Frequently Asked Questions
What Are Land Trusts?
Land trusts are non-governmental private nonprofit organizations whose purpose is to protect and preserve important land resources for the public benefit. Yolo Land Trust (YLT), founded in 1988, is one of the oldest land trusts in the Central Valley. YLT’s efforts are joined by over 1,700 other organizations that also work at the local, regional, national, or international level to protect important land resources. These resources are defined by the needs of the community or region and may include working lands (farms or ranches), wetlands, wildlife habitats, watersheds, threatened ecosystems, open space, scenic landscapes and historic or cultural sites.
Land trusts come in all sizes, from large national organizations (The Nature Conservancy, The Trust for Public Land) to local land trusts such as Yolo Land Trust whose focus is just Yolo County. When evaluating a land trust, review the makeup of the board of directors, the trust’s community involvement and level of community financial support, as well as its track record of sound transactions and easement stewardship within the community.
How are Land Trusts Funded?
Funds for land trust operations and land protection activities may come from several sources. Some come directly from the organization’s supporters as donations. Other funds may come from private foundations, corporations, and local businesses.
Funds to purchase a conservation easement come from governmental agencies with specific land conservation programs. These programs are highly competitive, and Yolo Land Trust has been very successful in securing grants over the years.
Funds to purchase a conservation easement may also come from developers who must mitigate for the loss of farmland, rangeland, or habitat in Yolo County.
What is a Conservation Easement?
A conservation easement is a voluntary tool that allows landowners to conserve their land while retaining ownership. It is a legal restriction that a landowner places on his or her property to define and limit the type of development that may take place there. Generally, conservation easements are either donated or sold to nonprofit conservation organizations like Yolo Land Trust which then carry the responsibility to enforce the restrictions in perpetuity.
The conservation easements that Yolo Land Trust holds are designed to conserve farmland in Yolo County. They are frequently called “agricultural conservation easements” and allow the landowner to continue farming. For most farming families, having the assurance that the land will be farmed is a motivating factor in working with Yolo Land Trust.
Why do people establish Conservation Easements on their properties?
The sale of a conservation easement provides a variety of benefits to a landowner:
- Generates revenue for reinvestment in the farm, debt reduction or operation expansions
- Conveys a love of the land, providing the satisfaction of knowing that it will not be subdivided and developed
- Expresses the desire to leave a legacy for future generations to remember and enjoy
- May provide tax savings
I do not want to give up control of my land; how do Conservation Easements work?
We work with you to establish the terms of the conservation easement. You continue to own and manage your land, enjoy its use, and have complete control of the property within the limits of the conservation easement terms. To a considerable degree, you specify the permitted uses and restrictions that will be written into your easement. In many conservation easements, the landowner reserves the right to maintain or build a home, to install agricultural structures, to improve the irrigation system.
ARE THERE INCOME TAX ADVANTAGES OF A CONSERVATION EASEMENT?
If you are donating an easement, you may receive federal income tax deductions for the difference in the value of the property before the easement is granted and its after-easement value (often the difference between the current fair market value of the land and the fair market value of the land with fewer allowed home sites). These deductions can be significant and require a thorough analysis by your accountant or tax attorney. Some owners donate a portion of the value in a bargain sale transaction.
If you are being paid for the conservation easement, there will tax consequences. Again, discuss with your tax advisors.
Yolo Land Trust would be happy to discuss conservation strategies and options for your property—please call us at 530.662.1110. We can provide a general overview of current tax law and then will encourage you to consult a legal or tax professional to discuss your individual situation.
Will a Conservation Easement reduce my property taxes?
It may, depending upon how recently the property was purchased, the purchase price, the value of the land after the conservation easement is placed, and whether the land is enrolled in a Williamson Act Contract. The best advice we can provide is to discuss with the County Assessor’s office.
Is a Conservation Easement a permanent decision? Can I, my heirs, or future landowners overturn my easement restrictions?
Placing a conservation easement on your land is a permanent decision. On rare occasions the terms may be amended with the consent of the conservation easement holder (e.g., Yolo Land Trust). However, it is highly unlikely that modifications can be made unless these changes would enhance the easement’s conservation values such as increasing the acreage subject to the conservation easement.
Conservation easements do not prevent a condemnation by a governmental entity. One example is a road widening by the county or state. Both the landowner and the land trust are paid for the loss of the land taken.
Must my property be open to hikers and/or others?
No, public access is at the owner’s discretion. The only required access on conservation easement properties is an annual monitoring visit by a Yolo Land Trust staff member or qualified volunteer.
WHY DO YOU MONITOR THE CONSERVATION EASEMENT?
By accepting the grant of the conservation easement, Yolo Land Trust is obligated to enforce the terms of the original agreement. Very occasionally, a landowner (usually not the owner who originally established the conservation easement) may intentionally or unintentionally violate the terms of the conservation easement. We annually monitor each property in our conservation portfolio to answer questions from the landowner about the easement restrictions, and to confirm that no violations have occurred. Our annual monitoring is designed to educate each owner about the importance of the terms of the conservation easement. We take our monitoring role seriously and will pursue legal action if a violation occurs.
HOW DO I BEGIN SETTING UP A CONSERVATION EASEMENT?
First, we will work with you and your advisors. We will discuss with you the restrictions you wish to include in your easement. You will hire an appraiser to determine the value of the conservation easement. This will establish the purchase price of the easement and, if there is a donation involved, the amount of your income tax donation. The final steps are drafting, signing, and recording the easement. We have gone through this process many times; we will work with you and your team to meet your objectives and make the process run smoothly.
For additional information, please Contact Us or call 530.662.1110.
