Ranching has never been an easy life or an easy living. In the mid 1980's it got tougher. High interest rates, an excess of expensive, financed farm equipment, overpriced agricultural land, and flat or declining agricultural commodity and beef prices changed the ranching equation forever. These factors coupled with the exceptional growth in fly fishing/outdoor recreation baby boomer leisure time and wealth resulted in the greatest sell off of ranch land in the history of the United States. It is these events which became the foundation for the growth in Conservation Easement grants. What is a Conservation Easement? In its simplest form a Conservation Easement is best described as the grant by deed by an owner (Grantor) to a charitable organization (Grantee) of all or a portion of certain of the bundle of rights that are a part of private property ownership, including very specifically future development and construction rights. The formula for computing the value of this donation is complicated. Simply, after including a host of factors such as enhancement, (ie the increase in value of rights reserved on the property, after the grant of the easement), there is a value attached to the rights that are being given away. This value, (once all the i’s are dotted, t’s are crossed, proper documentation drawn, signed by Grantor and Grantee thereby effecting the grant, lengthy appraisals certified, and resource plans and base data studies compiled), can be deducted by the land owner from his adjusted gross income on his annual tax returns. There are limitations on the amount of deductions that can be taken in each year, and in most circumstances the deduction must be spread out over at least three years . The deduction, if not used, can usually be carried forward for later use for up to six years. However, each individuals’ tax, income, and easement situation differs, and final details must be carefully scrutinized by an owner’s legal and tax consultants. What is the Effect of an Easement? A Conservation Easement document typically includes two types of uses. Permitted reserved uses, and non permitted uses. Non permitted uses can involve a variety of quantitative and qualitative restrictions, for instance timbering may be prohibited, or selective timbering may be permitted in certain areas. All of the future development rights of a property may be deeded away, or certain rights for a limited number of homesites in certain areas strictly defined by the Easement may be retained. Certain resource enhancements and protections may be mandated, for example, riparian area fences, cross fencing, etc. Each Conservation Easement deed is unique, and tailored to the specific piece of property which it will encumber, as negotiated by and between the owner (or his manager and other consultants), and the recipient of the easement, which can include such organizations as the Rocky Mountain Elk Foundation, the Montana Land Reliance, Trout Unlimited, Ducks Unlimited, The Nature Conservancy, The Audubon Society, and others. In the many areas of the Rockies, Local Land Trusts concerned with very geo-specific resource protections will accept the donation of an easement. The End Result. The end result of a conservation easement whose terms have been carefully thought through and negotiated, and which is part of a long term capital improvement, agricultural and resource plan for a working ranch property is that the owner "gets paid to do the right thing." Wildlife and fisheries habitat is protected in perpetuity. Development is strictly limited and confined to non-critical resource areas. View corridors are protected for neighbors and the public at large, open space preserved, potential greed factors removed from future generations or owners, agricultural endeavors continue, an additional land steward in the form of the conservation agency is added to those watching over the property, and the owner is fairly compensated in real live cash based benefits through tax savings. It is a win, win for all involved. We are strong believers in Conservation Easements. Our firms have been instrumental in assisting past clients in negotiation, grant and/or planning of compensatory and non compensatory Conservation Easement Deeds on tens of thousands of acres of pristine Rocky Mountain agricultural and wilderness property in the United States and Canada, including over sixty stream bank miles of rivers, streams, and other water bodies.

Consultants to and for Recreation and Agricultural Enterprises

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