The McNulty family ranch near Aspen, Colo., sits surrounded by
high-priced real estate but is now protected from potential
encroachment. The property will remain a ranch in perpetuity, making it
one of the few left in a part of the nation where the landscape -- once
rural and undeveloped -- has been steadily taking on a very different
character.
The family, whose ancestors first established the ranch in the late
1880s, set aside a 466-acre conservation easement on their ranch
earlier this year despite opportunities to cash in on what could have
been a very lucrative deal given its location in the highly desirable
Aspen area. The family intends to eventually protect the entire 1,100
acre property in an easement, according to Martha Cochran, executive
director of the Aspen Valley Land Trust, which helped broker the
agreement. In January, another 243 acres will be folded into a
conservation agreement, she explained.
The easement preserves an undisturbed habitat for many native
species -- including songbirds, elk and bears -- and protects riparian
areas. "Just maintaining the land the way it is is very important to
this valley," Cochran said.
The arrangement was developed with financing from Eagle County
and the Aspen Valley Land Trust. In addition, the McNultys donated 32.6
percent of the appraised value of the land, a donation estimated to be
worth $1 million.
The McNulty family easement is just one example of deals made
this year that enjoy special tax breaks -- incentives that may
evaporate at the end of next month if Congress does not act to extend
tax benefits for landowners who voluntarily commit to a conservation
agreement.
Along the Skagit River in northern Washington sits another
property protected by a conservation easement and important because it
entails habitat for Chinook salmon, a species listed for protection
under the federal Endangered Species Act. In addition, the easement
protects farmland, floodplain areas and other wildlife habitat.
The Skagit Land Trust, which helped broker the easement,
identified the property as priority for salmon habitat protection
because of its expansive floodplain, and spawning areas and channels
for young salmon.
"This is quality habitat for chinook," said Molly Doran,
executive director of Skagit Land Trust. She explained that the
easement includes over a mile of river shoreland with gravel bars and
gravel shoals, which are critical for salmon spawning.
The 110-acre property was originally a dairy farm but was
bought in 2003 by a developer who had subdivided the land for
residences. Ger van den Engh and Barbara Trask subsequently bought the
entire property and as part of the easement extinguished all but one of
the development rights for the land. "The idea of rescuing the property
from development had enormous appeal to us," they said.
"Our community is very lucky that Barb and Ger are so
committed to doing the right thing with their land -- there is a huge
public benefit to protecting this floodplain area from further
subdivision and development," said Doran.
In Tennessee, Karen Guy earlier this year set aside an
easement on her 147 acre farm. The historic Hunter Hill Farm -- the
property was once home to former President Andrew Jackson -- has been
farmed for over two centuries and is now a cattle farm.
The Hunter Hill Farm is also surrounded by wealthy real-estate
development, but Guy forfeited a profit in order to protect the land
forever.
Clock ticking on deals
Last year, Congress passed legislation that raised the maximum
deduction for an easement from 30 percent of adjusted gross income in
any year to 50 percent. Also the bill extended the tax advantages from
five years to 15 years, meaning that the landowners enjoyed an extra
decade of tax deductions. These tax benefits are set to expire at the
end of 2007, but advocates are pushing to have them extended or made
permanent.
Russell Shay, director of Public Policy for Land Trust
Alliance, which represents more than 1,600 land trusts, said the tax
breaks have had an "enormous effect" on the number of conservation
agreements. He said their members have received "two, three or even
four times more requests to accept donations" this year compared to
previous years.
Recently, efforts to prolong the incentives have been tagged
to farm bill negotiations in the Senate, which may renew movement on
the legislation as early as next week. However, the farm bill remains
vulnerable to disputes and roadblocks because of controversy over other
amendments.
Advocates note that there is widespread support for the
extensions, both in Congress and at the White House. Shay said, "There
is such strong bipartisan support for this that I am confident it will
be extended. The question is for how long and on what bill."
If the incentives aren't prolonged, Doran said she expects the
number of conservation agreements to revert to "historic" levels, which
are about a half or a third of levels achieved this year.
These incentives are critical, proponents have said, since
they made easements possible particularly for owners whose primary
source of income is their land, as is the case with many farmers and
ranchers.
Anne Garnett, a communications consultant with the Land Trust
Alliance and a former executive director of a land trust in Rhode
Island, said that since the tax breaks were established, they have been
specifically targeting the agriculture community to educate them on the
opportunity because the tax breaks brought easements into the realm of
opportunity for many of them.
Shay concurred, "We've seen people considering easements that would never have done so in the past."
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