How the Clean and Green Program Helps Lancaster County Landowners Save Big on Taxes

I’ll never forget the first time I helped a Lancaster County landowner enroll their property in the Clean and Green Program. They owned around 40 acres of farmland, and when we looked at their current property tax bill, it was clear they were paying based on what that land could be worth if it were developed—not what they were actually using it for. After enrolling in the program, their annual property tax dropped by several thousand dollars—and it’s continued to save them money year after year.

That’s the power of the Clean and Green Program in Pennsylvania. If you own farmland, woodland, or open space here in Lancaster County, this program could significantly reduce your property taxes—and even cut inheritance taxes down the line.

Let me walk you through what I’ve learned from working with local landowners, and why I think more people should take advantage of this.

What Is the Clean and Green Program?

The Clean and Green Program—officially called the Pennsylvania Farmland and Forest Land Assessment Act of 1974—was created to give landowners a break on their taxes for keeping their land undeveloped. Instead of being taxed based on its full market value, your land is taxed based on its use value, which is usually much lower.

In a place like Lancaster County, where farmland is in high demand and development pressure is high, this can mean serious savings.

What Types of Properties Qualify?

The eligibility rules are pretty straightforward, and I’ve worked with clients across all three categories.

1. Agricultural Use

If your land is:

• At least 10 acres, or

• Produces at least $2,000 per year in income from farming (even if it’s less than 10 acres),

…then it likely qualifies. I’ve seen small parcels qualify just because they were leased out for hay or crops that brought in that minimum income.

2. Agricultural Reserve

This one surprises people. If your land is:

• At least 10 acres,

• Not farmed, but

• Open to the public for passive recreation (like hiking),

…it may still qualify for Clean and Green. I’ve seen rural families use this for land they simply want to keep undeveloped.

3. Forest Reserve

This applies to:

• 10 or more acres of wooded land, even if it's not being harvested for timber. Just keeping it preserved can qualify.

Real Savings: Property Tax Assessment Example

Let me give you a ballpark based on what I’ve seen here in Lancaster:

Example: 25-Acre Farm in Southern Lancaster County

• Market Value Assessment: $25,000/acre = $625,000

• Clean and Green Use Value: ~$5,000/acre = $125,000

• Taxable Value Reduction: $500,000+

That one decision could cut your annual tax bill in half—or more. One of my clients saved over $4,800 a year on their taxes just by enrolling in the program.

How It Impacts Inheritance Tax

Here’s where things get really interesting—especially if you plan to pass down your land to family.

Let’s say your children inherit your $1 million farm. In Pennsylvania, children pay 4.5% inheritance tax.

• Without Clean and Green: 4.5% of $1,000,000 = $45,000

• With Clean and Green (Use Value ~$300,000): 4.5% of $300,000 = $13,500

That’s over $30,000 in savings—and I’ve seen this make a huge difference when families are trying to keep land in the family rather than being forced to sell.

The key is: your heirs must keep the land in eligible use, or the rollback taxes may kick in. But if they do, the program can cushion them from a major financial hit.

Leasing Your Land: An Easy Way to Qualify

If you’re not actively farming, don’t worry. You can still qualify by leasing the land to someone who does.

In Lancaster County, cash rent averages around $200 per acre. If you lease 10 acres:

• $200 x 10 = $2,000/year

• That’s enough to meet the income requirement

I know several investors and retirees who do this to keep the land preserved while earning passive income—and still enjoy the tax benefits.

Two Real Examples in Lancaster County

Let me show you how this plays out with actual property scenarios I’ve seen:

New Providence, PA – 21.2 Acres

• Zoned agricultural, mostly open field

• Owner enrolled in Clean and Green

• Annual tax savings: over $3,200

• Leased out to a local hay farmer—meets income requirement easily

Elizabethtown, PA – 10 Acres

• Mix of woods and open space

• Purchased by an investor at $936,000

• Enrolled in Clean and Green to reduce holding costs

• Leasing out to a flower grower to maintain eligibility

These aren’t one-off cases—they’re part of a growing trend of landowners looking to protect their land and reduce taxes.

What If You Want to Sell or Build?

This is important: if you change the use of the land—like developing it into housing—you could owe rollback taxes on the last seven years of tax savings, plus interest.

So if you saved $4,000/year for 7 years, you might owe $28,000 or more if you convert the land to non-ag use.

If you're even thinking about developing or subdividing in the future, talk to a local expert first (I’m always happy to help).

How to Enroll in Lancaster County

Enrollment is handled by the Lancaster County Assessment Office, and here’s what the process looks like:

1. Submit Application Before June 1

2. Provide land maps and use documentation

3. Be prepared for occasional reviews or inspections

Once you’re in, the savings can last indefinitely—as long as you keep the land in eligible use.

Final Thoughts from the Field

From my perspective as a local real estate professional, I can confidently say: if you own 10 or more acres in Lancaster County, the Clean and Green Program is one of the most valuable financial tools you have.

I’ve helped everyone from longtime farmers to out-of-town investors navigate this program—and the results speak for themselves. You’re not just saving money. You’re helping preserve the unique beauty of Lancaster County while building a long-term financial plan.

Ready to Explore Your Options?

Whether you're thinking about enrolling, leasing your land, or just curious how this affects your property's value or future taxes, I’d love to help.