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What is a Conservation Easement.

farmA conservation easement is a legal document between a landowner and the organization that holds the easement. Conservation easements are different from right-of-way easements, or utility easements. In an agricultural conservation easement, the purpose of the easement is to protect the land as a farm for future generations, and to allow flexibility to diversify and change the farming practices as needed.

Conservation easements run with the deed to the land, which means that current and all future landowners must abide by the terms. The role of the easement holder is to ensure the terms are upheld.

There is no specific or minimum amount of land required to be part of a conservation easement project with NYALT. However, each conservation easement project must ensure that the agricultural land may be a viable farming operation into the future. This means that each project requires its own specific evaluation and conservation plan.

nyaltWhere to go for help.
The NYS Farmland Protection Program, and the municipal sponsors, may have requirements to be competitive for those farmland protection grants. You should contact your county farmland protection board and the New York State Department of Agriculture and Markets to determine what might be competitive in your region of New York State.

Do I have to allow the public on my land?
A conservation easement does not allow access to the public unless the landowner specifically provides for access in the document. With farmland protection projects, it may be possible to designate a specific trail or corridor if a landowner wants to do this. This may also increase the value of the landowner’s tax deduction.

Monitoring your property.
New York State law does require that conservation easements permit regular access by NYALT for the purpose of monitoring the use and activities on the property. This is necessary to ensure that the terms and conditions of the conservation easement are upheld. Landowners are contacted in advance of these regular site visits to arrange a time that is convenient for them, as outlined in the conservation easement.

There are several ways a landowner can conserve their farm, including these options:

winter farmPurchase of an Agricultural Conservation Easement
The Purchase of Development Rights (PDR) is a voluntary program that pays landowners for giving up the majority of the non-agricultural/forestry development rights on their land and conveying an agricultural conservation easement. The landowner maintains ownership of their property, and can sell, transfer, bequeath or give their land to others, subject to the conservation easement.

How is the value of the non-farm development rights established?
The value of an easement is determined through an appraisal process, called the “before and after” process, which is different than a farm appraisal. This appraisal determines what the farm market value is before the land is conserved, and also after the land would be conserved with the conservation easement. The difference between the two values is the value of the development rights (or the value of the conservation easement). Please refer to our Fact  Sheet on Agricultural Conservation Easements and Appraisals for more information.

Where does the funding come from?
NYALT does not currently have funding to purchase conservation easements from landowners. Instead, landowners are tapping into the New York State Department of Agriculture and Markets’ Farmland Protection Program. Occasionally, foundation funding may be available to assist with farmland protection work.

New York State Farmland Protection Funds:
These are competitive farmland protection grants available from the New York State Department of Agriculture and Markets. These grants provide for up to 75% of the value of the development rights (conservation easement). Each year, New York State’s legislature allocates funds from the Environmental Protection Fund. Demand for this program is high – typically there are twice as many applicants as there is funding each year. If you are interested in this grant program, click here for more information.

Federal Farmland Protection Funds:
The Federal Farmland Protection Program also has funding available to purchase development rights (conservation easements). This program will pay for up to 50% of the value of the non-agricultural or forestry development rights. This program is funded through the Farm Bill, which is renegotiated every five years. New York State typically receives between $4 – 6 million annually to spend on this program. The Federal program can be used as a “match” to the State program in order to provide the full value of the easement to the landowner.

Donation of an Agricultural Conservation Easement:
A farm can be protected through the donation of the development rights by a landowner to NYALT, who then serves as the easement holder. 

A donated conservation easement may qualify you for significant state and federal income tax deductions, as well as a NYS Property Tax Credit.

As with any conservation easement project, the landowner maintains ownership of his/her property, and can sell, transfer, bequeath or give their land to others subject to the conservation easement.