Conservation Easements Require Careful Planning for Farm Succession

The voluntary agreements can protect farmland for future generations but may limit future development.

NASHVILLE, Tenn. (RFD News) — Conservation easements can help farm families protect land for the next generation, but they require careful planning before becoming part of a succession plan.

Jen Friedel, director of Virginia’s Land Use Value Assessment Program at Virginia Tech, explains conservation easements are voluntary, permanent agreements that limit certain land uses to protect conservation values. Landowners keep ownership and may still farm, timber, live on, sell, or transfer the property, depending on the easement terms.

The biggest concern is permanence. Easements may restrict subdivision, development, buildings, or impervious surfaces. That can affect heirs who may want to expand barns, livestock facilities, storage, or other farm improvements later.

Financial incentives can include state land preservation tax credits and federal income tax deductions. The value is generally based on the difference between the property’s market value before and after the easement.

Landowners should work with attorneys, appraisers, financial advisors, and conservation groups before signing. The final agreement should match the family’s long-term goals, current farm use, and realistic needs for future expansion.

Farm-Level Takeaway: Conservation easements can preserve working land, but producers must understand the permanent limits before tying them to succession plans.
Tony St. James, RFD News Markets Specialist

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

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