Organic Farms as Subdivision Amenities

Increasingly, subdivisions, usually master-planned developments at which buyers buy home sites or raw land, have been treating farms as an amenity. “There are currently at least 200 projects that include agriculture as a key community component,” said Ed McMahon, a senior fellow with the Urban Land Institute. In 2001, investors in a stalled project with an agriculture component outside Boise, Idaho, recruited Frank Martin to take over their development. Mr. Martin had been a manager at Prairie Crossing, a subdivision built around a working farm in the Chicago suburb of Gray’s Lake. By 2008, the 1,756-acre Idaho development had repaid a $12 million loan from the financing arm of General Motors; realized a 61 percent premium on the sale of its sites, compared with similar parcels with no farm nearby; and claimed a $2.8 million pretax profit by selling 785 of 800 lots, while keeping 1,000 acres open. The success of the two developments proved the concept, and like-minded developers around the country are trying it on inactive farmland and even on formerly industrial land.
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