Conservation
Easement Definition: A voluntary conservation agreement, also known as a conservation easement, is a legal agreement between a willing landowner and a non-profit land trust such as the Southeast Arizona Land Trust, or a government agency, that permanently limits uses of the land in order to protect important conservation values. Landowners grant conservation easements to restrict development and to protect resources, while retaining the rights of private ownership.
A conservation easement allows you to continue to own and use your land, sell it, or pass it on to heirs, but the agreed upon restrictions remain with the land forever. Easements can be as simple as an extinguishment of the development rights. Or they can be more complex, with future management requirements. The conservation easement is a recorded document that stays with the title in perpetuity.
If you think of property ownership as a bundle of rights – including the right to graze cattle, construct buildings, limit access, or subdivide – conservation easements provide a way for landowners to exchange certain rights for cash or tax benefits
What is SEALT’s Role?
We are a local, agricultural community-based organization whose role is to represent the interests of the land owner throughout all the steps required to develop a successful conservation easement. The language of every easement is a little different and is mutually agreed upon by the land owner and the land trust to protect the identified conservation values. We are there to help you define and meet your objectives, in language that addresses your concerns and priorities.
We strive to make you fully aware of conservation options by providing the tools, information, and resources to assure that you have the information you need to make an informed decision. We are there to help you structure, negotiate, and complete your land transaction. We can also recommend and help facilitate funding – whether it is from federal, state, local or philanthropic sources, or we can serve as the “broker” for the project. SEALT strongly encourages land owners to seek professional tax and legal advice on the tax benefits associated with a conservation easement.
Easement Criteria
Before consideration of a voluntary conservation agreement (conservation easement), SEALT’s Board of Trustees must determine that the offered lands meet the goals of the Trust, that protection will provide a significant public benefit, and that SEALT is capable of carrying out the perpetual stewardship obligations. In order for a conservation easement to qualify for tax considerations by the IRS, it needs to meet their criteria for protection. Land that is active in ranching, farming, or other productive agricultural use providing significant open space values and conforming to local government interest in maintaining agricultural uses of the land is usually considered land with significant value to SEALT.
Easement Funding
Conservation easements may be donated or, in special cases when funding can be obtained, conservation easements may be purchased by the land trust. SEALT encourages donated conservation easements, which make a lasting contribution to the health and welfare of the community and to future generations. In accepting a donated or purchased conservation easement, SEALT assumes a permanent responsibility to ensure that the integrity and terms of the easement on a property. Further, we must monitor the property on a yearly basis, and we must have the capacity to defend the easement in perpetuity.
Conservation Buyer Program
A landowner may prefer to make an outright gift of land to the land trust. In such cases, SEALT protects the important conservation values by placing a conservation easement on the property and then sells the land to a buyer who will ranch or manage the land according to those conservation values. This generates funds for future conservation work by the land trust.
What is Monitoring and why do we do it?
When SEALT accepts a conservation easement, we commit ourselves to perpetual stewardship of the easement land. This means that we have an ongoing obligation to regularly monitor the easement and enforce easement terms if they are violated.
The completion of each conservation project involves mapping and careful documentation of the character of the land and its special conservation values. This “baseline documentation” provides a starting point for SEALT staff and volunteers to annually monitor the terms of the easement. During the monitoring, SEALT takes pictures from established monitoring photo points to document the condition of the ranch. In addition, we complete a written checklist of the observations of the ranch.
Each monitoring visit provides an opportunity to maintain and develop a stronger relationship with the owner and build a spirit of education and cooperation. A monitoring visit reinforces the partnership between the owner and the Southeast Arizona Land Trust to uphold the terms of the easement. While all easement properties are still owned by the original landowners, at some point in the future, the ranch may be transferred to new owners. These personal visits give the landowner names and faces to accompany the legal terms of the deed, and also provide the landowner with ready access to someone who can answer questions about the easement. Ultimately our goal is to prevent violations and foster a spirit of partnership.
Benefits of Placing Land under a Conservation Easement
Open rangeland is best protected by the ranchers who make their living from it. Profitability and economic survival are critical concerns in agriculture, but escalating land values in southeast Arizona have created new challenges. Protecting rangeland through conservation easements helps to maintain the viability of our agricultural base. Land remains in private ownership and on the county tax rolls.
Conservation easements offer a variety of benefits for landowners and communities. For land owners, they provide assurance that future generations will enjoy the land’s agricultural, scenic and wildlife values. They can also provide income and estate tax benefits. For communities, they provide a way to preserve their agricultural heritage, sustain working ranches, support local businesses, and maintain their quality of life.
Where to Start
Potential easement donors should know that the donation of a permanent conservation easement is a big commitment. You should anticipate and provide for time to discuss your plans with family members. And you should consult with an attorney and financial advisor prior to donating a conservation easement.
1. Initial Review
If you believe a land preservation agreement (conservation easement) may be the right choice for you, SEALT board members will arrange a meeting to discuss your goals for your property. This initial on-site meeting will help you and SEALT determine whether a donated conservation easement is the best conservation strategy for your property. To prepare for this initial discussion, you should gather deeds, surveys, title report, or other property maps you may have. We will review these with you and ask you to describe your goals and how you anticipate a conservation easement will help you accomplish them.
2. Resource Assessment & Easement
Terms
SEALT will complete a project worksheet summarizing the natural resources present on your property and the public benefits resulting from their conservation. Based on field visits, deeds, and surveys, SEALT will prepare a draft conservation easement and conservation map for your property. (Ability to download a pdf file of SEALT standard CE terms.)
3. Landowner Review
SEALT uses easement provisions that have been accepted nationwide by conservation professionals and attorneys experienced in land protection techniques. We will discuss the structure and content of the draft document with you and answer any questions.
If you plan to claim a tax deduction for your charitable gift of an easement, you must commission an appraisal. SEALT can provide information about IRS appraisal requirements and share a list of appraisers experienced at valuing conservation easements.
4. Baseline Documentation
The IRS requires that a land trust receiving a donated conservation easement maintain “documentation sufficient to establish the condition of the property at the time of the gift.” IRS requires that the landowner incur costs associated with compiling a baseline document that will substantiate the conservation value that you are donating.
5. Sign, Record and Celebrate
When the final easement draft has been reviewed, the baseline documentation report is compiled and you have obtained any necessary appraisals, you are finally ready for closing. After closing, SEALT will see that your conservation easement is recorded and will provide the recording information to you. |
