By DREW KERR

dkerr@poststar.com

Martin Hanehan's family has owned a Stillwater-based dairy operation for almost a century, and even if the bovine-bearing land doesn't always carry his name, he wants to be sure it's not used for anything other than farming.

To help make sure that happens, Hanehan moved a few years ago to sell the development rights to the 135-acre plot he owns near the Saratoga Battlefield. The move added language to his deed that bars any future owner from developing the property for non-agricultural uses.

Selling the development rights allowed Hanehan to draw some equity from the farm that he put back into the operation. But more importantly, he said, it gave him comfort that a residential subdivision or factory would never crop up on his beloved property.

The decision is virtually irreversible, but asked if he ever had any second thoughts, the fourth-generation farmer was unequivocal.

"The only thought I've had is that I'm glad I did it," said the father of three, who also owns land in the town of Saratoga that he may one day try to preserve. "To be able to say we've protected this land is pretty rewarding."

Officials involved with farmland preservation fear such success stories may be harder to come by in the years ahead.

Government spending on farmland preservation projects is at risk of being slashed, as officials search for ways to cope with declining revenues. Farmland protection advocates say the cuts will translate into more farmers competing for less money when looking for assistance.

The state, which fielded requests for more than $159 million in farmland protection projects last year, could cut its $23 million commitment by nearly $1 million in trying to make up a current-year budget deficit of more than $3 billion.

And after reaching an apex of $35 million just two years ago, advocates fear state funding may be slashed further in next year's budget, possibly returning to levels not seen since 2002, when state leaders afforded virtually no money for farmland preservation projects.

Because the state typically pays for around 75 percent of the costs associated with a farmland preservation project, such cuts could devastate protection efforts in coming years, officials said.

"We won't really know what's going to happen until January when the governor comes out with his budget, but we are very concerned," said David Haight, the New York director for the American Farmland Trust.

The declines in state support come at an inauspicious time, too.

Farmers who are facing severe financial strains are increasingly looking to sell development rights as a way to get some immediate income.

Land values and development pressures are meanwhile expected to rise with the arrival of computer chip maker GlobalFoundries in Malta.

At the same time, local funding is being curtailed to make up for dwindling revenues.

In Saratoga County, where an open space and farmland protection fund was started in 2003 to leverage state money, officials have proposed cutting their annual allotment for such efforts by $250,000 next year, leaving the fund at $500,000.

Farmland protection advocates say such cuts could leave the area's economy and landscape inextricably altered.

"We really have to continue this commitment," said Teri Ptacek, executive director at the Agricultural Stewardship Association, a land trust that has operated in Washington and Rensselaer counties for the last 20 years.

Her organization has helped protect nearly 10,000 acres of farmland since its inception and last year helped complete a $424,000 preservation project at the Moses Farm in White Creek.

The state covered 75 percent of the costs associated with protecting the land, where "Grandma Moses" painted her popular, agrarian-inspired landscapes.

The 177-acre vegetable farm, which dates back to the early 1900s, was never directly targeted for development, but Rich Moses, who now runs the farm with his wife, Kathy, said he knew the scenario might not last.

"It's just one of those things that you just know is going to come," Moses said last week while providing a tour of the property, located a short drive west of the Luther Forest Technology Campus where GlobalFoundries is now building its factory.

Moses likened the preservation of farmland to efforts undertaken to protect the most picturesque lands in the country by placing them under the control of the National Park Service.

"In a way, I think there are a lot of parallels that can be drawn," he said, describing farmland preservation supporters as "modern day versions of Teddy Roosevelt."

Jerry Cosgrove, deputy commissioner for the New York State Department of Agriculture and Markets, which oversees the state's farmland protection program, said state leaders largely agree with Moses' assessment and recognize the need to maintain some level of support.

The primary goal now, he said, will be clearing the long backlog of projects that New York has committed to funding.

But drastic cuts in the amount of money set aside for future projects - paid for through the state's Environmental Protection Fund - are unlikely, he said.

"I think people understand that this is not an expense; it's an investment," Cosgrove said while attending an event celebrating the Moses Farm preservation last week. "The concept of having a working landscape is critical, particularly in lean times."

Assemblyman Tony Jordan, R-Jackson, said he would work to maintain funding for farmland preservation. Such efforts are "not really a luxury," he said, because farming plays such a large role in the state's economy.

"Agriculture is the leading industry in the state, so we should be doing everything we can to maintain that," said Jordan, adding he hopes to invite New York City lawmakers to his rural district so they can see the importance of farms.

Despite the growing fervor to preserve farmland, agriculture-oriented property has grown increasingly scarce in recent years.

In Washington, Saratoga and Warren counties, the amount of farmland has fallen from a combined total of around 309,800 acres in 1992 to just over 284,100 acres in 2008, a decline of more than 8 percent.

Over the same time period, statistics compiled by the U.S. Department of Agriculture show the amount of land dedicated for farming across New York has fallen from around 8.2 million acres to 7.1 million acres in 2008, a 15 percent decrease.

As such, New York farms can now produce enough food for just 6 million of the state's 19 million people - a disparity advocates say threatens to strain not just the state's food supply, but its overall economy.

"Preserving farmland is not a purely benevolent action," said Haight, of the American Farmland Trust. "There are huge economic advantages to be had here."

Because government support can ebb and flow, particularly in difficult economic times, some supporters are beginning to look at alternative ways to fund such projects.

One method may be getting local communities to institute a real estate transfer tax and putting the proceeds toward such projects - something now seen only in the Hudson Valley and Long Island regions.

Maria Trabka, who has worked to preserve farmland with various land trusts for the last 20 years and now serves as the director for Saratoga P.L.A.N., acknowledged getting buy-in for such an idea can be difficult.

"It's a hard sell in the local community because it is a tax," she said.

Even if there is a temporary lull in funding, though, farmland preservation advocates say there is reason to be hopeful.

More farmers than ever are interested in ensuring their land remains dedicated to agriculture.

Some are so committed they are contributing the necessary local matches on their own, either by donating the development rights outright or selling them for less than they're worth.

"The thing that is encouraging is that the dialogue is increasing," Charlton Supervisor Alan Gratidge said at a recent workshop on the selling of development rights that drew nearly two-dozen local farmers. "Four or five years ago, this was a foreign concept."