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Agricultural conservation easements - a tool for farmland preservation

By Colin McCandless, Staff writer

A donated easement will help keep the Whitmires farming.

When Franklin native Steve Whitmire made the choice to donate a conservation easement he said it did not prove an easy one at first, but Whitmire called it the "best decision I've ever made once I made it."

"They don't make any more land," Whitmire said.

Steve Whitmire, his wife Mary Beth and his sons John and Whit donated a conservation easement of 700 acres called Ridgefield Farm in Cherokee County to the Land Trust of the Little Tennessee (LTLT). The easement, which was recorded in December 2006, allows for continued farming but limits development.

In addition, Whitmire's mother, sister and brothers decided to donate 185 more acres of mostly forested land called Poorhouse Mountain that restricts development and activities and continues to allow Western Carolina University's forestry department to use it as a field laboratory.

A conservation easement is a voluntary legal deed between a landowner and a qualified conservation organization such as a land trust. In Macon County, the LTLT works to preserve the waters, farms, forests and heritage of the Upper Little Tennesssee and Hiwassee River Valleys.

An easement permanently limits the type and scope of development that can take place on land.

Paul Carlson, executive director of the LTLT, called conservation easements "the best line of defense against urban sprawl."

Each easement is uniquely crafted and tailored to the needs of a specific property and allows a current generation owner to implement a permanent conservation vision.

People seeking an easement are generally those "driven by the love of the land," according to Sharon Taylor, land protection coordinator for the Land Trust for the Little Tennessee. "The largest easements we hold are donated easements," Taylor said.

Agricultural easements like Whitmire's are designed to keep land available for farming.

Whitmire's dad E.J. bought more than 200 acres of land in Cherokee County in 1951 with the intention of starting a cattle ranch, buying adjacent land when it became available.

He said that the land became his late father's passion and the love of his life.

While both his parents made sacrifices to maintain the land throughout the years, his mom Genevieve, who will soon turn 89, perhaps sacrificed most of all, according to Whitmire.

She went back to school to get her master's, got a job as a guidance counselor and put all her spare money for a time toward supporting the family and the farm. Whitmire said the easement is designed to "honor their legacy."

Whitmire, who was born in Franklin and graduated from Franklin High School in 1969, said he was raised in the agricultural environment and worked on a farm all the time during his youth, even on weekends.

"I never had a free Saturday," Whitmire said.

He said that in turn his sons have also spent a considerable amount of time on the farm, whether it involves recreational activities like camping or putting up hay.

"I don't think they would be whole without it," Whitmire said.

He said his brother David deserved the credit for suggesting that the family use LTLT.

"They were interested in helping save an actual working farm and they were willing to be flexible in this agricultural easement and give us the greatest opportunity to be successful," Whitmire said.

He said doing the easement in a sustainable, conservation-oriented way is what LTLT is all about.

"I don't know that I would have done this with anyone else," Whitmire said.

Whitmire, who has run the farm since his dad's death in 1998, is carrying on the cattle ranching operation of his father and is employing state-of-the-art techniques in raising cattle and striving to find the optimal ways to utilize the farm's profitability.

"The cattle business is no different than any other business," said Whitmire, who sold his previous business in order to retain his parents' land.

"If you are not on the cutting edge, you at least better be on the blade."

Carlson commented that the farmers engaged in cattle-based, hay-based agriculture in Macon County provide a tremendous service in tending to the land. "We should do everything in our power to support people who are caring for this landscape," Carlson said.

He said that in Macon County there is an overlap in conserving farmland and the historic and rural character of the area. He cited the Cowee Community and the significant historical sites and events that have occurred on some of its remaining farmland.

"Preserving farmland is our number-one priority at this point," Carlson said.

Of the 18 conservation easements totaling 2650 acres that LTLT holds, 10 of the 18 easements have farm activity on them.

Conservation easement process

If someone in Macon County is interested in exploring a conservation easement they can contact Taylor. The process begins as an exchange of information. The property owner tells Taylor about their land and the vision of their land for the future.

Taylor said one of the requirements of an easement is that you have to be protecting something with conservation value, whether farmland, forestland, a river, or a historical area. It has to serve a public interest.

If it sounds like a good conservation project, then the LTLT will meet with the property owner on their land. LTLT conducts a metes and bounds survey (description of the land) in order to gain an understanding of where the responsibilities of LTLT lie.

Another potential step is the appraisal, which is only necessary for those looking to take advantage of the tax benefits. The appraisal looks at the land's value without restrictions (fair market value) and then with restrictions The difference is the value of the conservation easement.

Since these steps do cost money, LTLT does ask for contributions to put towards their endowment fund, which allows them to monitor the property once a year as is required of a nonprofit to uphold the terms of the easement.

LTLT conducts this activity to provide a defense against something inconsistent with the terms of the easement by a future owner.

If a family calls them with a great conservation project but are not in a situation to pay the taxes, LTLT will try to lend a hand financially.

"We work hard to raise funds to make conservation happen," said Paul Carlson, executive director of LTLT.

LTLT works with a landowner to draft a legal document, which can take up to six months, Taylor said. It is designed to protect the conservation aspects of the land and put the vision of the landowner in place.

Upon completion, the document becomes a legal deed and is recorded as part of Macon County's property deeds.

With every conservation easement, the LTLT uses Best Management Practices (BMPs), a state term for erosion control and water protection. If a landowner does not have them in place, LTLT helps build in the protection.

An easement does not have to cover 100 percent of one's land and Carlson said LTLT works with landowners to protect the most environmentally sensible areas of land or its prime soils.

Tax Benefits

Taylor said that while the tax benefits of conservation easements are significant, it should not be a motivating factor in seeking one.

"You have to be interested in conserving your land," Taylor said.

Only gifts of perpetual easement can qualify for income and estate tax benefits according to the Land Trust Alliance, the national convener, strategist and representative of land trusts across America.

In 2006, President George W. Bush signed the Pension Protection Act of 2006 into law, which significantly expanded the tax incentive for taxpayers to make donations of land and conservation easements.

It raised the charitable deduction landowners can take for donating a conservation easement from their 30 to 50 percent in a given year. The law increased the deduction limit to 100 percent of income if the donor is a farmer or rancher and increased the number of years a donor of a conservation easement can take those deductions from six to 16 years.

State tax incentives include a North Carolina tax credit in an amount equal to 25 percent of the fair market value of the donated property interest, up to $250,000 credit for individuals and $500,000 for corporations. Any unused credit may be carried over five years.