A conservation easement is a voluntary restriction placed on land by the owner.  Under the Georgia Uniform Conservation Easement Act, the purpose of a conservation easement is to impose limitations or affirmative obligations which result in retaining or protecting one or more stated values: natural, scenic, or open-space values of real property; assuring its availability for agricultural, forest, recreational, or open-space use; protecting natural resources; maintaining or enhancing air or water quality; or preserving the historical, architectural, archeological, or cultural aspects of real property.  Conservation easements are generally perpetual – i.e., they protect the land forever.

            With a conservation easement encumbering a farm, the land is still privately held.  The owner makes decisions regarding land use, provided best agricultural/forestry management practices are used.  The land may be sold or leased to others, used for collateral for loans, willed to children, etc.  However, none of the farm can ever be developed for non-agricultural uses.  Public access is not required.

 Requirements

Like all easements, conservation easements must be "held" by someone.  To qualify under Georgia law, a conservation easement must be held by either (a) a governmental body empowered to hold an interest in real property under the laws of Georgia or the United States; or (b) a charitable corporation, charitable association, or charitable trust, the purposes or powers of which include retaining or protecting the natural, scenic, or open-space values of real property; assuring the availability of real property for agricultural, forest, recreational, or open-space use; protecting natural resources; maintaining or enhancing air or water quality; or preserving the historical, architectural, archeological, or cultural aspects of real property.  The Georgia Agricultural Land Trust (GALT) qualifies as a "holder" under Georgia law and is a "qualified organization" under federal tax law.

 Valuation

Farmland conservation easements require two appraisals: (1) a normal appraisal determining the fair market value of the property at its highest and use best (usually subdivided and developed), and (2) an appraisal of the property encumbered by the conservation easement – i.e., the value of the farm if it can only be used for agricultural purposes.  The difference in the two appraisals is the value of the conservation easement, which can also be considered as the value of the development rights – the extra value that the owner would receive if the property were developed for non-agricultural uses rather than conserved.  With a conservation easement, the owner is giving up the development rights.

 

Easement Purchases

Although very limited monies are available for the whole or partial purchase of farmland conservation easements, most easements include at least a partial donation by the owner.  Under the Farm and Ranch Lands Protection Program (FRPP) managed by the Natural Resources Conservation Service (NRCS) in the US Department of Agriculture, money is allocated among the states for the partial purchase of conservation easements.  NRCS will pay up to one-half the value of the conservation easement (or value of the development rights).  The remainder must come from local sources.  The owner may "donate" up to ¼ of the value of the easement.  FRPP grants are very limited and very competitive.

 

Summary

            Many farms have been in the family for several generations, and current owners would like to see the land preserved for agricultural uses.  GALT would be happy to discuss Georgia farmland conservation easements with you.  GALT is the only land trust in the State of Georgia that focuses exclusively on the conservation of farmland – land used for livestock, crops and/or forestry.  We understand the realities of operating a working farm, and consult with each owner and the owner's family to try to create a conservation easement and relationship that is workable and farm friendly.