LANDOWNER OVERVIEWInterested in protecting your land? Here are some basic answers to common questions about conservation easements.
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Why protect your land with a conservation easement?
Landowners as a group are essential to the healthy lands and clean waters of our Cecil County region of the Chesapeake Bay. The farmers and landowners of Cecil County hold the key to ensuring that the lands and waters that sustain our communities and are vital to a healthy quality of life are conserved now and for our children and grandchildren. Conservation easements enable landowners to protect our vital farmlands, forests, and waters now and for future generations.
More than a hundred landowners in Cecil County, motivated by their desire to protect our lands and waters have helped to conserve our historic and picturesque rural landscape by protecting their land with a conservation easement. If you are interested in preserving your own land and the rural heritage of which it is a part, please explore the information provided here about conservation easements.
When you protect your land with a conservation easement, you ensure that future generations can treasure the rural beauty and farms and forests of our community. Donating or selling a conservation easement may also make good financial sense for you and your family.
For many farmers and landowners, their land is their primary asset. The sale or donation of a conservation easement can provide landowners with a significant source of capital, either through a significant cash payment or substantial federal and state tax benefits. Such funds could potentially be used to improve or diversify a farm, purchase additional land, pay off debt, offer an inheritance to non-farming children, or meet family financial needs without having to sell land.
More than a hundred landowners in Cecil County, motivated by their desire to protect our lands and waters have helped to conserve our historic and picturesque rural landscape by protecting their land with a conservation easement. If you are interested in preserving your own land and the rural heritage of which it is a part, please explore the information provided here about conservation easements.
When you protect your land with a conservation easement, you ensure that future generations can treasure the rural beauty and farms and forests of our community. Donating or selling a conservation easement may also make good financial sense for you and your family.
For many farmers and landowners, their land is their primary asset. The sale or donation of a conservation easement can provide landowners with a significant source of capital, either through a significant cash payment or substantial federal and state tax benefits. Such funds could potentially be used to improve or diversify a farm, purchase additional land, pay off debt, offer an inheritance to non-farming children, or meet family financial needs without having to sell land.
What is a conservation easement?
A conservation easement is a voluntary agreement between a landowner and land trust or governmental entity to protect land in perpetuity, by limiting development and influencing other rights on a property. Conservation easements are filed with the property deed, but do not transfer land ownership. Rather, easements spell out how the property will be protected by limiting uses and guiding some uses to suitable areas.
Conservation easements are flexible tools. Each is crafted to the unique characteristics of a property, and each is written to protect the conservation values of the land according to the landowner’s management goals and decisions and the Land Trust’s mission.
There are many rights associated with owning property. Many of the rights and interests in owning a piece of property can be sold or leased while the landowner continues to own the property. A common example is when someone leases a portion of their land or a building on it to someone else. Another example would be when a landowner sells or leases the rights to extract minerals from their land. When a landowner protects his or her property with a conservation easement, he or she sells or donates the rights to subdivide and develop the land, but retains all the other rights of ownership, including the ability to farm the land and use it for other purposes.
Conservation easements are voluntary transactions. In order to qualify for the tax benefits associated with donating an easement—or for the purchase of an easement by a government agency—conservation easements must meet certain requirements.
A qualifying easement is:
Generally, conservation easements typically allow for agricultural uses (including, for example, the growing and harvesting of crops, raising of livestock, constructing or expanding agricultural structures, boarding and training of horses, and operating a produce stand). Existing residential dwellings can often be expanded, and garages and other accessory residential buildings can be added. Natural resource-dependent activities such as hunting, fishing and the harvesting of timber (with an approved forest stewardship plan) are also allowed.
Unless the landowner agrees to specifically provide for public access in the terms of a conservation easement, donating or selling a conservation easement does not open a property to public access.
The activities typically prohibited by a conservation easement include subdivision beyond that specifically provided for in the easement (some programs may allow additional building lots for immediate family), new residential or commercial development of the property, dumping, gravel pits, cell phone towers, billboards, new non-agricultural roads and large scale solar energy systems (although on-farm solar energy systems are typically permitted).
Recognizing that every property is unique, the Cecil Land Trust works with landowners to protect those conservation values most important for each respective property. Conservation values may include productive agricultural lands, contiguous blocks of forested land, scenic views, environmentally sensitive lands and wildlife habitat, stream frontage, historic structures, or a combination of any of the above. Each conservation easement is individually drafted to protect those conservation values agreed to between the Cecil Land Trust and landowner. The Cecil Land Trust strives to proactively work with landowners to allow those uses and activities that the landowners would like to see occur over the long term.
Conservation easements are flexible tools. Each is crafted to the unique characteristics of a property, and each is written to protect the conservation values of the land according to the landowner’s management goals and decisions and the Land Trust’s mission.
There are many rights associated with owning property. Many of the rights and interests in owning a piece of property can be sold or leased while the landowner continues to own the property. A common example is when someone leases a portion of their land or a building on it to someone else. Another example would be when a landowner sells or leases the rights to extract minerals from their land. When a landowner protects his or her property with a conservation easement, he or she sells or donates the rights to subdivide and develop the land, but retains all the other rights of ownership, including the ability to farm the land and use it for other purposes.
Conservation easements are voluntary transactions. In order to qualify for the tax benefits associated with donating an easement—or for the purchase of an easement by a government agency—conservation easements must meet certain requirements.
A qualifying easement is:
- Perpetual. The conservation easement runs with the land even if the property is sold or changes ownership.
- Held by a land trust or government agency, which is responsible for inspecting and monitoring the property to be sure it continues to comply with the terms of the easement
- Legally binding. In entering into the easement agreement, the landowner promises to comply with the terms of the agreement and agrees that those terms can be enforced by a court if violations occur.
Generally, conservation easements typically allow for agricultural uses (including, for example, the growing and harvesting of crops, raising of livestock, constructing or expanding agricultural structures, boarding and training of horses, and operating a produce stand). Existing residential dwellings can often be expanded, and garages and other accessory residential buildings can be added. Natural resource-dependent activities such as hunting, fishing and the harvesting of timber (with an approved forest stewardship plan) are also allowed.
Unless the landowner agrees to specifically provide for public access in the terms of a conservation easement, donating or selling a conservation easement does not open a property to public access.
The activities typically prohibited by a conservation easement include subdivision beyond that specifically provided for in the easement (some programs may allow additional building lots for immediate family), new residential or commercial development of the property, dumping, gravel pits, cell phone towers, billboards, new non-agricultural roads and large scale solar energy systems (although on-farm solar energy systems are typically permitted).
Recognizing that every property is unique, the Cecil Land Trust works with landowners to protect those conservation values most important for each respective property. Conservation values may include productive agricultural lands, contiguous blocks of forested land, scenic views, environmentally sensitive lands and wildlife habitat, stream frontage, historic structures, or a combination of any of the above. Each conservation easement is individually drafted to protect those conservation values agreed to between the Cecil Land Trust and landowner. The Cecil Land Trust strives to proactively work with landowners to allow those uses and activities that the landowners would like to see occur over the long term.
How is the Value of a Conservation Easement Calculated?
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While each easement program is slightly different, the actual appraised value of the conservation easement is based upon the subdivision and development rights being extinguished. In short, the value of a conservation easement is the difference in value between the land being sold for development and its value for agricultural and natural resource preservation purposes.
Imagine a 100-acre farm determined by an appraisal to be worth $1,000,000 if sold for development (full market value), and worth $400,000 if used exclusively for agriculture. The potential value of the conservation easement is the difference between the property’s full market value ($1,000,000) and its value when used exclusively for agriculture ($400,000), in this case $600,000. Again, each easement program calculates this value slightly differently, so please consult with a staff or board member of the Cecil Land Trust if you have specific questions. |
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Types of Conservation Easements
Generally, there are two types of conservation easements that protect property from development:
In both cases, the landowner works with a land trust and/or a government agency on the terms of the easement, and ultimately “grants” the easement to one or more of those entities.
Find out more about:
- Easements that are donated by the landowner (and usually result in tax benefits for the landowner)
- Easements that are purchased from the landowner
In both cases, the landowner works with a land trust and/or a government agency on the terms of the easement, and ultimately “grants” the easement to one or more of those entities.
Find out more about:
