A conservation easement is a voluntary, legally binding agreement between a landowner and a government or nongovernment conservation organization that keeps land in agricultural and/or open space uses. The agreement is customized to meet the landowner's objectives and, in most cases, is perpetual.   In essence the landowner sells his or her right to develop all or part of their land for non-agricultural or non-open space uses to the conservation organization. Current uses, including residential and recreational uses, agriculture, forestry, and ranching can continue. The easement will protect some quality of the property such as wildlife habitat, open space, forest management or aesthetics.   A conservation easement allows you to continue current uses, including residential and recreational uses, agriculture, forestry, and ranching.  The easement will protect some quality of your property such as wildlife habitat, open space, or aesthetics.   In addition, public access to your property is not a requirement to participate in this type of conservation program.

Financial Benefits

 

In most states conservation easements are donations rewarded by certain tax benefits to the landowner. In Florida conservation easements, if perpetual, are purchased through payments to the landowner. The payment is equal to the difference between the fair market value of the land without the easement and the current use value of the land with the easement.    For example, Joe Landowner has property in Alachua County with planted pines, old pastures and mixed hardwoods. Joe and his family are interested in growing and harvesting pines, hunting, birdwatching, and some future forestry and wildlife habitat improvements on the property. They want the property protected from residential and commercial development and they plan on passing the property on to their children with a minimal tax burden, so Joe decides to establish a conservation easement.   Being close to a growing urban area, the land has a fair market value of $4,500 per acre. The overall current use value of the property with a conservation easement is $1,000 per acre since no major residential or commercial development can occur on the property at any time in the future. Therefore Joe would receive $3,500 per acre for the easement, and since the selling of the easement reduced the value of the property the heirs' estate tax liability will be reduced.    Click on the link below for more on    Estate Planning

 

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Participating Organizations

 

What organizations will purchase a conservation easement?   The major state agencies involved with conservation easements are the:  Department of Environmental Protection (DEP)  and Water Management Districts  These agencies are particularly interested in buying easements, usually in large blocks, in order to protect watersheds.  The Nature Conservancy is a nongovernment organization whose mission is to protect open spaces from residential and commercial development. They are involved in conservation easements and other land purchases around the country.  Conservation easements are good for these organizations because they can protect more land for less money since they are only buying the development rights of the land, and the landowner benefits through potential financial rewards and guaranteed protection of the property from undesired uses.

 

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Concluding Remarks

 

Since a conservation easement is customized to meet your specific objectives, you can and should leave as much flexibility in the agreement to allow for potential future uses. Try to anticipate the types of uses that you or your heirs may want to allow on the property in the future.   For example, you currently do not want to harvest or plant pines on your land, but you may want to allow those uses in the future. A conservation easement is forever, so it is important to consider all potential future uses before finalizing the agreement.   It is also essential that the landowner carefully review the implications of the easement with legal and financial advisors before the final agreement. Bear in mind that your easement may be subject to periodic visits by the conservation organization to verify compliance with the agreement.    These are the questions you need answered before starting a conservation easement:  What activities do you want to prohibit on your land now and in the future? What activities do you want continued on your land? What other activities might you want to do in the future, or permit your heirs to do in the future, that are compatible with your conservation objectives?

 

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