FAQs

  • A conservation easement is a tool used by landowners to preserve the natural and open space values of their land. It is a voluntary agreement between a landowner and an eligible organization, such as Northern Prairies, that spells out which land-use practices are consistent with the landowner’s wishes.

  • A legal document that transfers certain land use rights to a land trust or similar organization is known as a “Conservation Easement” or a “Deed of Conservation Easement.” Although every easement has common elements, such as those precluding subdivision, commercial development, and other activities detrimental to soil, water, or wildlife habitat, each easement is tailored to the land's unique character and its owners' conservation goals.

  • The following are general examples of the types of uses that can be allowed by a conservation easement:

    • Continued agricultural and forestry use;

    • Limited construction of buildings, fences, water  improvements, etc., as expressly stated in the easement, and which are compatible with conservation objectives

    • Sale or other methods of transferring parcels, subject to terms of the easement;

    • Landowner control of access;

    • Additional residences compatible with conservation objectives;

    • Wildlife and fisheries protection, restoration, and enhancement projects;

    • Any and all uses not explicitly prohibited.

  • No. Landowners still control access to their property, and Northern Prairies does not require public access.

  • Conservation easements that seek to take advantage of favorable income tax treatment (see below) must be granted in perpetuity. This also gives the donor the comfort of knowing the property will remain as described in the conservation easement.

  • It typically takes three to nine months to complete the necessary paperwork for a conservation easement.

  • Once a conservation easement is signed, Northern Prairies and the landowner begin a working relationship to ensure that the conservation easement is maintained. Northern Prairies is not in the day-to-day land management business. Landowners continue to make all of their property management decisions while the easement sets out the allowable uses of the property.

  • Northern Prairies conducts annual monitoring visits. These visits are set up by appointment with the landowner at a mutually agreed-upon time.

  • Yes. The landowners retain full ownership of the property and can transfer it as they wish. The conservation easement remains attached to the property with the same conditions as those placed on it by the landowner who initiated the easement.

  • Your conservation easement donation must be considered a charitable gift by the Internal Revenue Service to qualify for a tax deduction. A qualified charitable contribution can be made only to an IRS-qualified, tax-exempt organization (such as Northern Prairies).

    The value of the conservation easement is determined by a qualified appraisal. For example, suppose the appraisal determines that the land without restrictions has a fair market value of $2 million and that the fair market value of the land with restrictions is $1,300,000. In that case, the value of the conservation easement is $700,000. This is also the value of the potential tax deduction.

    Reminder: Each landowner’s situation is unique, and the availability and extent to which the tax deduction may be utilized must be determined individually by the landowner and their financial and/or legal adviser.

    Individual Landowner/Taxpayer: May claim up to 50% of adjusted gross income (AGI) per year as a qualified charitable contribution income tax deduction and may carry forward any remaining value of the qualified charitable contribution for up to 15 years.

    Qualified Farmers or Ranchers: May deduct the value up to 100% of their AGI, with the same 15-year carry forward period, for donations of conservation easements that satisfy the following requirements:

    • A “qualified farmer or rancher” is a taxpayer who earns more than 50% of his or her income from the business of farming (as outlined in the IRS Code) in the taxable year in which the conservation contribution is made. The conservation easement must cover property that is used or available for use for agricultural or livestock production.

    • The conservation easement must contain a restriction that the property will remain available for agricultural or livestock production.

    Income Tax Deductions for Farming and Ranching Corporations: Qualified farming or ranching corporations that earn over 50% of their income from farming or ranching operations may also deduct up to 100% of taxable income with a 15-year carry-forward period for a qualified agricultural conservation easement. Other specific IRS  provisions may also apply.

    Since each situation is unique, landowners need to obtain legal and financial advice from their own advisors. Northern  Prairies is willing to provide basic information and guidance, but we cannot provide legal or financial advice.
    All Individual Landowner/Taxpayer: May claim up to 30% of adjusted gross income (AGI) per year as a qualified charitable contribution income tax deduction and may carry forward the remaining value of the qualified charitable contribution for up to 5 years.