Frequently Asked Questions

Land Trusts and National Private Land Conservation Efforts

What is a land trust?
A land trust is a nonprofit organization that works to conserve land by accepting or purchasing conservation easements from willing landowners. Land trusts have been in existence since 1891.

What does a land trust do?
Local and regional land trusts, organized as charitable organizations under federal tax laws, are directly involved in conserving land for its agricultural, natural, recreational, scenic and historical values. Land trusts can purchase land for permanent protection, or they may use one of several other methods like accepting donations of land or the funds to purchase land, accepting a bequest, or accepting the donation of a conservation easement, which permanently limits the type and scope of development that can take place on the land. In some instances, land trusts also purchase conservation easements.

Are land trusts government agencies?
No. Land trusts are independent, entrepreneurial organizations that work with landowners interested in protecting agricultural, natural and open space values. Land trusts can work cooperatively with government agencies, but typically do so on a project-by-project basis.

So, what are the advantages of working with a land trust?
Land trusts are closely tied to the communities in which they operate and their nonprofit tax status can help landowners realize a variety of tax benefits. Donations of land, conservation easements or money may qualify landowners for income, estate or gift tax benefits. Conserved land helps communities preserve their agricultural heritage, sustain working ranches, support local businesses and maintain their quality of life.

I first heard about land trusts just a few years ago. Are they new?
Not at all! A very few land trusts have already celebrated their centennials, but most are much younger. In 1950, for example, just 53 land trusts operated in 26 states. Today, nearly 1,700 land trusts operate across the country. The Northeast, home of the first land trust, still has the most land trusts with more than 550.

What has contributed to the huge growth in the number of land trusts?
People are tremendously concerned about the unmitigated loss of open space in their own communities. They see subdivisions supplanting the open spaces where they once walked and hiked, and they want to know how they can gain the power to save the agricultural and natural lands that make their communities unique. So they turn to land trusts as the local entities that have been set up to conserve land.

Conservation Easements – General

What is a conservation easement?
Conservation easements are voluntary legal agreements that permanently protect a property’s conservation values. “Conservation values” include the protection of open space (including ranchland), wildlife habitat, outdoor recreation, and scenic views. Conservation easements protect these values by defining how the landowner can use the land. They are essentially “conservation partnerships” between a landowner and land trust. If you think of property ownership as a bundle of rights—including the right to harvest crops, construct buildings, limit access, or subdivide—conservation easements provide a way for landowners to exchange certain rights for cash or tax benefits. Each conservation easement is unique. For example, an easement may cover an entire ranch or just a portion of a property. Except for the rights they expressly restrict (e.g., the right to subdivide), conservation easements generally do not affect traditional uses of the land such as ranching, hunting, and fishing. Landowners may also reserve a limited number of future home sites. Landowners retain the right to sell the land, pass it to heirs, and use it as collateral for loans. Conservation easements do not require or allow public access to your land.

Are conservation easements popular?
Very. In the 5 years between 1998 and 2003, the amount of land protected by local and regional land trusts using easements tripled to 5 million acres. Landowners have found that conservation easements can be flexible tools, and yet provide a permanent guarantee that the land won't ever be developed. Conservation easements are used to protect all types of land, including coastlines; farm and ranchland; historical or cultural landscapes; scenic views; streams and rivers; trails; wetlands; wildlife areas; and working forests.

How can a conservation easement be tailored to my needs and desires?
An easement restricts development to the degree that is necessary to protect the significant conservation values of a particular property. Sometimes this totally prohibits construction and sometimes it doesn't. Landowners and land trusts, working together, can write conservation easements that reflect both the landowner's desires and the need to protect conservation values. Even the most restrictive easements typically permit landowners to continue such traditional uses of the land as farming and ranching.

What kind of things does a conservation easement allow?
Conservation easements offer great flexibility. For example, an easement on property containing rare wildlife habitat might prohibit any development, while one on a working ranch might allow continued agricultural operations and the building of additional agricultural structures. An easement may apply to just a portion of the property and need not require public access.

The types of land uses generally allowed by conservation easements include:

• Agricultural improvements and activities including the building of fences, water structures, and livestock handling facilities;
• The construction of additional employee or family residences compatible with the terms of the agreement;
• The sale, devise, gifting or other methods of transferring parcels;
• Landowners’ control of access;
• Hunting, fishing and other outdoor recreation;
• Any and all uses not specifically prohibited in the agreement.

What type of land uses are generally prohibited in conservation easements?
When you donate a conservation easement to a land trust, you give up some of the rights associated with the land. For example, you might give up the right to build additional structures but retain the right to run cattle and other livestock. Future owners also will be bound by the easement's terms. The land trust is responsible for making sure the easement's terms are followed.

The types of land uses that are generally prohibited in conservation easements include:

• Subdivision for residential or commercial activities;
• Construction of non-agricultural structures or buildings;
• Paving portions of the property except on existing roads or to approved structures;
• Dumping of non-compostable or toxic waste;
• Surface mining – for example, for gravel. This is different from the issue associated with split estate oil and gas drilling, which conservation easements do not address;
• The landowner must retain water rights to the property sufficient for agricultural production.

Is the GRVLT's work compatible with private property rights?
Yes. The GRVLT believes that private property rights should be recognized and protected because they are the foundation of the market economy that supports ranching. Along with these rights comes the responsibility to practice good stewardship so that land and water resources are not squandered and their use does not harm neighbors and the resources we share. To conserve agricultural resources and protect the environment, the GRVLT favors voluntary incentives for landowners. When land use regulation is necessary to achieve these objectives, it should be balanced by measures to protect landowners' equity.

How long does a conservation easement last?
The GRVLT typically accepts conservation easements in perpetuity, which gives the donor the comfort of knowing that their property will remain as they describe in the conservation easement document forever. Conservation easements "run with the land," binding the original owner and all subsequent owners to the easement's restrictions. Only gifts of perpetual easements can qualify for income and estate tax benefits. The easement is recorded with the county clerk so all future owners and lenders will learn about the restrictions when they obtain title reports.

What does it mean that conservation easements are granted “in perpetuity?”
Perpetuity simply means that a conservation easement cannot be amended or terminated unilaterally by the grantor of the easement, which makes it no different from any deed or other contract. Perpetuity is a requirement of the federal tax law for an easement donation to be tax deductible. Perpetuity may imply a long time for some people. However, the land upon which the GRVLT receives conservation easements is locally, regionally, or nationally significant for its agricultural, scenic or natural qualities. The GRVLT believes that the benefits provided through maintaining the open character and productive capacity of such lands are timeless, and likely only to increase in the future.

How are conservation easements valued?
Qualified appraisers determine the easement’s value. As a general rule, the value equals the difference between the fair market value of the land before the easement’s in place and the fair market value of the land after the easement’s in place. This is called the “before and after” test. To carry the “bundle of rights” illustration through, each stick in the bundle of property rights has a value. Together, these values make up the property’s overall worth. By limiting certain uses of the property, conservation easements essentially remove sticks from the bundle, thereby reducing the property’s overall value. The value of the removed sticks equals the value of the conservation easement. The value of conservation easements vary depending on the terms of the agreement (particularly what future development will be allowed) and the development pressure in the area.

Myths About Conservation Easements

Is it true that a conservation easement results in the loss of control over the management of my land?
No. Land use restrictions found in the GRVLT’s conservation easements put limitations on future residential and commercial development of the property in order to retain the land’s agricultural capacity and open character. The terms of GRVLT’s conservation easements are designed to have minimal effect on the day-to-day management decisions of the landowner. The GRVLT monitors the easement property once a year at an agreeable time and otherwise leaves management of the property to the landowner.

I have heard that land trusts are elitist and a front for radical environmental groups. Is this true?
No. The GRVLT was specifically founded to maintain working agricultural landscapes and focus on landowners who depend on agriculture to support their families. Underlying all of the GRVLT’s work is a desire to see the continuation of the family ranch. The GRVLT’s Board is composed largely of agricultural producers who have a first hand understanding of ranching and community issues. All are Wyoming residents who live in, or have strong ties to, Sublette County.

Do conservation easements violate Wyoming’s Rule Against Perpetuities?
No. The word “perpetuity” has different meanings in the context of conservation easements and Wyoming’s Rule Against Perpetuities. With conservation easements, “perpetuity” deals with how long the easement will last. With Wyoming’s Rule Against Perpetuities, “perpetuity” addresses when a property interest “vests” or takes effect. Since conservation easements “vest” immediately on transfer, they don’t violate the Rule Against Perpetuities.

Is it true that putting a conservation easement on my property means that I transfer land ownership to the federal or state government?
No. The GRVLT is a private land conservation organization and we only work with private landowners whose land remains in private ownership.

Is it true that conservation easements are a way for the government to increase its environmental regulation of my property?
No. The GRVLT and the landowner are the only two entities involved with the easement negotiations and terms. The landowner is responsible to accommodate only the terms agreed to in the easement document. The GRVLT is the only entity that holds enforcement capacity. Easement agreements are carefully constructed to maintain the property’s open character and agricultural capacity, while providing maximum flexibility to the landowner in making land management decisions. The GRVLT was founded to maintain working ranching landscapes, and its future success depends upon maintaining good relations with agricultural producers and the community.

Is it true that conservation easements lower the tax base?
No. Agricultural lands in Wyoming are taxed on their productive capacity, not on their development potential. Lands on which the GRVLT acquires conservation easements are in agriculture and will continue to remain in agriculture, resulting in no loss in property tax revenues.

Additionally, experts have found that rural subdivisions typically drain the county tax base because the cost of maintaining public services (snow plowing, garbage removal, road maintenance, etc.) typically exceeds what is generated through increased property tax revenue. Conversely, agricultural lands generate more in property tax revenue than they require in public services.

Agriculture lands in Wyoming require an average $0.54 in public services (fire and police protection, roads, busing to area schools etc.) for every dollar of property tax revenue they generate. In comparison, rural residential development requires $2.01 in public services for every tax dollar produced.

Is it true that conservation easements hamper economic development in my community?
No. Current growth patterns across North America and the West show that people are choosing to locate and remain in areas that have high natural amenities such as scenic views, abundant recreational opportunities, clean air, clean water, and wildlife. Open spaces conserved through conservation easements maintain these features and preserve the quality of life that attract businesses and people to the region.

The GRVLT is not against growth. We believe that Wyoming and Sublette County will grow in many beneficial ways. We neither intend, nor have the financial or administrative capabilities, to have conservation easements on every acre of agricultural land in Wyoming. Additionally, there are properties and families for which a conservation easement is not appropriate.

Is it true that conservation easements result in improper land planning?
No. Due to the long-term stewardship responsibilities and associated expenses that accompany a conservation easement, each easement is carefully reviewed regarding its benefits to the public, the landowner and the obligations it imposes on the GRVLT before it is accepted. The GRVLT maintains communications with local municipalities to ensure conservation easements do not conflict with local planning.

Is it true that conservation easements require public access?
No. Decisions regarding public access to the property are left to the landowner.

Is it true that conservation easements are a subsidy for wealthy landowners?
No. Conservation easements provide tremendous public benefits by maintaining the open spaces, agricultural heritage and natural areas that make Sublette County so special for residents and visitors alike. In addition, landowners who donate an easement that restricts development give up the right to realize significant profits from their property’s development and sale, which far exceed the tax benefits of donating the conservation easement, even after taxes. Finally, like any charitable gift, landowners who donate conservation easements to qualified organizations like the GRVLT can claim the value of the easement as a deduction on their federal tax returns. Needless to say, the deduction provides greater benefits for landowners with larger incomes than those with smaller incomes. Since working ranchers often fall into the latter category they often can’t benefit from an easement donation since they don’t have the income from which to deduct the easement’s value. The GRVLT understands this and works with local ranchers to purchase easements on their properties. This funding provides capital to improve the viability of ranch operations and can help families pass the ranch to the next generation.

The Public Benefits of Conservation Easements

Why is it important to preserve ranchland?
Sublette County’s agricultural landscape is an essential part of the character that makes the county such an extraordinary place to live, work, and visit. As open space, ranchland is more compatible with the conservation of natural resources such as wildlife habitat and watersheds than any alternative private land use. Loss of agriculture would result in increased development that affecting water quality, wildlife habitat and scenic views. Communities pay a high price for unplanned growth. Scattered development increases taxes, resulting in increased demand for costly public services. It also causes traffic congestion, air and water pollution, and loss of open space. This is why it is important for citizens and community leaders to understand the relationships between residential and commercial growth, land conservation and their county’s bottom line.

How much farm and ranchland is lost to development annually?
We lose more than 1.2 million acres of productive agricultural land to sprawling development each year. That's an area the size of Delaware. According to USDA's National Resources Inventory (NRI), from 1992 to 1997, more than 11 million acres of rural land were converted to developed use—and more than half of that conversion was agricultural land. The annual rate of agricultural acres being developed is increasing—up 51 percent from the rate reported in the previous decade. Land trusts offer landowners a private property rights choice – an opportunity to protect their land.

What are the economic impacts to my community of conserving open space?
Many reports have shown that conserving open space in communities around the U.S. attracts jobs, enhances property values and saves billions in government costs. The GRVLT has copies of these studies.

The Conservation Easement Process

What steps do I take to conserve my property?
First, contact the GRVLT to become acquainted with us and the services we provide. Explore the conservation values you want to protect on the land. Discuss what you want to accomplish and what development rights you may want to retain. For example, you may already have one home on your property and want to preserve the right to build another home. That is one provision that must be specifically written into an easement agreement. Always consult with other family members regarding an easement and remember that you should consult with your own attorney or financial advisor regarding such a substantial decision.

Are there costs associated with donating a conservation easement?
Yes. Each conservation easement requires a qualified appraisal, a report documenting the existing natural resources and human activity on the property, a surface mineral report, verification of legal description, recording fees and attorney or accountant fees. The GRVLT pays certain of these costs and the landowner pays others. In some cases, funding sources may be available to help the landowner defray these costs. In addition, many landowners recoup some or all of these costs in tax savings.

How long does the process of putting a conservation easement on my property take?
The process can move as quickly or gradually as the landowner would like. It can take anywhere from one month to several years, depending on the complexity of the easement and the landowner’s schedule.

Do I need to get a lawyer if I want to put a conservation easement on my property?
The GRVLT strongly recommends that all landowners interested in protecting their property with a conservation easement consult independent legal counsel. The decision to enter into a conservation easement is a substantial one and should involve careful consideration within the family. Landowners should obtain independent legal and tax advice to determine financial implications of conserving their properties.

Is a mortgage on my property affected by a conservation easement?
Yes. To qualify for federal tax benefits, landowners must discharge or subordinate any mortgage, deed of trust or other lien on the property before conveying the easement. In the case of subordination, the GRVLT recommends that landowners talk with their lender well in advance of placing an easement on the property to determine what, if any, requirements the lender may have. The GRVLT can help in these discussions with lenders at the landowner’s request.

Who gets the appraisal to determine the conservation easement's value for tax purposes and how is the value determined?
The landowner typically engages and pays for the qualified appraisal to determine the easement’s value. The GRVLT can provide the landowner with a list of appraisers who may be able to complete the appraisal depending on their schedules. As a general rule, the easement’s value equals the difference between the fair market value of the land before the easement’s in place and the fair market value of the land after the easement’s in place. This is called the “before and after” test.

The Benefits of Protecting Your Property with a Conservation Easement

Why should I grant a conservation easement to a land trust?
People execute conservation easements because they love their land and want to protect it from inappropriate development while retaining private ownership. Granting an easement to a conservation organization like the GRVLT that qualifies under the Internal Revenue Code as a public charity can yield income and estate tax savings. Moreover, land trusts have the experience and expertise to work with landowners to ensure that the things they love about their land will remain forever.

What are the benefits of donating a conservation easement? Why should I consider it?
The reasons for granting a conservation easement are many. However, there is a unifying desire to see the land’s natural and productive values maintained. Many agricultural families have used easements as a tool to provide a ranching opportunity for a new generation. Communities have used conservation easements to help maintain the viability of the region’s agricultural economic base and to preserve its rural character, which its residents hold dear. Learn more.

When a conservation easement meets federal requirements as a charitable gift, the donor may be entitled to a reduction in both income and estate taxes. The size of the reduction is related to the value of the conservation easement, which is determined by a qualified appraiser. The appraiser establishes the value of the property without a conservation easement and again after the development restrictions have been put in place. The difference between the two is the value of the easement. This amount is available as an income tax deduction according to the rules governing charitable contributions. The value of conservation easements vary widely in the West depending on the terms of the agreement and the development pressure in the area. However, conservation easements used to preserve working ranches typically range between 30% to 60% of the property’s fair market value.

Removing the property’s development rights brings the land’s value closer to its agricultural potential, which can substantially reduce estate taxes that otherwise may force a family to sell all or a portion of the ranch. Recent tax changes have allowed an additional inheritance tax exclusion of up to $500,000 beyond the exclusion value of the easement itself.

How can I preserve what’s important to me and my family about our land?
By working with the GRVLT, you can decide the best conservation tool to protect your land. You can select from a number of tools, including the outright donation of your property, the donation or sale of a conservation easement that permanently restricts development, the bargain sale of your property, and several other variations. You should always have legal advice before making such a decision.

How can a conservation easement help me pass my property to my children and grandchildren?
By removing the land's development potential, the easement lowers its market value, which in turn lowers the value of the land subject to tax in your estate. Whether the easement is donated during life or by will, it can make a critical difference in the heirs' ability to keep the land intact.

Landowners can use the tax savings from the easement donation to improve their operations, invest for retirement or purchase a life insurance policy that provides for their family. These “value replacement” strategies can take many forms that the GRVLT staff are happy to discuss.

Living on Protected Property

What are a land trust's responsibilities regarding conservation easements?
The land trust is responsible for enforcing the restrictions that the easement document spells out. Therefore, the land trust monitors the property on a regular basis (typically once a year) to ensure that the property remains in the condition prescribed by the easement document. The land trust maintains written records of these monitoring visits, which also provide the landowner a chance to keep in touch with the land trust. Many land trusts establish endowments to provide for long-term stewardship of the easements they hold.

Does the GRVLT own the property if I donate a conservation easement to it?
No. The GRVLT only has an interest in the property to ensure that the terms of the conservation easement are upheld. The landowner continues to own the property under the terms of the conservation easement.

Who gets the money when a conservation easement property is sold?
The landowner gets all the money from the future sale of easement lands. The only exception would be sales that involve the termination of the easement agreement. Typically this would only occur when the land is being condemned by the government for public purposes (building a road, school, etc.). Under such circumstances, proceeds from the sale of the land would be divided between the GRVLT and the landowner according to the proportion of the total value of the land that the easement represents. A qualified appraiser determines the value of the easement when it is signed.

How can I be assured that a conservation easement I grant to the GRVLT will not be sold or disposed of for profit in the future?
Although conservation easements are considered both a contract and a property interest, the easement agreement does not give the GRVLT the right or ability to sell or dispose of the easement for financial gain. The conservation easement only gives the GRVLT the authority to restrict uses of the land, as specified in the agreement, which would compromise the property’s natural or productive values. Additionally, the GRVLT holds the right to monitor and enforce the terms of the agreement. Easements that the GRVLT holds cannot be transferred to other organizations without the mutual consent of both the GRVLT and the landowner.

If I work with the GRVLT to put a conservation easement on my property, do I lose control of my property?
No. The GRVLT is not in the land management business. We monitor conservation easements to ensure that the landowner is complying with the mutually agreed upon terms of the conservation easement.

Once I have put a conservation easement on my property, can the GRVLT staff come on my land whenever they want?
No. The GRVLT staff sets up an appointment with each landowner once a year to monitor their conservation easement. The time is mutually agreed upon by the GRVLT and the landowner.

If I put a conservation easement on my property, do I have to allow public access on my land?
No. The GRVLT does not require public access on its conservation easements. In fact, controlling access of any kind is a right retained by the landowner.

Does a conservation easement affect my ability to use my property in agricultural production?
No. The GRVLT is not involved in the day-to-day management decisions of the property and our easements expressly provide that ranching activities may continue on the property under the easement.

Can I sell my property if I put a conservation easement on it?
Yes. Easement landowners retain full ownership of their land including the right to sell it. The property is sold “subject to” the conservation easement—in other words, the easement "travels with the land." The new landowner is subject to the same restrictions as the landowner who negotiated the easement. In fact, if landowners decide to sell their conserved property, GRVLT can help them find a buyer through our Conservation Buyer Program.

Will a conservation easement impact my ability to use my property as collateral in obtaining a loan?
Not necessarily. Landowners can obtain loans on a property on which a conservation easement exists. The size of the loan will be adjusted to the reappraised value of the property with the conservation easement in place.

Can there be title insurance on a property with a conservation easement?
Yes.

Can I have oil and gas development on my property if it’s under conservation easement?
It depends. If you own some or all of your minerals, mineral development can occur with to two conditions: No surface mining can occur and any subsurface mining can only have a “limited, localized impact” on the easement property that is “not irremediably destructive of [the] significant conservation interests” that the easement seeks to protect. If you don’t own your minerals, mineral development can occur on your property regardless of any terms in the easement.

Can a conservation easement ever be amended?
Yes, but only under exceptional circumstances. The GRVLT’s conservation easements are achieved through voluntary agreements with landowners. Once an agreement is reached, the GRVLT is bound to uphold the terms of the easement as negotiated. The GRVLT’s record in upholding the terms and purposes of the original easement will determine whether future donors will put their trust in the GRVLT.

It is the GRVLT’s policy to hold and enforce conservation easements as written. Amendments to conservation easements will be authorized only under exceptional circumstances and then only under the guidelines that the GRVLT’s developed. As every property is unique, no decision by the GRVLT with respect to an amendment of a conservation easement shall form a precedent with respect to any other request for amendment.

GRVLT Stewardship of Protected Property

How does the GRVLT Stewardship Program work?
The GRVLT’s Stewardship Program serves several functions, including preparing resource or “baseline” inventories for easement properties, monitoring easement properties annually, working with easement landowners interested in habitat or agricultural improvement projects, recordkeeping, easement amendments and easement enforcement.

What is a stewardship gift and how is the amount determined?
A stewardship gift is a financial contribution that the GRVLT invites easement donors to make to help cover the costs of monitoring and enforcing the easement in perpetuity. The GRVLT determines the amount based on a prescribed formula. The formula is based on estimates of the amount of time a well-established land trust has spent monitoring over 100 conservation easements over the past 20 years. Several other factors affect stewardship costs including the number of existing or reserved homesites, and if it is the first easement with a particular donor. As an example, an average conservation easement on an undeveloped parcel with one reserved homesite takes approximately 33.5 hours of staff time annually to oversee. Including office overhead and aerial photographs every few years, this costs $838 per year.

If I decide to put a conservation easement on my property, what role does the GRVLT play the after the easement is executed?
The signing of the easement begins a working relationship between the landowner and the GRVLT to ensure that the easement meets the landowner’s conservation objectives. The land trust monitors the property annually, but leaves day-to-day land management decisions to the landowner. These annual visits foster good communication with the landowner and provide an opportunity to answer questions or respond to concerns. In many ways, the conservation easement is a working partnership for the land.

How often do you monitor conservation easements and what is monitoring?
The GRVLT strives to visit each of its easement-protected properties once a year, in addition to communications with you via phone, mail and through our stewardship newsletter. These visits provide an opportunity to exchange information or answer questions you may have about the easement. The GRVLT notifies easement landowners in writing before each visit and strongly encourages them to participate in monitoring. The visits usually involve driving or walking the property, taking photographs and filling out a questionnaire. The meeting usually runs from a couple of hours to a half a day.

The GRVLT Board and Staff

What is the history of the GRVLT?
The GRVLT is a donor-supported, nonprofit organization created in 2000 by a group of local ranchers, teachers, and business owners. The GRVLT acts as a private conservation alternative to the sale, subdivision, or development of farmland by acquiring conservation easements in voluntary transactions with landowners. More than 13,500 acres on 29 Sublette County properties have been protected in this manner.

Who runs the GRVLT?
The GRVLT is run by a Wyoming Board of Directors, which meets as a whole every six weeks and at the Committee level about once a month. The Board oversees policy and programs, and is ultimately responsible for all major decisions. The staff is responsible for the operations and day-to-day functioning of the organization.

Funding for the GRVLT

Where does the GRVLT get its funding?
Money to establish the GRVLT came from individuals committed to the conservation of Sublette County’s open spaces and ranching heritage. The GRVLT plans to continue to receive the majority of its funding from private sources. Private individuals make up by far the greatest proportion of contributions to non-profits (75%). Similarly, a strong private funding base allows maximum autonomy for the GRVLT to pursue its mission. In addition, in the future, the GRVLT will rely more heavily on foundations, particularly for project expenses, including the purchase of conservation easements. We also apply for other grants when appropriate.