Land Trust 101: What is a Conservation Easement?

A conservation easement is the primary tool available for protecting privately-owned land. It is a voluntary, legal agreement between a property owner and a land trust that limits use of the land in order to protect its conservation value in perpetuity. It allows a landowner to continue to own and use their land, and eventually to sell it or pass it on to their heirs. The document is recorded at the County Clerk’s office and the terms set out in the easement “ride with the land.” When land ownership changes, the conservation restrictions stay in place.

All conservation easements must provide some public benefit. CPF holds conservation easements that protect farmland, wildlife habitat, public outdoor recreation opportunities, and historical properties. Each easement is unique and consists of one or more restrictions on the property to preserve the conservation purpose of the easement and certain reserved rights held by the landowner. Development is almost always limited.

What are the benefits for landowners?

Conservation easements offer landowners the ability to protect important conservation values on some or all of their property, while still having the ownership and use of their lands. The landowner and the land trust work together to identify the important conservation purpose for each easement and to decide on terms that are right for the land and right for them. For example, a landowner might reserve the right to build a home on the land or to subdivide the property, as long as they’re still protecting important conservation values.

Conservation easements can be essential for passing land on to the next generation. By removing the land’s development potential, the easement lowers its market value, which in turn lowers estate tax. This can make a critical difference in the heirs’ ability to keep the land intact.

A landowner may sell a conservation easement, but typically easements are donated. If it benefits the public, it may qualify as a tax-deductible charitable donation.

The amount of the donation is calculated by taking the difference between the land’s value with the easement and its value without the easement. A conservation easement donation may lower the landowner’s federal income tax, and in New York state, may also lower their state income tax.

What are the benefits to the community?

Conservation easements allow for certain identified conservation values of a parcel of land to be preserved, even when ownership of the land changes. Through private land conservation, all members of the community benefit from conserved farmlands, wetlands, forests, historical building facades, public-access trails and scenic views. Importantly, when lands are conserved through easements, these properties stay in private ownership and remain on the tax rolls.

Are you considering a conservation easement on your land?

Start by contacting CPF. We will talk with you about what characteristics of your property you want to protect and how you want to use the land. Placing a conservation easement on land is a big decision. Be sure to talk with family members as you consider conservation options, and consult with an attorney and a financial advisor. Once the easement is in place, we will work with you and all future landowners to ensure that activities on the land are consistent with the terms set out in the easement.