In planning for the future of your land, conservation easements can be an effective tool for preserving the character and limiting use types. However, conservation easements won’t be right for everyone or in every circumstance. To determine whether a conservation easement is a good fit for your succession plan, consider how these agreements work, the financial implications, and your ultimate goals.
At their core, conservation easements are voluntary, permanent agreements that restrict certain uses of land in order to protect its conservation values. Importantly, landowners retain private ownership of the property and many traditional rights, such as the ability to live on, farm, timber, sell, or transfer the land subject to the specific terms of the easement. However, some property rights such as subdivision or development may be restricted. Conservation easements are individualized and can be tailored to the property’s characteristics, conservation objectives, and the landowner’s preferences.
Landowners should first carefully consider their long-term objectives such as whether the goal is environmental protection, capitalizing on tax incentives, or preservation for future generations and land use types. Factors such as economic impact, permanence, and future land use all play a critical role in this evaluation. When considering the ultimate goal, landowners should take into account how the land is currently being used and how heirs or successors may desire to use it in the future. Current land uses can easily be accounted for in conservation easements so long as they are consistent with conservation values. However, landowners wishing to expand current facilities and improvements for expansion purposes, may run into roadblocks once a conservation easement is in place.
Financial incentives are the carrot of conservation easements and the financial benefits hinge on the property’s valuation. The value of an easement is determined through a “before-and-after” appraisal method. First, the fair market value of the property as-is without a conservation easement is determined and then compared to the anticipated property value after the easement is in place. The difference between these two values represents the easement’s monetary value. This valuation must be supported by market data and considers the property’s “highest and best use,” defined as what is legally permissible, physically possible, financially feasible, and maximally productive. In many states, landowners may receive both state land preservation tax credits and federal income tax deductions. Generally, financial incentives are greatest in areas of high development pressure and/or sensitive environmental or conservation value.
Preparing a conservation easement involves a financial analysis, drafting and approving the easement, addressing any liens on the property, recording the agreement, and subsequently registering for tax credits. Existing lienholders must subordinate to the easement deed. During the process, it is important to consult a team of professionals including appraisers, attorneys, conservation organizations, and financial advisors.
Ultimately, conservation easements are a once-in-a-lifetime decision that permanently governs the future of a property. While protecting natural resources, maintaining working lands, and preserving family or community heritage, landowners retain ownership and are entitled to financial benefits. However, landowners do forego certain property rights pursuant to the terms of the easement. There are no takebacks should a landowner or successor change their mind or wish to utilize the property in a way that the conservation easement prohibits. One of the most common points of contention are limitations on imperviable surfaces. This can mean a limitation on an agricultural producer’s ability to expand operations. While some concerns can be resolved during drafting a conservation easement, they cannot be undone once the conservation easement is in place.
If you are considering placing your land in a conservation easement, consult experienced counsel, read the fine print, and ensure that a conservation easement is the right tool for your specific goals.
Recommended citation format: Friedel, Jen S. “Conservation Easements as Part of a Succession Plan.” Southern Ag Today 6(27.5). July 3, 2026. Permalink
