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) \,\ll1" ~ . The Commission recommends that: The legis.larure establish a consenratlon loan fund that provides low-interest Or no- interest loans for local efforts to preserve open spaces. farms and ranches The legislature determine ellglbillty to participate in the loan fund to ensure that loans are made in areas of statewide land preservation concern-and not to applicants with no preservation agenda . The Governor ask his Office of State Planning and Budgeting to identify potential revenue sources. such as excess cash fund.s. m capitalize the loan fund The loan fund should be capitalized with a minimum of $20 mUlion to 530 million over a period of several years_ The legislature create a board to administer the loans through a competitive process follO'Ning specific cmerta. and require any approved borrower to demonstrate the abllllY to repay the loan Interest rates on loans should be graduated and determined by project criteria. v,,'hile interest earned should be returned to the fund to recapitalize it . The loan fund sunset In ten years and require repayment of loans within two-and-one-half years ." RECOMMENDATION: End the Federal Estate Tax on Farnls and Ranches Farmers and ranchers consistently told the Commission that the federal escate tax is a burden that makes land preservation diffkult. Upon a landowner's death, the federal tax requires the heirs to pay up to 55% of the value of the estate. Few agricultural operations in Colorado can produce the income-especially on short notice---to pay the price tag of the esene tax, leaving the heirs of the ranch or farm with few options. The result is that the estate tax often drives heirs to sell the farm or ranch land for development in order to have the funds to pay their estate tax liability. There are stories from across Colorado of farmers and ranchers who wanted ta remain on their land, but were forced ta sell in order to pay the tax callector. The Commission recommends that the Gavernor submit a letter to the President and the U.S. Congress explaining how the federal estate tax ohen harms Colorado farmers and ranchers and encourages the development of valuable open space. Furthermore, the Commission recommends that the Governor consider suggesting in his Jetter that Congress exempt farmers and ranchers from the federal estate tax. p' RECOMMENDATION: Seek New lI'farkets for Agricultural Products Farmers and ranchers are busy crying to eam a living off their land, so it's nearly impossible for them to find new buyers for their products. The Commission believes that one way to preserve open sp3ces, farms and ranches is to help Colorado agriculture remain a viable way of life, and this means promoting Colorado-grown productS and exposing farmers and ranchers to new markets. The Colorado Department of Agriculture's Colorado Proud marketing program is one example of an effort to suPPOrt local products. Another is the Yampa VaHey Beef Project. which connects beef producers in the Valley to area restaurants and supermarketS. The Commission supportS additional state and local efforts to link Colorado farmers and ranchers with new demand for their products and services. This may include providing farmers and ranchers with Intemet marketing asslst3nce. In addition, the Commission encourages the Office of Economic Development to continue supporting effortS to bring businesses to rural Colorado that provide value-3dded pro(esses to local agricultural products. If farmers and ranchers can add value to their products in their local community, rather than in distant cities, states or countries, these rural communities will be healthier and ranching and ~rming will be more vi3ble. .,' "-.' .~