conservation easements.....

[David]

Chance exists i will be attempting to place my farm into a conservation easement. Due to some particularly specific features of my land, this could be a significantly lucrative move for me. i wont get into the specifics, but it will be hard to turn down. i am taking this very seriously. Both my accountant and attorney will be involved.

To those who have done this or considered it.

what should i look out for
what are your regrets
would you do it again

any advice would be appreciated

 

[MarkDarvin]

Make sure you understand completely what rights you're selling them, whether that fits your ownership interests, and how much your land value will decrease after it's done. If you're never moving, no big deal. If you are, it could kill your ability to resell your land at an adjusted price that at least gets the rest of your money out of it.

I don't ever see it as a windfall, but rather a partial sale. Whether it works for you is the thing to figure out.

 

[David]

thanks

my biggest fear is that interpretation of the actual restrictions will be up for debate. Isn't that how it always works! An example would be one man views application of herbicides as a violation of the language while another man doesn't.

has anyone experienced or heard of a shockingly unfair interpretation of an agreement?

from what i am hearing, the language in the agreements (as important as it is to understand completely) is occasionally vague and thus impossible to understand completely.

thanks

 

[Chainsaw]

I don't know anyone that has done this but the idea of a vague agreement would stop the project for me. Applied for a wetlands program to build a duck pond many years ago. The Govt. was going to give me $40,000 to help cover the cost. They approved the project but then in the final agreement the words wetland were used versus duck pond. That killed the deal for me. If the wording is vague in any deal it could be vague for a reason. I do not trust vague agreements and would rewrite it to my understanding--if the government or anybody can not agree to concrete writing in an understanding then there is no understanding and should be an automatic no deal. The position of the people making the deal will not necessarily be reflected in how the deal actually works once different people are "governing" the process.

If they won't agree to specifics in writing then you are buying into"a pig in the poke". Trust in God and yourself and maybe your best hunting partner but definitely not the Government.

 

[X-farmerdan]

Once again I'm hesitant to offer thoughts. I've not done an easement, but I have some experience with them. From the outside looking in, I see a legal contract. It's a contract just like any other. Negotiate in good faith and expect to be held to the terms of the contract, whatever they may be.

Not all conservation easements are government based, if that's the correct word. My knee jerk reaction is I like government backed better than NGO's. I have no basis to say this, but I wonder if NGO's feel like they have rested total control from you once the easement is in place. But, one of the largest individual landowners in Virginia prefers them. I have no special connection with him, only observations. The land he enrolls in easements appears to have no other use and, hence, no opportunity cost. Additionally, I would guess this land has no personal value to him. It may even be likely he's never set foot on it.

I think he's got if figured out. My hesitation would be loss of control over what I can do with it. It's like being married. Seems like the right thing to do at the time, but years later, is it? Easement agreements can be broken, but it tends to be expensive.

Will your agreement have an escape clause?

 

[Triple C]

David, I've been far down the path of placing a conservation easement on my property but backed out at the last minute. I haven't ruled out the possibility of doing so in the future but as of today, I'm glad i did not make the decision to move forward. Forever, and I mean forever, is a long time. Once you place your property in a conservation easement, you are bound by the restrictions of the easement and the easement lasts for perpetuity. That means after you're gone the conservation easement continues. If you're asking for advice then here's mine...Wait for at least 3 years. You can always choose to do a conservation easement but once done, you can never undo it. In the meantime, talk with conservation easement experts in your area to learn all the pros and cons of placing a conservation easement on your property. Just my .02 worth.

 

[buckdeer1]

I don't know if they are exactly the same thing but know an old lady that put her land in a conservation trust and walked away.Since then the Sunflower land trust from Wichita kansas has threatened surrounding landowners trying to get their hunting rights.They have lied to law enforcement trying to get guys on neighboring land arrested for trespass and it wasn't their land.I know you are looking at a government deal but as mentioned forever is a long time

 

[David]

Not looking for a government contract. Probably a local land trust. I am looking for folks with regrets. The one thing I'm begining to see is to avoid generalities in the language.

Thanks for input and advice.



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