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Welcome to the Virginia Department Of Forestry

Forest Land Conservation

Forests cover 15.8 million acres in Virginia and these forest lands make significant contributions to the natural and economic health of the Commonwealth. In 2006, the total economic impact of forestry in Virginia was over 29 billion dollars and the forest products industry ranked first in manufacturing employment in Virginia. These same forests also provide wildlife habitat and recreation opportunities, improve air quality, and help to protect the quality of drinking water for millions of people.

Unfortunately, Virginia is losing forest land at a rate of 26,000 acres per year and this annual rate is increasing. Most of these acres are being lost as forested land is converted to other uses such as houses, shopping centers or roads. Loss of forested acres and the fragmentation of the remaining acres reduces the potential of the forest to provide the economic, social and ecological benefits that we depend on.

Virginia’s working forests:

Since 1914, the Virginia Department of Forestry (VDOF) has worked to protect and improve Virginia’s working forests; these are forests that are managed for the sustainable production of forest products as well as the other benefits that forests provide. Today the VDOF is taking the lead in protecting working forests from conversion.

Ways To Conserve Forest Land

There are many options available to landowners to help them keep their woodlands in forest.  Each of the conservation tools and strategies below falls somewhere in the spectrum from strong to weak protection. Hopefully, every forest landowner will find some conservation tool that is appropriate for their situation. And hopefully, landowners who are interested in forest conservation will progress toward stronger protection measures over time. In this way, each landowner can determine what role he or she will play in conserving Virginia’s working forests.

Land Use Taxation

Under use-value taxation, properties are taxed based on the productive value of the land rather than at the highest and best use value of the land. Use-value taxation speaks to the heart of landbase conservation because, under this program, the landowner is recognized for and taxed based on the current rural use of the land rather than the development potential of the land.

Use-value taxation is a relatively weak conservation tool because it requires only a one-year commitment from the landowner.  However, the reduced taxes paid by the landowner represent an incentive to maintain his or her land in forest.

Agriculture and Forestal Districts

A minimum of 200 acres (with one or more landowners) is required in order to form a District and only landowners can initiate the formation of Agricultural and Forestal Districts. Landowners petition their county administrator or planning commission to establish the district. This process varies slightly from county to county, but usually the planning commission and the Board of Supervisors hold public hearings before deciding to establish a district. Once established, any property within a mile of the district can be added to the district.

Lanowners sign voluntary agreements with locality and the properties receive use-value taxation and some protection of rural use.  In exchange, the landowners agree not to develop the properties for a period ranging from 4-10 years. These agreements can be renewed on an ongoing basis.

This program allows for more focused conservation than the county-wide land-use tax. Ag/Forestal districts place greater restriction on what properties can be enrolled and place a greater burden on the landowners to establish the district and to renew it.  Because fewer landowners can take advantage of these districts, they may place less of a burden on the localities.

Still have questions? Visit Agricultural/Forestal District information provided by the Valley Conservation Council.

Riparian Buffer Tax Credit

This is a state tax credit that reimburses landowners for a portion of the value of timber left standing in riparian buffers after timber harvesting. The buffer area must be left in unharvested forest use for a period of 15 years. This tax credit focuses conservation on some of the most sensitive lands and reimburses landowners for practicing sustainable forest management.

To determine if your land is eligible for the riparian buffer tax credit, contact your area forester.

Cost-Share Assistance

Federal and state cost-share programs provide matching funds for some farm or forest practices and are often tied to land conservation. Virginia’s Reforestation of Timberlands (RT) cost-share program provides an increased benefit for projects on land that is under a conservation easement.

The Conservation Reserve Enhancement Program (CREP) provides reimbursement for the cost of installing conservation practices as well as rental payments for acreages where conservation practices are installed. These rental payments run for 10 or 15 years. CREP also includes funding for purchase of perpetual conservation easements on the buffer areas.

Ecosystem Services

Forests clean the air and water, and these benefits to the environment are classified as “ecosystem services.” Currently, there are no programs available to compensate landowners for these services.

Conservation Easements – What are they?

A conservation easement is a voluntary agreement between a landowner and a qualified conservation organization or public entity to prevent the development of a property while allowing continued private ownership and rural use such as farming or forestry.  Conservation easements are typically perpetual but they can be for shorter terms in some cases.

When a landowner enters their property into a conservation easement they surrender some or all of their rights to develop the property as well as the right to most industrial uses of the property such as mining. The landowner retains all the other rights of private ownership such as the right to sell the property or leave it to their heirs. Conservation easements do not allow public access to the property. Easement agreements may allow for limited subdivision of the property and the construction of residences.  Conservation easements typically allow for sustainable farming and forestry practices including the construction of roads and buildings.

The greatest strength of conservation easements is that they are different for every property, taking into account the needs of the individual landowner and the conservation values of the specific property.

The monetary value of a conservation easement is equal to the difference between the appraised value of the property before the easement and the appraised value of the property after the development rights are surrendered. Easement value is largely dependant on the development potential of the property and how restrictive the easement agreement is.

Benefits of Donating a Conservation Easement

There is very little funding available to pay landowners for conservation easements. Most landowners who enter into a conservation easement donate the value of the easement in exchange for state and federal tax benefits.

These benefits are described briefly below, for more detailed information refer to the DCR Web site. Because tax regulations change frequently, landowners will need to consult with their own financial advisors for specific guidance.

State Income tax Credits

Landowners that donate a perpetual conservation easement in Virginia can receive state income tax credits equal to 40% of the value of the easement.  Taxpayers may use these credits up to $100,000 per year for the year of the donation and for ten subsequent years.  For landowners that cannot use all of their tax credits, the credits can be sold.  This is the most effective conservation tool in the state today, enabling landowners regardless of income level to receive cash in exchange for conserving rural land.  Since 2007, the total amount of tax credits available statewide has been capped at $100 million annually.

Charitable Deduction

The donation of a conservation easement to a qualified organization can be claimed as a charitable deduction on the landowner’s federal tax return. The portion of annual income that can be offset each year and the number of years over which the deduction can be spread are subject to change, consult you tax advisor for current regulations.

Estate Tax Benefits

Because land under a conservation easement usually has a lower value, donating a conservation easement can reduce the tax liability on the estate.

Local Real Estate Taxes

Properties restricted by a conservation easement are eligible for reduced real property taxes.  In localities that have land use taxation, properties with conservation easements must be allowed to enroll in land use.  Properties that are already enrolled in land use would receive no additional benefit.  In localities that do not have land use taxation, the real property tax should reflect the reduced value of a property with a conservation easement in place.

Donating an Easement to the VDOF

The Virginia Department of Forestry is a qualified holder of conservation easements.  Landowners that wish to conserve their forest lands and who are interested in sustainable forest management should consider a gift of easement to the VDOF.  Donations to the VDOF are eligible for all of the tax benefits described above as well as the added benefit that the forest will be managed under the guidance of the state agency that has been working to improve and protect Virginia’s forests for almost 100 years.

Property Criteria

The VDOF conservation easement program is focused on conserving working forest lands throughout Virginia.  In order to make efficient use of limited state resources we have established the following minimum criteria for properties:

Other properties may be considered based on our ability to manage the easement and the property’s potential to contribute to forest conservation.

Donation Process

For more information contact your area forester or:

Donating Land to the VDOF

Landowners who want to ensure that their land will be managed as forest forever may consider donating all or a portion of their land to the VDOF. VDOF forest lands are dedicated to forest management, education and demonstration, research, and recreation and hunting depending on the property. Some larger properties may be designated as State Forests. Of course, the goals and wishes of the landowner are reflected in the management of the property by the VDOF.

Donations of land provide many of the same financial benefits described above for easement donations.  VDOF ownership also provides the added knowledge that the property will be managed for forestry forever.  While conservation easements restrict the use of the land, VDOF ownership ensures that the land will be dedicated to forestry forever.  State ownership can also ensure public recreation and hunting opportunities that may be lost under private ownership.  State ownership would also guaranty that the family will have access to the property in the future.

To be suitable for VDOF ownership properties must be large enough and located in an area that would allow for forest management or recreation.

Purchase of Development Rights - (PDR)

In a PDR program, the landowner sells the right to develop their property, typically to the locality.  The obvious benefit of a PDR program is that the landowner is paid directly for all or a portion of the value of their development rights.  This is unlike a donated conservation easement where the landowner benefits through tax credits and tax deductions.  Another benefit of PDR programs is that they enable the locality to set priorities for conservation and focus funds on those properties. 

The biggest limitation of PDR programs is the lack of local funding.  Since 2007, the Virginia Department of Agriculture and Consumer Services (VDACS) has distributed $4.25 million in matching funding for local PDR’s.  These matching funds are providing an incentive for more localities to initiate PDR programs.

For more information: http://www.vdacs.virginia.gov/preservation/index.shtml

Forest Legacy Program

This Federal program funds the purchase of land and conservation easements to protect working forest lands that are threatened by development. This is a nationwide competitive program to fund conservation of properties that have significant conservation values.

Virginia Land Conservation Fund (VLCF)

The Virginia Land Conservation Fund (VLCF) provides funding for the purchase of land and easements for significant properties.  This is a statewide competitive program to fund the protection of natural areas.  These funds are available to state agencies, and private groups.  Private organizations or landowners must provide a 50% match to receive funding.  The VLCF holds competitive grant rounds when funding is allocated by the General Assembly.  Forestry is one of the VLCF categories and forestry properties are evaluated by the VDOF.

Need more information?

Conservation Agencies and Programs

Local Land Conservation Organizations:








Last modified: Monday, 19-Oct-2009 14:55:47 EDT