Recently, a client of mine, the Harmets, entered their land into a conservation easement to much fanfare. Thier property contains several different ecosystems including a hill prairie remnant, a prairie that survived 100 plus years of grazing until the Harmets purchased the property and began management.
A conservation easement is a legal agreement between a landowner and a land trust that limits the uses of the land in order to protect its conservation values into perpetuity, while still retaining full ownership rights and the ability to pass land on to heirs or other owners. Property taxes are usually greatly reduced or totally eleminated as well as federal income taxes for the first fifteen years, in order to encourage this type of land protection. After the conservation easement is signed it is recorded into the County of Deeds and applies to all future owners of the property. Conservation easements are customized for each parcel of land and can accomodate many unique situations. The property owners work with a land trust, who provides the legal service and all legwork. The land trust can be compensated by the land owner through a voluntary donation.
In 2006 the popularity of conservation easements accelerated due to a pension reform bill passed by Congress. The maximum deduction a donor is allowed was raised from 30% to 50% of their adjusted gross income in any year. Farmers and ranchers can deduct 100% under the new bill. Also, the carry forward period to take the deductions was extended from 5 years to 15 years. These are not to be changed for 26 years.
Although the financial benefits serve as great incentives, protecting ecosystems, scenic views, historic farms and ensuring that your family will be able to continue ownership is the real driving force. Currently there are over 1,600 not for profit land trusts in America including two in JoDaviess County.
http://www.galenagazette.com/main.asp?SectionID=142&SubsectionID=344&ArticleID=11102&TM=50068.05 The Galena Gazette’s article on Dick and Joan Harmet
http://journalstandard.com/articles/2007/11/26/news/news01.txt The Freeport Journal Standard’s article on the Harmets
http://www.lta.org/ The Land Trust Alliance
http://www.naturalland.org/ The Natural Land Institute
http://www.jdcf.org/conservation_options.htm The JoDaviess Conservation Foundation
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