Conservation Easements
Development Rights: Donation
Introduction l Development Rights: Purchase l Development Rights: Donation l Easement Holders l Getting Started
Riparian Easements
Riparian easements are a type of conservation easement that applies only to a stream side zone agreed on by the landowner and an easement holder. Landowners develop a management plan for the riparian zone with the easement holder. These agreements usually include establishing or maintaining vegetation and limiting livestock access to the riparian zone, but each easement is tailored to the property and the desires of individual landowners.
The Conservation Reserve Enhancement Program (CREP) has a riparian easement purchase program.
Benefits to landowners for donating conservation easements can be charitable deductions for the property value, reduced taxes (in localities with special use valuation ordinances in effect), or starting in tax year 2000, income tax credits. Virginians, who donate land for perpetual conservation easements, will be allowed a tax credit for 50% of the donation's fair market value, not to exceed $100,000 in tax year 2002 and beyond. Currently tax credits can only be used to offset taxes owed over a period of up to five years. Estate tax reduction and exclusions are also possible, depending on the circumstances.
Historic Area Easements
A property must be officially registered as a historic landmark, or included in a registered historic district, before an easement donation can be accepted.
Development Rights: Donation
Forest Legacy Program
The Virginia Department of Forestry (VDOF), in cooperation with the USDA Forest Service, can purchase development rights on significant forestlands. The VDOF gives priority to land that can be effectively managed for sustainable timber production, important wildlife habitat, or for watershed protection. Long-term costs of easement administration and easement compliance monitoring are a cooperative effort between the VDOF and private nonprofit land trusts. All landowners must have a Forest Stewardship Plan approved by the VDOF. Learn more about the Forest Legacy Program.
Open Space Preservation Trust Fund
The Open Space Preservation Trust Fund, administered by the Virginia Outdoors Foundation, was created to assist landowners with the costs of donating conservation easements to qualified easement holders. The Fund may also be used to purchase all or part of the value of conservation easements. Priority for funding is given to easements on family farms and to those who demonstrate financial need.
Development Rights: Sale
Local or state government may purchase the development rights from landowners. Under these programs, development rights can be limited for a set number of years or permanently retired. Priority is given to those landowners that wish to conserve their land in perpetuity.
Federal Farmland Protection Program
Farmers who want to keep their land in agriculture for the long term may be able to utilize the Farmland Protection Program managed by the Natural Resources Conservation Service (NRCS). Farmers can only take advantage of this program in counties that allow the purchase of development rights. Farms must have prime, unique, or other productive soil, be privately owned and large enough to sustain agricultural production.
The Farmland Protection Program reimburses the landowner, through the locality, for the easement value and does not cover legal or other costs. The easement value is the fair market value minus the agricultural value. Easement sale proceeds are treated like any other capital gain for federal, state or local income tax purposes. Some programs have provisions that allow for installment purchases or use securable tax-exempt bonds as a method of payment.
NRCS can purchase an easement on farmland that allows participating landowners to keep their land in agriculture, but not to convert the land for nonagricultural use. All enrolled lands must have a conservation plan developed by an NRCS Field Office. Priority is given to applications for perpetual easements, and a minimum of 30 years is required. This program is subject to annual congressional funding.
Addiitonal information
- American Farm & Ranch Protection Act - The Piedmont Environmental Council promotes and protects the Virginia Piedmont's rural economy, natural resources, history and beauty.
- American Forests - American Forests is a world leader in planting trees for environmental restoration, a pioneer in the science and practice of urban forestry, and a primary communicator of the benefits of trees and forests.
- Virginia Land Conservation Foundation - of the Virginia Department of Conservation and Recreation
- Forest Legacy Program: Assessment of Need. (English; PDF format; 1.2MB)
Last modified 2007-07-12