A conservation easement is fundamentally a contract between a landowner and a land trust, whereby the landowner relinquishes its future development rights.  The advantage to the landowner is that the landowner may qualify for certain tax benefits, and the property will be preserved in perpetuity in a way that is desirable to the landowner.  Most commonly, a conservation easement is held by a nonprofit entity.  There are numerous organizations that exist for the purposes of holding conservation lands.  Since the easement is typically held in perpetuity, the easement holder is responsible for the monitoring and maintenance of the easement.

Currently, we are awaiting passage of the Farm Bill, which defines the structure of the tax benefits associated with a conservation easement.  Passage of the proposed bill would allow landowners the ability to deduct 50% of the purchase price or fair market value (FMV) over a 15 year period.