Abstract
For almost 50 years, Oregon has protected its agricultural economy and farmland base through a combined strategy of tax incentives and development restrictions. This effort has evolved from a general voluntary approach to one that has a strong regulatory component. The program began as a means of providing tax incentives to preserve farmland; agriculture then constituted the largest part of the state’s economy. However, over the years, these tax incentives were combined with the state’s comprehensive land use planning system and together they have been used to prevent sprawl and extensive nonresource-related rural development, and to reinforce compact urban growth as a highly effective means to protect farmland.