Everything You Need to Know About Conservation Easements
As Arizona is losing farmland at an alarming rate with Maricopa County being number one in the nation for losing farmland the fastest, it is critical that we implement ways to protect agricultural land to ensure that we are able to provide food and fiber to rapidly growing communities. Safeguarding land for food production– as well as for wildlife habitat, watershed recharge, wetlands and riparian areas, and the preservation of icon viewsheds– is a core function of a tool called a conservation easement. While it sounds pretty technical, the purpose of an conservation easement is rather simple: to protect lands for public benefit.
Conservation Easements Explained & Why We Need Them
A Conservation Easement is an important tool used to ensure that land remains in agricultural production and a proven method used to protect farms and ranches from development. In Arizona, these are governed by A.R.S. § 33-271, et seq. A conservation easement’s purpose is to preserve the conservation values of that land (such as agriculture, open space, wildlife habitat, etc.) and is governed by a Deed of Conservation Easement, or an agreement between a private landowner and a qualified entity, which is generally a land trust. The landowner donates or sells the development rights of that land, and the value of these are determined by a qualified appraisal. A conservation easement limits subdivision of the land and what can be done on that land. Certain activities are still allowed and some residential and agricultural buildings might be permitted in “building envelopes,” but not the subdivision of that land into smaller parcels. Preventing subdivision helps keep family lands in use for activities like farming and ranching.
While a conservation easement is a private-land transaction, it has community benefits. Lands that are under a conservation easement provide benefits like protection of wildlife habitat, iconic views, grasslands and wetlands, riparian areas, and watershed health while also ensuring that the land can be in active farming and ranching food production. A conservation easement also allows protection of the water rights on that land and ensures the value of that land remains, as often water rights are what give land value. Strategically conserved pieces of land provide some built-in resilience in communities and landscapes. By conserving pieces of land used for agriculture, we are growing local food and recharging watersheds, which is critical in our high desert environment.
For a private landowner, a conservation tool is a way to conserve the land and agricultural activities that have been part of its history and also a way to receive valuable tax benefits or financial compensation from selling the development rights to the land. For a farmer or rancher, a conservation easement can ensure that the land they invest their time, energy, and care in will remain safe from being developed. Also, land that is placed into a conservation easement would be more affordable to purchase for the next generation of farmers and ranchers. Conservation easements are part of community land management which can provide benefits to all of us.
What is the difference between a conservation land trust and a community land trust?
Community land trusts are based on the premise that land should be held and managed for the benefit of local communities, and they often use cooperative and community type ownership models. While traditional conservation land trusts may not use communal land models, they work to conserve private land in order to benefit the surrounding communities and the public in general.
Conservation Easements and Urban Agriculture
Conservation easements play an important role in protecting farmland, particularly in urban settings. Urban agriculture increases access to healthy food for community members, strengthens public health, and shows people where food comes from in order to foster an appreciation for the art and love of growing food. While there is no set minimum acreage for putting land into a conservation easement, small acreage pieces of farmland (such as 10 acres or less) typically do not meet evaluation criteria for federal funding and additional state benefits (if the state has any). However, as development pressures mount with rapidly expanding urban populations, we need to be creative in the ways that we conserve smaller agricultural acreage. As land is being divided into smaller parcels in rapidly expanding urban centers, it is critical to safeguard land for local food production and other benefits such as maintaining healthy water cycles and cooler green spaces among all the concrete in urban centers, which exacerbates the urban heat island effect.
An example of an innovative way to conserve small acreage farmland is a project completed in 2022 that successfully placed Maya’s farmland into a conservation easement. This groundbreaking accomplishment was a collaboration between the City of Phoenix, Central Arizona Land Trust, Bridget Bellavigna (landowner), Maya Dailey (farmer), the Coalition for Farmland Preservation, and Local First Arizona. The community-led and city-funded project worked to build resilience in Phoenix’s long-term food system and also made the land more affordable for farmer Maya Dailey to purchase.
The Role of Conservation Land Trusts
Conservation land trusts play a crucial role in conservation easements. A conservation land trust is a private, non-profit organization which is a qualified entity to own and manage land, and sometimes waters. They acquire conservation easements for the purpose of limiting commercial development and protecting open space, historic landscapes, wildlife habitat, waterways, and/or productive farms, ranches, and forests. Land trusts can advise landowners on ways to protect their land, explain the process of a conservation easement, search for funding, and help negotiate and close on conservation transactions. They serve as holders of the conservation easement, which means they are legally responsible to annually monitor the property (with the landowner’s permission) and enforce or defend the conservation easement. Some land trusts own land as well to ensure the property is conserved. Land trusts work with landowners, government agencies, farmers and ranchers, and many other partner organizations.
Sharma Torrens, a Conservation Specialist with Central Arizona Land Trust (CALT), describes their role as “a land trust entrenched in the community and working to conserve land to benefit the surrounding communities.”
How to Find Funding for a Conservation Easement
Placing land into a conservation easement can be an expensive process. Covering the landowner transaction costs (appraisals, title reviews, surveys, etc) can be a barrier to entry for many landowners, especially historically underserved producers. Some states have created funding structures to help with these costs to show that they value the public benefits afforded through land and water conservation. Land trusts can work with landowners to find funding to help cover the upfront transaction costs, and they also advocate for legislation, such as the U.S. Farm Bill, to make conservation easements easier and more affordable.
While landowners often decide to donate the development rights and receive tax-benefits from doing so, there are also federal funding programs to help with purchasing the development rights. The process of applying for and receiving federal funding can often take longer than donating the development rights. Below are easement funding programs and conservation partnership funding programs found within the U.S. Department of Agriculture Natural Resource Conservation Service (USDA NRCS).
Agricultural Conservation Easement Program (ACEP)
The Agricultural Land Easement (ACEP-ALE) is a voluntary federal conservation program implemented by the USDA NRCS that protects private agricultural land from conversion to non-agricultural uses. ACEP-ALE provides funds that can be used to help buy conservation easements on farm and ranch land. To learn if you are eligible, contact your local NRCS office and a conservationist will visit you and evaluate your land to help you determine eligibility for the various components of their ACEP.
Healthy Forest Reserve Program (HFRP)
The HFRP helps landowners restore, enhance and protect forestland resources on private lands through easements and financial assistance. Through HRFP, landowners promote the recovery of endangered or threatened species, improve plant and animal biodiversity and enhance carbon sequestration. To be eligible for enrollment, land must be privately owned or owned by Indian tribes and restore, enhance, or measurably increase the recovery of threatened or endangered species, improve biological diversity, or increase carbon storage.
Regional Conservation Partnership Program (RCPP)
The RCPP is a partner-driven approach to conservation that funds solutions to natural resource challenges on agricultural land. RCPP projects fall under two different categories: RCPP Classic and RCPP Grants. RCPP Classic projects are implemented using NRCS contracts and easements with producers, landowners and communities, in collaboration with project partners. Through RCPP Grants, the lead partner must work directly with agricultural producers to support the development of new conservation structures and approaches that would not otherwise be available under RCPP Classic.
Steps to Take if You’re Interested in a Conservation Easement
Determine if you are eligible. In general, the requirements for eligibility are:
American Indian tribes, state and local governments and non-governmental organizations that have farmland, rangeland or grassland protection programs
Landowners include owners of privately held land including land that is held by tribes and tribal members
Find a local Conservation Land Trust to answer your questions and begin the process. A local land trust entity can help you answer specific questions that you have regarding conservation easements and conservation projects. Arizona has five active land trusts: Central Arizona Land Trust, Arizona Land and Water Trust, Desert Foothills Land Trust, Superstition Area Last Trust, and Grand Canyon Trust. Every land trust has a different mission and specific area of expertise. They can be great resources to help you understand if a conservation easement is the tool best suited for your goals and context.
Look into potential forms of funding and/or into the benefits of donating the development rights. As outlined above, there are several USDA NRCS programs that can help with purchasing the development rights to your land if they meet the conservation program requirements. Alternatively, a land trust and/or an accountant can help explain the benefits of donating the development rights of the land, both at the federal and state level. Land trusts can also help find ways to assist with covering the costs of landowner transaction expenses.
Form partnerships. Placing a conservation easement on a piece of land is a collective effort. Find partners that understand your needs and wishes for the land, help answer your questions, and ensure that the process is done correctly.