According to Wikipedia (2008), a conservation easement is a transfer of usage rights between a landowner and a municipality or a qualified land protection organization (often called a land trust) for the purpose of conservation.

• It restricts real estate development, commercial and industrial uses to a mutually agreed upon level.
• The decision to place a conservation easement on a property is voluntary.
• The restrictions are binding on all future landowners.
• The easement becomes part of the chain of title for the property.
• The landowner who gives up the “development rights” continues to own and manage the land and may receive significant state and federal tax advantages for having donated the conservation easement. http://en.wikipedia.org/wiki/Conservation_easement

What is meant by the “purchase of development rights” (PDR)?

PDR is a voluntary program where a land trust or some other agency usually linked to local government makes an offer to a landowner to buy the development rights on the land.

• According to an Ohio State University Fact Sheet, 18 states have PDR programs.
• The landowner is free to turn down the offer or try to negotiate a higher price.
• At any time after selling the development rights, the landowner may sell the property itself, lease it, or pass it on to heirs with the deed restriction attached.
• A benefit of PDR is that it makes it easier for one farmer to pass the farm on to an heir interested in continuing to farm. “Once the development rights have been separated from the land, the value of the parcel typically declines to its agricultural value. This generally has an enormous effect on reducing the inheritance tax liability.” http://ohioline.osu.edu/cd-fact/1263.html

Where can you get more information about agricultural conservation easements?

The National Resource Conservation Service (NCRS), the Farm Service Agency, Extension Service, or local conservation district can provide more information.

• Local USDA Service Centers are listed in the phone book under U.S. Department of Agriculture.
• Information is available on the Web at http://www.nrcs.usda.gov/programs/frpp/.

How can you decide if this is right for you?

• What is your life expectancy? What is your spouse’s life expectancy?
• If you or your spouse needed long-term health care, would you be able to pay for it without qualifying for Medicaid?
• How would your heirs feel about the conservation easement?
• Is your wish to preserve agricultural space greater than any other desire?