Why Save Farmland?

"We have come to view farming landscapes as being primarily bread baskets, yet agriculture is more than about producing food. We get many positive things from agriculture, including clean water, cohesive communities, rural employment, flood protection, aesthetically pleasing landscapes and biodiversity." - Jules Pretty

How Our Community Benefits from Agriculture:

  • Washington County's farm economy, one of the most important in the state, produces $77.5 million in farm product sales annually.
  • As a key economic activity, agriculture contributes directly to the economic prosperity of our communities. Many jobs and businesses in our towns and villages wouldn't exist without farming. In fact, agriculture provides approximately 1,472 full and part-time jobs for local people.
  • Farmland generates more in tax revenues than it requires in services, providing a tax-base advantage for surrounding communities. For every dollar farming generates, farmland requires $.16 in services compared to residential land that requires $1.40 in services for every dollar it generates.
  • Farmland occupies nearly 40% of the land base, shaping much of the county's landscape.
  • Beyond the direct value of farm products, the infrastructure required to produce them also contributes millions of dollars every year to the local economy. Each dairy, for example, spends up to half or more of its gross revenue on supplemental feed, much of which is provided by locally based suppliers. Overall, local farms spend over $61 million each year on local goods and services.
  • Farms are an invaluable resource containing important soils, wildlife habitat, water recharge areas, scenic views and open space. Our agricultural communities promote a unique and valued lifestyle. The loss of agriculture and its scenic and historic landscapes will profoundly affect this lifestyle and the county's tourism appeal.

If you value this land and the rural heritage, if you share our belief that the conservation of family farms and agricultural lands for local food production, open space, and wildlife habitat benefits all of us, you can play a vital role in safeguarding these local resources. Please tour this website or call Teri, Maria or Meegan at 518-692-7285 for more information.

What is an Agricultural Conservation Easement?

Whether sold or donated, development rights on a given parcel of land are permanently removed from the land through the use of an agricultural conservation easement. The agricultural conservation easement is a legally binding agreement between the landowner and ASA that permanently limits the type of non-agricultural development that can occur on the land. The easement agreement "runs with the land" and is recorded in the County Clerk's Office.

Landowners who place an agricultural conservation easement on their land retain their right to sell, transfer and use the property according to the provisions of the easement. Many easements allow limited future development to occur if the development will not unduly compromise the agricultural, watershed, or other resource values of the property.

Neighboring landowners can choose to work together to place agricultural conservation easements on several parcels of land simultaneously. This approach results in the preservation of rural neighborhoods. A mechanism to coordinate this approach is the placement of signed conservation easements in escrow with ASA, to be recorded as a group when all of the required easement agreements have been completed. The escrow agreement can include a provision that if one landowner "backs out," the remaining landowners have the option of also withdrawing from the easement process.

The ASA Board of Directors must approve acceptance of agricultural conservation easements resulting from the donation or purchase of development rights.

How Does ASA Conserve Farmland?

Donated Land - First, an individual or family donates a property to ASA. We then place a conservation easement on the property that permanently conserves it. In most cases, the property is then sold to generate funds to support ASA's farmland protection efforts.

Donated Conservation Easement - In this case, an individual or family does not donate the whole property, but only a conservation easement on their land. This arrangement permanently limits development and conserves the property's conservation values. The land, however, remains in private hands as farmland.

Purchased Conservation Easement - Also known as Purchase of Development Rights (PDR), eligible farms apply to the Washington County PDR program for state and federal funding. This program offers farmers cash in exchange for the development rights to their productive farmland. To take advantage of this option, landowners should contact Teri or Maria at ASA to determine if they meet eligibility criteria. ASA and the Washington County Agricultural and Farmland Protection Board jointly administer the County PDR program.

ASA also works in partnership with The Conservation Fund (TCF), a national nonprofit conservation organization, on PDR projects. Since 2002, TCF funding has enable ASA to offer "private" PDR-to make bargain purchases of development rights on farms that might otherwise not be eligible for State or Federal funding, and where the land owner is not in a position to donate the full value of the rights.

Stewardship - The work of stewardship begins once the property has been conserved. The ongoing commitment to monitor, defend, and enforce the easement is what ensures protection in perpetuity. ASA's stewardship program consists of several different components: the drafting of solid documents that establish the terms of the easement and the base condition of the property, establishing effective communication with landowners, and annual visits by ASA to monitor the easement.

How Do I Donate An Easement To ASA?

  1. Review this list and A Landowner's Guide to Agricultural Land Conservation, which is available at our office. You can download a copy from this website. After reviewing the guide, call Teri or Maria at (518) 692-7285 to schedule an appointment.
  2. Meet with ASA representatives at the property-this is a chance for you to ask questions and for ASA to view the land. Please provide any maps of property, including surveys, tax maps, soil maps and/or topographic maps, if you have them.
  3. If the property meets easement criteria, ASA will supply you with a model easement for your review, and will discuss a budget for the project, including a donation to ASA's Stewardship Endowment Fund.
  4. Contact your attorney to review the model easement and discuss legal implications for you.
  5. Contact a tax professional or financial planner to discuss the financial implications for you.
  6. Agreement on easement terms-ASA, you and your attorney agree on which rights and which land will be included in the easement. ASA will then have a draft easement prepared for review by you and your attorney. More discussion and refinement of the terms may be necessary.
  7. Survey-This is not always necessary, but should not be undertaken prior to reaching an agreement on the easement terms as a change in easement terms could result in the need for a new survey.
  8. Appraisal-This need not be completed prior to the closing, but should not be completed prior to reaching an agreement on the easement terms as a change in the easement terms could result in the need for a new appraisal. The appraisal is not needed by ASA, but will be a necessary component if you decide to use your tax deduction.
  9. Baseline preparation-ASA will visit your property again and prepare a baseline document (including pictures, maps and descriptive language) that reflects the status of the land at the time of the closing. ASA and you will sign this document if you agree that it accurately reflects the status of your land. This document will serve as the basis for comparison when annual monitoring visits are made.
  10. Subordination of mortgage-ASA will assist you and your attorney in securing subordination of the mortgage when necessary.
  11. Closing-This is when the easement documents are signed and then immediately filed with the County Clerk's Office. This is also when your donation to ASA's Stewardship Endowment Fund (based on size of the parcel and the extent of the restrictions) is due.
  12. Tax documents-These are necessary if you want to claim your gift as a deduction on your federal and state income taxes, and must be signed by ASA and your appraiser, and then filed with your income tax return.
  13. Monitoring-ASA will visit your property annually (with prior notice) to document that the terms of the easement are being abided by. Prior to any transfer of the property, construction, or any change in the management practices, ASA must be notified, and a site visit will be arranged.

Other Frequently Asked Questions

Q: How does donating a conservation easement affect property ownership?
A: Landowners who donate or sell their development rights retain the right to make decisions about how the land will be managed and to use the land for any purpose that is not prohibited by the terms of the easement. The landowner continues to hold title and retains the rights to sell, give, or transfer the property at any time.

Q: Does placing an easement on the property mean giving up the right to restrict public access?
A: No. Unlike other types of easements, an agricultural conservation easement does not obligate a landowner to allow public access.

Q: Does ASA have a right to use land with an easement?
A: No, the landowner retains the use of the land, subject to the monitoring requirements in the easement.

Q: Can the development rights ever be reinstated?
A: The development rights can be reinstated, but only under extraordinary circumstances and by a court of law. For example, if the county's agricultural industry no longer exists, and houses or other non-farm development surrounds the parcel, a court may, upon application by the owner, reinstate the development rights.

Q: Can ASA ever sell the rights to develop the land?
A: No. The development rights cannot be sold by the ASA or anyone else, they are permanently retired.

Q: Does ASA's monitoring activities mean that ASA representatives come onto the land at any time without notice?
A: No. ASA representatives will contact the landowner to set up a site visit, usually every one or two years.

Q: How are the tax benefits of an easement calculated?
A: Federal Income Tax - Under the Internal Revenue Code, the donation of development rights can be treated as a charitable gift. If the underlying property has been owned for more than one year, the value of the gift can then be deducted up to an amount equal to 30% of the donor's adjusted gross income in the year of the gift. If a corporation is the donor, the limit is 10% of taxable income. If the easement's value exceeds 30% of the donor's income, the excess can be carried forward and deducted (subject to the 30% limit) in each of the five succeeding tax years.

State income tax benefits - New York State income tax laws allow for a deduction for donated development rights, consistent with federal income tax rules.

Property tax benefits - Local tax assessors should take into account the existence of use restrictions when assessing property. If the property is not already receiving an agricultural use valuation, placing restrictions via the agricultural conservation easement may result in lower property taxes.

Estate tax benefits - The donation of an easement, whether during a landowner's life or by bequest, can reduce the value of the farm upon which estate taxes are calculated. Changes made in 1997 to the tax code raise the amount of an estate that is exempt from estate taxes through 2002. Some landowners may also be eligible for an estate tax exclusion in cases where development rights have been donated.

Section 6007(g) of the Internal Revenue Service Reform Act (H.R. 2676) and Section 508 of Public Law 105-34 (the Taxpayer Relief Act of 1997), extend this benefit in a new way. Under this provision, where a landowner has died without having donated a conservation easement, his/her heirs may be allowed to elect to donate a conservation easement on the inherited lands to reduce the taxable value of their estate by the value of the easement. In effect, this allows post-mortem donations (those made after the death of the landowner to qualify for a donation from the taxable value of the estate under section 2055 (f) of the Internal Revenue Code (I.R.C). It is important, however, for landowners to specify in their will that they want their land permanently preserved with a conservation easement to ensure that their wishes will be carried out.

Q: Will removing the residential development potential erode a community's tax base?
A: In most cases exactly the opposite occurs. Unlike most forms of land use, farming contributes more in taxes than it demands in public services, offering a tax base advantage. "Cows and crops don't go to school."

Q: How long does an easement last?
A: An easement's duration may be established to last forever or for only a specific number of years. Federal and sate tax benefits, however, are only available for permanent easements, and the ASA's Board strongly prefers permanent easements. Regardless of how long the easement lasts, it is legally binding on all future landowners for the agreed-upon time period. It can, however, be modified or terminated by the court under extreme circumstances. For example, if the land or its surroundings substantially change and make the conservation objectives of the easement virtually impossible to achieve, changes can be made.

Q: Does placing an agricultural conservation easement on a farm disqualify the landowner from other farm programs?
A: No, the landowner is still eligible for any state or federal program to which he/she qualifies. Also, some federal farm programs allow agricultural landowners to become eligible if they place an agricultural conservation easement on their land.

Q: What is the difference between a deed restriction and an agricultural conservation easement?
A: The two differ in degree of enforceability and permanence. Enforcement of deed restrictions is left to neighboring property owners, who may or may not choose to exercise that authority. Under certain circumstances, deed restrictions can become unenforceable by a court. The deed restriction can also be extinguished by the written agreement of all neighboring property owners. Deed restrictions, however, do not qualify landowners for state and federal tax benefits because of the lack of assurance that the restrictions are permanent. By contrast, having a land trust involved and charged with the in perpetuity responsibility for enforcement guarantees that he development rights are permanently removed, thereby qualifying the landowner for tax benefits under state and federal laws. The terms of an agricultural conservation easement obligate the land trust organization to fulfill monitoring and enforcement responsibilities.

Q: What happens if the ASA goes out of existence?
A: The legal responsibility to enforce the easement will outlive ASA should it cease to exist. Some landowners have requested that the American Farmland Trust, a national agricultural land trust, serve as a "back-up enforcer" in some of ASA's agricultural conservation agreements. Under state law, the New York Attorney General ultimately assumes the responsibility for enforcing the terms of the agricultural conservation agreement if no land trust is available to assume these duties.