RANCHING Business
Conservation Easements Offer Landowner Benefi ts By Katrina Huffstutler
O
NCE UPON A TIME, CONSERVATION EASEMENTS were tools that were only practical
for the wealthy. An idea that originated as part of the environmental movement, they were not something most ranchers could consider from a fi nancial standpoint. Today, however, there are many situations when a conservation easement is not only practical, but fi nancially benefi cial. Blair Fitzsimons, chief executive offi -
cer of Texas Agricultural Land Trust, says that while the practice is not for everyone, many can benefi t from the incentives and opportunities an easement provides. From tax incentives to additional income streams, an easement can help ensure that a fam- ily’s land and legacy can be passed down for future generations.
Income and estate tax incentives “Conservation easements offer benefi cial
tax incentives that make it possible for land- owners to prevent development while still being able to actively pursue agricultural operations,” Fitzsimons says. She says while they are not for every-
one, and an interested party should always consult their attorney and accountant for specifi c advice, there are some generalities to consider. “The potential tax benefi ts of a donat-
ed conservation easement are two-fold,” Fitzsimons says. “First, income tax benefi ts may accrue at the federal level. Second, the conservation easement works as an estate planning tool to reduce estate tax liability, thereby allowing family ranches and farms to be passed from generation to generation with the potential of a substantially lower tax burden.” She notes that conservation easements do not typi-
cally affect Texas property tax levels. Arthur Uhl, Texas and Southwestern Cattle Raisers
Association (TSCRA) director and an attorney widely known for his expertise in landowner rights, says there
62 The Cattleman April 2016
Land developers putting up houses like those on the far horizon are creep- ing in on this ranch road. Texas lands are being fragmented at great cost to natural resources, water and wildlife.
are signifi cant tax benefi ts from an income tax point of view, and an estate tax point of view, that can help certain types of landowners. “It’s usually more important from an estate planning
perspective,” he says, but adds there are also benefi ts in the here and now. Uhl, who has represented clients in a broad range
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