Why a Conservation Easement?

A conservation easement is a voluntary, legal agreement that permanently limits certain uses of land to protect the natural or working landscape that wildlife and communities depend on. The landowner keeps ownership and the right to live on, operate, and pass down the property. Whether you’re a landowner weighing this decision for your own land, or simply want to understand how these agreements work, here’s what to know.

What is a Conservation Easement?

A conservation easement is a permanent agreement between a landowner and a qualified land trust or government agency that restricts future development in order to protect the land’s conservation values. The landowner still owns the property. They can still live on it, farm it, hunt it, or sell it. What changes is that certain uses, most often large-scale development or subdivision, are permanently limited so the land’s open space, wildlife habitat, water quality, or working character is protected no matter who owns it next.

Because a conservation easement is recorded in the land records, its terms apply to all future owners, which is what gives the protection its permanence. Landowners choose a conservation easement for a wide range of reasons: to keep a family farm or ranch intact for the next generation, to protect wildlife habitat and clean water, to preserve a scenic or historic landscape, and/or to take advantage of the potential tax benefits that come with donating a conservation easement to a qualified holder.

At The Conservation Fund, we work with landowners to structure conservation easements that reflect their goals for their property, their family, and the land itself, guided by the same conservation-focused approach we bring to every project.

How is a Conservation Easement Put in Place? 

A landowner can put a conservation easement in place in a few different ways, and the right path often depends on location, available funding, and the landowner’s own goals: 

• Donation. The landowner donates the easement to a qualified land trust or government agency at no cost, which can qualify the landowner for a Federal (and sometimes State) tax benefit. 
• Sale. The landowner sells the easement, often through a state, county, or federal purchase-of-development-rights program, and is paid for the value of the rights given up. 
• Bargain sale. A hybrid approach in which the landowner sells the easement for less than its full appraised value; the discounted portion can qualify as a charitable donation. 

Which options are available can depend on where the property is located and what funding programs exist in that area. The Conservation Fund can help landowners understand which path fits their land and their goals. 

Conservation Easement Benefits 

The core benefit of a conservation easement is permanence: it guarantees that land stays intact, whether that means a working forest, a family farm, or habitat for wildlife, long after the current owner is gone. The details below matter most if you’re a landowner actively weighing this decision, but they’re useful context for anyone trying to understand how conservation easements work in practice. 

Conservation Easement Tax Deduction and Tax Benefits 

When a landowner donates a conservation easement, in full or as part of a bargain sale, the IRS may allow a federal income tax deduction based on the value of the rights given up. The tax deduction associated with a donation of a conservation easement can be significant for landowners who itemize deductions, and some states offer additional state-level tax credits in addition to federal benefits. Landowners who elect to sell an easement outright are compensated for the appraised value instead, so the tax benefits available depend on which path is chosen. The exact conservation easement tax benefits available also depend on the property and the landowner’s income, so working with qualified professionals from the start matters. 

Do You Need a Conservation Easement Attorney? 

Yes. Because a conservation easement is a permanent legal restriction on the land, most landowners work with a conservation easement attorney to review the specific terms of the agreement and to determine whether the easement is being donated, sold, or structured as a bargain sale. An attorney makes sure the easement reflects the landowner’s objectives and meets the legal requirements the IRS expects of a qualifying transaction. 

How The Conservation Fund Can Help 

Every conservation easement starts with a landowner who cares about what happens to their land, whether that’s a family farm passed down for generations, a stretch of forest that shelters wildlife, or open space a community has come to depend on. The Conservation Fund has spent decades helping landowners turn that care into permanent protection, finding the right structure for each landowner’s goals and each property’s story. 

If you’re considering a conservation easement, reach out to one of our conservation experts in your state to talk through your property, your goals, and what protecting it permanently could look like.