PENDER COUNTY — As residential development rapidly consumes farmland, Pender County faces a critical question about the future it’s building and the economic foundation it might be losing.
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While a recent cost of community services study reveals agricultural land is a net revenue generator for the county, the very housing growth replacing it often costs more in services than it brings in taxes, forcing Pender to balance development with its agricultural heritage.
Between 2001 and 2016, national land was converted from agricultural to non-farm uses at a rate of 2,000 acres per day. According to a 2024 report from the American Farmland Trust, North Carolina is ranked number one across the country for farmland loss to low-density residential development.
The loss of farmland holds a particular weight given agriculture’s long-standing role as an economic cornerstone in Pender County. Agriculture is the county’s largest industry, encompassing diverse crops like blueberries, sweet potatoes, soybeans, and tobacco, alongside poultry and swine operations. In 2022, the county generated approximately $238 million in crop and livestock sales, building on previous years where sales totaled around $200 million in 2017 and $174 million in 2012.
Pender County faces its own projection of a 15% to 30% loss of its current 64,000 farmland acres by 2040. For farmers like Buron Lanier, president of the Pender Farm Bureau and owner and operator of Piney Woods Ranch in Burgaw, the projection is worrying.
“We are all very concerned about how much farmland is going away every year, and we’re losing it to usually development,” Lanier said. “There’s just not near the farming going on that there used to be because of lack of land.”
Lanier’s concerns are highlighted by the rapid growth of the county. Pender is currently the second-fastest growing county in the state, just behind Brunswick. In the five years since 2020, its population has surged by 16.6%, requiring more than 5,000 new housing permits in that span.
“Developers are offering a lot of money for plots of land to build houses and build businesses,” Pender County Extension Director Mark Seitz said. “So if you’re kind of sitting there, you’ve been farming all your life, and more or less your primary asset is land, you’re trying to cash out and retire and have something to live on.”
According to the USDA’s 2022 Land Values Summary, the average price for dedicated farmland in North Carolina is around $5,000 per acre. The market value for land with development potential — such as land near towns or highways — is significantly higher, often well over $10,000 per acre.
For many farmers, the allure of high offers is undeniable, especially given the state’s aging farming demographic. Seitz noted part of the problem is the increasing average age of farmers in North Carolina, which was about 58 years old as of 2017, coupled with a lack of young people becoming farmers.
“I’m 61 and like a lot of us in our 60s, we’re looking around and going, ‘When can I retire?’” Seitz questioned. “Farmers are no different and if they don’t have family members that are waiting in the wings to take over the family farming business, what alternative do they have?”
He added young people could be deterred from starting their own farm businesses due to high start-up costs. For smaller operations like specialty produce farms, total land costs can be around $50,000 for about 10 acres, while farms with 100 acres or more, such as for livestock operations, can reach well over $100,000. Factoring in the additional expense of equipment and initial seeds or livestock, the start-up costs quickly escalate.
“You’re 20 years old coming out of high school and say, ‘I want to farm’, and you have no connection to it and no way to inherit a parent or grandparents operation,” Seitz continued. “If you want to go buy 100 acres of land at 20 years old with no track record, what banks can loan you the money to borrow to get started?”
Beyond the pressure to sell their farmland, farmers face a volatile market where extreme weather has taken a heavy toll. In 2024, flooding from Hurricane Helene severely impacted North Carolina’s corn harvest; N.C. State reports the state’s corn business plummeted from an expected $750 million to only $250 million.
With adverse weather conditions and a global increase in supply, corn grain sale prices have declined across North Carolina. According to USDA, the average price for 2023 was roughly $4.95 per bushel, marking a $1.50 drop from the $6.44 per bushel average recorded in 2022.
“You know, if the price of corn was back up like it was two years ago, they could overcome a lot of these other difficulties, like drought and flooding,” Lanier said. “But when the commodity price is so low like it is right now, it is hard to come out even in a good year, much less these adverse years.”
Even as farmers face economic pressure, the county’s agricultural land provides fiscal benefits outside of crop and livestock revenue. To gain a deeper understanding of agricultural land being lost to development, a Cost of Community Services Study was conducted earlier this year. Led by Seitz and staff from the Pender County finance department, the study utilized the county’s financial revenue and expenditure data from the 2022-23 state audit to analyze residential, commercial and agricultural land uses.
The study revealed a key contrast in the fiscal contributions of various land uses. While residential properties proved to be a net fiscal cost, producing just $0.95 in revenue for every dollar spent on services (a $0.05 loss), agricultural land emerged as a net gain. Agricultural properties generated $1.74 for every dollar spent on services, resulting in a $0.74 surplus. Commercial properties were the most fiscally beneficial, generating a substantial $6.08 for every dollar spent on services and yielding a $5.08 surplus.
Having been around the agricultural industry for more than 20 years, Seitz said the results of the cost of community services study were not surprising.
“Almost every one of these studies shows that agriculture generates or costs the county far less in service support than residential does,” he iterated. “That’s kind of intuitive because you’re talking about open land that is either used for crop production or growing trees and there’s just not a lot of demand for utilities.”
The demand for county services varies significantly by land use. As Seitz noted, residential areas require the most services, including education, infrastructure maintenance, and public safety, costing Pender County about $77 million in FY22-23.
While residential properties also generated the largest share of property tax revenue at $74 million that fiscal year, this figure falls short of covering required services. Overall, Pender County generated approximately $99 million in total property tax revenue, with commercial properties contributing $21 million and agriculture $4 million.
It is worth noting property tax revenue for agriculture is slightly skewed, as farmers can receive a tax break depending on whether their land qualifies for the county’s Present Use Value program.
This program, specific to North Carolina, allows qualifying agricultural, horticultural, and forestland to be taxed based on its actual use for farming, rather than its potentially higher market value for development. To qualify, land must be actively used for production, meet acreage minimums (typically 10 acres for agriculture), and have generated a certain income level from farming for the past three years.
For Seitz, the study was not just about the data but recognizing the value of one of the county’s top assets.
“Part of my motivation for doing this study was just to highlight the fact that agriculture is still a viable industry in this county,” Seitz said. “It’s worth it, having policies in place that promote and support agriculture just as much as it is to promote bringing in other corporations and other industries. Agriculture is already here, why don’t we support it? Why don’t we promote it?”
Pender County Commissioners intend to support farmland in part with the Imagine Pender 2050 Comprehensive Land Use Plan, a community-driven guide for future land use policy. The latest draft aims to balance new residential and commercial development in strategic growth areas with protecting rural character and agricultural land. The plan will be finalized by fall of 2025.
The Imagine Pender Plan outlines initiatives, such as collaboration with local farmers, exploration of agri-tourism opportunities, and the creation of a farmland preservation plan.
Commissioner Randy Burton emphasized transparent communication with both the public and farmers about policy changes is vital to success.
“Farmers are some of the backbone of our country, so we want to be able to support them while maintaining and supporting development in a smart way, to allow housing for the growth of our citizens and businesses,” Burton told Port City Daily. “People don’t want to feel blindsided or feel like sneaky things are being done, so what we want to do is get out in front of this and just start the conversation and have everybody on a level playing field.”
State lawmakers are also attempting to address development’s impact on the agriculture industry. A provision of Senate Bill 639, The North Carolina Farm Act of 2025, would allow county governments to deny special use permits if the proposed use negatively affects agricultural production. However, this authority would not apply if the primary purpose of the proposed land use is the construction of buildings or structures subject to the North Carolina Residential Code, effectively excluding most standard residential developments — like single-family homes, duplexes, and townhouses.
Under this provision, special use permits could be denied for industrial or commercial facilities. Industrial uses tend to generate truck traffic, noise, light pollution, and potentially odors or stormwater runoff that could directly impact nearby agricultural operations, crop health or livestock.
After being introduced by Pender County’s Sen. Brent Jackson in late March, the bill is now in the Senate Committee on Rules and Operations.
Beyond legislative efforts and long-term planning, a more immediate form of support for Pender’s farmers comes from the community. Both Seitz and Lanier agree the best way to support local farmers is to buy their products.
“Support the local produce stands, buy local beef products and pork products and chicken products when available,” Lanier said. “Seek those farmers out that are selling a local product and patronize them. Anytime you can do that and buy directly from that farmer you’re helping the farming industry in your area.”
[Ed. Note: This article was amended to include a distinction between national data and state data on agricultural land loss between 2001 and 2016.]
Have tips or suggestions for Charlie Fossen? Email charlie@localdailymedia.com
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