Conservation Easements: An Option for Landowners

August 7, 2008

Ownership of land is a "bundle of rights." These include timber, mineral, hunting or fishing and water rights. An owner can separate and sell or give away each of the rights. Also, each of the rights can be separated and sold or given away as an easement. For example, a utility easement can be sold or given to a gas company for a gas line to run through a property. Such a utility easement would appear on the deed to the property and would remain with the property permanently even though the owner might subsequently sell the land.

A conservation easement, as the name implies, is a legal agreement used to set aside development rights for the specific purpose of conserving and preserving land. Land might be preserved, for example, to assure continuation of agricultural activities, wildlife habitat or private open space. Typically, easements are written to reflect the current owner's personal wishes for his or her property.

Each conservation easement is recorded in the permanent public record just as deeds of ownership or utility easements are recorded. The conservation easement simply sets limitations on future uses of the property in exchange for financial compensation and/or tax benefits. A conservation easement would not convert the land to public use or permit public access; the land would remain entirely private. The land can be sold subsequently and can be used as defined in the easement.

The Ohio Revised Code recognizes conservation easements, allows conservation groups to own them and specifies how they are to be handled. To qualify for a federal tax deduction, a conservation easement must be given in perpetuity to a recognized conservation organization. A qualified appraiser can evaluate a conservation easement just as an appraiser would determine the market value of land for sale as real estate. Values of conservation easements vary, but 40-50% of the fair market value of the property is a general rule.

In Knox County, the Owl Creek Conservancy is a private, fully qualified 501 c (3) (IRS) non-profit land trust that can develop and hold conservation easements. Presently, the Conservancy holds ten conservation easements covering 557 acres. The first two of the Conservancy's easements (totaling 33 acres) are along the Kokosing Gap Trail east of the Brown Family Environmental Center at Kenyon College. Eight of the easements, totaling 337 acres and protecting both working farms and natural areas, are in Knox County. The two remaining easements include a 91-acre working forest (that can be timbered forever) in Monroe Township in Richland County and a 131-acre sheep and cattle farm in Muskingum Township in Muskingum County. Three easements in Knox County were acquired through donations by the landowners and grants from the Ohio Public Works Commission and ODNR, Division of Wildlife. The remaining easements were the generous donations of the property owners.

The Conservancy's ten easements attest to the scope of land -protecting agreements and to the magnitude of the Conservancy's holdings. The listing above, however, does not demonstrate the uniqueness of each land-protecting agreement and the ability of the Conservancy or other organizations to tailor an agreement for each property and landowner.

In addition to the Conservancy, a private land trust, the Knox County Soil and Water Conservation District and the Board of County Commissioners are governmental entities that are also qualified to hold conservation easements. For more information about land use options and conservation easements, please visit the Conservancy's web site at www.owlcreekconservancy.org or the web site of the national organization of land trusts, the Land Trust Alliance, at www.landtrustalliance.org



A Place With a View for the Future

July 28, 2008

The Philander Chase Corporation and Owl Creek Conservancy, private land trusts operating in Knox County, announce the release of a new video, "A Place with a View for the Future" featuring Jean Briggs, Alan Cassell, Chuck and Rita Dudgeon, Dalton Magers, and Tim Norris, each of whom has conserved property through a land-protecting agreement called a conservation easement.

Most land in Knox County is used for agriculture, including forestry. However, preventing uses incompatible with agriculture was foremost in the minds of participants in the video.

Jean Briggs, reflecting on why she decided to protect her farm through an agricultural easement said, "We put the farm in the Ohio State easement program so it can't be developed. The farm is still ours. It can be sold. I just feel comfortable that it is going to be a farm after I'm gone."

Tim Norris agreed stating, "I just could not bear to be the last person, or the last generation, to farm the farm … in my opinion, to destroy it as a farm."

Alan Cassell summarized his experience with two conservation easements allowing farming and protecting the banks of the Kokosing State Scenic River or Granny Creek as, "Nothing but positive." He also noted that easements can be tailored to each owner's wishes and to the land itself, pointing out, "There is a lot of variation. I think that is one of the biggest misunderstandings about easements. You are not giving up control of your property."

Responding to the question of whether a conservation easement had changed his use of his farm, Dalton Magers said, "No, it hasn't made any difference as far as what I do. I just wanted it to be a farm."

Chuck and Rita Dudgeon noted that preserving farmland instead of converting it to home sites holds the demand for community services down and thereby can hold property taxes down for everyone. It was also noted that land-protecting agreements can conserve natural resources like the aquifer northwest of Mount Vernon, which provides drinking water for more than 40% of Knox County.

For more information about keeping your working farm available to help feed future generations or to request a copy of the DVD, please telephone 392-6952 to leave word.



Federal Tax Incentive for Local Land Conservation Renewed

July 17, 2008

Mount Vernon, Ohio. Private landowners - especially family farmers - are beneficiaries of a newly passed federal tax incentive for conserving land. Landowners now have until December 31, 2009 to take advantage of the incentive.

The incentive involves voluntary land-protecting agreements, also known as conservation easements, to protect working farms from unwanted development. The incentive makes it more economically feasible for farmers and other landowners to keep their land in agricultural production. Additionally, the incentive can make it easier for families to leave their land to the next generation.

Most of the natural and working landscape of Knox County is privately owned land. Thus, maintaining the rural character of our community hinges on the decisions of individuals. Many land-use decisions are made in the marketplace, and such decisions often transform the landscape to more intensive uses. But other voluntary decisions by landowners can help to preserve our community's natural and agricultural resources. The newly passed federal tax incentive for conservation provides an important tool for farmers and landowners to preserve their land and receive important tax benefits.

The incentive, which applies to a landowner's federal income tax, will:
1.) Raise the deduction a donor can take for donating a voluntary land-protecting agreement from 30% of their income in any year to 50%;
2.) Allow farmers to deduct up to 100% of their income; and
3.) Increase the number of years for a donor to take deductions from 6 to 16 years.

According to Richard Stallard, president of the Owl Creek Conservancy, "Landowners are inspired to donate conservation easements by many things. For example, love of the rural character of Knox County, a feeling of being connected to a home place, and desire to leave a legacy for future generations. Such inspirations are at the heart of our work to protect permanently valuable natural resources in Knox County. The federal income tax deduction that comes with a donated conservation easement may encourage donations that might otherwise never be possible."

The Philander Chase Corporation and Owl Creek Conservancy are private land trusts operating in Knox County. The Philander Chase Corporation operates in and around Gambier. It owns 215 acres and holds 12 land-protecting agreements, covering 1,630 acres in College, Harrison and Pleasant Townships. The Owl Creek Conservancy operates throughout Knox and surrounding counties. It owns no land, but it holds ten land-protecting agreements covering 337 acres in Knox County, 130 in Muskingum County, and 90 in Richland County. Self-perpetuating boards of trustees manage both the Philander Chase Corporation and the Owl Creek Conservancy. The Owl Creek Conservancy also has memberships open to all who want to support the effort to conserve the land and waters of the Knox County area. Doug Givens of the Philander Chase Corporation said, "For a wide range of reasons a number of farmers and landowners have already conserved and preserved land in the County. The result is cleaner air and water and, more importantly for Knox County, conservation of working farms. Over the long term, conservation easements will help sustain one of Knox County's largest industries and will help maintain a rural heritage we often take for granted."

For more information about protecting your land and preserving your heritage, please telephone 392-6952 for a return call.



Panel to Discuss Land-protecting Agreements

May 13, 2008

The Philander Chase Corporation and Owl Creek Conservancy, private land trusts operating in Knox County, announce a panel discussion on land-protecting agreements. The panel discussion will be Tuesday, June 3, 2008 at 7:30 p.m. in the Memorial Theater Cafeteria, 112 East High Street, Mount Vernon. Panelists include Jean Briggs, Alan Cassell, Chuck Dudgeon, Dalton Magers and Tim Norris with Rob Clendening of KSWCD as moderator.

Land trusts in each state work to conserve important land in the communities they serve, including farms, waterways, wetlands, scenic vistas, forests, urban gardens and public recreational areas. Those protected lands safeguard water quality, protect natural areas and wildlife habitat, preserve working family farms, and create opportunities to enjoy open green spaces.

JThe National Land Trust Census, issued late in 2006, reported that land trusts had grown nationwide to a total of 1,667. Nearly 25,000 members and volunteers supported the 44 land trusts operating in Ohio in 2005. The National Land Trust Census also reported a 150% increase in land preserved in Ohio between 2000 and the end of 2005. Most of the increase occurred through land-protecting agreements, often called conservation easements. Conservation easements are voluntary agreements allowing continued traditional uses of land such as farming or forestry, while otherwise restricting future development.

Each of the panelists listed above has participated in at least one permanent conservation agreement. Some of the agreements were outright donations of development rights. Others were part donation and part purchase. Funds for purchases originated from the Ohio Agricultural Easement Purchase Program, from the Clean Ohio Conservation Fund, and from federal programs administered by the Ohio Department of Natural Resources, Division of Wildlife.

Land Trust Alliance President, Rand Wentworth said, "Private conservation works because it's locally driven, supported by sound tax policy, and people-oriented. This is what land conservation looks like in the 21st century. The success of land trusts and private conservation boils down to this: when people see the natural qualities of their environment where they live being destroyed, they are willing to stand up and take action. And they are increasingly winning."

Doug Givens of the Philander Chase Corporation said, "For a wide range of reasons the panelists have conserved and preserved land. The result is cleaner air and water and, more importantly for Knox County, conservation of working farms. Over the long term, conservation easements will help sustain one of Knox County's largest industries and will help maintain the rural heritage we often take for granted."

For more information about protecting your land and preserving your heritage, please attend the panel discussion on June 3rd or telephone 392-6952 for a return call.

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