Nestled within California’s Central Valley lies a rich tapestry of agricultural lands and natural resources. These natural and managed lands are the heart of our culture, heritage, and survival. They provide critical habitat for native plants and wildlife. They also support our vital food production industry which creates jobs for nearly 170,000 agricultural workers according to the CA Employment Development Department. This region is a powerhouse in the national food supply chain, contributing a significant portion of the vegetables, fruits, and nuts that grace American tables. Yet, according to the CA Department of Food and Agriculture, we are losing 50,000 acres of farmland each year across the State! Of these, approximately 39,000 acres succumb to the sprawl of urban development, which is due to poor planning.
To combat the ever-expanding development of these lands, the Kings River Land Trust partners with like-minded entities, local landowners, and the public, to remain at the forefront of this issue. We use the tool of conservation easements to safeguard local lands for future generations. But what exactly do conservation easements entail, and how do they benefit both landowners and the broader community? Let’s delve deeper into the mechanics and types of conservation easements offered by Kings River Land Trust.
Understanding Conservation Easements
Conservation easements serve as a vital tool for conserving private lands, ensuring their ecological and agricultural significance endures in perpetuity. These legally binding agreements are voluntarily entered into by landowners and qualified entities, such as land trusts or government agencies. By restricting certain uses of the land, while maintaining land ownership and many other associated rights, conservation easements strike a delicate balance between conservation and practical land use. They reduce or remove the pressure a farmer or rancher experiences to sell or develop their land.
For example, a landowner who wishes to continue farming their land, but needs additional cashflow to continue their operations, can sell just the development rights of their property, but still retain the rights to continue their farming production and to sell their property in the future exclusively as agricultural lands.
Types of Conservation Easements
Within the realm of conservation easements, Kings River Land Trust focuses on two primary types:
Agricultural Conservation Easements (ACE): ACEs are crafted to maintain land for farming and ranching purposes, thwarting the conversion of valuable agricultural land into non-agricultural uses. By upholding the viability of farms and ranches, ACEs play a pivotal role in sustaining agricultural practices and bolstering food security.
Natural Habitat Conservation Easements (NHCE): NHCEs are dedicated to preserving native habitats, safeguarding the ecological integrity and biodiversity of our landscapes. By protecting vital natural resources, NHCEs contribute to the resilience of our ecosystems and provide habitats for diverse flora and fauna.
Both ACEs and NHCEs can be used on one property to tailor the end result to the needs of the landowner. Both types of easements can also be used to serve the mitigation needs of urban development companies and public agencies. Mitigation easements help to offset adverse impacts of development on loss of farm/ranchland, habitat, or riparian areas. These easements are paid for by the mitigating group.
Mechanics of Conservation Easements
When a landowner elects to enter into a conservation easement agreement with Kings River Land Trust, they commit to relinquishing certain development rights on their property. These restrictions are meticulously outlined in partnership with the landowner (and the funder) in the easement document and are enforceable in perpetuity. The land trust assumes the responsibility of monitoring the property to ensure compliance with the terms of the easement, safeguarding the conservation values for generations to come.
Calculating Easement Values
Determining the value of a conservation easement involves a comprehensive appraisal process. Qualified appraisers assess various factors, including the fair market value of the land before and after the easement, considering its agricultural or ecological significance. The easement value represents the difference between these two values (the fair market value and the value after an easement is placed) and may include considerations for tax benefits and stewardship contributions.
To fund an easement we can categorize them as follows: Donated Easement: When the landowner donates the purchase price of the conservation easement for significant tax benefits.
Funded: When the purchase price of the conservation easement is paid for by one or more funding organizations, groups, or agencies. This still offers tax benefits to the landowner.
Bargain Sale: A bargain sale conservation easement is a combination of partially funded and partially donated easement types.
Mitigation: As noted above, mitigation easements help to offset adverse impacts of development on loss of farm/ranchland, habitat, or riparian areas. These easements are paid for by the developer or mitigating group.
The Benefits to Landowners
From the landowners’ perspective, entering into a conservation easement agreement brings both benefits and considerations. Financially, it offers compensation through the easement sale proceeds or tax deductions, which can be reinvested into the land or other needs. This may help with estate planning, reducing estate taxes, and facilitating the smooth transfer of properties to the next generation. Collaborating with a trusted land trust, like Kings River Land Trust, provides access to resources and expertise to facilitate a transaction that meets the needs of the landowner and associated parties.
Easements, however, also come with restrictions on development rights, potentially limiting future land use options. It is very important for landowners to engage their whole family and make an informed decision for the future. They require a long-term commitment from current and future landowners and involve a complex process of legal and appraisal procedures. Despite challenges, conservation easements offer a pathway to secure resources, protect legacies, and ensure sustainable stewardship.
The Benefits to Our Community
Conservation easements offer invaluable benefits to the broader community, particularly through the conservation of local farms and ranches, while protecting private landowner stewardship. By maintaining working agricultural lands, conservation easements support local economies, ensure a sustainable food supply, and preserve cultural heritage for future generations.
Additionally, these protected areas contribute to ecosystem health, enhance water quality, and mitigate the impacts of climate change. Conserved lands serve as vital wildlife habitats, recreational spaces, and scenic landscapes, fostering a deeper connection to nature and promoting overall well-being among residents and visitors alike.
Likewise, conservation easements help preserve the character and beauty of rural landscapes, enriching the quality of life for all members of the community. Through collaborative efforts led by organizations like Kings River Land Trust, conservation easements are a tool that allows for long-term stewardship of our local resources, benefiting us all.
Conclusion
Conservation easements represent a powerful tool for conserving the agricultural and natural landscapes that define California’s Central Valley. Through strategic partnerships with landowners, Kings River Land Trust continues to protect and support landowners’ rights and their stewardship of these lands. In doing so, we are ensuring their resilience and vitality for generations to come.
If you’re a landowner interested in conserving your property, or a member of the community passionate about land conservation, we invite you to join us in our mission to conserve the Kings River Watershed. For more information on conservation easements and how you can get involved, please sign up for our email list, visit our conservation webpage, and/or contact us directly. You can reach our Executive Director, Luke Hoekstra, by email at: luke.h@kingsriverlandtrust.org
Together, we can safeguard the legacy of our lands and create a sustainable future for all who call the Central Valley home.