Agricultural Sciences

When Buying Or Selling A Farm, Don't Dump Responsibility

UNIVERSITY PARK, Pa. -- More and more farms are being purchased for development or by urban dwellers seeking a rural lifestyle, but Penn State experts say prospective buyers should be careful to inspect any land for signs of a dump before agreeing to buy.

"In the '50s and '60s, before Americans became environmentally conscious, many cities and small towns had open, unlined dumps," says Jim Garthe, agricultural engineer in the College of Agricultural Sciences. "Many farms also housed small dumps and most are still there. Those considering buying farmland to develop or to reside on should check if there is a dump on the property and have an environmental professional assess the site."

"Some farm dumps still are used today," says Jennifer Shufran, research technician in agricultural and biological engineering. "But even if they are unused or the owner is unaware that they are there, the owner ultimately is responsible for any pollution and cleanup costs they cause, which can greatly reduce farm value."

Shufran points out that the 1980 Comprehensive Environmental Response, Compensation and Liability Act -- known as the Superfund law -- applies not only to huge industrial sites, but also to agricultural land.

"Most people buying a farm need to get a mortgage from a bank," Shufran explains. "Most banks and mortgage companies will ask the buyer to fill out an environmental questionnaire as part of the application process. The buyer usually will need to solicit information about the property from the seller in order to answer many of the questions."

Typically, questionnaires request a description of the farm and adjacent properties, pesticide storage procedures, former or present use of underground storage tanks, soil conservation and nutrient management plans, details on the water supply and septic system, and whether there is knowledge of a dump on the farm.

Garthe and Shufran recommend that buyers investigate the farm thoroughly by checking the site for signs of an abandoned or covered-up dump. They offer some clues and tips:

--Ask Neighbors. "Neighbors tend to know if a farmer had a gas pump, which means there's a storage tank, or if he dumped materials on his farm," Garthe says.

--Mounds. "Mounds of dirt or areas of soft soil could be covering old dump sites," Shufran says.

--Roadways. Garthe says to look for an old path or road heading off into woods or scrub. "If there's a dump, it is usually accompanied by an access road," he says.

--Borrow Pits. These sites, where topsoil or shale have been dug out for use elsewhere, are prime areas for dumping.

--Wetlands. The experts say swamps are likely sites for a dump. "The dump will never be out front next to the house and the road," Garthe says. "The dump is always far back or in an area like a wetland where you can't see it."

--Forest edges. Shufran says old fence lines and forest edges can conceal old dump sites.

--Land features. Shufran suggests looking for sinkholes, ravines, steep banks and other topographic features where trash is not seen easily by casual observers.

--Sparse areas. Sparse growth or stunted scrub vegetation can be a sign of a dump site. "Look for stunted vegetation, darker colored earth, bits of glass or even an old car," he says.

--Old foundations. Foundations of older buildings are almost certain to be filled with junk and other refuse, Shufran says.

Garthe points out that farm dumps can contain almost anything, including small and large household appliances, petrochemical cans or drums, tires, old tools, used or old parts, glass, irrigation tubing, plastic mulch and other plastic containers.

Shufran says if a farm inspection reveals any concerns on the part of the buyer, an environmental site assessment should be done. Each site assessment has three phases, although not all phases necessarily are required.

A Phase I assessment includes a site tour; descriptions of all buildings, tanks, drums, ponds, pits or disposal systems; and a report of significant environmental liabilities. It also entails a background history of the property; a records search for state, local and federal violations; a title search; and environmental liens and evidence of past use.

If deemed necessary, a Phase II assessment can be performed to determine if there is reason for environmental concern. Intrusive testing and sampling are done during Phase II. A Phase III assessment maps out the procedure for removing pollutants from the site and disposing of them properly, as well as remediating any environmental degradation, if necessary.

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EDITORS: For more information, contact Jim Garthe or Jennifer Shufran at 814-865-7154.

Contacts: John Wall jtw3@psu.edu 814-863-2719 814-865-1068 fax

Last Updated March 19, 2009