Under the State's Farmland Protection Program, agricultural conservation easements must be held, monitored and enforced, in perpetuity, by a public body (i.e., a county or town) and/or a qualified conservation organization, such as a land trust, which has the authority to acquire interests in real property. The holder is obligated to uphold and enforce the terms of the easement.

The value of a conservation easement equals the fair market value of the property minus its restricted value. This is determined by a qualified appraiser. For example, if the full market value of a farmland parcel is $300,000 when developable but worth only $100,000 if restricted to agriculture use, then the landholder is eligible to be paid the difference of $200,000 for selling the development rights.

State assistance payments are available to counties or municipalities to cover up to 75% of the total costs for implementation activities to protect viable farmland. These grants are awarded pursuant to a Request for Proposals (RFP). The RFP contains eligibility guidelines and criteria by which all projects are scored and ranked for funding. These include quality of soils, development pressure, and the long term potential for the land to stay in agricultural production. Since the inception of this program in 1996, the Dept. of Ag & Markets has awarded nearly $80 million to protect approximately 36,000 acres on 200 farms in 18 counties.

Where does funding come from for the remaining 25%? It can come from town bonds, property taxes, town real estate transfer taxes, a private source, or bargain sales. A bargain sale is when the landowner makes up the difference as a charitable contribution. The process of is not a fast one. It can take up to two years to close on a project once accepted into the program.

Generally Agricultural Easements have the following features:
- Limit future uses of the land that are inconsistent with or damage the agriculture value or productivity of the land
- Encourage the business of farming
- Permit the construction of new farm buildings and farm employee housing
- Complement the right to farm provisions in the Agricultural Districts Law
- Do NOT require public access
- Retain private ownership of the farm subject to easement restrictions

Who can apply for PDR Grants?
- A county Agricultural and Farmland Protection Board (AFPB) that has an approved county agricultural and farmland protection plan.

- A municipality that has adopted a local farmland protection plan (a comprehensive plan or other land use ordinances that consider agricultural uses and needs, the project must be endorsed by the county AFPB).

If a farmer or landowner is interested in pursuing a PDR for his property he needs to inform the AFPB or municipality that he is interested. They would then work together to complete the project. The AFPB or municipality submits the application to the Department of Ag & Markets. Annual Requests for Proposals (RFP) are announced by the Dept of Ag & Markets: http://www.agmkt.state.ny.us/RFPS.html.

It should be noted that if you are not accepted into the PDR program and would still like to conserve your land, you may be able to pursue a conservation easement with a local land trust. This could involve donating the easement to the land trust. There are state and federal tax credits that can be taken for such a donation.

August 2008 - New Information from American Farmland Trust
Tax Savings for Landowners Who Save the Land- More than half of U.S. land is privately owned-much of it farmed-so tax incentives for land protection could significantly boost efforts to save farms across the country. The 2008 Farm Bill extends substantial tax incentives for "qualified farmers and ranchers" who donate conservation easements. Qualified landowners can deduct the value of donated easements up to 100 percent of their adjusted gross income and carry the unused deduction forward.

For the latest on tax incentives and other farm business and family transfer issues, see our updated Farm Transfer and Estate Planning Fact Sheet (pdf) and the 2008 Conservation Tax Update (pdf).

For more information contact:
NYS Dept of Ag & Markets: http://www.agmkt.state.ny.us/AP/agservices/farmprotect.html

America Farmland Trust: http://www.farmland.org/
Diane Held Phillips
Western NY Field Representative
(716) 652-0100dheld@farmland.org

Western NY Land Conservancy: http://www.wnylc.org/

Genesee Land Trust: http://www.geneseelandtrust.org/index.html