Below is text from Jefferson LandWork's 2008-2009 Biennial Report. For a digital or hard copy of the original report, with photos, please contact:

2008-2009 BIENNIAL REPORT

Executive Summary Since 2006, several organizations working in East Jefferson County in Washington State (Jefferson Land Trust, Northwest Natural Resource Group, Washington State University Extension, Jefferson County Conservation District, the Food Co-op, ShoreBank Enterprise Cascadia, and the Jefferson County Farmers Market Association) have come together to as the Jefferson LandWorks Collaborative (JLWC). The collaborative was designed with three goals in mind: (1) keep prime agricultural and forest land available and affordable in large enough tracts that food and timber operations can be economically and environmentally viable; (2) provide farmers and foresters access to the business training, capital, and know-how to be profitable; and (3) ensure that consumer demand and robust markets are in place to accommodate local food and timber products. Functioning as a network of organizations backed by a strong Memorandum of Agreement including hard deliverables and strong goals, JLWC has now functioned for three years. Having “harvested the low hanging fruit” in our first full year of operation (2007), the following two years brought slower growth and sustained successes. The Collaborative continued its innovative work with smart, hard-working clients, tremendous community support, and a lot of investment from the partner organizations, representing: (one client missing from data) · Eleven farmer/forester clients currently receiving services from two or more organizations; · These farmers/foresters create 16.5 FTE employment positions (some seasonally) in addition to the 6 FTE positions the owner/ operators hold;· Clients currently own 546 acres of farm and forest land, generating $257,000 in sales;· 77% of revenue was generated from local sales (original goal 75%), with 67% of supplies also purchased locally (original goal 25%).· 319 acres were permanently protected through conservation easements (achieved original goal), and $500,200 was invested in new infrastructure (original goal $15,000). NEW PROJECTS IN 2008/ 2009 The biennium of 2008/ 2009 represent years 2 and 3 of the Collaborative’s work. These have been historically volatile years in most sectors, and Jefferson LandWorks was not immune. Foundation funding was harder to come by, as was programming funding from public agencies. The Collaborative operated with a leaner budget, cutting staff time to 6 hours per week in 2009. The agriculture sector also experienced volatility. 2008 saw fuel prices skyrocket, bringing with it the cost of food. Unprecedented media attention was brought to “food miles”- the distance food travels to get to the end consumer- and the value of locally grown food. Jefferson County farmers saw consumers grapple with the idea of the “real” cost of growing food. Though the attention to important issues resulted in raised consumer awareness, the corresponding economic downturn also saw many families unable or unwilling to buy local products, perceived as more expensive. Growth in sales at the Port Townsend Farmers Market slowed, and opportunities for new farm projects seemed to dwindle. In spite of an international downturn, though, Jefferson LandWorks Collaborative eleven clients continued to refine business planning, search out expansion alternatives, take on greater acreage, make capital investments, employ and train workers, practice sustainable management, re-circulate their earnings locally, and preserve land for farming. 1. Office of Farmland Preservation Projects

Funding from the Washington Conservation

Commission’s new Office of Farmland Protection

brought increased programming funds in 2008.

New projects undertaken with these funds included:

· SUCCESSION PLANNING WORKSHOPS:

Our series of four workshops were well attended and well received. A total of 37 people attended one or more workshop, with 12 attending two or more. The best attended was our fourth quarter workshop, entitled Farm Leases: Windfall or Pitfall? Mary Embleton of Washington Farm Link presented numerous lease options and discussed the advantages and challenges associated with various leases. Many of the participants were leasers or lessees and had many questions and comments that generated much useful conversations. Leasing land is very common in Jefferson County as land prices prohibit new farmers from being able to purchase.

The first two workshops held, Introduction to Succession Planning and Starting the Family Conversation, featured WSU faculty Margaret Viebrock’s curriculum. The third workshop was extremely useful: Legalities of Farm Estate Planning with attorney Thomas Haensley. All four workshops emphasized the importance of well-informed planning and communication for rural landowners to achieve their personal and financial goals in the long-term.

· OUTREACH TO REALTORS:

Since realtors are often among the first to learn of property changing hands, JLWC has developed a relationship with many local realtors so that both sellers and buyers of agricultural properties are aware of options and resources available to them. Two JLWC representatives presented information to the Jefferson County Association of Realtors which generated a long group discussion about the overlap of our work. Since that time, members of that group have contacted us monthly to discuss properties being bought or sold. Building this relationship is an important, long-term project (made more challenging by the perception, held by some, that our work is at odds with one another). The foundation has been laid to work together in assisting in rural land transfer.

· LEASES: IDENTIFYING AVAILABLE LAND AND POTENTIAL RENTERS:

JLWC has seen repeatedly that farmland leases, though complex, are a very important and often misunderstood tool that deserves greater attention and expertise. Leasing land generates some income for a landowner while keeping it in production, which is often desirable to the landowner. It allows new producers to get into the industry without carrying the large debt of a mortgage. It can also reduce pressure on the landowner to consider dividing or selling. JLWC maintains a database of people looking to lease their land or looking for land to lease. We also proactively contact landowners whose land appears to be underutilized. Additionally, we provide technical assistance in helping to negotiate leases and make available lease templates.

An example of this work is a current project the Collaborative took on in 2009. The large, historic Boulton Farm faces the fate of many others here in Jefferson County; the retired farmer has no heir interested in taking over the farming operation but the family wishes to keep it intact and available for agriculture in the future. LandWorks convened an open house for parties interested in leasing, and has worked with the farmer and potential lessees to address critical questions often overlooked in lease negotiations.

2. Local Investment:

As JLWC refines its set of tools, leveraging investment for farmland purchase and business expansion continues to be an important ,and often missing, link. Partner organizations, including WSU, Jefferson Land Trust and Shore Bank are actively pursuing structures which will facilitate local investors securely investing in food and forestry projects. Examples include:

· Spring Rain Farm, one of LandWorks’ recently-added clients, was able to secure an important parcel adjacent to their farm by obtaining financing from a local farm advocate whom Jefferson Land Trust engaged. The farmer was able to obtain title to the land, which increases both his farmable acreage and his ability to house farm workers, at a time when credit is difficult to come by. The investor is able to generate interest income and support a cause that is important to her.

3. Ongoing Training and Expertise in Land Transfer and Tenure Models

In its commitment to innovation, JLWC is one of a small handful of organizations nationally looking at the very nature of land ownership for clues as to how to bridge the gap in the fair market value of working lands versus what a farmer or forester can pay for it and hope to make a living. With half of all farmland expected to change hands in the next 20 years creating models for sustainable land transfer is critical. LandWorks has positioned itself as a regional resource for groups and individuals looking for ways to keep high-value farm and forest land in production. LandWorks staff and partners have attended national trainings, learning cutting-edge tools, and been asked to speak throughout the region on those findings. The Collaborative has created a power point presentation outlining myriad alternative ownership and transfer mechanisms.

4. First Forestry Deals Completed Windfall Forest

Foresters and millers, the McKann Family, wanted to purchase an adjoining 20 acres of old growth and old second growth forest to conserve and manage in a sustainable manner. The size and age of the trees had a great income potential in terms of board feet of timber, but also sequestered metric tonnes of carbon. With the effects of global warming and the resulting Northwest Neutral carbon sale program managed by Northwest Natural Resource Group, the McKann Family was able to purchase the property using carbon credits and sustainably harvested wood as the collateral and source of financing repayment with ShoreBank Enterprise Cascadia. This type of creative, unprecedented financing model allows a family to purchase, steward and work a piece of forest land that would otherwise not be available to them.

First Carbon Sale Completed

Jefferson Land Trust, the Northwest Natural Resource Group, and ShoreBank Enterprise Cascadia collaborated to complete the first carbon sale by a small landowner in the Pacific

Northwest. After analyzing their own carbon dioxide emissions, ShoreBank sought to reduce their carbon footprint by purchasing carbon offsets. Jefferson Land Trust owns a carbon-rich 26 acre working forest, part of the 100 acre Bullis Forest Preserve near Old Fort Townsend. The Northwest Natural Resource Group brought ShoreBank and Jefferson Land Trust together through their Northwest Neutral carbon sales program which provided the protocol and business infrastructure to complete the transaction. By selling 400 metric tons of carbon, Jefferson Land Trust is getting paid to let trees continue to grow, and ShoreBank is able to offset its carbon footprint. This historic transaction represents an exciting new tool for Jefferson LandWorks forest owners to access capital through the carbon value in their forests, and to ensure those forests are retained and sustainable managed for another 100 years.

5. Chimacum Dairy and Mt. Townsend Creamery Partnership

Jefferson Land Trust received federal USDA funds from the Rural Business Enterprise Grant program for technical assistance related to revitalization of the Chimacum Dairy, located at Chimacum Crossroads. This grant will provide assistance to Jefferson Land Trust and the Mt. Townsend Creamery as they consider the following:

— 50 cow milking herd on the restored dairy site providing milk security to the creamery

— New creamery and cheese plant located on-site to accommodate the existing and additional milk capacity

— Nutrient management system to capture the nutrient streams from the dairy and creamery with outputs of methane, fertilizer, and carbon credit.

6. Environmental Stewardship

The Collaborative’s work does not end at purchasing, financing or preserving land. Nor does completion of a business plan complete the services offered. In order to achieve the “triple bottom line” effect of services, the projects must benefit people, the economy and the environment. Jefferson County Conservation District (JCCD) works with LandWorks clients to secure and implement conservation projects and best management practices on their properties. Some examples include:

· 11 acres of the riparian habitat at Glendale Farm are enrolled in the Conservation Reserve Enhancement Program (CREP). Additional restoration efforts include installation of a solar system and increased efficiency of the irrigation system.

· JCCD helped the FinnRiver farmers gain access to the lower fields with installation of a farm bridge across the creek.

· At Spring Rain Farm, 450’ of berm on Chimacum Creek was removed, reconnecting the creek to its floodplain. Large woody debris was placed in the channel and invasive Reed Canarygrass removed. 3.6 acre riparian buffer enrolled in CREP.

· 2,000’ of stream relocation/improvements were completed at Compass Rose Farm, including small bridge and culvert. 4.1 acres CREP riparian buffer planted and maintained.

UPDATES AND ONGOING SUCCESSESCONSERVATION EASEMENTS: 319 Acres Preserved and Counting!

Glendale Farm

· In May of 2009 Jefferson Land Trust and Jefferson County purchased a conservation easement on Glendale Farm, owned and farmed by Kirk Salvatore, just south of Chimacum. Funding was provided by the State Farmland Preservation Program, Jefferson County Conservation Futures Funds and community contributions. At 180-acres, Glendale Farm is one of the largest parcels in the County still in active agricultural use. It has been a farm since 1857, with a history of dairy and cheese production, and is currently produces Certified Organic beef. The conservation easement permanently protects the 150 acres of pasture of prime soils, 23 acres of forest, over 1/2 mile of Chimacum Creek, scenic vistas from two rural arterials and habitat for salmon, trumpeter swans, eagles, hawks, and many other species. . The highly visible, scenic vistas of this farm define the rural character of east Jefferson County, and protection of the strategically located property will set the tone for the viability of our agricultural community.

Chimacum Dairy (Brown Dairy)

The Brown Dairy is another critically important signature farm in the fertile Center Valley, located adjacent to Glendale Farm directly south of the Chimacum Crossroads. The Brown Dairy has been a working farm since the 1850's and has a long history of dairy (cont.) production. In December of 2009, Jefferson Land Trust and Jefferson County purchased a conservation easement from Gloria Brown on the 50 acre property that will permanently protect the agricultural values and the salmon habitat of Chimacum Creek. The Land Trust and ShoreBank Enterprise Cascadia are working with local Mt. Townsend Creamery on development feasilbility. The creamery produces regionally recognized cheeses and is interested in securing a supply of milk from a dairy herd located on the property. A USDA Rural Business Enterprise grant was received for feasibility of the dairy and creamery operations.

Finnriver Farm

Jefferson Land Trust and Jefferson County also purchased a conservation easement on Finnriver Farm and Cidery, located south of Chimacum in Center Valley. Finnriver Farm is a 33-acre Certified Organic farm, regionally known forits U-Pick blueberries, other mixed berries and vegetables, and artisan apple ciders. The conservation easement on the farm helped the Kisler family reduce the financial burden of making land payments while also attempting to expand operations, allowing them to concentrate on long-term farm viability, and providing them the assurance that the land will be preserved as farmland for future generations. Conservation values include prime agricultural soils, over 1300' of Chimacum Creek, scenic vistas and habitat for salmon, beaver, trumpeter swans, bear, eagles, hawks and many other species.

LWC Clients Offer Their Goods for Sale

The retail outlets represented in the LandWorks Collaborative- the Food Co-op and the Port Townsend Farmers Market- are the last to see the trickle-down benefit of the group’s work; it is a long road from acquiring property to having products to sell. Five Jefferson LandWorks clients sold product at the Food Co-op or Farmers Market in 2008/ 2009, grossing $194,000 in sales at the Port Townsend markets and over $97,000 at the Food Coop. These sales are expected to increase in future years as their businesses expand.

UPCOMING PROJECTS AND GOALS

Jefferson LandWorks annually assesses needs, opportunities and assets to inform the work of the Collaborative. In 2010 the group will commit to another three year Memorandum of Understanding, and undertake a strategic planning process that will focus on stabilizing funding streams.

Forestry Projects: Increasing Opportunities

LandWorks partner Northwest Natural Resources Group (NNRG) offers a unique set of services to forestland owners. As forestry is an important component of both the economy and eco-system of east Jefferson County, ensuring its economic viability requires many of the same tools that JLWC applies to farms and farmland. The Collaborative will continue to refine these tools as more forestry projects are taken on.

Most notably, NNRG functions as an aggregator of sales of sequestered carbon through their Northwest Nuetral program. Forests that are certified to internationally recognized sustainability standards, and commit to management plans for a minimum one hundred years, are eligible to “sell” carbon—assisting in cash flow for the landowners and ensuring the stand will be managed responsibly. NNRG is pioneering this opportunity for small landowners regionally, providing another example of the “triple bottom line” approach to rural enterprises. Growing the Next Generation of Farmers
Jefferson County has one of the oldest median landowners in the state with over half of the land base owned by people over 55 years of age. This is particularly significant in large parcels of farmland where much of this land is likely to change hands in the next 20 years- a trend seen nationally and locally. This presents a challenge that we face as a community; how do we transition from one generation of farm landowners to a new generation of growers? Can we assist young farmers- who are likely to utilize organic techniques, experiment with new crops, and compete in niche high-value markets- to secure this land instead of seeing its use converted to development? LandWorks has relied heavily on its primary education partner in the Collaborative, WSU Jefferson County Extension, to pilot a number of successful strategies for “growing the next generation of farmers”. A curriculum developed to introduce farming to a new generation, Cultivating Success, has been offered annually for the past three years. Another training program, Tilling the Soil, introduces business planning to today's farmer who must not only be a successful farmer but also a successful business manager.

Additionally, start-up farmers have benefited from the EDC/ TEAM JEFFERSON access to capital and financing. Monthly "Mind Mulch" gatherings brought farmers together to share local information and expertise. In 2009, WSU Extension joined local farmers to address one of their top priorities for economically viable farming; a new farm internship training program, FIELD, is being developed for Spring 2010 in an effort to provide training and mentoring to young farm interns in an effort to attract and keep them in our local food economy. The program will provide weekly hands-on WSU extension curricula taught by
local growers, for college certification.

Goals and Projects for 2010 and Beyond

· Ongoing client recruitment and contact, with an emphasis on forestry clients and potential carbon sales;

· The hosting of a public forum on farmland affordability, inviting government, investors, farmers and partner organizations to address how Jefferson County can continue to expand the agricultural sector in the face of high property values;

· Identifying strategies to assist Jefferson Land Trust in implementing their 100 year Conservation Plan;

· Assess and compile concise Succession and Estate Planning tools for LandWorks Collaborative’s clients;

· Securing funding for on-going work of the

Jefferson LandWorks Collaborative