan and Anita M. Zurbrugg
Department of Political Science
Northern Illinois University
| Views expressed are those
of the author(s) and not necessarily those of American Farmland Trust. |
CAE/WP 98-3 |
Acknowledgments The research team at Northern Illinois University and Southern Illinois University wishes to thank the following for providing the financial resources that made the survey possible: the Surdna Foundation, Inc.; the Turner Foundation, Inc.; the Robert W. Woodruff Foundation, Inc.; the Henry M. Jackson Foundation; the McKnight Foundation; the U.S. Department of Agriculture's Natural Resources Conservation Service; and members of American Farmland Trust.
Also, we are very grateful to William McCready, director, Janet McConeghy, associate director, Robin Bebel, operations manager and their colleagues at the Public Opinion Laboratory of Northern Illinois University for conducting the interview phase of the study. Their interviewers showed great professionalism in carrying out the interviews.
Charles Trott, director of the Center for Governmental Studies at Northern Illinois University, and his colleagues (especially Pat Barger, Thelma Hiland, Sandy Petit, Rima Roy and Ruth Anne Tobias) provided varied forms of professional assistance to this research project.
Edward Thompson, Jr., senior vice president for public policy, American Farmland Trust, gave indispensable assistance in developing the survey's questionnaire and in interpreting the findings. We are grateful also to Ann Sorensen, director of the Center for Agriculture in the Environment, and her colleagues, Teresa Bullock and Denyse Sturges, for editing and producing the report in hard-copy and Internet forms.
The Survey's Objectives
As a contribution to the national debate about property rights and the
appropriateness of land use regulations, American Farmland Trust sponsored a
national level survey of farmland and ranch land owners. In the summer and
fall of 1997, the Public Opinion Laboratory of Northern Illinois University
surveyed random samples of owners of agricultural land in six regions of the
country: the West, Southern Plains, Northern Plains, Midwest, Southeast and
Northeast. Opinions were obtained from a total of 1,729 respondents owning
or, in a few cases, managing agricultural land in 162 randomly selected
counties spread over 42 states.
The survey had four main objectives to learn from owners:
National Sample
The names of the surveyed owners were randomly chosen from plat books and
real estate assessment files for 162 randomly selected counties. Each
county's chance of being included in the sample was proportionate to its
share of the total number of farms enumerated by the 1992 Census of
Agriculture for its region. The numbers of completed surveys neared or
exceeded the target of 300 per region, except in one case (216 in the
Southeast).
Reported Property Devaluations Attributed to Land use Regulations
The surveyed landowners were asked if agricultural land they owned had been
reduced
in value because of any one of five kinds of government regulations. For
each kind there was a separate question, although all had the common
beginning, "Has any of the farmland or ranch land you ever owned been
reduced in market value because of government regulations affecting . . .
["wetlands," "highly erodible land," "endangered species," "because of
government zoning regulations," and "reduced in market value by some other
kind of government regulations]? "Market value" was defined as "the price
the land's owner is likely to receive if the land were sold."
In both the weighted national sample and across the six regional samples, majorities of the respondents did not report any loss in market value because of government regulations. At the national level, the majority percentage was 71.4 percent, while in the regions it ranged from a low of 53.2 percent in the West to 78.5 percent in the Southern Plains. If we exclude those cases where the surveyed owners said the losses were "small" in size, the percentages are 80.4 percent at the national level and from 64.3 percent to 86.6 percent at the regional. That exclusion leaves 19.7 percent in the national sample and from 13.5 percent to 35.7 percent in regions with at least one kind of regulatory devaluation that the owners perceived to be "moderate" or "large" in size.
Owners' Preferences for Guidelines to Shape Compensation Decisions
The surveyed owners were asked their opinions about seven separate guidelines:
In the weighted national sample, only 30.7 percent approved of the guideline of limiting compensation to the severely burdened; and just 23.1 percent would deny compensation in the regulatory scenario with a public health purpose. By contrast, 75 percent would withhold compensation to persons who knew about the regulatory limitations on the land before they bought the property, and 63.5 percent would relate payments to how hard the land user tried to comply with regulations. Two-thirds of the weighted national sample rejected the principle of automatic compensation (when a specified reduction in market value is reached). Those respondents preferred basing compensation decisions on "other considerations," including the guidelines of relating compensation to the extent of compliance and denying compensation if the owner knew about the regulatory limitations before buying the property.
Large majorities also appeared to accept that compensation should be reduced by some factor that takes into account prior or current government payments (or "givings") that enhanced the land's value (e.g., subsidized irrigation water, production flexibility contracts and road improvements). Three-quarters of the surveyed owners opted against full compensation for at least two of the three "givings" scenarios we presented.
Finally, 60.5 percent endorsed the principle that "the burden of protecting the environment should be shared in the sense of the public paying partial compensation and the owners bearing the remaining losses in property value." The questionnaire presented this option as one where the burden would be shared because both the public and the owners reap benefits from protection of the environment.
Landowners' Opinions about the Appropriateness of Regulations
Another route to regulatory relief besides compensation is to substitute
alternative means to deal with the same kinds of land use conflicts.
Therefore, the survey presented five separate conflict situations; and
for each of the five there were offered two competing approaches in addition
to regulation. One non-regulatory approach was where private parties settle
the conflict through the courts or private negotiations. The other
competitor was government-provided financial incentives designed to
induce land users to desist from, or moderate, their problem-causing
behavior. The conflict situations were defined by five kinds of
complaints: (1) about agricultural odors, chemicals and dust, with the
complainants being nonfarm residents living near the farm operations;
(2) about livestock manure that might pollute streams, rivers or
groundwater; (3) about the possibility of increased flood hazards
downstream when wetlands that used to store storm water are filled
in; (4) about farming practices that might threaten the lives of endangered
species; and (5) about logging operations that might cause soil erosion
resulting in pollution of nearby bodies of water.
For three of these five conflict situations, majorities of the weighted national sample supported the given regulatory approaches to dealing with the conflicts. Respondents favoring regulation comprised majorities in all six regions regarding the zoning and manure-disposal conflicts and in four of the six regions regarding the logging scenario. They accepted: (1) zoning to limit nonfarm residences near farming operations; (2) requiring adequate livestock manure disposal practices to prevent contamination of drinking water; and (3) requiring soil conservation practices to avoid pollution of recreational water by logging operations. Even among the surveyed people who may feel greater vulnerability to the effects of the particular regulations - including current farm operators, respondents with relatively large revenues from farming, with land subject to zoning, and with livestock or logging operations on their land - more than 50 percent supported regulations for those three scenarios.
The surveyed owners who reported losing market value in the past because of regulations tended to be less supportive of regulation for these three situations. But even among the respondents reporting such property devaluations, majorities were in favor except for the small group listing losses due to endangered species regulations. In other word, these three regulatory scenarios were broadly acceptable.
Favored by about 40 percent in the weighted national sample was regulating to retain wetlands, but only about one in six respondents (15.8 percent) supported regulations to protect endangered species. Therefore, opinions varied greatly by the type of conflict situation and perhaps also by whether the regulated land users would be eligible for cost-sharing. However, the most popular regulatory scenario, regarding zoning to prevent complaints from nonfarm neighbors, had no cost-sharing component.
Survey's Objectives and Design
The Survey's Objectives
As a contribution to the national debate about property rights and the
appropriateness of land use regulations, American Farmland Trust sponsored
a national level survey of farmland and ranch land owners. In the summer
and fall of 1997, the Public Opinion Laboratory of Northern Illinois
University surveyed random samples of owners of agricultural land in six
regions of the country: the West, Southern Plains, Northern Plains, Midwest,
Southeast and Northeast. Opinions were obtained from a total of 1,729
respondents owning or, in a few cases, managing agricultural land in 162
randomly selected counties spread over 42 states (see Table 1 and Figure 1).
The survey had four main objectives to learn from owners:
The common, underlying purpose of pursuing these four objectives is to contribute to the policy debate within the country about the appropriate role of government in achieving public environmental goals on private land. One component of that debate is the subject of this report's Chapter Two: the extent to which land use regulations have imposed costs on agricultural land owners. That chapter reports the percentages of respondents who believe that government regulations had reduced the market value of any land they ever owned. The findings are broken down by region of the country, type of regulatory issue (wetlands, highly erodible land, endangered species, zoning and "other"), and whether the respondent believed the reduction in value was "small," "moderate" or "large" in size. This part of the survey's findings, as well as others, deals with perceptions. What one person regards as a "large" loss may seem "small" to others. However, the perceived seriousness of losses is what tends to motivate letters or phone calls to legislators, to influence policy-makers' responses to citizen input, and to shape other aspects of policy deliberations.
A second focus of public debate is the subject of Chapter Three: the factors to consider in deciding whether to compensate owners who can demonstrate loss in property value because of regulations. A third focus, the subject of Chapter Four is in what circumstances may regulations be preferable to other approaches to solving land use conflicts. The survey questionnaire described five rather common conflict situations involving farmland and ranch land and asked the responding owners to choose among three methods for resolving or preventing each type: having the private parties settle in court, using government funds as incentives to avoid the problem (e.g., "pay livestock operators who volunteer to apply recommended practices that prevent water pollution"), or use regulations to deter the problem behavior.
|
Counties from which random samples of owners of agricultural land were selected - by region |
||
|
WEST Arizona Pima
California
Idaho
New Mexico
Oregon
Utah
Washington
MIDWEST
Indiana
Iowa
Michigan
Minnesota
Missouri
Ohio
Wisconsin |
SOUTHERN PLAINS Arkansas Izard White
Louisiana
Oklahoma
Texas
SOUTHEAST
Georgia
Kentucky
Mississippi
North Carolina
South Carolina
Tennessee
Virginia |
NORTHERN PLAINS Colorado Delta Logan Otero Routt
Kansas
Montana
Nebraska
North Dakota
South Dakota
NORTHEAST
Maryland
Massachusetts
New Hampshire
New Jersey
New York
Pennsylvania
West Virginia
Vermont |
Drawing the Sample and Pre-testing the Questionnaire
Through this survey, we (the research team at Northern Illinois University
and Southern Illinois University) aimed to learn the opinions of a class of
people who should be strongly interested in, and may be importantly affected
by, public debate about regulations of agricultural land - the land owners.
Other studies have focused on agricultural land regulations but drew their
samples from groups, like registered voters, many of whom have no direct
financial stake in farmland or ranch land.1
To obtain a representative sample of agricultural landowners, we needed a
national enumeration of farms. The best available source of this kind was
the most recent national Census of Agriculture, that one conducted
in 1992.2 We drew the sample in three stages:
3
Published by a variety of
local and regional commercial companies, plat books normally provide maps
with the boundaries of parcels, the acreage per parcel, and the owner's
name. While not including maps, assessment files tended to be more useful
to us because they included addresses and frequently indicated whether land
was used for agricultural purposes. However, we expected that hiring
someone to visit the assessment office and draw the 20 names at random
would likely be too costly if done in all counties. Therefore, wherever
possible we relied on commercially available plat books. Another advantage
of this source of names was that we had better control over the quality of
sampling; the source used for drawing the sample was in our
own hands.
We found usable plat books for 47.5 percent of the 162 counties that
ultimately provided respondents for our sample. As Table 1 indicates,
we achieved our targets of 30 counties in the Midwest and the Northern
Plains, 26 to 28 counties for the Northeast, Southern Plains and West,
but 23 in the Southeast. In this last region, plat books were more scarce
and we had greater difficulty lining up help with assessment files.
Nevertheless, with around 300 completions in five regions, as well as
216 in the sixth, we can make useful comparisons across and within regions.
With 1,729 total completions, the margin of error due to sampling for a
national
level response percentage (e.g., 50 percent of the national sample
replied "yes" to a survey question) is estimated to be plus or minus
3.3 percentage points.4
Much more problematic to estimate is the error due to nonresponse. Such estimates require assumptions about how the nonrespondents would have answered if they had somehow been interviewed. In Appendix Two to this report, we use conservative assumptions to estimate adjustments in the survey's major findings that take into account nonresponse.
In early June of 1997 the questionnaire was pre-tested twice on a total of 15 farmland owners who were randomly selected from the 162 counties on our list. As the pre-test participants went through the draft questionnaire, they were asked to evaluate the questions for clarity and answerability (e.g., ones they felt comfortable answering). These surveyed owners were paid $20 for their time. The pre-tests resulted in dropping some questions and rewording many. Then in mid-June the interviewing with the revised questionnaire began and extended through December 1997.
Response Rates
Along with other researchers, we calculate a survey's response rate as
the ratio of completed interviews or questionnaires to the total persons
who were eligible to be surveyed.5
The closer that ratio is to 1.00 (or
100 percent), the more accurately the survey's findings can be generalized
to the entire population from which the samples were drawn. Ninety-one
percent of the total of 1,729 completions came from telephone interviews.
Those interviews averaged 21.5 minutes. The other 9 percent of completions
came from mailed-back questionnaires.6
We sent questionnaires to sampled
owners who were hard of hearing or otherwise could not be interviewed over
the phone. Also, mailed questionnaires were the cases for which we had
addresses but no telephone numbers.
The best response rate occurred in the Northeast, where the 293 completions
represented 71.1 percent of the total eligible cases, which is a
comparatively high rate of response (Table 2).7
The rate calculated
from the 314 completions in the West was almost as good, 68.3 percent, as
was the percentage for the Northern Plains, 67 percent. The rates for the
other three regions ranged from 51 percent to 61 percent.
A major obstacle to higher rates was the absence of owners' addresses. With them in hand, we could hope to find telephone numbers or at least to send out mailed questionnaires. Internet search services and CD-ROM electronic telephone books tend to yield good results if one can type in names and full addresses. However, most of the plat books we used lacked the addresses of the listed owners. We chose owners at
| Percentages of sampled persons who completed interviews, refused to participate, and for whom no phone or mail contact was possible - by region | ||||||
| West | Southern Plains |
Northern Plains |
Midwest | Southeast | Northeast | |
|---|---|---|---|---|---|---|
| Completions | 68.3 | 51.0 | 67.0 | 57.6 | 61.0 | 71.1 |
| Refusals | 4.8 | 8.2 | 6.8 | 14.3 | 13.3 | 8.7 |
| No contacts* | 26.9 | 40.8 | 26.2 | 28.1 | 25.7 | 20.2 |
| Total Percentage | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 |
| Total Cases | 460 | 582 | 457 | 526 | 354 | 412 |
random from the indexes of names typically found at the backs of the books. Associated with each name in those indexes was the map page on which that person's parcel(s) appeared. If one of the tentatively selected owner's parcels (or the only listed parcel) was at least 20 acres in size, we included that owner in our sample. Whether using an Internet search service or an electronic phone book, we entered the owner's name and the state; and if the name on the screen was associated with a town in that county, it was likely that we had identified the owner. But in 62 cases in the Northeast (the region with the best response rate) to 212 in the Southern Plains (the worst), this search procedure yielded no address in the county or nearby. Therefore, our sample of completed cases probably under represents out-of-county and out-of-state owners.
We adjust for this likely bias in the following way. First, we determine if the responses from those who do not live near their farmland differ from those who do. If there are statistically significant differences, we warn the reader that, if we had somehow interviewed all sampled persons eligible for the survey, the distribution of opinions would probably be shifted in the direction of the modal (or most frequently given) opinion of the out-of-county respondents.
The Weighted National Sample
In chapters two through four, we report findings at both the regional
and national levels. The national level sample derives from the regional
samples except that, rather than simply summing the number of respondents
per region who gave a particular response, we attached two kinds of weights
to their answers. Since we had approximately the same number of respondents
per region, around 300 (except in the Southeast), not assigning different
weights would have over-represented regions like the Northeast that account
for relatively small proportions of farms nationally. The converse would
be true for regions like the Midwest that contain comparatively large
percentages of the nation's farms. Therefore, we weighted responses by
their region's share of total farms as enumerated in the most recent
national Census of Agriculture. For example, since the Midwest accounted
for 31.5 percent of the 1992 total, its respondents in our survey were
weighted by a factor of .315. Similarly, the Southeast with 20.5 percent of
the 1992 total received a weight of .205. The respondents from the other
four regions also had weights equaling their shares: West (.109), Southern
Plains (.168), Northern Plains (.127) and Northeast (.075). Therefore, if
100 respondents from the Midwest supported or opposed a particular guideline
for compensation, the number of such responses in the national total from
that region became 31.5 in the first stage of weighting. And if 100 from
the Northeast gave the same answer, that region's contribution to the
national total was 7.5.
The second stage of weighting adjusted for differences in the sizes of the
regional samples. Five of these six samples were very close to or just
above our target of 300 completions per region. Except for the Southeast's
sum of 216 completions, the others varied between 293 and 314. To make the
Southeast's contribution to national level percentage estimates carry its
appropriate weight, we multiplied its frequencies by 1.39. That is, we
increased the weight of its responses to take in account the shortfall in
completions (216 rather than 300).8
The other five regions' totals were
also adjusted to reflect the differences (slight) between their actual
totals and 300. The two types of weights together yielded a global total of
300 cases, which represented the two adjustments necessary before we could
present them as useful for estimating national percentages on the various
informational and opinion questions we asked: adjustments both for the
relative importance of their region and for closeness to the target number
of completions per region. To remind the readers that the national total
resulted from weighting the answers of 1,729 persons, we report both totals,
300 and 1,729, at the bottom of the column labeled "National" in Table 3
(Chapter Two) and others like it.
The table in Appendix One to this report contains a profile of the 1,729 respondents, broken down by region and various traits that were hypothesized to be associated with their opinions about land use regulations and compensation for the effects of regulation (such as their gross revenues from their agricultural land, whether any of their agricultural land was subject to zoning, and if they believed that any of their land had lost value because of government regulations).
Understandability of Questions
The full texts of the questions asked about compensation guidelines and
the appropriate role for regulations, the subjects of chapters three and
four, are reproduced in those chapters. The texts tend to be long because
the issues being addressed are not simple. Would the pattern of responses
have been different if the same questions had been asked in a mailed
questionnaire, with the respondents able to read questions at their own
pace, perhaps more than once, before answering? We do not think so. In
the first place, the telephone interviewers were trained to re-read
questions whenever respondents requested or seemed to need it. More
importantly, it happened that 149 of our respondents were surveyed by
mailed questionnaires. They were persons for whom we had addresses but no
working phone numbers or who preferred not to participate by telephone
(e.g., some because they had hearing problems). For the 14 policy
questions on which we focus in chapters three and four, the differences
between the respondents surveyed by mail and by telephone vary within the
narrow range of 0.4 to 6.5 percentage points, except for one question. For
example, while 30.7 percent of the 1,580 respondents interviewed by
telephone said that compensation should be limited to the owners severely
burdened by a regulation, the corresponding percentage from the 149 persons
who filled out questionnaires was 33.6. With that one exception (a
disparity of 16.9 points),9
we could not find sizable differences due to the
survey medium (e.g., telephone interviews versus mailed questionnaires).
Reported Cases of Property Devaluations
Attributed to Government Regulations
Introduction
One contribution we hoped to make to the national debate about land use
regulations was to measure the extent to which agricultural landowners
believed that regulations had reduced the market value of their land.
Although in some cases what they believed to be the effect of regulations
might have resulted from other causes, we were nevertheless interested in
their perceptions of effects. Those perceptions could significantly shape
the owners' preferences for public policy options. In our discussions in
chapters three and four about owners' policy preferences, we see that
surveyed owners who believed that they had lost property value because of
regulations did assess differently some of the policy options presented in
the survey. Moreover, these are the people who, at least in their own
minds, are bearing costs which in many cases are the costs of protecting the
environment, (e.g., preserving wetlands, using farming practices that
minimize soil loss or protect wildlife habitat, and foregoing residential or
commercial developments on prime or unique farmland).
The advantage of a large survey like ours is that owners' perceptions could be gathered systematically. Rather than relatively few, perhaps unrepresentative persons testifying at legislative hearings or expressing their opinions on diverse subjects via the printed or electronic media, our survey permitted over 1,700 owners of agricultural land to respond to a common set of questions. Included were questions that permit us determine:
Choice and Design of the Questions about Property Devaluations
We asked the surveyed owners about five kinds of regulatory devaluations.
For each kind there was a separate question, although all had the common
beginning, "Has any of the farmland or ranch land you ever owned been
reduced in market value because of government regulations affecting . . .
["wetlands," "highly erodible land," "endangered species," "because of
government zoning regulations," and "reduced in market value by some other
kind of government regulations]? "Market value" was defined as "the price
the land's owner is likely to receive if the land were sold."
Two reasons shaped our choice of the phrase "you ever owned" rather than limiting the cases of regulatory devaluations to land the respondents currently owned or to some time period like the previous five years. In the first place, we suspected that in many cases memory recall would not be accurate enough to make such temporal distinctions. Secondly, we were interested in determining the proportion of total respondents who believed that they had suffered financially from some land use regulation. The recentness of the loss was less important than the total proportion of the sample with some form of loss.
Also needed was a measure of the perceived magnitude of the loss. Rather than asking for quantitative estimates like "zero to 25 percent," "26 percent to 50 percent,"etc., we assumed that it was more important for policy-making to learn how the landowners evaluated the losses. Therefore, if a respondent reported any reduction in market value, we asked the follow-up question: "Was that reduction small in size, moderate or large?"
Wetlands Regulations
The U.S. Environmental Protection Agency, as well as other federal agencies
(including USDA), has defined wetlands as "areas that are inundated or
saturated by surface or ground water at a frequency and duration sufficient
to support . . . a prevalence of vegetation typically adapted for life in
saturated soil conditions."10
Owners of agricultural land may be subject to
two types of federal regulations that can negatively affect market value.
First, under Section 404 of the Clean Water Act (initially enacted in 1972),
the owners or their agents may not fill in wetlands, for purposes of farming
the land or building on it except if specified conditions are met. Wetland
areas of under one acre have been exempt from these regulations. For larger
parcels, but with various exceptions, a permit is required before owners may
discharge materials into a wetlands (e.g., fill them in).
When agricultural land owners are blocked from converting their land to a more productive use, the land's market value cannot increase to reflect that more profitable use. Rather than only a prospective loss, there may be an out-of-pocket loss if owners bought the land on the assumption that a better use was possible and then found that their investment expectations could not be realized.
Wetlands conversions may be prevented also under the "swampbuster"
provisions of the 1985 and 1990 farm bills. A USDA brochure about these
provisions warned producers, "If you drain, dredge, fill, level, or
otherwise alter wetlands to make possible the production of an agricultural
commodity . . . , you will lose your eligibility for most U.S. Department of
Agriculture program benefits."11
Among such benefits have been income
support payments (currently provided under "production flexibility
contracts"), Farmers Home Administration loans and annual rents under the
Conservation Reserve Program. Swampbuster and a companion program called
"conservation compliance" that is targeted at highly erodible land are
quasi-regulatory in nature because not all owners of wetlands or HEL are
affected by the legislative provisions. Only owners who wish to be eligible
for USDA benefits must comply. Those who opt out of the benefit programs
cease to be subject to swampbuster or conservation compliance. Agricultural
land may also be subject to various state government regulations or
quasi-regulations.
Incidence of Devaluations Attributed to Wetlands Regulations or
Quasi-Regulations
In the weighted national sample, a very large majority, 86.1 percent of the
respondents, answered "no" to the question, "Has any of the farmland, ranch
land or forest land you ever owned been reduced in market value because of
government regulations affecting wetlands?" (Table 3). Across the six
regional samples, the corresponding percentages ranged from 78.2 percent in
the Northeast region to 90.6 percent in the Southern Plains (Table 3). Not
quite 12 percent of the weighted national sample reported reductions in
agricultural land's market value due to wetlands regulations. In the six
regional samples, the corresponding percentagesranged from 9.1 percent in
the Southern Plains to 17.7 percent in the Northeast. The differences
between the Northeast's percentage and the others are statistically
significant (that is, greater than sampling variability alone can explain)
with the exception of the West's value and the Southeast's. Four of the
six regions had measures above 10 percent (e.g., 11.6 percent to 17.7
percent). This kind of regulation was the only one among the five types
(about which we asked) with as many as four regions above the 10 percent
mark. Among the four specific types of devaluations (excepting the "other"
residual category), the wetlands cases tied with the zoning cases in the
largest number of regions (three) where at least a third of the respondents
experiencing losses perceived them to be "large in size" rather than
"small" or "moderate." In the national sample and across all six regions,
the most common response for the extent of wetlands devaluations was
"moderate" (Table 3).
|
Percentages of landowners who reported losses in their land's "market value"* attributed to wetlands regulations - by region |
||||||||
| Perception that Market Value was Reduced by Government Regulations |
West | Southern Plains |
Northern Plains |
Mid- west |
South- east |
North- east |
National (weighted) |
|
| Percent responding "yes" | 14.0 | 9.1 | 9.5 | 11.6 | 13.0 | 17.7 | 11.9 | |
| Percent responding "no" | 83.8 | 90.6 | 88.2 | 87.1 | 83.8 | 78.2 | 86.1 | |
| Percent "unsure" or "won't say" |
2.3 | 0.3 | 2.3 | 1.3 | 3.2 | 4.1 | 2.0 | |
| Total percent | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | |
| Number of cases | 314 | 297 | 306 | 303 | 216 | 293 | 300/1,729 | |
| Perceived Size of the Loss Among Respondents Who Reported Losses |
||||||||
| Believed that loss was small | 18.2 | 22.2 | 34.5 | 34.3 | 21.4 | 25.0 | 27.7 | |
| Believed that loss was moderate |
38.6 | 37.0 | 55.2 | 37.1 | 39.3 | 51.9 | 41.7 | |
| Believed that loss was large | 34.1 | 33.3 | 10.3 | 28.6 | 35.7 | 21.2 | 27.7 | |
| "Don't know" or "won't say" |
9.1 | 7.4 | 0.0 | 0.0 | 3.6 | 1.9 | 2.8 | |
| Number of cases | 44 | 27 | 29 | 35 | 28 | 52 | 36 | |
Regulations Affecting Highly Erodible Land
The second type of devaluation addressed in the survey concerned
"government regulations affecting highly erodible land." Official soil maps
and/or field inspections by USDA personnel determine if agricultural land
is highly erodible. To retain eligibility for USDA benefits, owners should
ensure that their highly erodible land is farmed using soil conservation
practices that prevent excessive erosion. Some necessary practiceslike
strip cropping or crop rotations may prevent planting parts of fields or
entire parcels to the currently most profitable crop. Other practices like
no-till may reduce yields or are perceived to have that effect. Either way,
prospective buyers may regard land subject to conservation compliance as
less desirable because of the needed practices. In a 1995 national survey
of a random sample of participants in USDA commodity programs, 65 percent of
the respondents said that they currently owned, managed or operated land
with soil conservation plans designed to meet the requirements of
conservation compliance.12
This quasi-regulatory program has been
administered primarily by USDA's Natural Resources Conservation Service.
As with our questions about wetlands regulations, relatively very few of the agricultural land owners whom we surveyed in 1997 reported having ever owned land that lost market value because of HEL regulations. In the weighted national sample the percentage was 12.2 percent, while in the regional samples it varied from 7.9 percent in the Southeast to a high of 20.6 percent in the Northern Plains (Table 4). The differences between that highest regional sample value and the other regions' are all statistically significant.
|
Percentages of landowners who reported losses in their land's "market value"* attributed to highly erodible land regulations - by region |
||||||||
| Perception that Market Value was Reduced by Government Regulations |
West | Southern Plains |
Northern Plains |
Mid- west |
South- east |
North- east |
National (weighted) |
|
| Percent responding "yes" | 8.9 | 9.8 | 20.6 | 14.9 | 7.9 | 8.5 | 12.2 | |
| Percent responding "no" | 87.9 | 88.9 | 77.5 | 81.5 | 89.4 | 91.1 | 85.3 | |
| Percent "unsure" or "won't say" |
3.2 | 1.3 | 2.0 | 3.6 | 2.8 | 0.3 | 2.6 | |
| Total percent | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | |
| Number of cases | 314 | 297 | 306 | 303 | 216 | 293 | 300/1,729 | |
| Perceived Size of the Loss Among Respondents Who Reported Losses |
||||||||
| Believed that loss was small | 32.1 | 41.1 | 47.6 | 44.4 | 35.3 | 32.0 | 41.7 | |
| Believed that loss was moderate |
50.0 | 44.8 | 33.3 | 42.2 | 47.1 | 440 | 41.7 | |
| Believed that loss was large | 17.9 | 6.9 | 15.9 | 11.1 | 17.6 | 16.0 | 13.9 | |
| "Don't know" or "won't say" |
0.0 | 6.9 | 3.2 | 2.2 | 0.0 | 8.0 | 2.7 | |
| Number of cases | 28 | 29 | 63 | 45 | 17 | 25 | 36 | |
Just two regions (Northern Plains and Midwest) had as many as 10 percent of their respondents reporting this type of regulatory loss. In four of the regions the most common answer to the follow-up question about the perceived magnitude of the losses was "moderate," while in the other two (Northern Plains and Midwest), the modal response was "small" (Table 4). In none of the regions did as many as one-fifth of these respondents contend that the devaluations were "large." At the national level, only 13.9 percent of those with losses answered "large" when classifying this type of regulatory losses. Across the five types of losses about which we surveyed, the HEL category had the smallest percentage of cases where the loss was considered "large" (tables 4 through 7).
Endangered Species Regulations
A regulatory (rather than quasi-regulatory) program that may affect the
market value of farm and ranch land derives from the Endangered Species
Act, initially passed in 1973. As implemented, this legislation may inhibit
or prevent agricultural use of land that provides habitat (e.g., nesting
space in fields) for endangered or threatened species. An ESA violation
occurs when the habitat is modified or degraded in ways resulting in
wildlife's death or injury because their "essential behavior patterns,
including breeding, feeding, or sheltering have been impaired."13
For
example, a farmer may be prevented from grazing his cattle on land during
the time that an endangered species of bird uses the field(s) for nesting;
or it may not be permissible to cut timber within a certain radius of trees
used for nests. Land with such constraints is likely to be less attractive
to buyers. The primary implementation agency of ESA regulations for
agricultural land has been the U.S. Fish and Wildlife Service.
In our survey we found that just 2.8 percent of the weighted national sample reported property devaluations because of endangered species regulations (Table 5). In only the West region did as many as 10 percent of the respondents make such a report; that region's percentage was 13.1 percent (Table 5). In the other regions there was no percentage above 2 percent. All the differences between the West's value and those of the other five regions are statistically significant. Among the owners in both the West and in the national sample who reported losses due to ESA, the modal response about the perceived size of these losses was "moderate" (Table 5). The percentages with "large" losses were the same or nearly identical to those in the "small" category. In the remaining five regional samples, the numbers of affected persons (e.g., those reporting losses due to ESA) totaled only three to eight individuals, too few for the distribution of answers to this question to be useful.
|
Percentages of landowners who reported losses in their land's "market value"* attributed to regulations about endangered species - by region |
||||||||
| Perception that Market Value was Reduced by Government Regulations |
West | Southern Plains |
Northern Plains |
Mid- west |
South- east |
North- east |
National (weighted) |
|
| Percent responding "yes" | 13.1 | 2.0 | 1.6 | 1.0 | 7.9 | 1.7 | 2.8 | |
| Percent responding "no" | 84.4 | 97.0 | 97.7 | 98.0 | 89.4 | 98.0 | 96.1 | |
| Percent "unsure" or "won't say" |
2.6 | 1.0 | 0.7 | 1.0 | 2.8 | 0.3 | 1.0 | |
| Total percent | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | |
| Number of cases | 314 | 297 | 306 | 303 | 216 | 293 | 300/1,729 | |
| Perceived Size of the Loss Among Respondents Who Reported Losses |
||||||||
| Believed that loss was small | 24.4 | 33.3 | 20.0 | 33.3 | 25.0 | 40.0 | 25.0 | |
| Believed that loss was moderate |
39.0 | 33.3 | 40.0 | 66.7 | 25.0 | 0.0 | 37.5 | |
| Believed that loss was large | 29.3 | 16.7 | 20.0 | 0.0 | 50.0 | 60.0 | 25.0 | |
| "Don't know" or "won't say" |
7.3 | 16.7 | 20.0 | 0.0 | 0.0 | 0.0 | 12.5 | |
| Number of cases | 41 | 6 | 5 | 3 | 4 | 5 | 8 | |
Zoning Regulations
County level and other local governments have used zoning regulations to
prevent conflicts between farming operations and nearby nonfarm
residences and businesses. Farm odors, dust and the noise of tractors
operating late at night, among other byproducts of agricultural operations,
may elicit complaints from neighboring nonfarmers;14
and the latter may
cause damage to crops, equipment, fences and other farm property when
children or adults trespass onto farm property. A Midwestern study
found that storm water run-off from rural subdivisions could be another
form of "trespassing" that significantly damages crops.15
To prevent
these conflicts, the local zoning ordinance may exclude nonfarm uses
from agriculturally zoned areas; or it may limit them such as by
requiring large minimum lot sizes as a condition for building
permits.16
While many farmers may welcome the protections provided by zoning
(see the discussion in Chapter Four), others may prefer to raise
capital for their operations or otherwise earn money by converting
some of their farmland into building lots.
In the weighted national sample, 88.2 percent said "no" to the question, "Has any of the farmland or ranch land you ever owned been reduced in market value because of government zoning regulations?" A few questions earlier in the survey, "zoning" had been defined as where "land [is] subject to local government regulations about what can be built on it and what uses are legal on the land."
In the weighted national sample, 46.4 percent reported having land currently subject to zoning as thus defined (see data line 4 in Appendix One's table). Nineteen percent of those with land presently zoned and only 9.7 percent of the entire sample said that they had ever lost market value because of zoning (Table 6). Across the regional samples, the corresponding percentages for all surveyed owners varied from 2.3 percent in the Northern Plains to a high of 29 percent in the West (Table 6). The percentage-point difference between the West and the other regions on this measure are statistically significant. The West ranked first in the percentage of affected landowners who stated that the losses due to zoning were "large" (50.5 percent). Across the six regions the modal response varied considerably, with two at the "large" level, two at "moderate," one at "small" and one with responses evenly distributed across all three levels (see the entries for the Southern Plains). In the weighted national sample, both "moderate" and "large" tied for the mode (Table 6).
|
Percentages of landowners who reported losses in their land's "market value"* attributed to government zoning regulations - by region |
||||||||
| Perception that Market Value was Reduced by Government Regulations |
West | Southern Plains |
Northern Plains |
Mid- west |
South- east |
North- east |
National (weighted) |
|
| Percent responding "yes" | 29.0 | 5.1 | 2.3 | 7.9 | 8.3 | 16.4 | 9.7 | |
| Percent responding "no" | 68.5 | 93.9 | 97.1 | 88.8 | 89.8 | 81.9 | 88.2 | |
| Percent "unsure" or "won't say" |
2.6 | 1.0 | 0.7 | 3.3 | 1.8 | 1.7 | 2.1 | |
| Total percent | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | |
| Number of cases | 314 | 297 | 306 | 303 | 216 | 293 | 300/1,729 | |
| Perceived Size of the Loss Among Respondents Who Reported Losses |
||||||||
| Believed that loss was small | 9.9 | 33.3 | 42.9 | 29.2 | 22.2 | 22.9 | 20.7 | |
| Believed that loss was moderate |
35.2 | 33.3 | 28.6 | 25.0 | 50.0 | 50.0 | 37.9 | |
| Believed that loss was large | 50.5 | 33.3 | 28.6 | 41.7 | 27.8 | 27.1 | 37.9 | |
| "Don't know" or "won't say" |
4.4 | 0.0 | 0.0 | 4.2 | 0.0 | 0.0 | 3.4 | |
| Number of cases | 91 | 15 | 7 | 24 | 18 | 48 | 29 | |
"Other" Kinds of Regulations
Just over 7 percent of the weighted national sample reported ever
having owned land that lost value because of some "other kind of
government regulations" (Table 7). Across the six regions that
percentage varied in the narrow range of 5.7 percent (Southern Plains)
to 14 percent (West). Although the difference between the West and
Northeast is not statistically significant, those between the West
and the other four regions are. The West was first in the percentage
of affected owners who perceived their losses to be "large" - 36.4
percent (Table 7). This category of losses had the largest number
of regions, four, in which at least a third of the affected respondents
reported "large" reductions in property values due to the regulations.
|
Percentages of landowners who reported losses in their land's "market value"* attributed to "some other kind of government regulation" - by region |
||||||||
| Perception that Market Value was Reduced by Government Regulations |
West | Southern Plains |
Northern Plains |
Mid- west |
South- east |
North- east |
National (weighted) |
Percent responding "yes" | 14.0 | 5.7 | 6.9 | 5.9 | 6.0 | 11.3 | 7.3 |
|---|---|---|---|---|---|---|---|---|
| Percent responding "no" | 82.2 | 92.9 | 92.2 | 91.4 | 92.6 | 86.0 | 90.6 | |
| Percent "unsure" or "won't say" |
3.8 | 1.3 | 1.0 | 2.6 | 1.4 | 2.7 | 2.1 | |
| Total percent | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | |
| Number of cases | 314 | 297 | 306 | 303 | 216 | 293 | 300/1,729 | |
| Perceived Size of the Loss Among Respondents Who Reported Losses |
||||||||
| Believed that loss was small | 22.7 | 23.5 | 33.3 | 22.2 | 30.8 | 15.2 | 22.7 | |
| Believed that loss was moderate |
34.1 | 41.2 | 28.6 | 50.0 | 30.8 | 51.5 | 40.9 | Believed that loss was large | 36.4 | 35.3 | 33.3 | 27.8 | 38.5 | 30.3 | 31.8 |
| "Don't know" or "won't say" |
6.8 | 0.0 | 4.8 | 0.0 | 0.0 | 3.0 | 4.5 | |
| Number of cases | 44 | 17 | 21 | 18 | 13 | 33 | 22 | |
Summary
In both the weighted national sample and across the six regional
samples, majorities of the respondents reported that none of the
agricultural land they ever owned had lost market value because of
government regulations. At the national level, the majority percentage
was 71.4 percent, while in the regions it ranged from a low of 53.2
percent in the West to 78.5 percent in the Southern Plains (see item 2
of Table 8). If we exclude those cases where the surveyed owners said
the losses were "small" in size, the percentages are 80.4 percent at the
national level and from 64.3 percent to 86.6 percent at the regional
(item 3). That exclusion leaves 19.7 percent in the national sample
and from 13.5 percent to 35.7 percent in regions with at least one
kind of regulation devaluation that was perceived to be "moderate"
or "large" in size (item 4).
Since these summary statistics include "zoning" and "other" kinds of regulations that may not directly relate to environmental objectives, Table 8 also provides the percentages of respondents who reported one or more of the three kinds that are clearly related to the environment: protection of wetlands, highly erodible land and endangered species. At the national level 21.2 percent of the respondents said that agricultural land they owned had lost market value because of one or more of those three types of regulations; and the corresponding regional percentages varied from 17.1 percent in the Southeast to 26.8 percent in the Northern Plains (item 6). If we limit our focus to cases where the losses in those three categories were perceived to be at least "moderate," the measures become 14.3 percent in the weighted national sample and from 10.8 percent to 19.4 percent in the regions (item 7).
Whether the focus is on all kinds of land use regulations or on these
three environmentally-related types, the percentages of owners reporting
greater than "small" losses are not large. Moreover, our particular
sample may overstate some of the percentages. As discussed in Chapter
One, the sample probably under-represents owners who lived out of the
county where they owned land. And according to crosstabulation
analysis, that type of owner in our sample tended to report regulatory
losses less frequently than did the surveyed owners who lived on or
near their agricultural land.17
|
Percentages of landowners who attributed losses in "market value"* to one or more kinds of land use regulation - by region |
||||||||
| Perception that Market Value was Reduced by Government Regulations |
West | Southern Plains |
Northern Plains |
Mid- west |
South- east |
North- east |
National (weighted) |
|
|---|---|---|---|---|---|---|---|---|
| 1. Percent of total respondents reporting at least one type of regulatory devaluation** |
46.8 | 21.5 | 31.0 | 27.1 | 24.1 | 33.1 | 28.6 | |
|
2. Percent of total respondents reporting no reductions in value due to government regulations |
53.2 | 78.5 | 69.0 | 72.9 | 75.9 | 66.9 | 71.4 | |
|
3. Percent who did not report devaluations or whose reported devaluations were "small in size" |
64.3 | 86.6 | 81.4 | 82.8 | 81.5 | 74.4 | 80.4 | |
| 4. Percent reporting one or more kinds of reductions that were at least "moderate " or "large" in size |
35.7 | 13.5 | 18.6 | 17.2 | 18.5 | 25.6 | 19.7 | |
|
5. Percent reporting one of more kinds of reductions that were "large in size" |
21.0 | 5.7 | 5.9 | 6.3 | 7.9 | 10.2 | 8.3 | |
|
6. Percent reporting at least one kind of reduction due to one of three types of environmental regulations*** |
26.1 | 17.2 | 26.8 | 22.1 | 17.1 | 21.5 | 21.2 | |
| 7. Percent reporting at least one kind of such environment reductions that were "moderate" or "large" in size |
19.4 | 10.8 | 15.7 | 14.2 | 13.4 | 17.8 | 14.3 | |
| Total respondents | 314 | 297 | 306 | 303 | 216 | 293 | 300/1,729 | |
Owners' Preferences for Guidelines to Shape Compensation
Introduction
As discussed in Chapter One, an objective of this survey was to learn
the sampled owners' preferences for guidelines to determine whether
compensation is appropriate where regulations cause losses in property
values. The U.S. courts have considered such guidelines under the class
of cases called "regulatory takings." The Fifth Amendment's protection
against taking of property for public purposes without compensation has
been extended to regulations that have the practical effect of severely
limiting or nullifying the private owner's use of the land.18
In March 1995 the U.S. House of Representatives passed a bill that
would provide for compensation for various federal regulations when
"the affected portion of the property is reduced in value by 20%
or more, with exemptions for nuisances, agency actions to protect
health or safety," and certain other conditions.19
A companion bill
introduced in the Senate (but not passed) set the trigger at 33
percent. Given the likelihood that more such legislation will be
debated at the national and state levels, we devoted a portion of our
survey questions to guidelines that may be considered in deciding
whether and how much compensation landowners should receive if
government regulations decrease the value of their property.
Compensation Guidelines Offered in the Survey
We asked the surveyed agricultural land owners their opinions about
seven separate guidelines in the following order:
This last guideline points to a useful way of framing the entire
issue of "just" compensation. As suggested by Edward Thompson, Jr.,
the underlying concern is who should be paying for the costs of
regulations that aim to protect the environment: only the persons
whose behavior is the subject of the regulations (e.g., farmland owners),
the beneficiaries of regulations, or some combination
of the two?20
If
there are no costs to any of the subjects, it is likely that either the
rules were not needed, or they are not being enforced. In the cases of
environmental regulations affecting agricultural landowners, the
beneficiaries may include persons downstream of livestock operations
who depend on intervening rivers or lakes for drinking water and, also,
owners who may experience higher risks of flooding if wetlands upstream
are filled in and thus no longer can store storm water runoff. Other
beneficiaries may be fishermen or swimmers who use a river or lake
protected against pollution, naturalists and scientists (including
developers of new medicines) who value the survival of endangered
and threatened species, and consumers of grain who benefit from
lower food prices than would prevail if soil erosion were allowed to
decrease farm yields.
Before asking our questions about compensation guidelines, we needed to define "compensation" and to ensure that our respondents understood the definition. The interviewers read the following definition:
"By 'compensation" we mean that the landowners would be paid some or all of the difference between (A) the land's appraised value with the regulation applied to it and (B) the land's appraised value without the regulation applied to it. Is this definition clear to you?"A total of 83.3 percent of our 1,729 respondents replied "yes," while 16.7 percent said that they did not understand. For the 16.7 percent the same definition was read a second time, and 75.6 percent of them indicated that then they found it clear. The remaining 71 respondents who answered "no" or "not sure" were not asked any of the compensation guidelines questions. Instead, the interviewer skipped forward to the questions about regulatory devaluations that the respondents may have experienced, as well as about their age, education and other personal background traits.
Severity Guideline
The section of the questionnaire devoted to compensation guidelines
began with a sentence that aimed to provide a practical setting for
the questions to follow. If there were to be both significant
enforcement efforts and compensation for some of their effects,
there must be limits as to who is compensated. Otherwise regulatory
agencies would run out of compensation funding, and genuine enforcement
would stop. Therefore, we began with the introductory sentence, "Since
compensation must come from taxpayers, and there won't be enough money to
compensate everyone, we need your opinions about guidelines as to who
should be compensated." We followed with seven kinds of guidelines.
The first, dealing with the severity of regulations' financial burdens, was
suggested by the U.S. Supreme Court's ruling in Lucas v. South Carolina
Coastal Council (1992) that compensation may be justified if theowner is
deprived of "all economically viable" use of his land.21
Our question read:
"Here's one possible guideline: Some people believe that money for compensation will be so limited that what's available should go only to the persons who are severely burdened by a regulation, such as when a regulation takes away almost all the land's existing appraised value. Do you favor; 1. Limiting compensation to the severely burdened persons? 2. Or should compensation be open to other landowners as well?"In the "weighted national" sample, 30.7 percent supported the severity guideline as stated in our survey question (Table 9). Across the six regions, 24.5 percent (in the West) to 40.6 percent (in the Northeast) favored limiting compensation in this way (Table 9). The respondents who preferred to open compensation to others in addition to the severely burdened comprised majorities of 60.3 percent at the national level and from 54.6 percent (Northeast) to 67.8 percent (West) in the regions.
22
Who supported the severity guideline? As discussed in Chapter One, a major
purpose of our survey was to determine whether support for the candidate
compensation guidelines and other policy positions varied by region, the
owners' financial stake in the land and other traits of the respondents.
In this chapter and Chapter Four, we use crosstabulation analysis to
identify variations that are statistically significant, that is, greater
than sampling error alone could explain.23
Support was relatively higher among respondents in the Northeast, among non-operator owners, among respondents with relatively low revenues from agriculture and among respondents who believed that none of their land had ever lost value because of some government regulation. In five of the six regions, the percentage of surveyed owners favoring the severity guideline varied within only 7.5 percentage points - from 24.5 percent in the West to 32 percent in the Northern Plains (Table 9). The Northeast stands apart with its 40.6 percent level of support. In the weighted national sample, two-thirds of the respondents were currently farm or ranch operators (see item 13 in Appendix One's table). The approximate one-third who were not farmers or ranchers were more likely to support the severity guideline (40 percent) compared to operators (31 percent). The 1997 median annual gross income from agriculture for our national sample was in the range of $10,000 to $24,999 (item 22 in Appendix One's table). Respondents below that median were slightly more likely to favor this guideline (37 percent versus 32 percent among surveyed owners at or above the median category). The difference was greater when we compared surveyed owners with relatively large stakes in their agricultural land, the approximately one-quarter of our sample who received at least $100,000 in gross revenues, to those respondents whose 1997 revenues were less. In this comparison, 27 percent in the $100,000-plus group supported the severity guideline as opposed to 36 percent among those in the less-than-$100,000 group.
Also less likely to favor the severity guideline were respondents who believed that government regulations had diminished the value of some of their land in the past. For example, while 36 percent of the surveyed owners who reported no losses due to zoning endorsed the severity guideline, 29 percent approved of it among the respondents who believed they had experienced devaluations because of zoning. Among the relatively few respondents who attributed devaluations to Endangered Species Act regulations, only 22 percent approved of the severity guideline compared to 34 percent among the respondents with no such losses to report.
| Farmland and ranch land owners'
opinions as to who should be eligible for compensation: Limit
it to those who are "severely burdened" or open it to others as well - percentages by response category and region |
||||||||
| Response Category | West | Southern Plains | Northern Plains | Midwest
| South- | east North- | east National | (weighted) | |
|---|---|---|---|---|---|---|---|---|
| Limit to severely burdened |
24.5 | 31.3 | 32.0 | 32.0 | 26.9 | 40.6 | 30.7 | |
| Open to others as well | 67.8 | 61.6 | 60.1 | 58.1 | 60.6 | 54.6 | 60.3 | |
| "Don't know" or "won't say" |
4.7 | 2.0 | 3.6 | 4.3 | 6.0 | 3.7 | 4.2 | |
| Not asked | 2.9 | 5.1 | 4.2 | 5.6 | 6.5 | 1.0 | 4.9 | |
| Total percent | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | |
| Total respondents | 314 | 297 | 306 | 303 | 216 | 293 | 300/1,729 | |
Persons living at least one month of the year on their land or within 10 miles were seven percentage points less likely to accept the severity guideline compared to respondents whom we might label as "absentee owners;" the percentages were 33 versus 41. As discussed in Chapter One, we believe that the final regional samples under-represent owners who live out of county. Therefore, if the sample had included more such persons, the support level for the severity guideline would likely have been higher.
Prior-to-Purchase Knowledge of Land being Subject to Regulation
The second guideline presented to the surveyed agricultural land owners
dealt with whether the regulated persons had prior knowledge of a
regulation's limitations on how the land could be used. If they did not
have such knowledge before buying the land, perhaps because the regulations
were imposed after the purchase, their investment expectations could be
frustrated. Conversely, if they knew ahead of time, there would be the risk
that their efforts to achieve a waiver would not be successful. To learn
the survey owners' opinions about a prior-knowledge guideline, we chose a
regulatory scenario that we believed would be realistic to ourrespondents.
The survey's pretests indicated that it (and the others used later in the
survey) were credible. The question read:
"Here's another possible guideline for compensation. Some people believe that compensation is unnecessary when the owner knew about the regulation before he bought the land and purchased it anyway. Let's say that someone buys 40 acres with a wetland on it and knows about the regulations against draining it for farming purposes. However, he would like to be compensated for his inability to increase the land's value through draining the wetland. Should this owner be eligible for compensation? 1. Yes. 2. No 3. Maybe."In the weighted national sample (see Table 10), a 75 percent majority answered, "No compensation," implicitly endorsing the guideline that prior knowledge of the regulatory limitations on the land invalidates claims for compensation. Across the six regions, majorities of 66.7 percent (in the Southeast) to 80.2 percent (Midwest) answered, "No" (Table 10). Only 10.6 percent to 18.5 percent chose "yes." The underlying attitude may be that government (e.g., taxpayers) should not be expected to compensate someone for "his inability to increase the land's value" through obtaining a waiver on a regulation about which he knew before buying the land.
Evidence of the broad acceptability of this guideline is that we could find few significant differences between subgroups of respondents. Current farm operators endorsed this guideline in almost the same proportion as did non-operators in our sample. The difference between respondents living on or near their land versus those who resided more than 10 miles away was not statistically significant; nor was the difference between surveyed owners whose gross revenues from agriculture were below the median versus those at or above it (or between the respondents receiving at least $100,000 in revenues compared to those with less than that level of revenues). There were significant differences between the region with the highest level of support, the Midwest's with 80.2 percent, and the regions with the two lowest levels - the 66.7 percent in the Southeast and the 72.9 percent in the Northern Plains (Table 10). However, even the lowest of those values, 66.7 percent, amounts to a two-thirds majority in support of denying compensation.
A similar pattern was found when comparing opinions of respondents who
reported having lost market value because of some regulation to those who
experienced no such losses. The former were somewhat less willing to
endorse the guideline of no compensation if the owner knew about the
wetlands regulation before buying the land. Yet, even among those reporting
losses, sizable majorities favored this guideline.24
|
Farmland and ranch land owners' opinions as to who should be eligible for compensation: Should owners who know about a regulation before purchasing the land be eligible - percentages by response category and region |
||||||||
| Response Category |
West | Southern Plains |
Northern Plains |
Midwest | South- east |
North- east |
National (weighted) |
|
| Yes | 16.9 | 14.5 | 17.0 | 10.6 | 18.5 | 16.0 | 14.8 | |
| No | 74.8 | 75.1 | 72.9 | 80.2 | 66.7 | 79.2 | 75.0 | |
| Maybe | 4.1 | 4.7 | 4.9 | 3.0 | 6.0 | 3.8 | 4.3 | |
| "Don't know" or "won't say" |
1.3 | 0.7 | 1.0 | 0.6 | 2.3 | 0.0 | 1.0 | |
| Not asked | 2.9 | 5.1 | 4.2 | 5.6 | 6.5 | 1.0 | 4.9 | |
| Total percent | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | |
| Total respondents |
314 | 297 | 306 | 303 | 216 | 293 | 300/1,729 | |
Public Health Guideline
Our health-protection guideline received much less support. The goal of
protecting citizens against nuisances like odors in the air and toxic
substances in water has long been used to justify zoning ordinances, among
other kinds of regulations.25
Cordes observed that early U.S. Supreme Court
decisions (like Hadacheck v. Sebastian, 1915) "are often interpreted as
establishing that government regulation of nuisance-like activity does not
constitute a taking" (that requires compensation).26
We, therefore, wished
to learn if agricultural land owners accepted a health-protection purpose as
grounds for denying eligibility for compensation in a regulatory scenario
that they would find realistic. Our survey question read:
"Here's a third possible guideline for deciding compensation. Some people believe that compensation is unnecessary when the regulations are designed to prevent harm to people. Let's say that the regulation deals with protecting the purity of river water that's used for a city's or village's water supply. To protect that supply, farmers are required to plant grass on strips of land next to the river rather than plant cash crops on the strips. The grass should catch soil and chemicals that might otherwise wash into the river. Should farmers who can't cash-crop the strips be eligible for compensation? 1. Yes 2. No 3. Maybe."These grassy areas are often called "filter strips" because they are designed to filter pollutants out of the water before it drains into streams, rivers or lakes.
Although this question's multiple-choice responses were worded
essentially the same way as those for the question about the prior-knowledge
guideline, the distribution of answers was almost diametrically opposite.
In the weighted national sample, 61.9 percent believed that, if land lost
market value because of the required filter strips, the farmer should be
eligible for compensation (Table 11). Only 23.1 percent chose the "no"
response option. Across all six regions, support for no compensation varied
in the narrow, low range of 18.1 percent in the Southeast to 28.4 percent
in the Midwest.27
In a follow-up question, we asked the 61.9 percent majority that believed in eligibility for compensation, "Should this regulation's health purpose cause the amount of compensation to be reduced, or should the health purpose make no difference in the amount of compensation." Only 21 percent of them, or 13.6 percent of the entire weighted sample, answered that the health objective should reduce compensation. Overall, then, we had a little more than a third of the national sample (36.7 percent = 23.1 percent plus 13.6 percent) favoring some application of the health-protection guideline.
Who supported this guideline? In the weighted national sample, non-operators were somewhat more supportive than were operators (31 percent versus 22 percent), as were respondents residing 10 miles or more away from their land compared to those closer (24 percent versus 35 percent). Another differentiating variable was the amount of cropland the respondents owned. Those with relatively few acres in crops (e.g., below the median for the sample - 76 acres) were seven percentage points more likely to approve this health-protection guideline (28 percent versus 21 percent), and we found larger differences in the same directions in the Southern Plains and Northern Plains samples (15 and 11 percentage points, respectively). Respondents with relatively less (or no) land in crops may understandably be more willing to deny compensation for regulations affecting cropland. Another significant difference in level of support was between surveyed owners receiving at least $100,000 in gross revenues from their land (17 percent of whom endorsed this guideline) versus those with less than $100,000 (among whom the percentage in support was 28 percent).
|
Farmland and ranch land owners' opinions as to who should be eligible for compensation: Should owners who are required to use filter strips to protect a city's or village's water supply be eligible - percentages by response category and region |
||||||||
| Response Category |
West | Southern Plains |
Northern Plains |
Midwest | South- east |
North- east |
National (weighted) |
|
| Yes | 63.7 | 61.3 | 64.4 | 58.7 | 65.7 | 58.7 | 61.9 | |
| No | 19.4 | 21.9 | 22.2 | 28.4 | 18.1 | 24.6 | 23.1 | |
| Maybe | 10.5 | 10.4 | 6.9 | 6.6 | 7.9 | 11.6 | 8.3 | |
| "Don't know" or "won't say" |
3.5 | 1.3 | 2.3 | 0.7 | 1.8 | 4.1 | 1.8 | |
| Not asked | 2.9 | 5.1 | 4.2 | 5.6 | 6.5 | 1.0 | 4.9 | |
| Total percent | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | |
| Total respondents |
314 | 297 | 306 | 303 | 216 | 293 | 300/1,729 | |
Effort-to-Comply Guideline
Like the second candidate guideline for compensation that we offered to
the surveyed owners (the one about prior knowledge), the fourth attracted
majority support both in the weighted national sample and in all six regions.
Here we tested the guideline of relating compensation to the owner's or
operator's effort to comply with the environmental regulation at issue.
Our survey question read:
"A fourth possible guideline might be to base compensation decisions on the extent to which the landowner tried to comply with the regulation. Let's say the regulation deals with protecting endangered birds, and one farmer tries hard not to disturb the nests of such birds, such as by leaving some of his land unfarmed. Another farmer leaves as much land unfarmed but does not follow other recommended management practices for protecting the birds (like not spraying near the nests). Should both farmers be treated equally regarding compensation, or should the farmer who tried harder be treated better? 1. Treat both farmers equally. 2. Treat the farmer who tried harder better."Almost two-thirds (63.5 percent) of the weighted national sample favored treating better the farmers who tried harder (Table 12). Of course, with very weak or no effort to comply, there might be no loss in market value to compensate. In all six regional samples, sizable majorities favored rewarding effort; they ranged from 58.6 percent in the West to 71.3 percent in the Northeast (Table 12). The Northeast stands out from the other regions in that the differences between its level of support and the corresponding percentages in all five other regions are statistically significant.
At the national level support was somewhat more likely, by seven percentage points, if the respondent was not a current farm operator, but still a large majority (69 percent) of the surveyed farmers or ranchers favored this guideline, as did the current operators in the regional samples.
The same pattern was found for the variable, gross revenues from agriculture While 76 percent of the surveyed owners who were below the median in revenues supported the principle of compensating better the farmers who try harder, the approval level among the owners at or above that median was 69 percent. When we moved the cutting point to $100,000 and above versus below $100,000, there was little change; 74 percentbelow that mark supported the effort-to-comply guideline compared to 67 percent among the respondents at or above $100,000. Similarly, while respondents without any land in crops were eight percentage points more likely to support the reward-effort guideline, compared to their counterparts with cropland, a large majority (70 percent) among the latter still favored it.
|
Farmland and ranch land owners' opinions as to who should be eligible for compensation: Should farmers who make a greater effort to comply with a regulation, such as protecting endangered birds, be eligible for higher compensation than farmers who try less hard to comply - percentages by response category and region |
||||||||
| Response Category |
West | Southern Plains |
Northern Plains |
Midwest | South- east |
North- east |
National (weighted) |
|
|---|---|---|---|---|---|---|---|---|
| Treat both equally |
30.9 | 25.6 | 25.5 | 24.8 | 23.1 | 22.5 | 25.2 | |
| Treat better if try harder |
58.6 | 63.6 | 64.7 | 63.7 | 62.0 | 71.3 | 63.5 | |
| "Don't know" or "won't say" |
7.7 | 5.7 | 5.6 | 5.9 | 8.4 | 5.1 | 6.5 | |
| Not asked | 2.9 | 5.1 | 4.2 | 5.6 | 6.5 | 1.0 | 4.9 | |
| Total percent | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | |
| Total respondents |
314 | 297 | 306 | 303 | 216 | 293 | 300/1,729 | |
_______________
Another differentiating condition was past negative experience with land use regulations. However, even the owners in the national sample who lost market value due to regulations of wetlands, HEL and zoning supported this guideline at a level of at least 66 percent. The exception came from persons reporting ESA losses. Only 46 percent of them at the national level favored this guideline. Where respondents resided had no significant effect. Those living on or near their agricultural land were as supportive as surveyed owners residing greater than 10 miles away. Therefore, we probably need not worry about adjusting the findings to take into account our sample's likely under-representation of absentee landlords (see Chapter One's discussion of this potential bias).
Compensation Automatic after a Specified Percentage of Market
Value is Lost
Given that legislative proposals at both the state and federal levels have
included provisions for automatic compensation after a specified percentage
of market value is lost, we included a question about this fifth kind of
guideline for compensation. Our question read:
"Proposed legislation would have compensation be automatic if a regulation decreased the land's appraised value by a set percentage, like 20%, or higher. For example, if the value decreased by 21%, the owner automatically is paid that full 21% in compensation. If the decrease is 19%, there would be no compensation at all under the proposed or present legislation. An opposing opinion is that compensation should depend on other considerations such as whether the owner bought the land knowing about the regulation, whether the regulation might protect humans from harm, or whether the land user made a genuine effort to comply with the regulation. What do you think? Should: 1. Compensation be automatic after a certain percentage reduction in value is reached? 2. Or should it depend on other considerations?"We selected 20 percent as the "trigger" percentage because it was included in the property rights bill that the House of Representatives passed in March 1995 (H.R. 9). And we purposely made that 20 percent a real dividing line so that right to compensation would plainly hinge on that condition. If 20 percent or more in appraised value were lost, money would be paid, but none if the devaluation fell below that percentage. We considered adding exemptions such as no money, regardless of the percentage loss, if the regulation had a public health purpose. However, earlier survey questions had dealt with such conditions. We wanted owners' opinions about an automatic compensation principle. Moreover, at least some of the compensation legislation being debated contained few significant exceptions. According to Robert Meltz, the bill that passed the Senate Judiciary Committee of the U.S. Congress in 1995 with a trigger of 33 percent exempted "chiefly property uses that are nuisances, the United States having the burden of showing that the proposed activity would constitute a nuisance. . . ."
28
The other exemptions he classified as
"narrow."
|
Farmland and ranch land owners' opinions as to who should be eligible for compensation: If appraised value of the land is reduced, should compensation be automatic after a certain percentage reduction in value is reached, or should it depend on other considerations - percentages by response category and region |
||||||||
| Response Category |
West | Southern Plains |
Northern Plains |
Midwest | South- east |
North- east |
National (weighted) |
Automatic | 21.7 | 23.6 | 25.2 | 20.5 | 20.8 | 16.7 | 21.6 |
|---|---|---|---|---|---|---|---|---|
| Depends | 68.5 | 64.6 | 64.4 | 69.0 | 65.7 | 78.5 | 67.8 | |
| "Don't know" or "won't say" |
7.0 | 6.7 | 6.2 | 4.6 | 6.9 | 3.7 | 5.9 | |
| Not asked | 2.9 | 5.1 | 4.2 | 5.9 | 6.5 | 1.0 | 4.8 | |
| Total percent | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | |
| Total respondents |
314 | 297 | 306 | 303 | 216 | 293 | 300/1,729 | |
________________________
Our version of an automatic compensation guideline attracted only minor support from the surveyed owners. In the weighted national sample, 21.6 percent favored it (Table 13); and across the six regions support varied in the narrow range of 16.7 percent (Northeast) to 25.2 percent (Northern Plains). By contrast, large majorities selected the response option, "depend on other considerations." Making that choice were 67.8 percent at the national level and from 64.4 percent to 78.5 percent in the regions.
What were the "other considerations" that respondents might have been thinking of when they selected this option rather than "compensation [should] be automatic?" Since this question about guidelines came fifth in order, we had the same persons' responses about the four previously discussed guidelines. Table 14 presents the extent to which these respondents had approved any of the other four guidelines. A third of them in the weighted national sample had supported applying a severity-of-burden guideline; for the scenario about converting a wetland, 82.3 percent implicitly endorsed a prior-knowledge guideline; regarding the scenario about strips of land along water courses filtering out pesticides, 27.8 percent approved of denying compensation where the regulation's object was to protect human health; and for the endangered species scenario, 69.7 percent endorsed the guideline of relating compensation to the effort to comply with the regulation.
Table 15 indicates that 95.7 percent of these respondents in the national sample had supported at least one of the four guidelines and 74.2 percent, at least two. Almost 58 percent had approved both the prior-knowledge guideline and the principle of relating compensation to the effort to comply. Nearly 30 percent had endorsed both the prior-knowledge constraint on compensation and the severity-of-burden guidelines. That is, they would both limit compensation to the severely burdened land owners and deny it to owners who wanted to convert a wetland even though they knew of the regulations against converting it prior to buying the land. In other words, the surveyed owners who rejected automatic compensation in favor of "other considerations" probably had one or more of these other, rather specific guidelines in mind.
To put it yet another way, when automatic compensation was offered as a policy option to agricultural landowners after they considered the kinds of other guidelines we provided, a large majority of the surveyed owners rejected the automatic option in favor of "other considerations;" and almost all of that majority probably were thinking of one or more of those other guidelines when they rejected it.
|
Likely extent to which owners supported specified other guidelines for compensation when they endorsed the principle of taking into account "other considerations" rather than making compensation automatic after a particular percentage of appraised value has been lost - percentages by response category and region |
||||||||
| Compensation Guidelines |
West | Southern Plains |
Northern Plains |
Midwest | South- east |
North- east |
National (weighted) |
|
|---|---|---|---|---|---|---|---|---|
| Limit to the severely burdened |
30.7 | 32.8 | 33.0 | 34.4 | 31.7 | 44.8 | 33.9 | |
| No compensation if knew of regulations before buying the land |
80.5 | 81.8 | 80.2 | 86.6 | 77.5 | 83.5 | 82.3 | |
| No compensation if a health purpose |
23.3 | 26.0 | 25.4 | 34.9 | 21.8 | 27.4 | 27.8 | |
| Relate compensa- tion to extent of compliance |
68.8 | 73.4 | 71.6 | 68.4 | 65.5 | 75.7 | 69.7 | |
| Total percent | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | |
| Total respondents* | 215 | 192 | 197 | 209 | 142 | 230 | 203/1,729 | |
_____________________
|
Likely extent to which owners supported combinations of specified guidelines for compensation when they endorsed the principle of taking into account "other considerations" rather than making compensation automatic after a particular percentage of appraised value has been lost - percentages by region |
||||||||
| Compensation Guidelines Approved |
West | Southern Plains |
Northern Plains |
Mid- west |
South- east |
North- east |
National (weighted) |
|
|---|---|---|---|---|---|---|---|---|
| Endorsed at least one of four specific guidelines* |
96.3 | 95.8 | 97.0 | 97.1 | 91.5 | 97.0 | 95.7 | |
| At least two such guidelines |
71.2 | 75.0 | 73.1 | 77.0 | 71.8 | 83.1 | 74.2 | |
|
(1) Denying compen- sation if owner had prior knowledge of regulations and (2) relating compensation to effort |
54.4 | 59.4 | 56.3 | 59.8 | 53.5 | 64.8 | 57.9 | |
| (1) Prior knowledge criterion and (2) limiting compensation to severely burdened |
26.0 | 27.1 | 27.4 | 32.1 | 27.5 | 37.4 | 29.6 | |
| (1) Relating compensa- tion to effort and (2) limiting it to the severely burdened |
24.2 | 29.7 | 24.9 | 25.4 | 19.7 | 34.8 | 25.6 | |
| Total respondents** | 215 | 192 | 197 | 209 | 142 | 230 | 203/1,729 | |
_____________________
Crosstabulation analysis indicates that support for the guideline, "depends on other considerations," was widespread. Across the six regions, the only statistically significant difference is between the highest level of support, 78.5 percent in the Northeast, and each of the other five regions' levels. Among those five, approval varied in the very narrow range of 64.4 percent to 69 percent (Table 13). In the weighted national sample, support for this guideline did not significantly vary by whether or not the respondents were farm operators, whether they lived close or far from their land, or if they had received relatively a lot of revenue from their land (e.g., at or above the median value) versus comparatively little (below the median). There are not significant differences either if we make the comparison at $100,000-plus in gross revenues versus less-than-$100,000. The regional samples also showed no significant variation on these dimensions.
The only kinds of variables showing significant differences in both the national and regional samples dealt with prior negative experiences with regulations and present participation in USDA benefit programs. For example, in the weighted national sample, respondents who reported losing market value because of wetlands regulations were 13 percentage points less likely to want compensation to be guided by "other considerations" rather than be automatic. Still a majority of them, 64 percent, favored "other considerations." Current participants in the CRP also were somewhat less likely to support that guideline, by 71 percent versus 77 percent.
The Public and Owners Share the Cost of Protecting the Environment
Like the depends-on-other-considerations guideline for compensation, the
sixth that we tested in the survey was general in its application. That
is, it was not placed in a specific regulatory scenario except that it
dealt with "protecting the environment." It addresses directly the
question,"Who should pay the costs of
regulation?"
The analyses of previous questions about compensation guidelines indicate that our respondents were divided in their opinions about who should pay. Although a majority believed that the wetlands owner with prior knowledge about the land's limitation should not be compensated for his inability to enhance its value after purchasing it, there was only minority support for limiting compensation to the severely burdened or denying it to owners required to take filter strips out of production to protect drinking water supplies. By inference, it appears that many of our surveyed owners were open to policy options that assigned some (or all) the costs of regulation to the public. The answers to the sixth guideline question confirm this inference. That question read:
"Some people say that, when it comes to protecting the environment, the public through its government should normally pay landowners for any losses in their property's value because of regulations. Another opinion is that, since such regulations are designed to prevent harm to the public, landowners should normally receive no compensation. A third opinion is that normally the burden of protecting the environment should be shared in the sense that government would help landowners meet the cost of complying with environmental regulations. What's your preference? 1. The public pays for any losses in property value? 2. The landowners receive no compensation? 3. The public and the landowners share the burden of protection?"The surveyed owners should have known what was meant by "protecting the environment" since earlier questions in the questionnaire's same section dealt with wetlands, potential pollution of surface water and endangered species.
Predictably very few respondents wanted landowners to go uncompensated. Only 3.3 percent in the weighted national sample selected that response category, and just 1.9 percent to 6.4 percent did so across the six regions (Table 16). However, sticking "the public" with the entire cost was also not a majority position in any of the regions. It was supported by only 29 percent at the national level and by a fifth to a third in the regions, except for the West, where 41.1 percent of that sample favored it. But even there a majority preferred that "the public and the landowners share the burden of protection." In the national level sample 60.5 percent supported such sharing, as did from 52.5 percent (in the West) to 67 percent (Midwest) in the regions.
|
Farmland and ranch land owners' opinions as to who should pay for the costs of environmental regulations which protect the public - percentages by response category and region |
||||||||
| Response Category |
West | Southern Plains |
Northern Plains |
Midwest | South- east |
North- east |
National (weighted) |
|
|---|---|---|---|---|---|---|---|---|
| The public | 41.1 | 33.0 | 29.4 | 22.8 | 30.1 | 24.6 | 29.0 | |
| Landowners | 1.9 | 6.4 | 3.3 | 2.3 | 2.8 | 4.1 | 3.3 | |
| Share costs | 52.5 | 54.2 | 61.4 | 67.0 | 56.9 | 66.6 | 60.5 | |
| "Don't know" or "won't say" |
1.6 | 1.4 | 1.7 | 2.4 | 3.8 | 3.7 | 2.4 | |
| Not asked | 2.9 | 5.1 | 4.2 | 5.6 | 6.5 | 1.0 | 4.9 | |
| Total percent | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | |
| Total respondents |
314 | 297 | 306 | 303 | 216 | 293 | 300/1,729 | |
_______________________
Who were the owners who took the position that government and landowners
should share the costs of environmental compliance? In contrast to the
breakdown of opinions by various traits of the owners that we analyzed for
the previous five guidelines for compensation, the crosstabulations for
this criterion indicated very considerable differentiation. The
statistically significant differences all seem to relate to the occupational
or financial risks that regulation posed to respondents. In the national
sample, surveyed owners were nine percentage points less likely to approve
of this sharing if they were farm or ranch operators rather than being
nonoperators, 10 points less if they were at or above the median in number
of acres planted to crops, and 10 points less also if they were at or
exceeded the median in gross revenues from agriculture (and 12 points if
we place the cut at $100,000 and above versus less than $100,000). At
the regional level, some of the percentage-point differences were
appreciably larger: 14 points in the Southeast if the respondent was a
current operator, and 12 points to 16 points in the West, Southern Plains,
Northern Plains and Midwest if the respondent was at or above the median for
acres in crops. However, at the national level, among the surveyed owners
in all these groups of respondents who were less likely to approve of the
sharing principle, majorities were still in favor. The same pattern was
found in most cases at the regional samples.29
Another type of differentiating condition was whether the surveyed owners
attributed some decrease in market value of their land to government
regulations. Compared to respondents who reported no devaluations, those
who claimed losses due to wetlands violations were eight percentage points
less likely to approve of sharing costs; and the corresponding difference
for zoning problems was 12 percentage points and for endangered species
violations, 14 points. In the weighted national sample, majorities of
the respondents reporting losses nevertheless supported the sharing
principle, except in the ESA cases.
In sum, we found majority support for the sharing principle at the national
level, in all regions, and among most subgroups formed by variables that
reflect respondents' stakes in regulation. Two other types of potentially
differentiating variables, place of residence and participation in USDA
benefit programs, proved not to yield significant differences at the
national level. At the regional level they either failed to make
appreciable differences, or the findings were inconsistent. Overall then,
this guideline of sharing costs looks widely
acceptable.
Balancing "Givings" and "Takings"
To test for the acceptability of considering such "givings" when deciding
on compensation for regulatory takings, we offered three scenarios to our
surveyed owners: (1) one dealing with the current rule that USDA production
flexibility contracts may be contingent on the farmer applying approved
soil conservation practices (see Table 17 for the full the text of the
question); (2) another whereby one governmental action, the provision of
subsidized irrigation water, increases the land's value, while another
action, prohibition of the use of a certain pesticide, reduces yields and
the land's value (Table 18); and (3) the situation where separate county
government policies have offsetting impacts on land values: on the one hand,
the county's investment in paving a dirt road that enhances the adjoining
land's value for development, and, on the other hand, a county zoning
regulation that limits the density of residential development to two homes
on the 10-acre parcel in question rather than the 10 units that the owner
wants to build (Table 19).
Each of these questions had three response options: (1) full compensation
for the reduction in appraised value or, in the case of the zoning decision,
for "the difference between that parcel's value for two homes versus its
value for 10 homes;" (2) "at least some reduction in compensation" because
of the "giving"(the annualpayments from the PFCs, the subsidy for irrigation
water, or the increased value because the road was paved); and
(3) "no compensation at all."
Our respondents tended to accept the principle that positive government
contributions should have some offsetting effect on compensation. Across
the three related questions, the largest percentage for "full compensation"
was only 29.2 percent, regarding the required soil conservation practices
(Table 17). In reacting to the other two situations, 15.5 percent and 16.5
percent of the weighted national sample favored full compensation (tables 18
and 19). In all cases the most common response was "partial compensation,"
and from 13.9 percent (for the subsidized irrigation scenario) to 35.9
percent (the zoning case) selected "no compensation at
all."
As we found with the other guidelines for compensation, opinions varied
with the respondents' likely stake in, or past negative experiences with,
regulation. In the weighted national sample, current operators of farms
or ranches were, compared to nonoperators, 10 percentage points more
likely to favor full compensation (e.g., not taking into account
government contributions to the land's value) in the soil conservation
scenario and eight points more likely to favor that option for the
situation where a pesticide is banned for farmers buying subsidized
irrigation water. As we also found in earlier analyzes, the differences
could be larger in the regional level. In the West, Southern Plains and
Northeast samples, current operators were 11 to 16 percentage points more
likely to want full compensation for the effects of soil conservation
regulations regardless of the receipt of PFC payments. However, in all
these subgroups majorities of the surveyed operators supported partial or
no compensation rather than full.
Another differentiating variable was the number of acres planted to crops.
In the weighted national sample, respondents below the median on that
measure were 10 percentage points less likely to want full compensation
in the soil conservation situation and six points less likely regarding
the pesticide ban. In the West and Southern Plains the differences for
the soil conservation issue were 12 and 14 percentage points, respectively.
But again, whether respondents were below or above the median on this
measure, majorities favored partial or no compensation rather than
full.
Roughly the same pattern was found on the dimension of past experience
with land use regulations. Respondents in the weighted national sample
who reported losses due to highly erodible land regulations were
understandably more likely to prefer full compensation for the soil
conservation issue, but the difference was only eight percentage points;
and about 60 percent of this subgroup favored partial or no compensation.
Similarly, although surveyed owners with negative experiences from zoning
regulations were more likely to want full compensation in the case of the
builder limited to two homes rather than 10, the difference was just five
percentage points (23 percent versus 18 percent). Even among the small
group of respondents who said their land lost market value from endangered
species regulations, less than a majority (36 percent to 47 percent)
supported full compensation for any of the three scenarios (e.g., over the
soil conservation requirement, the pesticide ban and the zoning
restrictions).
In the regional samples, there were some majorities for full compensation
among the respondents reporting devaluations: those with ESA losses in
the West and Northeast, HEL losses in the Southern Plains and Southeast,
zoning losses in the Southern Plains and devaluations from "other"
regulations in the Southern Plains. However, overall the "victims" of
regulations tended to accept that government payments enhancing the
land's value should offset, at least somewhat, the value-diminishing
effects of regulations. When eventhose who lose money from regulations
think this way, we probably have found a guideline of considerable
importance.
_________________
Another indication of agricultural landowners' acceptance of the
"givings" argument is that large majorities at the national level
(75.8 percent) and across the regional samples (69.4 percent to 84.7
percent) supported partial or no compensation for at least two of the
three scenarios offered to them (Table 20). Rather than being persuaded
by just one situation and its perhaps especially appealing circumstances,
they apparently saw that prior or current government payments should offset
regulatory losses in two or all three. In the weighted national sample,
48.5 percent opted against full compensation for all three situations; and
41.6 percent to 59.4 percent did so across the six regions (Table 20).
_________________
_________________
_________________
Summary
Large majorities also appeared to accept that compensation should be
reduced by some factor that takes into account prior or current government
payments (or "givings") that enhanced the land's value, (e.g., subsidized
irrigation water, production flexibility contracts and road improvements).
Three-quarters of the surveyed owners opted against full compensation for at
least two of the three "givings" scenarios we presented.
Our respondents also accepted that in some situations it may be right to
deny all compensation. A total of six questions included conditions for
denial: when the owners were not severely burdened, they knew about the
regulatory prohibition prior to purchasing the land, the regulation was
needed to protect public health, it was a condition for receiving PFC
payments, a government agency was providing them with subsidized irrigation
water, or their property's value for development had been enhanced by
improving the adjacent
county road. In the weighted national sample, 85.6 percent favored no
compensation for at least one of these six situations, 58.7 percent did so
for at least two, and 31 percent for three or more (Table 21).
_________________
Table 22 presents the two- and three-element combinations of guidelines that
individual respondents most frequently supported. At the national level,
62.5 percent subscribed to taking into account both any
"givings"
In brief summary, we found that:
We found differences across the regions, but they were not large. The
Midwest and Northeast samples had the largest percentages against automatic
compensation and in favor of denying it to owners with prior knowledge of
the regulatory limitations, of denying it in the case of a regulation to
protect human health against water pollution and of sharing the costs of
protecting the environment (tables 10, 11, 13 and 16). The Northeast ranked
first in the percentages of surveyed owners who favored taking into account
"givings" (tables 17 to 19). The Southeast sample had the lowest
percentages in support of the prior-knowledge and public-health guidelines
as presented in our survey, the second lowest both for relating compensation
to extent of compliance and against automatic compensation, and the lowest
overall support for the considering the value of "givings." The West
region's sample had the lowest percentages in favor of tying compensation to
effort and of sharing the costs of protecting the environment. However, the
differences between the highest and lowest regional values for all seven
kinds of guidelines were not great, from only 10.3 to 17.4 percentage
points. In other words, it was not a situation of the national level
findings obscuring a totally different pattern of responses in several of
the regional samples.
Landowners' Opinions about the Appropriateness of Regulations
Introduction
By asking owners to evaluate the use of regulation in concrete situations
with competing approaches to the same problem, we hoped to obtain more
reasoned opinions than if the regulatory approach stood alone in a vague
context. Therefore, we aimed to provide realistic problem situations with
real monetary stakes. As will be seen, when the texts of the questions are
reproduced, each situation was defined to include the possibility of the
owner losing appraised value if the complainants succeeded in stopping or
limiting the agricultural or logging operation at issue.
Landowners Opinions about the Appropriateness of Regulations for Avoiding
Land use Conflicts: The Case of Non-Farmers Complaining about Nearby Farming
Operations
The first type of land use conflict addressed in this section of the
interview was between farmers and non-farmer residents living nearby.
The question read:
When presenting the three options of: (1) farmers and complaining
non-farmers settling their disputes in or out of court; (2) government
preventing conflicts by purchasing conservation easements; and (3) zoning
to preclude conflicts, we wanted the respondents to express their preference
for only one rather than some combination or solutions (e.g., regulations
and payments). Therefore, just before re-stating the three approaches, we
inserted the qualifying sentence, "Probably only one approach can be used."
In response, 58 percent in the weighted national sample chose "zone to
restrict development" (Table 23). Across the six regional samples, there
were also majorities of the surveyed owners in favor of the zoning approach,
although in the Northeast it was a bare
majority - 50.2 percent.
_________________________
As in Chapter Three, we used crosstabulation analysis to determine the
extent to which support for different policy options varied with the
surveyed owners' likely personal stakes in the options. Somewhat surprising
was the finding in the national sample that, among respondents reporting
that at least some of their land was subject to local government zoning
(and who answered the question about nonfarmer complaints), support for the
zoning solution to prevent conflict was slightly higher - 69 percent
compared to 64 percent among the respondents without any farmland that was
zoned. By contrast, respondents at the national level who had nonfarm homes
located as close as 100 yards from some of their farmland were nine
percentage points (62 percent versus 71 percent) less likely to approve of
zoning to prevent farmer/nonfarmer conflicts; and in three regional samples
(West Southern Plains and Northeast), they were from 10 points to 16 points
less likely. Perhaps some of the owners with residential development that
close believed that there was a market for more building lots that they, the
owners, would help to supply from their own agricultural land. At both the
national level and in those three regional samples, majorities of 52 percent
to 66 percent of the respondents in this category, having nonfarm homes
within a football field's length, favored the zoning option.
In other
crosstabulations from the weighted national sample, we found that support
for the zoning option did not significantly vary by the respondents' age,
gross revenues from agriculture (even when the cut was at $100,000 and above
versus below that level), the shortest distance from their agricultural
land to the nearest town, their acres in crops, or the acreage in livestock
production. That is, whether surveyed owners placed below or above (or at)
the medians for those variables, majorities favored zoning for dealing with
the rather common conflict presented in the survey question. Also not
making significant differences was whether or not the respondents were
currently farm or ranch operators, had livestock on their land, or lived on
or close to their land or more than 10 miles away .
Although past negative experience with zoning did make significant
differences, the effect was insufficient in the national sample to keep a
majority of even that group from favoring zoning for this conflict
situation. Among the almost 10 percent of the sample who reported having
lost market value due to zoning restrictions, 55 percent chose the zoning
option when answering our first question about competing approaches for
coping with land use conflicts. Among the 90 percent with no such losses,
the corresponding percentage was 69. However in three of the six regional
samples (those for the Southern Plains, Southeast and the Northeast),
majorities of the surveyed owners with this grievance favored one or the
other non-regulatory solutions (e.g., either settling the disputes between
the private parties or having government pay volunteers to keep the land in
farming). In the other three regions, that pattern was not found. Instead,
even among the self-reported victims of zoning, there was majority support
for using that same tool to prevent conflicts between farming
and nearby nonfarm residents.
Preventing Water Pollution from Livestock Manure
In the weighted national sample, 58.6 percent of the surveyed owners
selected the response option, "require operators near water to apply good
[manure disposal] practices" (Table 24). Across the six regions, support
for this policy varied from 51.4 percent in the Southeast to 65 percent in
the Midwest (Table 24). Making it more attractive may have been the
cost-sharing provision that was inserted in the question just before the
response options were listed: "The regulated operators would be eligible
for cost-sharing." The 1996 Farm Bill provides for a cost-sharing program
to assist livestock operations faced with manure-storage
problems.
The least popular response option for this question and all the other four
conflict scenarios was the private-initiative approach, whereby private
parties would use the courts or negotiate solutions out of court. Only 4.5
percent of the weighted national sample preferred that approach for the
manure-disposal problem, while for the other four conflict situations, the
stated private approach attracted support from 5.1 percent regarding the
logging issue (Table 27) to 30.1 percent for the conflict over endangered
species (Table 26).
Was the regulatory approach to the stated manure-disposal problem supported
also by owners with livestock on their land, or did the respondents to whom
the conflict situation tended to directly apply also tend to oppose
regulation? At the national level, they were less likely to favor it by
13 percentage points; but still a majority (58.7 percent) of the surveyed
owners who had land in livestock (and who answered this question) opted for
requiring appropriate practices. There were statistically significant
differences in the same direction in five of the six regional samples
(West, Northern Plains, Midwest, Southeast and Northeast). But in four of
these five, majorities of the owners with livestock, from 53 percent in the
West to 68 percent in the Midwest, nevertheless favored the regulatory
approach. The only exception was in the Southeast sample, where
the corresponding value was 46 percent.
_______________________
In the weighted national sample there were no statistically significant
differences in the level of support for this regulatory approach by the
respondents' gross income from
agriculture,
Since earlier in the survey a majority of respondents approved the general
principle of owners and government sharing "the burden of protecting the
environment" (Table 16), we crosstabulated the responses to this question
about disposing of manure with the answers about sharing the costs. Nearly
seven in 10 (69.5 percent) of the surveyed farmers who had endorsed the
sharing principle also favored the option of requiring livestock farmers to
follow appropriate disposal practices, with the additional condition that
they could receive cost-sharing assistance. In other words, when faced with
a practical application of their previous endorsement of a principle,
almost seven out of 10 accepted it.
Increased Threat of Flooding because of the Draining of Wetlands
___________________
In contrast to our crosstabulation analyses for the responses about the
first two conflict situations (between farmers and nonfarmer residents and
over disposal of livestock manure), we found many more variables that
differentiated between levels of support for the regulatory approach to
retaining wetlands. Those respondents less likely to support
regulations included:
This listing suggests that a regulatory approach to wetlands tends to be
less acceptable to persons with relatively greater occupational or income
stakes in their agriculture land. However, majorities of the same types of
respondents supported regulations for the first two conflict situations that
we presented to them. It may be that agricultural landowners tend to find
less value to themselves and perhaps to the greater community in regulations
that protect wetlands compared to regulations that prevent farmer/nonfarmer
conflicts and that guard against water pollution from livestock manure.
Endangered Species
A significant minority of respondents in the weighted national sample,
30.1 percent, favored the option, "prefer ... to have private people who
want to protect the endangered animals approach the farmers with some
monetary offer" (Table 26). The most popular option, selected by 44.9
percent of the national sample, was
"provide government payments to owners who volunteer to protect the animals."
Only 15.8 percent favored "use [of] regulations to prevent harm to the
animals." Largely, the same pattern of responses was found across all six
regional samples (Table 26). Approval of government payments varied in the
narrow range of from 41.1 percent (West region) to 47.1 percent (Northern
Plains), while approval of a regulatory approach ranged from 8.9 percent
(West) to 19.8 percent (Northeast).
Among the five kinds of land use conflicts presented to our samples of
agricultural land owners, the respondents tended to find the conflict over
protecting endangered species the least appropriate for regulations to
solve. Conceivably, regulation would have attracted more support if for
that situation we had offered only one kind of compensation outcome
(government payments) rather than two provided in the questions about
endangered animals (public money and the possibility of financial
inducements from private persons).
However, our crosstabulation analysis suggests that regulation as applied to
endangered species is a broadly unpopular tool, even though, as discussed in
Chapter Two, relatively few of the surveyed farmers reported ever having
owned land that lost market value because of the Endangered Species Act.
In none of the numerically important subgroups in the national level sample
could we find more the 17 percent of the respondents favoring the given
regulatory approach for our endangered species scenario: only 13 percent of
the owners with livestock on their land, 16 percent with land in crops, 12
percent of the surveyed owners who were farm or ranch operators, 15 percent
whose land was currently participating in some USDA benefit program and 17
percent of the respondents living on or within 10 miles of their land.
A regulation that is widely unacceptable risks encountering broad efforts at
noncompliance. Included in efforts to minimize vulnerability to enforcement
may be owner or farmer actions that make the environmental situation worse
than if there were no regulatory program. A representative of the Texas
Parks and Wildlife Department reported that, fearing some public official
might visit their land to document a rare species' presence on it,
"landowners are intentionally destroying endangered species habitat because
of ESA..."
Protecting Recreational Bodies of Water from Soil Pollution Traced
to Logging Operations
Majorities of surveyed landowners in the weighted national sample and in
four of the regional samples favored the given regulatory approach to this
conflict situation about pollution of recreational waters from logging. At
the national level the approval percentage was 55.2 percent, while in the
Southern Plains it was 54.9 percent; in the Midwest, 60.4 percent, the
Southeast, 50.9 percent and in the Northeast, a more
impressive 65.5 percent (Table 27). By contrast, in the West and Northern
Plains, the support levels were 47.8 percent and 49.7 percent,
respectively.
Unexpectedly, surveyed owners with logging operations currently on their
land were only slightly less likely to approve of the regulatory option
compared to owners with no logging. The percentage difference was just 59
percent versus 60 percent (among the respondents without logging operations).
There was no statistically significant difference in responses either
between respondents who currently ran logging operations and those who did
not. As we found before, support for regulation was somewhat lower among
current farm operators, participants in USDA benefit programs, those
receiving at least the median level of gross revenues from their land, and
surveyed farmers whose land in crops was at or above the median number of
acres. With the just-noted exception about loggers, relatively greater
occupational and financial stakes in agriculture appeared to make the
respondent less accepting of regulation. But still majorities of all these
subgroups supported the regulatory option for this conflict over logging.
For example, although current farmers in the weighted national sample were
seven percentage points less likely to approve of regulating logging
operations to prevent pollution of recreational waters, the farm operators
who supported that policy were 58 percent of the farm and ranch operators
who answered this questions about logging operations.
The possibility of cost-sharing may have made a regulatory approach more
acceptable for this conflict about logging operations, as it may have for
the manure-disposal conflict. As in the discussion about that latter
conflict, we tested for whether the respondents who earlier in the interview
had approved of the principle of sharing the burden of protecting the
environment also tended to support this regulatory solution to the logging
problem that had a cost-sharing component - 64 percent of them did.
Summary
Favored by about 40 percent in the weighted national sample was regulating
to retain wetlands, but only about one in six respondents (15.8 percent)
supported regulations to protect endangered species. Therefore, opinions
varied greatly by the type of conflict situation and perhaps also by whether
the regulated land users would be eligible for cost-sharing. However, the
most popular regulatory scenario, regarding zoning to prevent complaints
from nonfarm neighbors, had no cost-sharing component.
There were differences across the six regional samples. For three of the
five problem scenarios (manure disposal, wetlands conversion, and water
pollution from logging), the Midwest ranked first or second in the
percentage of respondents favoring a regulatory approach (Table 28).
The same pattern was found for the Northeast (regarding wetlands, endangered
species and logging). None of the other regions ranked so consistently on
percent supporting regulation except the West, which placed last in three
(wetlands, endangered species and logging) and next-to-last in a fourth
(manure disposal).
_____________________
_____________________
Much the same ranking pattern emerged when we tallied the percentage of
respondents who accepted regulation for at least one of the five scenarios,
at least two and three or more (Table 29). Supporting regulatory approaches
for at least two situations were over two-thirds of the weighted national
sample and from 60.8 percent (in the West) to 74.2 percent (Midwest) of the
surveyed owners in the regional samples. Approving of three or more were
45.6 percent at the national level and from 39.3 percent (Southeast) to
52.1 percent (Midwest) at the regional level.
Assumptions about Nonrespondents
Chapter Three deals with owners' preferences for seven kinds of compensation
guidelines, and Chapter Four reports owners' opinions about the
appropriateness of regulation for preventing or resolving five land use
conflict situations. For both chapters, we (the research team) hypothesized
that nontrivial percentages of surveyed owners would endorse the guidelines
or would approve of regulation as appropriate to dealing with the conflict
situations. Our conservative assumption about the nonrespondents was that,
among them, the percentage approving a compensation guideline or the use of
regulation to deal with a land use problem would be half the percentage that
was found among the actual respondents. For example, 58.6 percent of the
latter favored using regulations to prevent livestock manure from polluting
surface water (Table 24). We, therefore, assumed that among nonrespondents
the percentage would be 24.3 percent. The following table presents, for the
weighted national sample, both the percentages calculated for the
respondents and the adjusted percentages computed after we included the
assumed responses from the 200 nonrespondents. Those adjustments did not change the findings by much--from 1.9 to 15.1 percentage points (see Table 31). We have reason to believe that our adjustments may be too conservative. As discussed above, many of the missing respondents lived out of the counties we studied. However, among the absentee landowners whom we did reach, the responses tended to be counter to the conservative assumptions we used in the adjustments. That is, those owners (1) reported regulatory property devaluations no less frequently than did the respondents living on or close to their land and (2) they endorsed no less often all seven kinds of compensation guidelines and the use of regulatory approaches to four
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Passed and S.605 as Reported (Washington, D.C.:
American Law Division, Congressional Research Service,
March 7, 1996, 95-509A), Internet,
http://www.cnie.org/nle/econ-10.html.
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The Illustrated Book of Development Definitions (New Brunswick, N.J.: Center for Urban Policy Research).
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Eric Damian Kelly. 1996. "Property Rights and Takings,"
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Common Ground on the Property Rights Issue," in
Takings and Givings: Writings on Property Rights,
Government Influence and Natural Resources (Washington, D.C.: American Farmland Trust).
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30
At the regional level, where the
differences were often sharper, respondents with this kind of regulatory
grievance were less likely to accept a sharing of costs. For example,
only 21 percent of the owners in the Southern Plains who claimed losses
due to zoning approved of sharing, as did just 38 percent of their
counterparts in the Southeast and 47 percent in the Northeast.
Edward Thompson, Jr., Anthony Downs and Ann Strong, among others, argue
that decisions to provide compensation by government should be informed by
consideration of how much the market value of the relevant land derives from
past and current investments by government. Strong and colleagues urged,
"It is important to recognize that the very reasons that developers [faced
with environmental regulations] argue that such land is developable can
often be traced to other governmental actions. The airport highway that
crosses a large wetlands area, the causeway opening the barrier island to
general use, and the major sewer line . . . all make property attractive
for development." 31
Thompson argued that, given the amount of past government
financial support to the land's value, which he calls "givings,"
compensation for regulatory "takings" may in some circumstances be unfair:
"The last thing . . . [the public] can afford is to pay twice for
environmental protection." 32
33
Text of question: "In some cases of land
regulation, owners must apply specified management practices in order to be eligible for government benefits. Let's say that an owner is currently receiving annual payments from a production flexibility contract with USDA, and applying soil conservation practices on his land is a condition for getting the payments. But those practices increase costs and therefore lower the land's appraised value. Should the owner receive: 1. Full compensation for the farm parcel's
reduced appraised value? 2. Partial compensation to reflect the value
of the annual payments? 3. No compensation?"
Farmland and ranch land owners' opinions as to whether compensation should be adjusted
downward if the regulating government is also providing benefits to the landowner: the
case of soil conservation practices required to maintain eligibility for USDA benefits -
percentages by response category and region
Response
CategoryWest
Southern
PlainsNorthern
PlainsMidwest
South-
eastNorth-
eastNational
(weighted)
Full
compensation26.4
32.3
33.7
26.4
32.4
21.5
29.2
Partial
compensation46.2
39.7
43.1
50.2
44.0
54.9
46.2
No
compensation19.1
18.2
17.0
15.8
12.0
18.1
16.1
Don't know or
won't say5.4
4.7
2.0
2.0
5.1
4.4
3.7
Not asked
2.9
5.1
4.2
5.6
6.5
1.0
4.9
Total percent
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Total
respondents314
297
306
303
216
293
300/1,729
Text of question:
"Let's say that an owner receives irrigation water at below market
prices, and his farmland is more valuable because of the subsidy.
Then that owner learns that the government has prohibited the use
of a certain pesticide on land like his. That regulation lowers
his land's yields and its appraised value. Should the owner
receive full compensation for the lower value? Or should there
be at least some reduction in compensation because he is getting
the irrigation water at
subsidized prices? 1. Full compensation? 2. Some reduction
in compensation because of the subsidy? 3. No compensation?"
Farmland and ranch land owners' opinions as to whether
compensation should be adjusted downward if the government
is also providing benefits to the landowner: The case of
subsidized irrigation
water - percentages by response category and region
Response
CategoryWest
Southern
PlainsNorthern
PlainsMidwest
South-
eastNorth-
eastNational
(weighted)
Full
compensation27.7
16.8
15.7
11.6
16.2
9.6
15.5
Partial
compensation48.7
59.3
64.4
66.0
63.0
71.3
62.5
No
compensation16.2
15.2
11.4
15.2
11.1
14.3
13.9
Don't know or
won't say4.5
3.7
4.3
1.6
3.3
3.8
3.1
Not asked
2.9
5.1
4.2
5.6
6.5
1.0
4.9
Total percent
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Total
respondents314
297
306
303
216
293
300/1,729
Text of question: "In another example,
a county highway department paves a dirt road next to a 10-acre
parcel, making that land more valuable for building houses. A
county zoning regulation restricts residential building so that
only two homes may be built on those 10 acres, but the owner would
like to build 10 homes. Should the owner receive full compensation
for the difference between that parcel's value for two homes versus
its value for 10 homes? Or should there be at least some reduction
in compensation because the county paved the road and thereby
increased the land's value? What do you favor? Do you favor:
1. Full compensation? 2. Some reduction in compensation
because the county paved the road? 3. No compensation at all?"
Farmland and ranch land owners' opinions as to whether compensation should be adjusted downward if the regulating government is also providing benefits to the landowner: The case of paving a road next to the owner's land -
percentages by response category and region
Response
CategoryWest
Southern
PlainsNorthern
PlainsMidwest
South-
eastNorth-
eastNational
(weighted)
Full
compensation17.5
20.9
12.4
14.5
18.5
15.4
16.5
Partial
compensation30.6
35.4
44.8
40.3
40.7
39.2
39.0
No
compensation43.0
37.0
34.0
38.0
27.3
41.0
35.9
"Don't know" or
"won't say"6.0
1.7
4.6
1.6
6.9
3.4
3.8
Not asked
2.9
5.1
4.2
5.6
6.5
1.0
4.9
Total percent
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Total
respondents314
297
306
303
216
293
300/1,729
*The three scenarios were: being required to apply
approved conservation practices in order to remain eligible for
production flexibility contracts with USDA, being prohibited from
using a certain pesticide while receiving from the same government
subsidized irrigation water, and being limited to building two new
homes rather than the desired 10 on a 10-acre parcel whose value
had been enhanced by the same government's investment in upgrading
the adjacent road.
Farmland and ranch land owners' opinions as to whether compensation
should be adjusted downward if the government also provides benefits
to the landowner: The percent who accept such adjustments for zero,
at least one, at least two or all three of the regulatory scenarios
presented in the survey* - by region
Number of
scenarios for
applying the
principleWest
Southern
PlainsNorthern
PlainsMidwest
South-
eastNorth-
eastNational
(weighted)
Zero or not asked
12.4
12.8
8.5
9.9
13.0
5.1
10.8
At least one
87.6
87.2
91.5
90.1
87.0
94.9
89.2
At least two
72.0
73.1
77.1
80.2
69.4
84.7
75.8
All three
44.3
44.4
46.1
55.1
41.6
59.4
48.5
Total respondents
314
297
306
303
216
293
300/1,729
This chapter reports on the surveyed agricultural landowners' opinions about
seven kinds of guidelines for compensation in situations where regulations
reduce the appraised value of land. For these respondents, issues of
compensation should not have been academic since they were owners of the
kind of land under discussion. Two-thirds of the weighted national sample
rejected the principle of automatic compensation (when a specified reduction
in market value is reached). Those respondents preferred basing
compensation decisions on "other considerations," including the guidelines
of relating compensation to the extent of compliance and denying
compensation if the owner knew about the regulatory limitations before
buying the property.
*The six scenarios were: limiting compensation to
owners severely burdened by the regulations, denying it to
owners who knew about the limitations on filling in a wetland
but who want government to compensate them for their inability
to convert it to farming, denying compensation to farmers who
are required to turn cropland adjacent to a river into filter
strips in order to protect water used by a city for human consumption,
being required by USDA to apply approved conservation practices in
order to remain eligible for production flexibility contracts with
USDA, being prohibited from using a certain pesticide while receiving
from government subsidized irrigation water, and being limited to
building two new homes rather than the desired 10 on a 10-acre parcel
whose value had been enhanced by the same government's investment in
upgrading the adjacent road.
Farmland and ranch land owners' opinions as to whether compensation
should be denied to agricultural landowners in zero, at least one,
at least two, or at least three of six
scenarios presented in the survey* - by region
Number of
scenarios where
favored denying
compensation West
Southern
PlainsNorthern
PlainsMidwest
South-
eastNorth-
eastNational
(weighted)
Zero or not asked
13.7
14.8
14.4
12.2
20.4
7.5
14.4
At least one
86.3
85.2
85.6
87.8
79.6
92.5
85.6
At least two
57.6
59.6
56.8
63.7
48.6
68.3
58.7
At least three
33.4
31.3
31.8
35.3
20.4
37.9
31.0
Total respondents
314
297
306
303
216
293
300/1,729
34
when
deciding on compensation and whether the owner had prior knowledge of the
regulations; and 53.7 percent endorsed both the givings principle and
relating compensation to compliance effort. The combination of three
guidelines with the most support, from 44.1 percent of the weighted national
sample, was the prior-knowledge criterion, the "givings" argument and the
principle of relating compensation to compliance
effort.
*Where some prior or current government
payments (production flexibility contracts with USDA,
subsidized irrigation water, road improvements) make the
regulated land's value greater than it otherwise would be.
Percentage of respondents who accepted combinations of
guidelines for deciding on compensation -
by region
Compensation
Guidelines AcceptedWest
Southern
PlainsNorthern
PlainsMid-
westSouth-
eastNorth-
eastNational
(weighted)
(1) Deny compensation
if knew of regulation before purchase and (2)
taking "givings" in account*
59.9
62.0
60.5
69.3
53.2
68.3
62.5
Taking into account (1)
compliance effort and (2) "givings"
48.7
52.5
56.2
54.8
50.9
61.8
53.7
(1) Denying compensation if had prior
knowledge and (2)
taking into account
effort and "givings"
45.2
50.8
50.0
54.1
45.8
58.4
50.7
Three guidelines: (1)
prior knowledge, (2) compliance effort and (3) "givings"
39.5
44.1
44.8
47.2
38.9
50.5
44.1
Total respondents
314
297
306
303
216
293
300/1,729
_________________
Chapter Three investigated agricultural landowners' opinions about the
conditions for regulatory compensation. Another route to regulatory
relief is to substitute alternative means to deal with the same kinds of
land use conflicts. Therefore, the survey presented five separate conflict
situations, and for each of the five we offered two competing approaches in
addition to regulation. One non-regulatory approach was where private
parties settle the conflict through the courts or private negotiations.
The other competitor was government-provided financial incentives designed
to induce land users to desist from, or moderate, their problem-causing
behavior. The conflict situations were defined by five kinds of complaints:
(1) about agricultural odors, chemicals, and dust, with the complainants
being nonfarm residents living near the farm operations; (2) about livestock
manure that might pollute streams, rivers or groundwater; (3) about the
possibility of increased flood hazards downstream when wetlands that used to
store storm water are filled in; (4) about farming practices that might
threaten the lives of endangered species; and (5) about logging operations
that might cause soil erosion resulting in pollution of nearby bodies of
water.
In this section of the interview about competing approaches, we encouraged
surveyed owners to give serious consideration to nonregulatory options by
introducing the section with the following sentence: "Perhaps some existing
regulations should be modified or replaced with a different approach to
avoiding conflicts over farmland." That sentence was designed to present
nonregulatory options as legitimate; but the qualifying word, "perhaps,"
was intended to indicate that they were not necessarily
preferred.35
"For example, when non-farm homes are built in
agricultural areas, the new non-farm residents may complain about
agricultural odors, dust, or chemicals and may even sue farmers to
restrict their operations. One way of dealing with this kind of conflict is
to have the residents and farmers settle their problems in court or in
out-of-court settlements. A second way is for a state or local government to use its limited funds to pay the owners of especially important farmland who volunteer not to develop their land. A third way is for local government
to zone land in important farming areas so that few homes may be built on
it. Probably only one approach can be used. Which approach do you prefer?
1. Have the private parties settle conflicts in court? 2. Pay landowners
who volunteer not to develop? 3. Zone to restrict development?"
Land use specialists have written about these farmer-neighbor conflicts
since at least the early
1980s.36
In eastern states like Massachusetts,
Connecticut, New York, Pennsylvania and Maryland, local and/or state
government agencies prevent conflicts by purchasing conservation easements
on agricultural land that retain land in farming and, in the process,
preclude the building of nonfarm residents that would generate complaints
about agricultural operations on that land as well as on nearby parcels
also still in farming.37
A regulatory approach used by some local governments
is to zone farming areas so that few nonfarm residences may be built. For
example, in the agriculturally zoned land of DeKalb County, Ill., building
permits should not be granted for residential use unless the home is to be
sited on at least a 40-acre parcel, because a "farm" is defined as being at
least that size.38
39 Perhaps
the support level was less because of thegreater prevalence in that region
of conservation easement programs. That difference seems reflected in our
finding that the Northeast had the largest percentage by far (31.1 percent)
in favor of government paying landowners who volunteer not to develop (Table
23).
Text of question: "Perhaps some existing
regulations should be modified or replaced with a different approach
to avoiding conflicts over farmland . For example, when non-farm
homes are built in agricultural areas, the new non-farm residents
may complain about agricultural odors, dust, or chemicals and may
even sue farmers to restrict their operations. One way of dealing
with this kind of conflict is to have the residents and farmers
settle their problems in court or in out-of-court settlements.
A second way is for a state or local government to use its limited funds to pay the owners of especially important farmland who volunteer not to develop their land. A third way is for local government to zone
land in important farming areas so that few homes may be built on
it. Probably only one approach can be used. Which approach do you
prefer? 1. Have the private parties settle conflicts in court?
2. Pay landowners who volunteer not to develop? 3. Zone to
restrict development?"
Farmland and ranch land owners' opinions about dealing with land use conflicts: The case of conflicts between farmers and non-farm residents who complain about agricultural operations they find to be nuisances - percentages by response category and region
Response Category
West
Southern
PlainsNorthern
PlainsMid-
westSouth-
eastNorth-
eastNational
(weighted)
Settle in court
8.3
20.2
10.8
11.6
15.3
7.2
13.0
Government pays volunteers not to develop
15.9
15.5
13.7
12.5
17.1
31.1
15.9
Zone to restrict
development62.7
52.5
64.7
61.4
53.2
50.2
58.0
"Don't know" or
"won't say"10.2
6.8
6.6
8.9
7.9
10.6
8.3
Not asked
2.9
5.1
4.2
5.6
6.5
1.0
4.9
Total percent
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Total respondents
314
297
306
303
216
293
300/1,729
Another problem situation for which majorities of our samples preferred a
regulatory solution (over private litigation or government incentives) was
the disposal of animal manure by livestock operations located near bodies of
water. The relevant question (our second in the series about competing
approaches to land use conflicts) read:
"Another type of conflict affecting
farmland is that sometimes manure from livestock operations seriously
pollutes streams, rivers, or groundwater. One way to deal with this kind of
problem is to have the people threatened by the pollution go to court
against the livestock operators. A second way is for government to provide
payments to livestock operators who volunteer to apply recommended practices
that prevent water pollution. A third approach is not to rely on volunteers
but for government to require livestock operators near bodies of water to
apply good manure disposal practices. The regulated operators would be
eligible for cost-sharing payments. Which approach do you prefer? 1. Have
private parties settle conflicts in court? 2. Provide payments to operators
who volunteer to apply recommended practices? 3. Require operators near
water to apply good practices?"
Manure may enter surface bodies of water
through storm water that washes across farm fields on which manure has been
spread, as well as through leaks from confined manure storage facilities
(e.g., "lagoons") that farmers construct. Ground water pollution may occur
if the soils and/or bedrock structure permit pollutants to infiltrate down
to aquifers.
40
Text of question: "Another type of
conflict affecting farmland is that sometimes manure from livestock
operations seriously pollutes streams, rivers, or groundwater. One
way to deal with this kind of problem is to have the people
threatened by the pollution go to court against the livestock
operators. A second way is for government to provide payments
to livestock operators who volunteer to apply recommended
practices that prevent water pollution. A third approach is
not to rely on volunteers but for government to require livestock
operators near bodies of water to apply good manure disposal
practices. The regulated operators would be eligible for
cost-sharing payments. Which approach do you prefer? 1. Have
private parties settle conflicts in court? 2. Provide payments
to operators who volunteer to apply recommended practices? 3. Require
operators near water to apply good practices?"
Farmland and ranch land owners' opinions about dealing with land use conflicts: When manure from livestock operations may pollute water resources, how should conflicts between those who are threatened by water pollution and livestock operators be settled -
percentages by response category and by region
Response
CategoryWest
Southern
PlainsNorthern
PlainsMidwest
South-
eastNorth-
eastNational
(weighted)
Settle in court
2.5
8.1
4.2
5.0
2.8
2.0
4.5
Government pays volunteers to apply practices
34.7
26.3
29.1
21.8
32.4
37.9
28.3
Require good practices
55.4
57.6
59.2
65.0
51.4
57.3
58.6
"Don't know" or "won't say"
4.4
3.0
3.3
2.6
6.9
1.7
3.8
Not asked
2.9
5.1
4.2
5.6
6.5
1.0
4.9
Total percent
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Total respondents
314
297
306
303
216
293
300/1,729
41 whether they participated in a
USDA benefit program, or even whether they reported having streams, lakes,
or other bodies of water on their agricultural land. Support was five
percentage points more likely among owners below the median age of 57 and
11 points more likely if the owner lived more than 10 miles from his/her
agricultural land. But among the older and closer subgroups, still
majorities favored regulation. As discussed in Chapter One, we believe that
our sample under-represents out-of-county owners of agricultural land, the
group that we measured as living more than 10 miles from their land.
Therefore, if an adjustment is needed in our survey findings about dealing
with this problem for livestock operations, it would be in the direction of
increasing the percentage of respondents who favor regulation.
42
To summarize, we found that, in
competition with the particular private approach and incentives option that
was provided in our question,
the idea of regulation with eligibility for
cost-sharing had broad appeal.
One of the benefits of retaining wetlands is that, if they are large enough
individually or in the aggregate, they can store storm water runoff that
might otherwise contribute to significant flooding of properties downstream.
Therefore, our third of five conflict situations in this part of the
interview dealt with wetlands. The question read:
"A third type of conflict
is that sometimes when wetlands are drained, flooding occurs downstream
because storm water runoff is no longer stored in the wetlands. But if
drainage of wetlands is limited, the appraised value of the land may be less
than if it were drained. One way to deal with this kind of problem is to
have people downstream threatened by flooding go to court against the
owners of the wetland that's drained. A second way is for government to
provide payments to wetlands owners who volunteer not to drain their land.
A third approach is not to rely on volunteers but for government to use
regulations to prevent the draining of wetlands important for flood control.
Which approach do you prefer? 1. Have private parties settle conflicts in
court? 2. Provide government payments to owners who volunteer not to drain
their wetlands? 3. Use regulations to prevent the draining of wetlands
important for flood control?"
In the weighted national sample, no one of the given three approaches
received majority support. While 45 percent of the surveyed owners favored
using incentives, the regulatory approach was not far behind with almost 40
percent support (39.8 percent, Table 25). Four of the six regions presented
the same pattern, with from zero to 6.5 percentage points separating the
levels of support received by the incentives and regulatory options. The
differences were greater in the Northern Plains and especially in the West
region's sample. In the former, the option of government payments to
landowners willing to keep their land in wetlands earned almost a majority,
48 percent; and in the West it was supported by 53.5 percent of the surveyed
owners compared to only 29.3 percent who endorsed regulation.
Text of question:
"A third type of conflict is that sometimes when wetlands are
drained, flooding occurs downstream because storm water runoff is
no longer stored in the wetlands. But if drainage of wetlands is
limited, the appraised value of the land may be less than if it were
drained. One way to deal with this kind of problem is to have people
downstream threatened by flooding go to court against the owners of
the wetland that's drained. A second way is for government to provide
payments to wetlands owners who volunteer not to drain their land.
A third approach is not to rely on volunteers but for government to
use regulations to prevent the draining of wetlands important for
flood control. Which approach do you prefer? 1. Have private parties
settle conflicts in court? 2. Provide government payments to owners
who volunteer not to drain their wetlands? 3. use regulations to
prevent the draining of wetlands important for flood control?"
Farmland and ranch land owners' opinions about dealing with land use conflicts: How should conflicts be settled between those who are threatened by flooding and landowners who desire to drain their wetlands - percentages by response category and region
Response
CategoryWest
Southern
PlainsNorthern
PlainsMidwest
South-
eastNorth-
eastNational
(weighted)
Settle in court
6.1
7.1
5.9
4.0
5.6
4.4
5.3
Government pays volunteers not to drain
53.5
43.1
48.0
43.9
40.7
48.1
45.0
Prevent draining with regulations
29.3
39.1
36.6
44.2
40.7
41.6
39.8
"Don't know" or "won't say"
8.2
5.7
5.2
2.4
6.4
4.8
4.9
Not asked
2.9
5.1
4.2
5.6
6.5
1.0
4.9
Total percent
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Total respondents
314
297
306
303
216
293
300/1,729
43
Since agricultural land provides considerable cover for wildlife, we
included in this section of the interview a question about conflicts over
endangered species. The question read:
"Here's a fourth kind of conflict.
Sometimes when land is farmed, the lives of endangered birds or other
animals are threatened. But if farming is limited on such land, its
appraised value may be decreased. One way to deal with this kind of problem
is to have private organizations or individuals who want to protect the endangered animals
approach the farmers with some monetary offer. A second way is for
government to provide payments to farmers who volunteer to protect those
animals. A third approach is not to rely on volunteers but for government
to use regulations to prevent harm to the animals. Which approach do you
prefer? 1. Have private parties deal with the conflict? 2. Provide
government payments to owners who volunteer to protect the animals?
3. Use regulations to prevent harm to the animals?"
Among the regulations
may be restrictions on plowing land that provides nesting areas to rare
species of birds or on watering livestock in ponds that provide habitat to
endangered fish.
Text of question: "Here's a fourth kind of
conflict. Sometimes when land is farmed, the lives of endangered
birds or other animals are threatened. But if farming is limited
on such land, its appraised value may be decreased. One way to deal with this kind of problem is to have private organizations or individuals who want to protect the endangered animals approach the farmers with some monetary offer. A second way is for government to provide payments
to farmers who volunteer to protect those animals. A third approach
is not to rely on volunteers but for government to uses regulations to
prevent harm to the animals. Which approach do you prefer? 1. Have
private parties deal with the conflict? 2. Provide government payments
to owners who volunteer to protect the animals? 3. Use regulations to
prevent harm to the animals?"
Farmland and ranch land owners' opinions about dealing with land use conflicts: The case of farmland being taken out of production to protect endangered animals -
percentages by response category and region
Response
CategoryWest
Southern
PlainsNorthern
PlainsMidwest
South-
eastNorth-
eastNational
(weighted)
Activists pay farmers to protect
39.8
30.6
30.1
30.0
25.5
27.6
30.1
Government pays volunteers to protect
41.1
45.8
47.1
45.2
44.0
45.7
44.9
Protect with regulations
8.9
12.8
14.4
17.8
18.1
19.8
15.8
"Don't know" or "won't say"
7.3
5.8
4.3
1.3
6.0
5.8
4.3
Not asked
2.9
5.1
4.2
5.6
6.5
1.0
4.9
Total percent
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Total respondents
314
297
306
303
216
293
300/1,729
_________________________
44 Our survey findings indicate a need either for better education
programs among land owners about the purposes of endangered species
regulations or for some exploration of alternative means to the same end,
perhaps including an incentives component.
The fifth and final type of land use conflict presented to our national
sample focused on protecting recreational bodies of water from soil
pollution traced to logging operations. The latter can be of sufficient
scale that the soil of many acres loses its vegetative cover because of the
bulldozers, trucks and other equipment used for felling trees and cutting
and transporting logs. Our survey question read:
"The last type of conflict
we need to discuss affects timber operations. Sometimes the machinery and
vehicles used for logging timber disturbs soil, and then the soil is washed
by storm water into streams and rivers. Fishing and swimming may be harmed by this soil pollution. But regulations to limit logging may reduce the land's appraised value. One approach to this problem is to have the people harmed by the pollution go to court against the timber operators. A second way is for government to
provide payments to operators who volunteer to log the land in ways that do
not cause pollution. A third approach is not to rely on volunteers but for
government to require the use of logging practices that minimize pollution.
The regulated operators would be eligible for cost-sharing money for the
application of goodpractices. Which approach do you prefer? 1. Have
private parties settle conflicts in court? 2. Provide payments to owners
who volunteer to use good logging practices? 3. Require operators to use
good practices?"
As with the question about manure disposal practices,
we included the possibility that regulated land users would receive
cost-sharing money. Among cost sharing assistance available for private
forest lands has been USDA's Stewardship Incentive Program. Between fiscal
year 1991 and FY 1997, it assisted 8,853 participants across 34
states.45
Text of question:
"The last type of conflict we need to discuss affects timber
operations. Sometimes the machinery and vehicles used for
logging timber disturbs soil, and then the soil is washed by
storm water into streams and rivers. Fishing and swimming may be harmed by this soil pollution. But regulations to limit logging may reduce the land's appraised value. One approach to this problem is to have the people harmed by the pollution go to court against the timber operators. A second way is for government to provide payments to
operators who volunteer to log the land in ways that do not cause
pollution. A third approach is not to rely on volunteers but for
government to require the use of logging practices that minimize
pollution. The regulated operators would be eligible for
cost-sharing money for the application of good practices.
Which approach do you prefer? 1. Have private parties settle
conflicts in court? 2. Provide payments to owners who volunteer
to use good logging practices? 3. Require operators to use good
practices?"
Farmland and ranch land owners' opinions about dealing with land use conflicts: How should conflicts between the recreational users of water resources and logging operations on private timber land be settled - percentages by response
category and region
Response
CategoryWest
Southern
PlainsNorthern
PlainsMidwest
South-
eastNorth-
eastNational
(weighted)
Settle in court
4.1
6.4
3.9
4.3
6.9
3.4
5.1
Government pays volunteers to log cleanly
42.0
30.0
37.3
27.7
31.5
28.3
31.7
Prevent pollution with regulations
47.8
54.9
49.7
60.4
50.9
65.5
55.2
"Don't know" or "won't say"
3.2
3.7
4.9
2.0
4.2
1.7
3.2
Not asked
2.9
5.1
4.2
5.6
6.5
1.0
4.9
Total percent
100.0
100.0
100.0
100.0
100.0
100.0
100.0
Total respondents
314
297
306
303
216
293
300/1,729
In summary, for three of our five land use conflict situations, majorities
of the weighted national sample supported the given regulatory approaches to
dealing with the conflicts. Respondents favoring regulation comprised
majorities in all six regions regarding the zoning and manure-disposal
conflicts and in four of the six regions regarding the logging scenario
(Table 28). Even among the groups who may feel greater vulnerability to
the effects of regulations - including current farm operators, owners with
livestock on their land, respondents with relatively large revenues from
farming, owners whose land had logging operations, and those with land
subject to zoning - more than 50 percent of them supported regulations for
those three scenarios. In the weighted national sample, majorities of all
five of these groups accepted: (1) zoning to limit nonfarm residences near
farming operations; (2) requiring adequate manure disposal practices to
prevent contamination of drinking water; and (3) requiring soil conservation
practices to avoid pollution of recreational water by
logging operations.46
The respondents who reported losing market value in the pastbecause of
regulations tended to be less supportive of regulation for these three
situations; but even among the respondents reporting property devaluations,
majorities were in favor except for the small group reporting losses due to
endangered species regulations. In other words, these three regulatory
scenarios were broadly acceptable.
Percentages of surveyed owners who favored a regulatory approach to
dealing with selected types of land use conflicts - by region
Type of Land use
ConflictWest
Southern
PlainsNorthern
PlainsMid-
westSouth-
eastNorth-
eastNational
(weighted)
Zoning to limit nonfarm residences near
farms
62.7
52.5
64.7
61.4
53.2
50.2
58.0
Requiring manure-disposal practices to avoid
contamination of drinking water
55.4
57.6
59.2
65.0
51.4
57.3
58.6
Regulating wetlands to prevent draining them
29.3
39.1
36.6
44.2
40.7
41.3
39.8
Regulating to protect endangered species
8.9
12.8
14.4
17.8
18.1
19.8
15.8
Requiring soil conservation
practices to prevent pollution of recreational waters by logging
47.8
54.9
49.7
60.4
50.9
65.5
55.2
Total respondents
314
297
306
303
216
293
300/1,729
Percentages of surveyed owners who favored regulatory approaches to dealing
with at least one, two or three selected types of land use conflicts - by region
Number of Conflict
Situations
West
Southern
PlainsNorthern
PlainsMid-
westSouth-
eastNorth-
eastNational
(weighted)
At least one for which regulation was appropriate
82.5
80.8
86.9
88.1
83.8
85.7
85.1
At least two
60.8
65.0
68.3
74.2
61.1
68.3
67.4
At least three
40.4
44.5
42.8
52.1
39.3
48.8
45.6
Total respondents
314
297
306
303
216
293
300/1,729
Traits of Respondents
Traits of surveyed respondents hypothesized to be associated with their responses to policy
preference questions: Percentages of respondents with indicated traits - by region
West
Southern
PlainsNorthern
PlainsMid-
westSouth-
eastNorth-
eastNational
(weighted)
1. Percent who owned land that was used for agricultural purposes, including timber production
95.5
94.9
97.7
94.1
94.0
93.2
94.8
2. Percent who managed land used for agricultural purposes but did not own
4.5
5.1
2.3
5.9
6.0
6.8
5.2
3. Percent whose agricultural land had a
stream or other body of water on or next to it
64.6
74.1
63.7
65.7
78.2
86.7
70.9
4. Percent whose agricultural land
was subject to zoning
80.3
11.8
42.5
54.5
42.6
58.4
46.4
5. Percent with non-farm homes within
100 yards of their agland
45.5
35.0
26.8
43.2
55.1
68.9
44.4
6. Average number of miles from nearest
town to agland parcel closest to that town
5.9
8.2
6.5
4.2
6.4
3.5
5.8
7. Percent with land used for crops
73.2
71.0
89.2
85.1
70.4
73.7
78.1
8. Percent with land used to raise livestock
62.7
78.5
71.9
46.2
48.1
57.7
58.0
9. Percent with land used for timber
or timber products
23.2
10.4
2.0
17.2
50.9
40.3
23.4
10. Percent living on their ag land at
least one month per year
82.5
68.0
83.3
82.2
84.7
87.7
80.9
11. Percent living within 10 miles but
not on their agland
8.6
16.5
9.8
8.9
9.3
7.8
10.3
12. Percent living more than 10 miles or unsure
9.1
15.5
6.9
8.9
5.1
3.8
8.8
Total respondents
314
297
306
303
216
293
300/1,729
13. Percent currently farm operators
79.0
69.0
76.1
63.0
59.7
64.8
66.9
14. Percent who used to be farmers
11.1
14.5
19.0
21.1
14.4
12.6
16.6
15. Percent who never were farm operators
9.9
16.5
4.9
15.8
25.9
21.8
16.5
16. Percent who currently run logging operations
7.6
4.0
2.0
2.3
10.2
7.5
4.9
17. Percent who owned land in the CRP
11.1
14.8
30.1
17.8
14.4
10.2
16.9
18. Percent who owned land under a
production flexibility contract with USDA
19.7
34.3
47.7
40.6
25.5
18.8
33.4
19. Percent who owned land that received some other USDA payment or loan
12.7
16.5
19.9
12.9
13.0
13.3
14.4
20. Percent who owned land that
participated in at least one of these three kinds of USDA benefit programs
34.1
46.5
68.3
56.4
41.2
33.8
49.0
21. Percent who purchased irrigation water from govt.
18.5
2.4
2.3
0.7
0.0
0.7
4.4
22. 1997 gross revenues from ag land: Percent not offering information
7.3
7.4
5.6
8.3
7.9
6.8
7.5
Percent less than $5,000
12.1
22.2
9.2
19.8
34.3
33.8
22.0
Percent $5,000 to $9,999
9.9
9.8
4.9
9.6
10.6
10.2
9.3
Percent $10,000 to $24,999
14.0
17.5
14.4
16.2
15.7
12.6
15.6
Percent $25,000 to $49,999
12.4
13.8
11.4
13.5
9.7
8.5
12.0
Percent $50,000 to $99,999
7.6
10.8
16.7
10.2
6.5
6.8
9.8
Percent $100,000 and over
36.6
18.5
37.9
22.4
15.3
21.2
23.7
23. Owned land used in current year for crop production: zero such acres
26.8
29.0
10.8
14.9
29.6
26.3
21.9
One to 99 such acres
29.6
22.9
12.4
29.7
44.0
44.4
30.4
100 to 299 acres
15.0
16.9
23.2
31.6
13.8
19.1
21.7
300 or more acres
28.3
29.3
52.9
22.8
12.0
9.9
26.0
Don't know or won't reply
0.3
2.0
0.7
1.0
0.5
0.3
0.0
24. Owned land used in current year for livestock
production: zero such acres
37.3
21.5
28.1
53.8
51.9
42.3
42.0
One to 99 such acres
17.5
13.8
12.4
21.1
21.8
24.2
18.8
100 to 299 acres
10.2
23.3
15.1
16.5
12.5
18.7
16.2
300 or more acres
34.7
40.4
43.1
8.3
13.4
14.7
23.1
Don't know or won't reply
0.3
1.0
1.3
0.3
0.5
0.0
0.0
25. Owned land used in current year for timber
production: zero such acres
76.8
89.6
98.0
82.8
49.1
59.7
76.1
One to 99 such acres
11.1
6.1
1.3
13.9
27.3
24.9
14.2
100 to 299 acres
3.8
2.4
0.3
2.6
14.4
11.3
5.5
300 or more acres
8.3
2.0
0.3
0.7
9.3
3.8
3.7
Don't know or won't reply
0.0
0.0
0.0
0.0
0.0
0.3
0.0
Total respondents
314
297
306
303
216
293
300/1,729
Adjustments in the Survey's Major Findings that
take into Account Nonrespondents
At the national level, approximately 40 percent of the total owners we
tried to survey did not participate. Table 2 in Chapter One reports that
most of the nonrespondents were owners for whom we could not find addresses,
let alone telephone numbers. In adjusting survey findings to take into
account nonresponse, one must make assumptions about how the nonrespondents
would have answered if they somehow had been surveyed. Our strategy is to
make conservative assumptions relative to our hypotheses. For example,
Chapter Two focuses on owners' reports about whether any of their
agricultural land had ever suffered losses in market value because of
government regulations. Our hypothesis was that relatively few respondents
would report such losses. To be conservative we assumed that, among the
nonrespondents, the percentage reporting losses would be twice as high as
the percentage for the actual respondents. For example, 11.9 percent of
the latter told us that they had suffered devaluations due to wetlands
regulations (Table 3). Therefore, we assumed that, among the nonrespondents,
who in the weighted national sample numbered 200, the percentage reporting
such losses would be 23.8 percent.
47 of the five land-use conflicts. Therefore, if more of the absentee owners had been interviewed, the survey findings would probably have been more confirming of our hypotheses rather than we conservatively assumed for Table 31.
Adjustments in the Survey's Major Findings that take into
Account Nonrespondents - by chapter
Chapter and Assumptions
Percentage
among
respondentsPercentage after making conservative adjustment for nonrespondents
Chapter Two
on the incidence of property devaluations
Assumption: that among nonrespondents,
the percentage reporting devaluations was twice that found among respondents
Land reduced in value because of
wetlands regulations
11.9
16.7
Land reduced in value because of highly erodible land regulations
12.1
17.0
Land reduced in value because of
endangered species regulations
2.8
3.8
Land reduced in value because of zoning regulations
9.7
13.6
Land reduced in value because of
"other" kinds of regulations
7.3
10.7
Chapter Three on guidelines for compensation
Assumption: that among nonrespondents the
percentage supporting a guideline was half that found among respondents
Limit compensation to those severely burdened by the regulation
30.7
24.5
Deny compensation if the owner knew about the regulation before
purchasing the land
75.0
60.0
Deny compensation if regulation had objective of protecting drinking
water used by a municipality
23.1
18.4
Treat better in compensation the land user who tries harder to comply
63.5
50.7
Compensation should not be automatic but depend on "other considerations"
67.1
54.2
Cost of protecting the environment should be shared between the
public and landowners
60.5
48.3
Partial or no compensation for land taken out of cropping for soil
conservation purposes if owner is also receiving USDA payments
62.3
49.7
Partial or no compensation for loss of yield to pesticide ban if owner
obtains irrigated water at a subsidy
76.4
61.3
In case of zoning restriction on number of
new homes per acre, partial or no compensation if value of developer's
land was enhanced by public investment paving nearby road
74.9
60.0
Chapter Four on opinions about appropriateness of regulations
Assumption: that among nonrespondents the
percentage approving regulation for dealing with the particular
land use conflict was half that found among respondents
Prevent conflict between farmers and nonfarm neighbors by zoning so
that few homes are built on farmland
58.0
46.4
Require livestock farmers near water to apply recommended
practices for storing manure
58.6
46.9
Use regulations to prevent the draining of
wetlands important for flood control
39.8
31.8
Use regulations to prevent harm to endangered animals
15.8
12.6
Require owners to use good practices to
prevent pollution of water due to soil erosion caused by their
logging operations
55.2
44.2
Number of cases in weighted
national sample
300
500
1 For example, the National
Wildlife Federation sponsored a poll of 1,000 voters that was
released on August 6, 1996. "Environment is high priority for
voters: Public sees room for improvement on environmental protection,
NWF poll indicates,: National Wildlife EnviroAction,
September 1996: 4-6. Back to text
2 U.S. Department of Commerce, Economics
and Statistics Administration, Bureau of the Census, 1994.
Census of Agriculture, 1992 (Washington, D.C.)
Back to text
3 If, when we talked with them on the phone
or received back their mailed questionnaires, the respondents
stated that they currently owned fewer than 20 acres of land
used for farming or ranching, they were included in the
survey as long as they told us that they owned at least five
such acres. Back to text
4 This estimate assumes that the
researcher aims to be 95 percent confident that the
error range of plus or minus 3.3 percentage points contains the
population value. Included in the calculations that yielded this
estimate was a design effect of 2.0; a design effect was needed
because we drew the sample in two stages (e.g., first 180
counties were chosen and then, 20 owners per county). Back to text
5
Paul J. Lavrakas, 1987. Telephone
Survey Methods: Sampling, Selection, and Supervision
(Newbury Park, CA: SAGE Publications), p.79; James H. Frey, 1983.
Survey Research by Telephone (Beverly Hills, CA:
SAGE Publications), p. 38. We subtracted from the ratio's denominator (e.g.,
the total sampled persons) all those who were ineligible to give
opinions or who were unable to give them. The first type of these
deleted cases consisted of persons who told us by phone or mail that they did
not currently own any agricultural land or were not managers
for the owners. The second group consisted of people who had
died, whose relatives characterized as too ill or old to
be surveyed, or who were out of town during the survey period. Remaining
in the response ratio's denominator were (1) the
actual completions, (2) the sampled owners who refused to participate
in the survey, and (3) those persons whom we could not contact (that
is, those for whom we lacked addresses or who did not respond to
our mailed questionnaire). Back to text
6 Since the 149 survey completions via
mailed questionnaires did not bear names or any other identifiers,
except for region of the country, we could not determine how many
of them were initial refusals and how many were cases of
missing phone numbers. We decided to classify them all as
falling in the former group. Back to text
7 See discussions of response rates by
Lavrakas (cited above), pp. 77-79; and Floyd J. Fowler, Jr.,
1993, Survey Research Methods (Newbury Park, CA: SAGE
Publications), pp. 40-41. Back to text
8 The 1.39 weight was derived by dividing
the target completion number of 300 by the actual completions
for that region, 216. Back to text
9 The one exception to the pattern of
largely similar responses regarded the question about
sharing the costs of protecting the environment (see Table 16
in Chapter Three); the percentage-point difference in responses
across the two groups of participants was 16.9 points.
Back to text
10 U.S. Army Corps of Engineers,
Recognizing Wetlands: An Informational Pamphlet, Internet,
April 1998, http://www.usace.army.mil/inet/functions/cw/cecwo/reg/rw-bro.htm Back to text
11 U.S. Department of Agriculture, 1991;
FACTA: Food, Agriculture, Conservation and Trade Act of
1990; Conservation in the 1990 Farm Bill: What Swampbuster Means to
You. Washington, D.C. Back to text
12 J. Dixon Esseks, Steven E. Kraft,
Edward J. Furlong, Victoria A. Krause and Brent L. Myers, 1995.
Producers and the 1995 Farm Bill (Washington, D.C.:
American Farmland Trust). Back to text
13 CFR 17.3 (1994) Back to text
14 Neil D. Hamilton, 1992. "Right-To-Farm
Laws Revisited: Judicial Consideration of Agricultural Nuisance
Protections," Journal of Agricultural Taxation and Law,
14(3): 195-228. Back to text
15 J. Dixon Esseks and Robert B. McCallister, 1986.
"Assessing the Need for Local Government Interventions in
Farm-Subdivision Conflicts," in Jim Seroka, editor, Rural
Public Administration (New York: Greenwood Press), pp. 137-154.
Back to text
16 Since the mid-1970s DeKalb County,
Illinois, has required 40 acres. Susan Jo Gehl and Jerry Paulson, 1997.
"DeKalb, Illinois, First in Agriculture," in Protecting Farmland
on the Edge: What Policies and Programs Work (DeKalb, Illinois:
Center for Agriculture in the Environment, Working Paper Series,
CAE/WP97-14). Back to text
17 In the weighted national sample, the
difference between the percentages of respondents living more than
10 miles from their agricultural land who reported devaluations
compared to the surveyed owners who lived closer were:
4 percentage points less frequently regarding losses due to wetlands
regulations, 4.3 percentage points less for highly erodible land
regulations, 2.2 points less for Endangered Species Act regulations,
3.3 points for zoning regulations, and 1.1 percentage point more
frequently for "other" kinds of regulations. Back to text
18 Jerold S. Kayden, 1996. "Private Property
Rights, Government Regulation, and the Constitution: Searching for
Balance," a chapter in Land Use in America, edited
by Henry L. Diamond and Patrick F. Noonan (Covelo, CA: Island Press),
p. 302. Back to text
19 Robert Meltz, Congressional Research
Service, 1996. Property Rights: Comparison of H.R. 9 as
Passed and S. 605 as Reported: Report for Congress.
(Washington, D.C.), p.1 of Internet report: http://www.cnie.org/nle/econ-10.html.
Back to text
20 Thompson, Edward Jr. 1996. "Takings
and Givings: Towards a Common Ground on the Property Rights Issue,"
in Takings and Givings: Writings on Property Rights, Government
Influence and Natural Resources (Washington, D.C.: American
Farmland Trust). Back to text
21 Mark Cordes, W. 1997. "Leapfrogging the
Constitution: The Rise of State Takings Legislation," Ecology
Law Quarterly, 24(2): 198. Back to text
22 These percentages are based on all respondents
per region, not just those who answered the question. For example,
in Table 9 the interviewed owners who were not asked the question because
they had found unclear our definition of compensation are
accounted for in the "Not asked" category.
Back to text
23 These crosstabulations focus on respondents
who had opinions about the policy issues presented in the
survey questions. Excluded from the analysis are the relatively few
cases where surveyed owners replied, "Don't know," they refused to
give their opinions, or they were not asked the question because they
had not understood our definition of "compensation."
Back to text
24 For example, among the owners with losses attributed
to ESA regulations, 62 percent supported the guideline
compared to 81 percent among the respondents who claimed no
such losses. The corresponding differences regarding
wetlands regulations were 70 percent versus 81 percent.
Back to text
25 Richard F. Babcock, 1966. The
Zoning Game (Madison, WI: The University of Wisconsin
Press). Back to text
26 Cordes, cited above, p. 193.
Back to text
27 Such a sharply different response pattern
indicates that our surveyed owners were taking the survey
seriously. When they shift 180 degrees between two questions that
came in almost immediate succession, they were reacting to
question's content rather than giving mostly the same responses
in order to get the interview over with quickly.
Back to text
28 Robert Meltz, 1996, Property
Rights: Comparison of H.R. 9 as Passed and S. 605 as Reported
(Washington, D.C.: American Law Division, Congressional Research
Service, March 7, 1996, 95-509A), Internet,
http://www.cnie.org/nle/econ-10.html,
p. 7. Back to text
29 The few exceptions included the West
and Southern Plains respondents at or above the median in income
from agriculture. Forty-eight percent and 49 percent of them, respectively,
approved of sharing the costs of compliance.
Back to text
30 According to the crosstabulation, 42 percent
of the surveyed owners at the national level who reported property
devaluations due to ESA supported the guideline of sharing costs
between landowners and the public. Back to text
31 Strong, Ann Louise, Daniel R. Mandelker,
and Eric Damian Kelly. 1996. "Property Rights and Takings,"
APA Journal, 62(1): p. 15. See also Anthony Downs, 1994,
New Perspectives on Metropolitan America. Brookings
Institute, p. 128. Back to text
32 Edward Thompson, Jr. 1994. "The Government
Giveth," Environmental Forum, March/April, p. 26.
Back to text
33 Since the responses of surveyed owners living
out of county were not significantly different from those owners
residing on or near their farms, we do not need to adjust our findings for the
under-representation of the former kind of owner in our sample.
Back to text
34 By accepting the "givings" argument, we
mean that they opted for partial or no compensation for at least
two of the three scenarios presented in the survey. See Table 20.
Back to text
35 In telephone and face-to-face interviews,
there is the danger that surveyed persons will deliberately or
unconsciously give answers that the interviewers seem to prefer.
See, for example, James H. Frey, 1983. Survey Research by
Telephone. (Beverly Hills, CA: SAGE Publications), pp. 45-46.
Back to text
36 Edward Thompson, Jr. 1980. Farming in
the Shadow of Suburbia. Washington, D.C.: National
Association of Counties Research Foundation; Neil D. Hamilton, 1992.
"Right-To-Farm Laws Revisited: Judicial Consideration of Agricultural
Nuisance Protection." Journal of Agricultural Taxation and
Law, 14(3): 195-228; Charles W. Abdalla and Timothy W. Kelsey,
1996, "Breaking the impasse: helping communities with change at the
rural-urban interface." Journal of Soil and Water Conservation,
51 (Nov.-Dec.): 462-467. Back to text
37 Julia Freedgood, 1991. "PDR Programs
Take Root in the Northeast," Journal of Soil and Water Conservation,
46(5): 329-332. Back to text
38 Susan Jo Gehl and Jerry Paulson, 1997.
"DeKalb, Illinois, First in Agriculture," in Protecting Farmland
on the Edge: What Policies and Programs Work (DeKalb, Illinois:
Center for Agriculture in the Environment, Working Paper Series,
CAE/WP97-14). Back to text
39 Is it possible that this widespread support
for zoning was an artifact of how we conducted the survey--mostly
through telephone interviews rather than by means of mailed questionnaires,
with the latter medium perhaps being more suitable for the kind of
long questions we asked in this section of the survey? We think not. As discussed in Chapter One, a total of 149 surveys were completed via the mails because their respondents were unable (hearing problems or no phone numbers) or unwilling to participate over the telephone. The 149 who sent in their surveys answered these five questions about competing approaches to land use conflicts in ways very similar to those of the respondents surveyed by phone. For example, while 58 percent of the weighted national sample supported the zoning option for avoiding conflicts between farmers and nearby nonfarm residents, the corresponding percentage among the 149 mail-questionnaire participants was 53.7 percent. In replyhing to the other four questions about the appropriateness of regulations, the discrepancies between the two sets of percentages did not exceed 6.5 points.
Back to text
40 Title III ("Conservation") of the Federal
Agriculture Improvement and Reform Act of 1996 reserved
one-half of the funding under the Environmental Quality Incentive Program
"for addressing conservation problems associated with livestock operations." (U.S. Department of
Agriculture, Office of Communications, 1996, USDA 1996
Farm Bill: The Federal Agriculture Improvement and Reform Act of 1996:
Title-by-Title Summary of Major Provisions of the Bill
[Washington, D.C.], p. 9). Back to text
41 For example, the crosstabulation found
that among the respondents reporting 1997 gross revenues from
their agricultural land of at least $100,000, 65 percent supported
using regulation to deal with this kind of land use problem, while
among the surveyed owners with less than $100,000 the corresponding
percentage was 64.5 percent. Back to text
42 Finding this type of
logical relationship
between two rather widely spaced questions encourages the
survey researcher. It indicates that respondents were thinking
consistently. Back to text
43 When the comparison
was made at $100,000 and
above versus less than $100,000, the percentage-point difference
was 17 points (32 percent as opposed to 49 percent).
Back to text
44 Cited by Ike C. Sugg,
"Reconciling Property
Rights and Endangered Species," in Property Rights Reader
(Washington, D.C.: Competitive Enterprise Institute), pp. 14-15.
Back to text
45 U.S. Department of Agriculture, Farm
Service Agency, 1998. Stewardship Incentive Program: From
Inception of the Program through 1997 Fiscal Year (Washington, D.C.),
Back to text
p. 25.
46 The same pattern was
found in the regional
samples except for the following cases: In the Southeast
sample, only 40 percent of the owners living on or close to their
land supported the zoning approach to farmer-neighbor conflicts;
45.6 percent of the respondents with livestock operations favored
regulation for the manure disposal problem; and 50 percent of the
owners at or above
the median in gross farm revenues selected the regulatory option for the
logging/water pollution situation. In the Northern Plains, 49.7 percent of
surveyed owners at or above the revenue median favored the
regulatory approach to the logging problem, as did 50 percent of the
respondents with land in crop production. There were eight exceptions
in the
West Region's sample regarding the logging/water pollution
scenario: supporting the
regulatory option were 46.5 percent of the respondents with
livestock operations, 49.5 percent with crop production,
49.8 percent who were farm
or ranch operators, 48.1 percent with land subject to local government
zoning, 49 percent who participated in some USDA benefit program,
46.1 percent of those whose cropland acreage was at or above the
median for that
region, 47 percent who were at or above the median for gross
farm revenues, and
49 percent who lived on or within 10 miles of their land.
Back to text 47 The exception was the use of zoning to prevent conflicts between farmers and nonfarmers living close to their operations. The out-of-county respondents were five percentage points less likely to endorse zoning for this purpose. Back to text