(1) A county and a city or a county and Metro may enter into an intergovernmental agreement pursuant to ORS § 190.003 to 190.130, 195.025 or 197.652 to 197.658 to designate rural reserves pursuant to this section at the same time as designating urban reserves pursuant to ORS § 197A.245 (1).

(2) Land designated as a rural reserve:

(a) Must be outside an urban growth boundary.

(b) May not be designated as an urban reserve during the urban reserve planning period described in ORS § 197A.245 (4).

(c) May not be included within an urban growth boundary during the period of time described in paragraph (b) of this subsection.

(3) When designating a rural reserve under this section to provide long-term protection to the agricultural industry, the designation must be based on consideration of factors including, but not limited to, whether land proposed for designation as a rural reserve:

(a) Is situated in an area that is otherwise potentially subject to urbanization during the period described in subsection (2)(b) of this section, as indicated by proximity to the urban growth boundary and to properties with fair market values that significantly exceed agricultural values;

(b) Is capable of sustaining long-term agricultural operations;

(c) Has suitable soils and available water where needed to sustain long-term agricultural operations; and

(d) Is suitable to sustain long-term agricultural operations, taking into account:

(A) The existence of a large block of agricultural or other resource land with a concentration or cluster of farms;

(B) The adjacent land use pattern, including its location in relation to adjacent nonfarm uses and the existence of buffers between agricultural operations and nonfarm uses;

(C) The agricultural land use pattern, including parcelization, tenure and ownership patterns; and

(D) The sufficiency of agricultural infrastructure in the area.

(4) Designation and protection of rural reserves pursuant to this section or urban reserves pursuant to ORS § 197A.245 (1):

(a) Is not a basis for a claim for compensation under ORS § 195.305 unless the designation and protection of rural reserves or urban reserves imposes a new restriction on the use of private real property.

(b) Does not impair the rights and immunities provided under ORS § 30.930 to 30.947.

(5) The Land Conservation and Development Commission shall consult with the State Department of Agriculture in adopting, amending or repealing rules under this section. [Formerly 195.141]