The chart below provides the current status of Counties with pending applications.  Note that Oldham County has yet to participate in the program while Shelby, Henry, and Trimble counties are actively  involved in the process.

Eligibility:  Any owner of farmland in the state can apply to the PACE Corporation for the purchase of their farmland as an agricultural conservation easement, or other property interest. In order to be considered for purchase, a completed application must be submitted by the landowner on the "Agricultural Conservation Easement Application" (dated July 15, 1995).  The form can be downloaded from the Division of Farmland Preservation's website.

Application Process in Brief:  A representative of the PACE corporation reviews the application to determine its completeness; then views the farmland tract and provides the PACE board with a preliminary evaluation of whether the farmland tract meets the minimum criteria for eligible land.

The PACE board then determines the easement value of the farmland tract by appraisal.

The PACE corporation considers the following factors in evaluating eligible lands for purchase:

• Soil type

• Extent of agricultural production in proximity to the farmland tract

• Current use of the farmland tract

• Proximity of the farmland tract to an agricultural conservation district

• Size of the farmland tract

• Vulnerability of the farmland tract to conversion to nonagricultural uses

• Any other factors relevant to the use or potential use of the farmland tract for agricultural production

(The Corporation uses a point system to evaluate potential purchases in order to establish relative priorities)

If the PACE board determines to offer to purchase an easement or other property interest on the farmland tract, the PACE corporation submits a written offer to the landowner for the purchase.  The offer is accompanied by a copy of any appraisals of the property.

Within 30 days of receipt of the written offer, the landowner shall accept or reject the offer, or advise the corporation that the landowner is obtaining an independent appraisal.  

If an offer to purchase is finally accepted, the landowner and PACE corporation enters into a contract of sale for the property.  The purchase price is paid by the Commonwealth.

If the landowner so elects, the Commonwealth is authorized to pay the purchase price in a lump-sum single payment at the time of closing, to enter into contracts for pay outs over a term of years against the purchase price, or to enter into installment purchase agreements. When pay outs over time are made, the Commonwealth is authorized to pay interest consistent with prevailing market conditions at the time of the execution of the contract.

Use of restricted land during term of easement: During the term of an easement, the restricted land shall be used solely for the production of crops, livestock and livestock products, and nursery and greenhouse products including the processing or retail marketing of these crops, livestock and livestock products, and nursery and greenhouse products if more than fifty percent of the processed or merchandised products are produced on the subject land, and for the raising and stabling of horses for commercial purposes. 

KRS 262.910 lays out other restrictions with regard to use of the land.  Some restrictions include:

• All existing single-family residential dwellings may be repaired, reasonably enlarged, and replaced at their current locations without further permission of the PACE board. No new single-family residential dwellings may be built on the restricted land without the advance approval of the PACE board.

• No portion of the restricted land shall be paved or otherwise be covered with concrete, asphalt, gravel, or any other paving material, nor shall any road for access or other purposes be constructed, without the advance written approval of the PACE board.

• The mining or extraction of soil, sand, gravel, rock, oil, natural gas, fuel or any other mineral substance, using any method that disturbs the surface of the land, is prohibited without the advance written approval of the PACE board.

• Golf courses are prohibited on the restricted land. Buildings and facilities for any other public or private recreational use may not be built on the restricted land without the advance written approval of the PACE board.

Landowners shall retain the right to perform any act not specifically prohibited or limited by this section and administrative regulations promulgated under its provisions. These ownership rights include, but are not limited to, the right to exclude any member of the public from trespassing on the restricted land and the right to sell or otherwise transfer the restricted land to anyone of the landowner's choice.

Responsibilities of landowner during term of easement: The landowner shall continue to be solely responsible for payment of all taxes and assessments levied against the restricted land.

The landowner shall continue to be solely responsible for the upkeep and maintenance of the restricted land, to the extent it may be required by law. 

Tax Benefits: 

Agricultural Enhancement Fund (KRS 262.920):  (The following is extracted from the statute to explain PACE program overall funding.)

(1) (a) There is hereby created by this section a special fund in the State Treasury which shall be known as the "Agricultural Enhancement Fund." There shall be deposited in the fund:

1. Moneys received by the Commonwealth, from whatever source and by whatever means, as gifts for purposes of retaining agricultural lands and supporting and abetting agricultural practices and activities which shall improve conservation and natural resource protection practices, enhance the viability of the agriculture industry, and expand the economic contribution that agriculture makes to the Commonwealth;

2. Moneys received by the Commonwealth, from whatever source and by whatever means, as grants or loans for purposes of retaining agricultural lands and supporting and abetting agricultural practices and activities which shall improve conservation and natural resource protection practices, enhance the viability of the agriculture industry, and expand the economic contribution that agriculture makes to the Commonwealth;

3. Moneys received by the Commonwealth including proceeds of bonds issued for the purpose of funding the PACE Program as dedicated sources of revenue for the fund; and

4. Moneys appropriated to the fund.

(c) Upon authorization of the PACE board, the moneys in the fund may be used for:

1. The acquisition of agricultural conservation easements on eligible lands within the Commonwealth;

2. The acquisition of options to purchase agricultural conservation easements on eligible lands within the Commonwealth;

3. The costs of appraisal, engineering, surveying, planning, financial, legal, and other services, and applicable personnel costs lawfully incurred incident to the acquisition of agricultural conservation easements in eligible lands and for monitoring and enforcing easements on restricted lands;

4. The costs incident to the sale, issuance, and delivery of bonds, and to securing funds from other revenue sources for the fund;

5. The provision of guarantees for loans that farmers participating in the PACE Program may need to seek from lending institutions in order to carry out agricultural operations, including loans for annual agricultural - production, agriculture and conservation-related improvements, and

6. Other expenditures as specified by the PACE board, providing that the expenditures are consistent with KRS 262.900 to 262.920 and administrative regulations promulgated by the PACE board and are for the express purpose of retaining agricultural lands, supporting and abetting agricultural lands, and supporting and abetting agricultural practices and activities which shall improve conservation and natural resource protection practices, enhance the viability of the agriculture industry, and expand the economic contribution that agriculture makes to the Commonwealth.