How to Protect and Preserve Your Agricultural Land

How to Protect and Preserve How to Protect and Preserve Your Agricultural LandYour Agricultural Land

What is a Conservation Easement?What is a Conservation Easement?

• A legal approach to conserve your land. • An easement places restrictions on your land in perpetuity but will permit you to continue owning the land.

•Restrictions placed on the land aredependent on the landowner’s wishes:

ex. hunting, timbering, development

BenefitsBenefits

•An easement provides certain tax benefits on both your federal and state returns.

PartnersPartners

•To place an easement on your property, you must do so in cooperation with a tax-exempt organization.

• Most partnering organizations are local land trusts like the Sandhills Area Land Trust.

Agricultural Conservation EasementsAgricultural Conservation Easements

Definition of “Agricultural” in Context of Easements:

Protects land for agricultural purposes or agricultural uses to include: planting, raising , harvesting and producing agricultural, aquacultural, horticultural and forestry crops and products of every nature and description; breeding, raising, training, pasturing, grazing, boarding and sale of horses and livestock of every nature and description; equestrian activities (including horseback riding instruction, husbandry and other non-commercial equestrian activities); breeding and raising bees, fish, poultry and other fowl and the primary processing, storage and sale, including direct retail sale to the public, of crops and products a substantial proportion of which are harvested and produced on the Property

Agricultural Conservation EasementsAgricultural Conservation Easements

• Limit non-farm development

• Limit subdivision

• Limit other uses that are inconsistent with agriculture

• Conserve conservation values (e.g. high quality soils, sustainable forestry practices)

• Agricultural easements state that working agriculture is the primary purpose

• Water quality, scenic characteristics, other conservation goals are secondary

• Accommodating additions or alterations to structures

• Acceptance of a shift in agricultural methods when necessary

Agricultural Conservation EasementsAgricultural Conservation Easements

Types of Agricultural Conservation EasementsTypes of Agricultural Conservation Easements

WORKING FOREST –Protects forests through sustainable silviculture and harvesting and sale of timber.

WORKING FARM – Protects lands for specific agricultural purposes or uses described above and the primary processing, storage and sale, including direct retail sale to the public, of a substantial proportion of plants, animals, insects or their products, that are raised, boarded, harvested and produced on the Property. Can include structures used for agricultural activities.

COMBINATION-Has attributes and values of two types of the listed agricultural easements.

Agricultural Conservation EasementsAgricultural Conservation Easements

Example of Restricted Uses Unique to Agricultural Easements:

For a Working Farm Easement:

Where deemed appropriate, farming operations shall be conducted substantially in accordance with a conservation plan developed by an organization like the NRCS, that addresses soil and water conservation, pest management, nutrient management and habitat protection. Where there are stands of longleaf pine, SALT will require a sustainable forestry management plan.

Agricultural Conservation EasementsAgricultural Conservation Easements

Examples of Reserved Rights in Agricultural Easements Address:

The right to construct, maintain, repair, renovate, replace, enlarge, rebuild, and use new and existing barns, or similar agricultural structures

The right to clear, construct, and maintain trails for non-commercial walking, horseback riding and other non-commercial, non-motorized recreational activities

The Eight Basic StepsThe Eight Basic Steps of a Conservation Easement of a Conservation Easement

1. Site Visit

2. Letter of Intent

3. On-Site Inspection

4. Baseline Documentation (Present Condition) Report

5. Conservation Easement Document

6. Appraisal

7. Survey

8. Form 8283 of the Federal Income Tax Return

The Eight Basic StepsThe Eight Basic Steps

To convey an easement, SALT requires eight documents:

1. Site Visit

Staff visits potential easement lands to assess conservation value.

The Eight Basic StepsThe Eight Basic Steps

To convey an easement, SALT requires eight documents:

2. Letter of Intent

Conveys landowner’s interest and willingness to donate a conservation

easement.

The Eight Basic StepsThe Eight Basic Steps

To convey an easement, SALT requires eight documents:

3. On-Site Inspection

Land trust staff conduct a site inspection and document the biological componentsof property.

The Eight Basic StepsThe Eight Basic Steps

To convey an easement, SALT requires eight documents:

4. Natural Resource Report

The results of the on-site inspection are presented in a natural resource report. This document helps guide the decision making process.

The Eight Basic StepsThe Eight Basic Steps

To convey an easement, SALT requires eight documents:

5. Conservation EasementDocument

Land trust and landowner prepare drafteasement that describes and protects

the conservation values of the propertyand meets long term land use plans of the landowner.

The Eight Basic StepsThe Eight Basic Steps

To convey an easement, SALT requires eight documents:

6. Appraisal

An independent appraiser working for the landowner prepares the appraisal. SALT requires a copy of the appraisal report.

The Eight Basic StepsThe Eight Basic Steps

To convey an easement, SALT requires eight documents:

7. Survey

A survey and legal description is prepared by a certified surveyorworking for the Grantor.

The Eight Basic StepsThe Eight Basic Steps

To convey an easement, SALT requires eight documents:

8. Income Tax Return

This form is an attachment to the federalincome tax return of all individuals claiming contributions more than $5000.It is the responsibility of the grantor to prepare Form 8283.

SALT’s Easements and Fee Simple PropertiesSALT’s Easements and Fee Simple Properties

For More Information For More Information

www.sandhillslandtrust.org

483-9028