Land Protection Options A Handbook for Minnesota Landowners Published by The Nature Conservancy, the Minnesota Department of Natural Resources, The Trust for Public Land, & the Minnesota Land Trust REVISED SECOND EDITION Additional free copies of this book may be obtained by writing or calling: Division of Ecological Services phone: (651) 296-2835 Attention: LPO book Minnesota DNR 500 Lafayette Rd., Box 25 St. Paul, MN 55155 This book is also available on the internet at: http://www.greatplains.org/resource/1998/landprot/landprot.htm Land Protection Options: A Handbook for Minnesota L a n d o w n e r s W R I TT E N A N D D E S I G N E D B Y LAU R I E A L L M A N N Ac k n ow l e d g e m e n t s Land Protection Options: A Handbook for Minnesota Landow n e r s , ©2000 The Na t u re Conserva n c y, Mpls, MN. Second Edition. Fi r s t edition published 1996. All rights re s e rved. Please do not re p ro d u c e without permission. Illustrations ©1996 Cu rt Carpenter*319 ABC Studio X*Aspen, CO. C over photo by Keith Wendt. Interior photos by: Douglas Wood and Jim Wa g g o n e r, (p.18); Hannah Dunevitz, (p.26); Dotsie Fr a k e r, (p. 2 7 ) ; Jill He i n s , ( p.33); Bob Djupstrom, (p.45). Photo p.51 ©1996 St a r Tr i b u n e / M p l s . - St. Paul, used with permission. Editing support from: Bob Djupstrom, Hannah Dunevitz, Jim Erk e l , Lee Gu e r ry, Tom Klein, Renay Leone, Julie Muehlberg, Maggie Ma d d e n , and Cynthia W h i t e f o rd . Land Protection Options has been funded by The Na t u re Conserva n c y, The Trust for Public Land, the Minnesota Land Trust, the Mi n n e s o t a De p a rtment of Natural Re s o u rc e s' Natural Heritage Program and Scientific and Natural Areas Program, and the Minnesota Board of Wa t e r and Soil Re s o u rces. Pa rtial funding for this project was approved by the Minnesota Legislature (ML 1995, Chapter 220, subd. 4(e) and 6(n), as recommended by the L e g i s l a t i ve Commission on Minnesota Re s o u rces from the Mi n n e s o t a En v i ronment and Natural Re s o u rces Trust Fund and the Fu t u re Re s o u rc e s Trust Fu n d . The assistance of the landowners profiled in Land Protection Op t i o n s is gratefully acknow l e d g e d . This publication is designed to provide accurate, authoritative infor- mation in re g a rd to the subject matter cove red. It is distributed with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional services. If legal advice or other expert assistance is re q u i red, the services of experienced professional advisors should be sought. Printed on re c ycled paper with soy ink. Table of Contents Pre f a c e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Chapter 1 Beginning to Be g i n . . . . . . . . . . . . . . . . . . . . . 7 Chapter 2 De fining Your Go a l s. . . . . . . . . . . . . . . . . . . . . 9 Chapter 3 Land Protection Options: An In t ro d u c t i o n . . . 1 1 Chapter 4 Options that Guide the Use of L a n d . . . . . . . . 1 3 a . c o n s e rvation easements . . . . . . . . . . . . . . 1 3 b. land re t i rement pro g r a m s. . . . . . . . . . . . . 2 0 c. pro p e rty tax relief pro g r a m s . . . . . . . . . . . 2 3 d. restoration cost-share pro g r a m s . . . . . . . . 2 8 e. re g i s t ry pro g r a m s . . . . . . . . . . . . . . . . . . . 3 0 f. deed re s t r i c t i o n s. . . . . . . . . . . . . . . . . . . . 3 4 g . mutual cove n a n t s . . . . . . . . . . . . . . . . . . . 3 4 h . l e a s e s . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 5 i . management agre e m e n t s . . . . . . . . . . . . . 3 5 Chapter 5 Options that Result in Transfer of L a n d . . . . . 3 7 a. donating land. . . . . . . . . . . . . . . . . . . . . . 3 7 b. selling land to conservation buye r s . . . . . 4 6 c. land exc h a n g e s . . . . . . . . . . . . . . . . . . . . . 4 9 Chapter 6 Tax Ma t t e r s . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 3 Chapter 7 Living with Natural Lands: St ew a rdship . . . Considerations for Pr i vate Landow n e r s . . . . . . 5 7 Chapter 8 Pa rtners in Your Ef f o rt s . . . . . . . . . . . . . . . . . . 6 7 Gl o s s a ry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 7 In d e x. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 9 We are heirs of the grace of wildness. Paul Gru c h ow P r e f a c e The options highlighted in this handbook focus on protection of "o p e n space," a term meant here to include the following types of land: * natural area lands (lands that may be subjected to some manage- ment, may be publicly or privately owned, but are in their natural state and serve the primary purpose of pre s e rving intact whole ecological communities, undisturbed habitats of a diverse array of wildlife and plant species, and the functioning of natural systems) * parks (lands managed for environmentally sensitive public outdoor re c re a t i o n ) * agricultural lands (working farms and ranches) * selectively managed natural lands (lands managed for pro d u c t i o n of game species, timber, or other re n ewable natural re s o u rces, pro- vided that such management is sensitive to the long-term health and functioning of the natural system as a whole, and does not degrade other existing conservation values of the land) * scenic lands and community green space (lands that may lack dis- t i n c t i ve ecological significance, but neve rtheless make an import a n t contribution to quality of life for a community's re s i d e n t s ) Open space lands affirm life. In the best sense of the word, these are p ro d u c t i ve lands; they promote air and water quality, build soils, re d u c e flooding, foster genetic diversity that gives our environment re s i l i e n c y in the face of drought and disease, provide opportunity for re c re a t i o n , offer scenic beauty to be enjoyed by a community's residents and visi- tors, and enrich our lives in countless other ways. They merit our p rotection because of their intrinsic worth, and because-plain and simple-they are necessary to human health, our long-term economic v i t a l i t y, and the quality of life in our communities. Some things we discard. Others, if we are wise, we keep. These lands a re keepers. 5 6 Chapter 1 Beginning to Begin People have many reasons for putting off planning for the pre s e rva t i o n of their land. They may be unsure of what options are available or may be confused by what seem to be too many options. They may be hesi- tant to contact an organization for information, because they consider land to be too private a matter to discuss with others; or maybe they just d o n't know who to contact for help. They may be concerned that any options that would invo l ve pre s e rving their land would invo l ve finan- cial hardships they can't afford. Or perhaps they just have n't felt they've had the time they thought they needed to deal thoughtfully with such an important issue. Sound familiar? First, relax. While planning for the pre s e rvation of yo u r land is indeed important and can be complex, there are many people and organizations that can aid you in navigating through the options to d e velop a plan that suits your needs. All of the options described in this handbook are vo l u n t a ry; you can freely contact the organizations listed in these pages without feeling that yo u're giving up any control over what happens to your land. In the end, it will always be your decision whether or not you wish to follow through on the available options. Most landowners who contact conservation organizations for help are m o t i vated by a desire to pre s e rve the features they value about their land, whether it's the pond where a pair of ducks nest each summer, or the family farm, or a block of forest that surrounds a northern home or cabin. To these people, their land's value is as much a matter of the heart as a matter of dollars. Yet, out of necessity, financial considerations are often a determining factor in decisions re g a rding land. The good news is that t h e re are many options available that can help a landowner to addre s s their financial needs while at the same time accomplishing their land p rotection goals. W h o e ver you are, whatever your age or circumstances, it's good that yo u're starting now. As you read over the options in this book, keep in mind that you can tailor a plan to your needs. You may be served by a combination of options. Yo u're encouraged to read over even those sec- 7 tions that you think do not apply to you; you may be surprised at the strategies that can help to get you where you want to go. Remember that yo u're not alone. You can benefit from the know l e d g e and skills of your fellow Minnesotans who staff the state's public and p r i vate conservation organizations. You can talk with landowners who h a ve already made the choices that yo u're considering and find out how they feel about the outcome. Of course, for any action that has the poten- tial to affect the value of your land or your estate, yo u'll want to consult family members and your own attorney, accountant, estate or financial p l a n n e r. One thing is certain: Yo u'll be leaving a legacy on this earth, and you have the opportunity to decide what that legacy will be. Let's get start e d . 8 Chapter 2 D e fining Your Goals If you we re asked to describe your goals for your land, what would yo u say? Begin by preparing a list of any known goals re g a rding your land's use and future. If you own the pro p e rty with a spouse or other part n e r s , you may wish to sit down together to pre p a re your list. Do n't worry if t h e re are goals that seem to be conflicting. The following checklist can help to get you started. Check all that yo u think might apply to you and your situation. Then, make note of the suggested land protection options and page re f e rences listed beneath those that yo u've checked; yo u'll want to pay particular attention to these options in your re a d i n g . J I want to keep my farm (or natural lands) intact for my heirs, but my phone is ringing off the hook with interested buyers making offers that a re getting harder to refuse, especially since my pro p e rty taxes are sky- rocketing. I need some cre a t i ve financial help if I 'm going to be successful at keeping it in one piece. sale or donation of conservation easement, p. 1 3 land re t i rement programs, p. 2 0 p ro p e rty tax relief programs, p. 2 3 J A group of neighbors and I share common goals for protecting the natural and/or rural features of our adjacent lands. We re a l i ze that each of us benefits from the open space values of the lands surro u n d i n g o u r s.We'd like to somehow formalize our shared goals and make them binding. c o n s e rvation easements, p. 1 3 mutual covenants, p. 3 4 J My mother has some land she would like to donate (or sell) to a con- s e rvation organization, but she wants to be able to live out her lifetime on the land. donation of land by bequest, p. 4 1 donation of land with a re s e rvation of life estate, p. 4 1 sale of land with a re s e rvation of life estate, p. 4 1 9 J I would like to find a way to provide permanent protection for the open space, natural environments, and/or agricultural values of my pro p- e rt y, even after I no longer own the land. c o n s e rvation easements, p. 1 3 J I would like to donate (or sell) my land to a conservation organiza- tion that would manage it as a nature pre s e rve or park . donating land, p. 3 7 selling land to conservation buyers, p. 4 6 J I 'd like to make a contribution to the protection of open space and natural lands in the state. I have some land I could donate, but it's not the kind of land that would be useful as a park, farm, or natural are a . donating land, see trade lands, p. 3 9 J I own a large piece of pro p e rt y. I'd like to subdivide one area and sell the lots for housing development, while protecting the remaining land as permanent open space. c o n s e rvation easements, see "limited development plans," p. 1 4 J I 'd like to re s t o re the somewhat degraded natural areas on my land, t ry to re c reate those that we re here historically, or at least enhance the integrity of those that still exist. I could use help in identifying and learn- ing how to manage and protect the natural communities on my land, and I may need some financial assistance to accomplish these goals. land re t i rement programs, p. 2 0 restoration cost-share programs, p. 2 8 re g i s t ry programs, p. 3 0 management agreements, p. 3 5 living with natural lands, p. 5 7 1 0 Chapter 3 Land Protection Options: An Introduction Land protection options may be viewed as tools available to the landow n- e r. Any given tool can be used cre a t i vely to serve a variety of purposes; and while one landowner may be able to accomplish his or her objective s using a single tool, another landowner may re q u i re a variety of tools, used at different times. Some determining factors in choosing appro- priate tools will be: * the characteristics of your land: its size and conservation va l u e s * the desired use of your land both now and in the future: whether w o rking lands (such as farms, ranches, woodlands), undeve l o p e d lands to serve as habitat for wildlife and native plant communi- ties, re c reational lands, or perhaps a combination of re s i d e n t i a l and wild lands * the level of protection that you seek for your land's conserva t i o n va l u e s * how binding or permanent you want that protection to be * desired ownership of the land: you, your heirs, or a third party of your choice * your pre f e r red time frame: whether you wish to put pro t e c t i ve m e a s u res into effect now, over a period of years, at some point in your later years, prior to the land's sale or donation, or perhaps upon execution of your will. * your financial interests, needs, and limitations Fi g u re (1) on the following page depicts a basic decision-making model that demonstrates how such factors may be used to guide a landow n e r's selection of land protection options. These options fall into two main categories: options that guide the use of land, and options that result in transfer of land to conservation buyers. As you might expect, these two general categories are not mutually exc l u s i ve . 1 1 D O YO U WA N T TO R E TA I N T I T L E TO T H E LA N D? Y E S* N O Do n a t i o n / Sale of Conservation Easement Management Agre e m e n t Mutual Cove n a n t Deed Re s t r i c t i o n L e a s e s Re g i s t ry Pro g r a m s St ew a rd s h i p Land Re t i rement Pro g r a m s Restoration Cost-share Pro g r a m s Pro p e rty Tax Re l i ef Pro g r a m s D O YO U WA N T TO R E C E I V E C O M PE N S AT I O N? Y E S N O Fair Ma rket Value Sale Outright Do n a t i o n Bargain Sa l e Donation with Installment Sa l e Re s e rvation of Life Income Gi f t s Life Estate Sale with Re s e rvation of Donation by Be q u e s t Life Estate (Wi l l ) * Note that easements, mutual covenants, and deed restrictions may also be established on pro p e rty that you intend to sell or donate. Fi g u re (1) 1 2 Chapter 4 Options that Guide the Use of Land A. C O N S E RVAT I O N E A S E M E N TS ( Note to Readers: Although described here as perpetual (lasting fore ve r ) , it should be noted that conservation easements of limited duration are a vailable in some circumstances. From a conservation perspective, such "t e r m" easements are less desirable, since they provide a lesser degree of p rotection. For the purposes of this section, discussion has there f o re been limited to perpetual easements.) What is a conservation easement? A conservation easement is a vo l u n t a ry and permanent agreement betwe e n a landowner and qualifying private or governmental organization that sets forth specific restrictions on development and land use. The right to enforce the restrictions is conve yed to the organization. In Mi n n e s o t a , the legal basis of easements as a conservation tool is provided for in Chapter 84C of the Minnesota Statutes, which states that a conserva- tion easement may be established on land in order to "a s s u re its ava i l a b i l i t y for agricultural, forest, re c reational or open space use, protecting natural re s o u rces, maintaining or enhancing air or water quality, or pre s e rv i n g the historical, architectural, archaeological, or cultural aspects." To be eligible for an easement, land must be evaluated by a conservation orga- nization and determined to have qualities that serve these purposes. An easement takes the form of a binding contract that is filed in the public re c o rds of the county in which the land is located. Terms are nego- tiated between the landowner and the conservation organization that will "hold" (monitor and enforce) the easement. The landowner who establishes the easement and all future owners of the pro p e rty are legally obligated to abide by its terms. The organization serves as permanent g u a rdian for the land's conservation values, monitoring the pro p e rt y annually to assure that the terms are upheld. If it should become neces- s a ry, the organization is empowe red to enforce the easement in court . The mutually agreed-upon restrictions that are placed on the land's deve l- opment and use will va ry with the features that an easement is intended 1 3 to protect. If an easement we re established in order to protect a piece of n a t i ve prairie, for example, gravel mining would likely be a re s t r i c t e d a c t i v i t y, since gravel mining is a land use that is incompatible with prairies. If an easement we re established to protect a pro p e rt y's open space va l u e s and rural character, howe ve r, an activity such as farming would be allowe d (not restricted), since farming is a land use that is perfectly compatible with those values. For lands of outstanding ecological value, especially large tracts of undisturbed natural lands, a landowner and conserva t i o n organization may work together to design a highly re s t r i c t i ve easement that provides the land with an appropriate level of protection. In general, the terms of an easement are designed to re flect the wishes of the landow n- er to the extent possible while protecting the significant features of the land, in accord with the conservation priorities of the organization that will hold the easement. C o n s e rvation easement provisions may limit: * stru c t u re construction, location, re n ova t i o n * utility expansion * agricultural use (grazing, haying, tilling) of specified are a s, w h i l e a l l owing such uses in other areas cove red by the easement * alteration of water bodies and courses * re m oval or alteration of vegetation, except for specified purposes * extent of re c reational use * extent of motorized vehicle use in specified are a s Easements are sometimes used as part of a so-called "limited deve l o p- ment plan," in which an easement is stru c t u red so that it allow s d e velopment on one part of a pro p e rty while restricting development on another part of the same pro p e rt y. While generally not a viable option for small parcels of land, limited development plans can be a useful tool for conservation-minded real estate developers and local communities who wish to provide permanent protection to natural and open space a reas within major subdivisions and other areas planned for re s i d e n t i a l or commercial deve l o p m e n t . A landowner may sell or donate an easement. Some conservation orga- nizations have funds available to compensate a landowner for establishing an easement on pro p e rty of significant conservation value for pro t e c t i o n of natural features such as forests, wetlands, rive rways, and native prairie. Donation of conservation easements is a popular option for landow n e r s who are interested in the associated potential for income tax deductions, 1 4 a re support i ve of conservation, and feel positively about making a dona- tion if it is within their financial means to do so. Since it restricts a pro p e rt y's development potential, an easement may dramatically reduce its resale value. Although this loss in resale value may be offset to a degree by tax savings, it is nonetheless a ve ry import a n t consideration for landowners. Key aspects of perpetual conservation easements: * Landowner retains title to the pro p e rty and all associated rights a n d obligations of ownership aside from those that are re s t r i c t e d and transferred to the organization in the easement * Pro p e rty retains its private status; an easement does not re q u i re that land be open to the public unless access has been agreed to by the landow n e r * May be donated or sold to a qualifying organization * Runs with the title to land; all future owners are bound by its t e r m s * May dramatically reduce pro p e rt y's resale va l u e * Does not fre eze a pro p e rt y's value; values may still be expected to rise over time, although not at the rate of unrestricted pro p e rt i e s Why choose a perpetual conservation easement? Pe rmanent Pro t e c t i o n A conservation easement provides the benefit of assuring perpetual pre s e r- vation of invaluable natural, rural, or scenic features of your pro p e rt y, enhancing the quality of life for present and future landowners and their s u r rounding communities as well as supporting the continued integrity of any existing native plant communities. Placing an easement on pro p- e rty prior to donating or selling the land or bequeathing it to yo u r heirs will legally obligate all future owners to care for the land accord- ing to your wishes as expressed in the terms of the easement. Financial Be n e f i t s A landowner who donates a conservation easement to a qualified orga- nization may be entitled to a significant charitable contribution deduction on his or her income taxes, equal to the amount of any appraised loss of p ro p e rty value that can be attributed to the easement (see Fi g u re 2, page 16). A landowner who sells an easement derives income from the sale, but is not eligible for any related income tax benefits unless the easement is sold to a qualifying charitable organization at less than fair mark e t value. 1 5 Any easement, whether donated or sold, has the potential to result in p ro p e rty and estate tax savings for the landowner if it reduces the appraised pro p e rty va l u e . Appraised value of Appraised value of Po t e n t i a l p ro p e rty before p ro p e rty after income tax e a s e m e n t e a s e m e n t d e d u c t i o n for donor A $ 6 0 , 0 0 0 $ 1 2 , 0 0 0 $ 4 8 , 0 0 0 B $ 3 4 8 , 0 0 0 $ 2 0 6 , 0 0 0 $ 1 4 2 , 0 0 0 C $ 2 1 , 0 0 0 $ 1 3 , 5 0 0 $ 7 , 5 0 0 D $ 9 5 5 , 0 0 0 $ 4 8 6 , 0 0 0 $ 4 6 9 , 0 0 0 Fi g u re (2) Figures represent actual appraisals of four properties before and after dona - tions of conservation easements to the Minnesota Land Trust in the years 1 9 9 4 - 1 9 9 6. An easement can also serve as a strategy to help a landow n e r's heirs keep family lands rather than being forced to sell all or a portion of their inher- itance in order to cover estate taxes. In Minnesota, estate taxes can be as high as 55% on any estate valued at more than $675,000 (2000 ru l e s ) ; this amount will increase to $1,000,000 in 2006 and there a f t e r. W h e n an easement reduces the appraised value of land in an estate, it accord- ingly reduces the estate taxes owed, and may bring the taxes into a range that heirs can more reasonably pay. When an easement brings the va l u e of the total estate below the tax threshold level, no estate taxes will be owed. These benefits are re a l i zed re g a rdless of whether the easement is established during the donor's lifetime or by bequest (in his or her will). As of 1998, donations of easements can generate a separate exc l u s i o n 1 6 f rom federal estate taxes, up to 40% of the value of the encumbered land. A tax advisor can explain the special benefits and conditions on this exc l u- sion. See Chapter Six, Tax Matters, for a more detailed discussion of tax implications associated with donations of conservation easements. Easements by Be q u e s t An easement may be donated to an organization by means of the donor's will (re f e r red to as a donation by bequest or by devise). In this instance, the easement is generally signed during the lifetime of the donor but does not come into effect until his or her death. Upon the donor's death, p rovided that the conservation values of the land have not been com- p romised in the interim, the organization will execute the easement as i n s t ructed in the donor's will. En d owing your Ea s e m e n t The organization that accepts your perpetual easement accepts a gre a t responsibility: that of annual monitoring and enforcement of the ease- ment to assure that its terms are honored by all present and future ow n e r s of the land. In acknowledgement of this responsibility and the associat- ed costs, many landowners choose to make a contribution to the organization that is over and above the donation of the easement. By making this contribution, a landowner is said to endow the easement. Some organizations re q u i re that their easements be endowed. Ot h e r s encourage but do not re q u i re endowments. The amount of an endow- ment generally takes into consideration such factors as size of the pro p e rt y and any particular challenges it presents to effective monitoring. Su b j e c t to tax law, a landowner may claim an endowment in re g a rd to an ease- ment as a fully deductible charitable contribution. 1 7 Landowner Pro file Amile long and just under a quart e r - m i l e wide, the rabbit's foot- shaped peninsula known as Pine Point juts out into the cur- rents of the Mississippi River in Stearns County, Mi n n e s o t a . The Point has been in the new s on and off since the 1930s, when a feature story about Pi n e Point conservation efforts could be found sharing the pages of the local newspaper with a story about the latest exploits of m o b s t er Al Capone. Early e f f o rt s to pre vent logging of the Po i n t's t r a d e m a rk white pine fore s t failed. W.C. Croxton, a local resident and university pro f e s- sor who had led efforts to p re s e rve the are a's native plant c o m m u n i t y, could only watch as, one by one, the great pines we re downed. Left behind was a scattering of young trees too small to be of interest to the l o g g e r s . Pine Point is now dotted with homes. Concentrated along its less deve l- oped southern shores and at its tip, some of the young white pines fro m Crox t o n's era have surv i ved and grown to maturity. They stand in what has become a mixed forest of red pines and balsam fir, black walnut and butternut, where the ground in spring is cove red in wildflowers and where eagles, ospre y, pileated woodpeckers, gray foxes, mink, and whitetailed deer find habitat. Croxton is gone, but his ideals could be said to live on in the people of Pine Point who have stepped forw a rd as advocates of the peninsula's namesake forest. It began when Jack and Gene Happe, brothers and re a l estate developers, decided to sell their two forested lots on the south side 1 8 Landowner Pro file of the peninsula's tip. Neighboring landowner Douglas Wood, hearing of the impending sale, contacted other residents to see if there was any i n t e rest in trying to find some solution that could keep the lots unde- veloped. Mo re than thirty neighbors, many of whom had never before met, got together to talk about what they might do. First, they consid- e red whether they might be able to pool enough funds to purchase the lots, but the price was beyond what they could collectively contribute. The group then looked to the private nonprofit Minnesota Land Tru s t ( M LT) for help, inquiring whether conservation easements might be a viable option. After a site visit by MLT Di rector Renay Leone, they learned that the Minnesota Land Trust would indeed be willing to hold easements on the parcels. Easements, howe ve r, would re q u i re the consent of the land's owners. Like many land negotiations, the process was complicated. It re q u i re d countless hours of discussion and exchanges of correspondence betwe e n re p re s e n t a t i ves of the neighborhood group and the two Happe bro t h e r s . As talks pro g ressed, Jack Happe came to be among those most active in the effort to find a way to pre s e rve the forest. When the dust finally settled, a total of 20.5 acres of land we re slated for protection via five separate conservation easements donated to the Minnesota Land Tru s t . The land remains in private ow n e r s h i p, albeit with permanent re s t r i c- tions placed on its future development. The protected parcels include the two original Happe lots as well as the lots of three adjacent landow n- ers. Jack Happe retains ownership of his lot (having been able to take an income tax deduction for his easement donation) while Gene sold his lot to Pine Point resident Jim Wa g g o n e r, who was aided in his pur- chase by contributions from the neighborhood gro u p. It was truly a c o m m unity effort . The work is not ove r. For the Minnesota Land Tru s t, the establishment of an easement is just the beginning of a long-term commitment to serve as guardian of the values it protects. For the many families of Pine Po i n t who supported the project with funds, time, or both, the effort also mark s a beginning of sorts. "Neighbors have offered to form work parties to p rovide for any maintenance that the land re q u i res," says Jim Wa g g o n e r. Even the pines are not without important work to do: there are annual rings to be added, nests to be held, winds to be hushed, shade to be made. Fo rt u n a t e l y, it looks as though there will be time to do them all. 1 9 B. LA N D R E T I R E M E N T P RO G R A M S What is a land re t i rement pro g ra m ? A land re t i rement program provides financial incentives for a landow n- er to re t i re land from agricultural production and/or to leave natural lands undeveloped. Although these programs employ some of the strate- gies already discussed-such as purchase of conservation easements-the term is used here to refer exc l u s i vely to those programs administere d by g overnmental agencies at the federal, state, and county levels. So m e such programs restrict land uses permanently. Others restrict uses for a specified term, such as a ten-year period, after which the landowner may choose to re - e n roll in the program or conve rt the land to alternate uses. En rolled land must meet eligibility re q u i rements that va ry with the focus of each program. Since many of these programs are legislatively funded, their status re l i e s on the political process. On an ongoing basis, new programs come into existence while others are discontinued, and available funding may va ry from year to ye a r. Key aspects of land re t i rement pro g ra m s : * May provide significant income to the landow n e r * The vast majority of these programs focus on highly erodible agri- cultural lands, wetlands, and other lands that safeguard water q u a l i t y, and lands that promote habitat for wildlife species * Public access to land generally is not a re q u i rement of enro l l m e n t The following list offers a sampling of land re t i rement programs in exis- tence at the time of this handbook's publication. Debt Cancellation Conservation Easements T h rough this federal program, landowners who have Farmers Ho m e Administration (FmHA) loans secured by real estate may qualify for cancellation of a portion of their debt in exchange for a conserva t i o n easement that protects wildlife habitat, wetlands, and other conserva- tion values. The amount of the loan forgiven is pro p o rtional to the amount of the farm that will be cove red by the easement. Pe r m a n e n t easements are the general rule, although in some cases easements will be a l l owed of no less than fifty years in duration. For information, contact your local Farmers Home Administration office, a division of the U.S. De p a rtment of Agriculture . 2 0 Re i n vest in Minnesota (RIM) Re s e rve Pro g ra m RIM is a state program that uses a combination of state tax dollars and p r i vate donations to fund natural re s o u rce protection on both public and private lands. The private lands program of RIM, known as RIM- Re s e rve, pays landowners for conservation easements that re t i re fragile and environmentally sensitive lands from agricultural production. RIM- Re s e rve is administered through the Board of Water and Soil Re s o u rc e s . In t e rested landowners should apply directly to their local Soil and Wa t e r C o n s e rvation District office (SWC D ) . C o n s e rvation provisions under the Fe d e ral Fa rm Bi l l The federally funded Conservation Re s e rve Program (CRP) offers incen- t i ves (long-term rental payments and cost-sharing of up to 50%) to l a n d owners who re t i re cropland from production and establish perma- nent grass or forest cover on the land. En rolled land must have a minimum En v i ronmental Benefits Index (EBI) score, which is based on a combi- nation of wildlife habitat, water quality and soil erodibility indices. Duration of the agreements ranges from 10-15 years, and there is a limit to the number of acres admitted to the program each ye a r. In addition to the CRP program, there are several other conservation programs under the Federal Farm Bill: The Wetlands Re s e rve Program (WRP), the En v i ronmental Quality In c e n t i ves Program (EQIP), and the Wi l d l i f e Habitat Im p rovement Program (WHIP) each have their re s p e c t i ve tar- geted lands and enrollment re q u i rements. Contact your local Na t u r a l Re s o u rces Conservation Se rvice office for details. Na t i ve Prairie Bank Pro g ra m The Na t i ve Prairie Bank Program authorizes the De p a rtment of Na t u r a l Re s o u rces to protect native prairie by purchasing permanent or limited duration conservation easements from private landowners. Easements may allow selected agricultural practices such as mowing for wild hay. Eligible lands have at least five acres of native prairie that have never been p l owed and have less than 10% tree cove r. While payments va ry, for a permanent easement the landowner will generally re c e i ve 58.5% of the a verage assessed value of cropland in the tow n s h i p. For information, contact the DNR Prairie Biologist at (218) 739-7576. Pe rmanent Wetland Pre s e rves Pro g ra m T h rough this program, the Board of Water and Soil Re s o u rces can pur- chase conservation easements on lands containing eligible we t l a n d s . These include seasonally flooded basins, wet meadows, shallow marshes, 2 1 and shrub swamps. Up to four acres of adjacent upland may also be included for each acre of wetland. Landowners retain control over public access, must agree to assist in carrying out a conservation plan deve l o p e d for the area, and must control noxious weeds. For information, contact your local Soil and Water Conservation District office (SWC D ) . Wetlands Re s e rve Pro g ra m The Wetlands Re s e rve Program offers landowners the opportunity to p rotect existing high quality wetlands and to re s t o re/enhance pre v i o u s- ly altered wetlands on their pro p e rt y. Conservation easements are ava i l a b l e for lands that historically contained wetlands that we re cleared and/or drained prior to 1985 for farming, pasture, or timber production, as we l l as for lands adjacent to existing or restorable wetlands. Landowners re t a i n c o n t rol over public access and must agree to follow the guidelines of a c o n s e rvation plan developed for the site. For information, contact yo u r local Natural Re s o u rce Conservation Se rvice office (NRCS). Why choose a land re t i rement pro g ra m ? A Sound Business Decision for Ag r i c u l t u ral Lands Land re t i rement programs can be an important part of an overall land use plan for those engaged in crop farming and livestock enterprises. Periodic re t i rement from grazing and crop farming can benefit long-term soil productivity in instances where the landowner intends to return the land to active use upon completion of its enrollment term. Such pro- grams can also provide a farmer with an alternative means of deriving income from marginal agricultural lands-lands that re q u i re exc e s s i ve labor for little return. Land re t i rement programs also provide a landow n- er with a certain amount of reliable income that is not subject to we a t h e r and market conditions. While it may not equal the income that might h a ve been generated from working the land in a good ye a r, it may prove to be an important source of income during unfavorable years. In this w a y, such programs offer a hedge against the risks commonly associated with farming. En v i ronmental Be n e f i t s Land re t i rement programs make an important contribution to the state's water quality by reducing the influx of chemicals and sediment into w a t e rways. They also benefit wildlife, particularly waterf owl and nesting grassland birds. Greatest environmental benefits are derived from those land re t i rement programs that permanently restrict land use. 2 2 Note to Re a d e r s : A good source for information on land re t i re m e n t , restoration cost-share, and pro p e rty tax relief programs is "Fi n a n c i a l Aid to Pr i vate Landowners," free from the MN Extension Se rvice. Call (612) 625-8173, and specify item BU - 5 9 4 6 - Z . C. P RO PE RTY TA X R E L I E F P RO G R A M S What is a pro p e rty tax relief pro g ra m ? Pro p e rty tax relief programs reduce, defer (delay), or exempt (eliminate) p ro p e rty tax assessments on eligible lands. Pa rticipating landowners are obligated to maintain the pro p e rty in the condition stipulated by the p rogram in which they are enrolled. Existing programs offer pro p e rt y tax relief to eligible agricultural lands, forests, wetlands, and native prairie lands, all of which are considered to benefit the public good thro u g h p rotection of the state's natural environment and agricultural heritage. Key aspects of pro p e rty tax relief pro g rams: * Program availability subject to changing tax law * Some programs re q u i re an agreement of specified duration, after which re n ewal is re q u i red; other programs provide benefits for as long as the land continues to meet program criteria * Programs are administered through government agencies The following is a sampling of pro p e rty tax relief programs in existence at the time of this handbook's publication. Na t i ve Prairie Tax Exemption Pro g ra m Under this program, approved native prairie lands can be exempted fro m p ro p e rty taxes. Landowners may continue to hay-although not to graze l i vestock-on prairie lands enrolled in the exemption program. To be eligible, the prairie must be a minimum of five acres in size in most coun- ties. Some counties are restricted. For information, contact your county a s s e s s o r's office or DNR Area Wildlife Ma n a g e r. Wetland Tax Exemption Pro g ra m This program exempts qualifying wetland pro p e rties from annual pro p- e rty tax for as long as the enrolled pro p e rty continues to meet the pro g r a m criteria. County assessors commonly initiate enrollment of pro p e rties in the program, but landowners are also free to contact their county asses- sor if they believe they may have eligible wetlands. 2 3 Wetland Pre s e rvation Areas Pro g ra m Under this program, enrolled wetlands and adjacent uplands are exe m p t f rom pro p e rty taxes. Restricted covenants are placed on lands enro l l e d as Wetland Pre s e rvation Areas. Contact your local Soil and Wa t e r C o n s e rvation District Office (SWCD) to find out whether your county is included and to get information about enrollment. Minnesota Ag r i c u l t u ral Land Pre s e rvation Pro g ra m The Minnesota Agricultural Land Pre s e rvation Program offers a $1.50 per acre pro p e rty tax credit annually for enrolled land. Additional ben- efits of enrollment include a degree of protection from eminent domain and annexation proceedings, prohibition of public utilities deve l o p m e n t on enrolled land unless desired by the landow n e r, and relief from most assessments for public works projects built in the vicinity of the enro l l e d land, unless the landowner chooses to use and benefit from such pro- jects. (Note: Some assessments are not eliminated entirely but rather are subject to deferred payment, in which case the landowner will be oblig- ated to pay the assessments if and when their land is withdrawn fro m e n rollment in the pro g r a m . ) To be eligible, land must be located in a county that has provided the Commissioner of Agriculture with an agricultural land pre s e rvation plan with official controls to implement the plan, and be located in a part of that county zoned for long-term agricultural use. Both agricultural and f o rest lands may be enrolled. Pa rticipation re q u i res that a re s t r i c t i ve covenant be placed on the title to the pro p e rt y. Termination of the agreement may be initiated by either the landowner or the county. Land remains enrolled for eight years fol- l owing the notification by either party of desired termination, during which time the land must be maintained in agriculture or fore s t ry use as specified in the terms of the covenant. After termination, conversion of p ro p e rty to non-agricultural use would also re q u i re a change in zo n i n g regulations. For information, contact your county assessor or the Agricultural Land Pre s e rvation Program of the MN Dept. of Agriculture . Note to Readers: In t e rested in conservation opportunities in agricul- t u re? For a free copy of the Sustainable Agriculture Re s o u rces and Information Di re c t o ry call (651) 296-7673. 2 4 Green Ac res Pro g ra m Available state-wide, the primary benefit of the Green Ac res Program is that pro p e rty taxes for enrolled land are based on agricultural use va l u e rather than the typically higher market value. Under the program, assess- ments for public projects are deferred. While enrollment is re n ewe d a n n u a l l y, benefits are stru c t u red to encourage long-term part i c i p a t i o n in the program. When a term expires without re n ewal, the landow n e r must pay the pro p e rty taxes based on a market value assessment for the c u r rent year as well as the two preceding years, adjusted for that port i o n of the pro p e rty taxes already paid. Upon withdrawal from the pro g r a m , the landowner must also pay any deferred assessments for public work s p rojects-plus interest on the assessments-for the entire period enro l l e d . En rolled pro p e rties must be a minimum of ten acres, and must meet a definition for "p r i m a ry agricultural use," generating agriculture - re l a t e d income of $300 plus $10 per tillable acre per ye a r. For information, contact your county or city assessor. Me t ropolitan Ag r i c u l t u ral Pre s e rves Pro g ra m This program has a similar stru c t u re to that of the Minnesota Agricultural Land Pre s e rvation Program, but is limited in scope to pro p e rties located within the seven-county Twin Cities metropolitan area. Contact yo u r local city or county government for details. Why participate in a pro p e rty tax relief pro g ra m ? Coping with Rising Pro p e rty Ta xes in Rapidly De veloping Are a s While beneficial to all participants, pro p e rty tax relief programs are par- ticularly important for landowners in regions experiencing high rates of residential and commercial growth. In these regions, market pre s s u re s can cause dramatic increases in a landow n e r's pro p e rty taxes as well as special assessments related to utility and road expansions. These pro- grams help to level the playing field by acknowledging the land's actual use rather than a market value based on uses to which the landowner has no intention of putting the land. Potential for Land Protection These programs are effective in long-term land protection only when l a n d owners are financially able (and willing) to continually re n ew their p a rticipation. 2 5 Landowner Pro file Mac and Ma r g a ret Mc Cu t c h a n's yard light burned out more than twenty years ago, and they have n't gotten around to replacing it. "We'd rather see the stars," says Mac, a re t i re d school teacher in his seventies. The Mc Cu t c h a n s' 240-acre parcel of pro p- e rty in Goodhue county is a mosaic of pasture lands, tillable cro p l a n d , and deciduous forest. T h e re is a patch of native prairie, and even an example of that uncommon spring-fed jewel of wetland communities, the calcareous fen. For half a mile of its run, the Little Cannon Rive r meanders through Mc Cutchan land. If a river could be said to choose its course, the Little Cannon has chosen well. The Mc Cutchans have implemented a variety of vo l u n t a ry conserva t i o n practices to protect and enhance the natural features of their land. W h i l e cattle continue to graze in rotation on their pasture lands, and their fields continue to produce alternating crops of corn and soybeans each grow i n g season, Mac and Ma r g a ret have put 23 acres of highly erodible land into the Conservation Re s e rve Program (CRP). In accord with the CRP guide- lines, they've taken the enrolled land out of production and planted it to switchgrass, big bluestem, and Indian grass. The Mi n n e s o t a De p a rtment of Natural Re s o u rces (DNR) provided help to invigorate the prairie grasses by conducting a prescribed burn on the land. As an added measure to pre vent erosion into the rive r, the Mc Cu t c h a n s h a ve also participated in a streambank management program. Wo rk i n g in cooperation with Larry Gates, Watershed Coordinator at the Ro c h e s t e r office of the DNR, they have used willow plantings, staked cedar branch- es, and seeding of ve g e t a t i ve cover in order to stabilize selected sections of riverbank. A fence excludes livestock from the treated areas. 2 6 Landowner Pro file When Mac read in the local paper that the Minnesota County Bi o l o g i c a l Su rvey (MCBS) was in the process of conducting a biological inve n t o- ry of rare species and high quality natural habitats in Goodhue County, he dropped a postcard to MCBS ecologist Hannah Dunevitz, inviting her to walk the pro p e rt y. Hannah was pleased to take Mac up on his invi- tation. Aerial photographs had already indicated to the MCBS that the Mc Cutchan pro p e rty may be host to potentially significant natural areas. To g e t h e r, Mac and Hannah explored the land, including the fen com- munity in all its subtle beauty, finding plants such as lesser fringed gentian, t u rtlehead, monkey flowe r, and grass of Parnassus: all characteristic plants that thrive in the vicinity of seepage springs where limestone bedro c k makes the emerging waters rich in calcium. Among them was a part i c u- larly exciting find: Ca rex sterilis, or sterile sedge, a plant on the state's t h reatened species list. The Mc Cutchans have since assured permanent protection for the fen by choosing to place 11 acres into RIM-Re s e rve, a state program with funds available to purchase conservation easements on lands held in p r i vate ow n e r s h i p. Although funding for RIM-Re s e rve is limited and not all applications are accepted, the Mc Cutchans we re able to effec- t i vely demonstrate the significance of their site using the information they had gained from Hannah and her colleagues at the Mi n n e s o t a County Biological Su rve y. Mac and Ma r g a re t's efforts have been possible in part because both CRP and RIM-Re s e rve offer fin a n- cial compensation that helps to offset a landow n e r's loss of poten- tial income due to restricted land use. But ask Ma r g a ret Mc Cu t c h a n why she and Mac have undert a k- en so many conservation pro j e c t s on their land, and she needs neither time to compose her thoughts nor many words to e x p ress them. She answers without hesitation, "We love it." Ma r g a ret and Mac McCu t c h a n 2 7 D. R E S TO R AT I O N C O S T-S H A R E P RO G R A M S What is a re s t o ration cost-share pro g ra m ? A restoration cost-share program compensates a landowner for a per- centage of the cost invo l ved in projects undertaken to re s t o re and pro t e c t natural areas on private lands. The majority of such programs focus on p rotection of wetlands and their associated upland communities, habitat enhancement for wildlife species, management of forest lands, and select- ed conservation practices on lands enrolled in land re t i rement pro g r a m s . Cost-sharing is provided for a variety of activities, including establish- ment of ve g e t a t i ve ground cover for erosion control, restoration of drained and degraded wetlands, and planting of native trees and shrubs. As is the case with land re t i rement programs, restoration cost-share programs are typically offered through government agencies and there f o re are subject to similar limitations as to funding and ava i l a b i l i t y. Note that there are also numerous fisheries and wildlife oriented private organizations (such as Trout Unlimited and the MN Wa t e rf owl Association) that make cost- s h a re funds available to landowners for conservation projects in their special areas of intere s t . Key aspects of re s t o ration cost-share pro g ra m s : * Compensate landowners for a percentage of labor and materials costs associated with specified restoration effort s * Ad m i n i s t e red through government agencies, sometimes in coop- eration with private conservation organizations * Programs and availability of funding subject to frequent change, depending upon legislative appropriations and the political process * Landowners commonly piggy-back cost-share funds from differ- ent sources, e.g. obtaining a 50% cost-share from a federal pro g r a m , and financing the remaining 50% through state or local sources The following re p resents a sampling of restoration cost-share pro g r a m s in existence at the time of this handbook's publication. Pa rtners for Wi l d l i f e Ad m i n i s t e red by the U.S. Fish and Wildlife Se rvice, this federal pro g r a m offers many re s t o r a t i o n - related services to private landowners, special- izing in restoration efforts on wetlands and adjacent natural communities such as bottomland hardwood forests, native grasslands, and oak sava n n a . A highlight of Pa rtners for Wildlife is its wetland restoration pro g r a m that will cover 50% or more of the costs of restoring a previously drained wetland. Se rvices va ry from technical assistance to actual re s t o r a t i o n 2 8 ( e xc a vation, installation, landscaping, planting of upland ve g e t a t i o n ) . For information about Pa rtners for Wildlife, contact: Branch of Pr i va t e Lands, U.S. Fish and Wildlife Se rvice, at (320) 253-4682. Pheasant Habitat Im p rovement Pro g ra m Funded through Minnesota pheasant stamp hunting fees, this pro g r a m offers cost-sharing of up to 75% for management that improves habitat for pheasant populations, including such activities as plantings for food, nesting cove r, and woody cove r. Plantings of native vegetation (such as prairie grasses) may in some cases qualify for funding through this p rogram. For information, contact the Minnesota DNR Division of Wildlife, central office phone: (651) 296-3344, or your local DNR Wildlife Ma n a g e r. Fo rest and Prairie St e w a rdship of Pr i vate Lands Pro g ra m Formerly known as the St ew a rdship In c e n t i ves Program (SIP), this p rogram offers aid to private landowners interested in caring for their l a n d's prairie and non-industrial forested are a s . For pro p e rties with 20 or more acres of forested land, the program offers f ree technical assistance and cost-share of up to 65% for conserva t i o n p rojects. Landowners become eligible to set up a compre h e n s i ve stew- a rdship plan (also described on page 73) for their land. The plan identifies b road management objectives that encompass the landow n e r's intere s t s and foster the health of the pro p e rt y's native plant communities, with a p r i m a ry-although not exc l u s i ve-focus on forested lands. For pro p e rties with five or more acres of land in native prairie, the p rogram offers free technical assistance in the development of a com- p re h e n s i ve stew a rdship plan. This plan highlights enhancement of the s i t e's native prairie areas, while offering guidelines for other native plant communities present on the pro p e rt y. Referrals to appropriate cost-share funding sources for conservation projects are made ava i l a b l e . To re c e i ve information on the pro g r a m's services for forested lands, contact the Minnesota DNR Division of Fo re s t ry in St. Paul, MN at (651) 297- 7298, or your local DNR Fo re s t e r. (See also, Fo rest St ew a rdship Pro g r a m , Chapter 8, p.73). For information on the pro g r a m's services for prairie lands, contact the Minnesota DNR Prairie Biologist at (218) 739-7497. 2 9 Why choose a re s t o ration cost-share pro g ram? Access to Funds and Technical Ex p e rt i s e Restoration cost-share programs allow you to improve the conserva t i o n value of your pro p e rty with minimal out-of-pocket expense. The spe- cialists who administer these programs can also offer important technical advice re g a rding proper engineering, construction methods, and site p reparation practices that will help to assure the success and long-term stability of restoration projects. Projects with Na r row Purposes may have Broad Be n e f i t s It's important to note that a given project can serve more than one purpose. Establishment of grassland nesting cover for pheasants, for example, benefits not only pheasants but many other species of gro u n d - nesting wildlife as well. Ac c o rd i n g l y, a landowner interested generally in i m p roving native grassland habitats may find his or her goals met by par- ticipating in a cost-share program such as the Pheasant Ha b i t a t Im p rovement Program. The same is true of many restoration cost-share p rograms: wetland-oriented programs often fund upland projects, fore s t ry p rograms may fund activities that promote wildlife dive r s i t y, and ero s i o n - c o n t rol programs may be used to fund restoration of a prairie. The upshot is this: look beyond the name of a cost-share program to see what spe- cific restoration practices it funds. E. R E G I S T RY P RO G R A M S What is a Re g i s t ry Pro g ra m ? Re g i s t ry programs are a means by which conservation organizations honor and encourage private citizens who have served as good stew a rds of the natural features on their pro p e rties. Landowners who wish to part i c i p a t e 3 0 in these informal, non-binding programs can "re g i s t e r" their pro p e rt y with a conservation organization, thus making an informal, non-binding pledge to continue in their efforts to safeguard the integrity of the natural e n v i ronments on their land. In turn, the organization may provide the l a n d owner with a certificate or plaque of appreciation, and educational l i t e r a t u re that profiles the natural features of the landow n e r's pro p e rt y and how they might be protected or enhanced. Key aspects of re g i s t ry pro g ra m s : * Informal, non-binding * Provides support and information to the landow n e r * Some re g i s t ry programs are limited to particular geographic re g i o n s or to lands with natural features. En rolling in a Re g i s t ry Pro g ra m In many cases, conservation organizations will initiate contact, extend- ing an invitation for a landowner to participate in a re g i s t ry pro g r a m . Of course, as a landow n e r, you may also take the initiative to contact a c o n s e rvation organization and express your interest. Pr i vate organiza- tions that administer re g i s t ry programs in the state include: The Na t u re C o n s e rvancy at (612) 331-0750, Friends of the Minnesota Valley at (612) 858-0720, and Friends of the Mississippi River at (651) 222-2193. Why choose a re g i s t ry pro g ra m ? Su p p o rt, Management Advice, and Good Will Re g i s t ry programs offer landowners an opportunity to talk with others who share their appreciation for their land's natural features. The pro- fessionals who administer re g i s t ry programs are generally ecologists and biologists who can offer interesting insights into the landow n e r's pro p- e rty and tips on how to manage it. By enrolling in a re g i s t ry program, a l a n d owner can also enjoy the experience of being part of the communi- ty of Minnesota citizens who have similarly pledged their concern for and commitment to the pre s e rvation of natural lands. Communication that Benefits Land Pro t e c t i o n Re g i s t ry programs can establish a tradition of protection of private lands. Registrants commonly notify the conservation organization if and when they plan to sell their land. This provides the conservation organization an opportunity to acquire the land if appropriate, or to establish contact with subsequent owners to invite their participation in the re g i s t ry. 3 1 Landowner Pro file When Lisa Mueller knocked at the door ofBob and Em i l y Ne s vo l d's Rice County home and said she had information to share about their land, they invited her in for a cup of coffee. Lisa was a re p re s e n t a t i ve of the Minnesota Chapter of The Na t u re C o n s e rvancy (TNC). The three settled around the Ne s vo l d s' dining ro o m table to talk. It was December of 1989. Bob and Emily already knew that their forested land was special; it was what had enticed them to move to the area twenty years earlier. T h e y k n ew that the forest offered a cool re t reat on the hottest of summer days, a place for re f reshment and solitude. But as Lisa spoke, they came to a p p reciate the value of their land in a new and broader perspective. T h e i r f o rest was part of an ecosystem, she explained, known as the Big Woods. The Ne s vo l d s' fifty wooded acres, together with that of some three doze n neighboring landowners, constituted one of the last viable remnants of a great legendary woodland of maples, basswoods, elms, and oaks that had once sprawled across more than 300 square miles in central Minnesota. Deep and dark, cool and moist, the remnant forests of the Big Woods ecosystem we re known to harbor a whole array of plants and animals that we re now rare: wood turtles, red shouldered hawks, e ven a rare plant species called the dwarf t rout lily, found now h e re else in the world. Lisa asked whether Bob and Emily might like to enroll in T N C 's Re g i s t ry Program, a vo l u n t a ry and non-binding program by which they would pledge a commitment to serve as good stew a rds of their part of the Bi g Woods. They readily agreed. Since that time, the Ne s volds have harvested some downed timber fro m their woodland for firewood, and occasionally they've given permission to someone who wants to harvest sap from their maples in early spring to make maple syru p. Ot h e rwise, the forest has been largely left in its natural state, offering habitat for nesting migratory songbirds and other wildlife, and protecting the water quality of nearby Prairie Creek. Bob has become an active participant in the Big Woods Project, a group com- prised of local residents and re p re s e n t a t i ves of private organizations and g overnment agencies who are working together to maintain a portion of the Big Woods ecosystem within the Cannon River watershed. He and his neighbors have formed a Se ven Mile Woods Association, meeting periodically to enjoy guest speakers on topics related to forest ecology, 3 2 Landowner Pro file and participating in projects such as clean-up days along local ro a d w a y s and streams. Bob and Emily have also been among the landowners in the region to consult with a DNR forester to create a Fo rest St ew a rd s h i p Plan for their woodland. Bob traces their interest back to having first learned about the Big Wo o d s t h rough the visit from Lisa and their subsequent invo l vement in T N C 's Re g i s t ry Program. "It was a nice way to find out about the value of what we have," he says. "Since it's not binding it didn't feel threatening to us to enroll, but still it works to protect the land. It would make you think twice before doing something that would cause damage. And once yo u understand the value of the forest community, you want to take good c a re of it." As part of their participation in T N C 's Re g i s t ry Program, the Ne s vo l d s continue to re c e i ve a quarterly newsletter that offers information about s t ew a rdship activities in the Big Woods and other Na t u re Conserva n c y activities throughout the state. When they enrolled, they also re c e i ved a plaque of appreciation from TNC. W h e re is the plaque now? It's been in a box in the attic, Bob admits, since they began a remodeling pro j e c t in the room where it is usually displayed. He came across it just the other day and smiled to recall that Emily had asked TNC to register them in their dog's name: the engraving reads "Caesar's Palace." It's a nice plaque, Bob acknowledges, but when he thinks of T N C 's Re g i s t ry Program, the plaque is not what comes to mind. Back: The Ne s vold family, (L to R) Scott, Todd, Emily & Bob. Front: Em i l y's parents, Bob and Thelma Ca l k i n s 3 3 F. D E E D R E S T R I C T I O N S What is a deed re s t r i c t i o n ? A deed restriction defines specific limits re g a rding allowable uses and d e velopment of a pro p e rt y. It is established by a landowner on a pro p- e rt y's title, typically when the landowner is selling the land and wishes to exe rt some influence over its use, usually to benefit adjacent lands to which he or she intends to retain title. State law presently limits e n f o rceability of deed restrictions to 30 years (with exceptions defined in MN Title St a n d a rd No. 91A). They are subject to interpretation and nullification by the courts, and are most practical in situations where the original landowner or the landow n e r's heirs own adjacent land and are in a position to observe and enforce any violation. T h e re are generally no tax benefits. Why choose a deed re s t r i c t i o n ? An Al t e rn a t i ve when an Easement is not an Op t i o n For pro p e rties that do not qualify for a conservation easement, a deed restriction can provide land with a degree of protection. G. M U T UA L C OV E N A N TS What is a mutual cove n a n t ? A mutual covenant is a type of deed restriction involving a legal agre e- ment between two or more landowners in which the same set of restrictions govern the development and use of all invo l ved pro p e rt i e s . Also subject to the 30-year rule, it must be periodically re n ewed by agre e- ment of all parties. T h e re are generally no tax benefits. Why choose a mutual cove n a n t ? Peace in the Ne i g h b o rhood & Profitability for De ve l o p e r s Mutual covenants may be initiated by neighbors who have a common goal of protecting a shared landscape feature or the open space values of their neighborhood. Mo re commonly, they are inserted in the title to a p a rcel of land by a subdivision deve l o p e r, who makes participation in the mutual covenant a condition of sale in order to protect attributes (e.g., scenic beauty) that promote high land values and mark e t a b i l i t y. 3 4 H. L E A S E S What is a lease? In this context, a lease is the rental of a given parcel of land to a conser- vation organization for its exc l u s i ve use. The lease is generally for a specified term, and for a rental fee that may be at or below the mark e t rate. The landowner and organization sign a written agreement that spec- ifies the term, payment schedule, any stipulations re g a rding use of the land, and guidelines re g a rding cancellation by either part y. Why choose a lease? An Op p o rtunity to Promote Conservation while Receiving In c o m e While not common, long-term leases can be a tool for landowners who need income from their land, are interested in protecting its natural f e a t u res, and yet wish to retain title to the land. Such leases are of i n t e rest to conservation organizations when the land is of significance for rare species or is critical to efforts underway by the organization on adjacent lands. I. M A N AG E M E N T AG R E E M E N TS What is a management agre e m e n t ? A management agreement is a legal contract between a landowner and a conservation organization, in which landowners agree to follow spec- ified land management practices for the benefit of their land's natural f e a t u res. The organization provides technical expertise and, in some cases, assistance with carrying out the recommended practices. Contracts are typically for a specified term, but may be cancelled by either party with p roper notice. It may or may not invo l ve income for the landow n e r. Why choose a management agreement? Contributing to Large-Scale Protection Ef f o rt s These agreements are often used in efforts to protect large-scale natural f e a t u res such as the watersheds of rivers. Landowners who part i c i p a t e make an important contribution to the health of the environment and thus, to their communities. 3 5 3 6 Chapter 5 Options that Result in Transfer of Land Just as each parcel of land is unique, each landowner has a unique story to tell re g a rding his or her relationship with that land and hopes for its f u t u re. What is your story? What are your hopes for your land? Pe r h a p s your dream is that the land be designated a public park and dedicated in your family name; or instead that it be managed as a sanctuary for wildlife. Maybe you plan to sell your land, and yo u'd like to find a buyer who will continue your tradition of protecting the land's conservation values. Keep your ideal outcome in mind as you re v i ew the options listed in this section. Then, since all these options invo l ve transfer of title, yo u'll need to find an individual or organization that is interested in accepting title on your pre f e r red terms, or as close as you can get to your ideal. Each will have its own limitations and ideal outcomes, so you may need to be open to some cre a t i ve solutions in order to make it work. A. D O N AT I N G LA N D Selecting an Ap p ropriate Re c i p i e n t Your first step in the process of making a land donation is to select an a p p ropriate recipient for the pro p e rt y. When you contact a conserva t i o n organization, it's important that you ask certain questions: * Would the organization retain title to the land or transfer it to another part y ? * Would the land be granted any protected status? * What goals would guide their management of the land? The answers that you re c e i ve to your questions will help you to deter- mine whether yo u'd be happy with what the organization would do with the land you donate. In turn, the organization will ask questions of yo u re g a rding the pro p e rt y's size, location, market value, and features. T h e a n s wers that you provide will help the organization to determine whether it is interested, willing, and able to accept title to the land. 3 7 Since ownership of land is attended by many financial, legal, and man- agement obligations, an organization must be selective about the extent and kinds of land to which it will hold title. Ac c o rd i n g l y, each conser- vation organization has its own set of criteria by which it eva l u a t e s p ro p e rties. This prioritization of land types reflects the organization's p a rticular mission as well as the approach it takes to management of lands it owns. Lands with rare natural elements or with outstanding ecological va l u e may be appropriate for donation to organizations such as The Na t u re C o n s e rvancy for dedication as a TNC pre s e rve, or to the DNR for ded- ication as a state Scientific and Natural Area (SNA). In some instances, with the knowledge and approval of the donor, private organizations will accept a donation of title to land, then transfer the title to an appro p r i- ate local, state, or federal agency for protection. " Pa rtners in Your Ef f o rts,"see Chapter 8, profiles some of the state's con- s e rvation organizations that would welcome inquiries from private citize n s seeking to donate land. Fo rt u n a t e l y, you need not become an expert on the acquisition policies of the various organizations. You need only contact an organization of your choice, describe your land, and your ideal outcome. If the organization is not able to accept the donation of yo u r land, chances are its staff will be able to refer you to someone who will. You can stru c t u re your donation to meet your particular objective s , whether your intent is to maximize tax benefits, protect the land's con- s e rvation values, and/or simply to boost the assets of an organization whose work yo u'd like to support. Some ways that you can stru c t u re a land donation include: Donation of Un restricted Title to Land Basically a "no strings attached" transfer of ow n e r s h i p, the donation of p ro p e rty with an unrestricted title leaves the future use of the pro p e rt y to the discretion of the recipient. Because the title is unrestricted by an easement or other legal device, landowners who make such a donation to a qualified charitable organization may be eligible for a deduction on their income taxes equal to the full fair market value of the pro p e rt y, pro- vided the pro p e rty has been held for more than one year and is not c o n s i d e red pro p e rty held by a "d e a l e r." The recipient organization may be able to give you an indication of what it intends to do with the land upon receiving title. Keep in mind that donation of an unrestricted title 3 8 implies that you are granting the organization the right to make what- e ver decisions it considers appropriate re g a rding the future of the land. Donation of Trade Lands Donations of unrestricted title to land are sometimes made as part of so- called trade lands transactions with conservation organizations, invo l v i n g p ro p e rties that do not necessarily warrant protection for conserva t i o n purposes. Highly developed commercial pro p e rties and suburban re s i- dential lots, for example, may have high market value but little or no c o n s e rvation value. Such pro p e rties can still, howe ve r, serve conserva- tion purposes when donated as trade lands, with the understanding that the organization will sell the land in order to fund protection efforts on other lands of higher conservation value. Donation of Restricted Title to Land If yo u'd like the recipient of your donated land to be legally obligated to abide by your wishes re g a rding the land's future use and management, you can restrict the title through a perpetual conservation easement or deed restriction. In the case of an easement, this may be accomplished in one of two ways. A landowner may first donate an easement to one c o n s e rvation organization, then donate the restricted land to another. Subject to tax law, both donations may qualify the donor for a charita- ble contribution deduction on his or her income tax. Alternative l y, as is commonly practiced in donations of land for designation as a unit of the state outdoor re c reation system (such as a Scientific and Na t u r a l A rea), the land may be donated with the understanding that the state, upon receipt of the land, will immediately protect it with a perpetual c o n s e rvation easement. In this case, the higher, unrestricted value of the p ro p e rty may be used for both the donor's charitable contribution deduc- tion on income tax, and for matching by the Critical Habitat Ma t c h Fund (see page 40). Alternative l y, a landowner may elect to protect the land prior to donation by placing a deed restriction on its title. Su c h deed restrictions, if you recall from our earlier discussion, do not qualify as a charitable deduction for income tax purposes, nor do they designate a guardian to monitor and enforce the restrictions, as is provided for in a conservation easement. Placing a deed restriction on a pro p e rt y's title prior to donating the land may also reduce the value of the donation. 3 9 The Critical Habitat Match Fu n d is a part of the Re i n vest in Minnesota (RIM) Public Lands Program. He re's how it work s : * A private landowner makes a donation of land, interest in land (such as a conservation easement), or cash to the Minnesota De p a rt m e n t o f Natural Re s o u rces (DNR). Donated land must be appropriate for designation as one of the units of the state outdoor re c reation system, such as a Scientific and Natural Area, Wildlife Management Area, State Pa rk, or State Fo re s t . * The value of the contribution is matched dollar for dollar by funds l e g i s l a t i vely appropriated to the Critical Habitat Match Fund. T h e match money goes to a special account administered by the DNR Division of Wildlife and used exc l u s i vely to acquire land or improve existing state land for the purpose of critical habitat. Donors thus double the conservation value of their donation. * Pr i vate citizens, businesses, and organizations may make donations to qualify for the match funds. Since the pro g r a m's inception in 1984, The Na t u re Conservancy has been its largest contributor, donating 8,089 acre s w o rth over $6 million, with the resulting match funds a l l owing the DNR to purchase over 8,000 additional acres. In most cases, the DNR consults with the donor on how the match funds a re spent, where ver possible applying the funds to a qualifying pro j e c t o f i n t e rest to the donor. For details about the Critical Habitat Ma t c h Fund, call (651) 297-2823. 4 0 Donation by Bequest (also re f e r red to as "by devise" ) One way to plan for your land's future protection is to donate land to a c o n s e rvation organization in your will. It is important that you first contact the intended recipient of the land to be sure that they are able to accept the donation. This is also an opportunity to discuss any wishes you have re g a rding the land's future use. Of course, added protection is g i ven to the land if you establish a conservation easement on the title prior to or concurrent with the execution of your will. Donation of land by bequest will not enable you to make use of an income tax deduction for the donation, nor will it release you from any other obligations of ownership during your lifetime. It will, howe ve r, re d u c e the assessed value of your estate for estate tax purposes. Donation of Land with Re s e rvation of Life Es t a t e When donating land to a conservation organization, you may opt to re s e rve what is called a life estate. This entitles the person or persons named as life estate holders (perhaps you, or your aging parents) to live out their lifetimes on the pro p e rt y, even though the land is held by the c o n s e rvation organization. St ructuring your donation in this manner is different from a donation by bequest, in that you may claim the donation as a charitable contri- bution deduction on your income taxes during your lifetime. To calculate the value of such a donation, the IRS subtracts the value of the re t a i n e d life estates (using actuarial tables to estimate the life expectancies of those named) from the land's current market value. Ac c o rd i n g l y, the gre a t e r the age of the people named in the life estate, the higher will be the va l u e of the donation, and there f o re the greater the amount that the donor may claim as a charitable contribution deduction on his or her income t a x . ( Note: Landowners may also re s e rve a life estate when selling land to a conservation organization, in which case there would be no poten- tial tax benefits unless the land we re sold at less than fair market va l u e . ) Life Income Gifts: Donations of Land that Establish Life Income The general term "life income gifts" is used to describe a variety of s t r a t e- gies by which an individual may re c e i ve regular income as a result of a donation of land or other assets to a nonprofit conservation organiza- tion or other charitable organization. T h rough such options as charitable gift annuities and charitable remainder unitrusts, the donated land is typically sold and the proceeds invested to generate funds from which 4 1 payments may then be made to yo u (the donor) and/or to other benefi- ciaries named by you. Payments may be made for a specified period of years or for life. Not a land protection option per se, life income gifts are perhaps best v i ewed as a means by which a donor of land may re c e i ve income (a port i o n o f which may be tax-free) as well as potential estate tax and income tax benefits, while at the same time providing important financial support to a conservation organization. Life income gifts function best when the donated land is of highly appre- ciated market value. Highly appreciated commercial or re s i d e n t i a l p ro p e rties that may be sold with an unrestricted title (see Trade Lands, page 39) are there f o re ve ry appropriate for donation as a life income gift. Land of significant conservation value may also be donated as a life income gift, although in some instances it may be less suitable for this part i c u- lar type of donation, since any actions to protect the land (such as a c o n s e rvation easement) would likely reduce its market value, and thus, its capacity to generate funds from which the payments to beneficiaries a re made. A conservation organization will evaluate potential land dona- tions for income gifts on a case by case basis. If the land is of outstanding c o n s e rvation value such that it warrants designation as a natural area or p re s e rve, an organization may accept the donation as a life income gift, retain title, and identify alternative funding sources to cover the pay- ments to the beneficiaries. To establish a life income gift through a donation of land or other assets, you may wish to contact a conservation organization dire c t l y. Many con- s e rvation organizations offer their own suite of life income gifts, with established criteria and policies for each. Alternative l y, you may also choose to establish a life income gift, such as a charitable re m a i n d e r u n it rust, with a bank or other financial institution, in which case yo u could designate a conservation organization to be the recipient of all or a portion of the assets that remain in the fund after all life income ben- e f i c i a ry payments have been made. 4 2 4 3 Landowner Pro file A sk Lloyd Scherer ifhe spends much time in the woods, and yo u'l l get a laugh. "It's my life," he says. Posing the question to Lloyd is not unlike asking Magic Johnson if he's ever spent time on a basketball court. Lloyd knows the wild country of the Lake Su p e r i o r highlands in Cook County as well as anyone. For many years he operat- ed a landscaping and nursery business that kept him busy during the g rowing season, so that his exploring was largely limited to the months b e t ween the fall fre eze and the spring thaw. He'd roam for days at a time, backpack slung over his shoulders, often traveling by snow s h o e . Now 77 years of age, he has turned his hand to art-wilderness scenes and trees depicted on birch bark. But still it's a rare day that doesn't find him in the woods, ever curious, watchful for such sights as ravens i n c o u rtship and the spill of wildflowers on the forest floor before the l e a ves block the sun in spring. "Even the same place," he says, "is dif- f e rent eve ry day." In 1991, Lloyd made an important contribution to the future of the high- land forests by donating a 240-acre parcel of land to the Scientific and Natural Areas (SNA) Program of the Minnesota DNR. It was land that h e'd purchased in three separate parcels, the first in 1968, and the others f o l l owing in the 1970s. He had known then that it was valuable land: valuable for its re m a rkable undisturbed old-growth communities of n o rthern hardwood, northern hard w o o d - c o n i f e r, and upland white cedar f o rests, for the home that it offered to wildlife, and for its beautiful Sawtooth Mountains setting. He had purchased the land to protect it f rom development, hoping one day to pass it along intact to his children. For more than twenty years, the land remained in its natural state while e l s ew h e re in the region, residential and commercial development we re bringing dramatic changes to the face of the landscape. These changes had an indirect-but no less dramatic-effect on the Scherer land. As land values in the area began to rise, pro p e rty tax assessments rose right along with them. It didn't matter that Lloyd had no intention of selling the land for development; the taxes increased re g a rd l e s s . When Lloyd came to believe that inheritance of the land would re p re- sent a financial burden to his children, he began to look into other options. After consulting with a number of conservation organizations, he invited SNA Program Su p e rvisor Bob Djupstrom to join him on a walk to view the pro p e rt y. Bob was impressed by the land's old grow t h f o rest and value as habitat for rare plants; the land was clearly a good 4 4 Landowner Pro file candidate for designation as a state Scientific and Natural Area. For his p a rt, Lloyd appreciated the high level of protection that SNA status would offer to the land. He liked the idea that such areas served to provide base- line scientific information that would be used to increase understanding about managing other natural areas in the state. He had found the right recipient for the donation of the land he tre a s u red. The SNA program has done well by Lloyd's gift. The donated 240 acre s we re used to create the Lutsen Scientific and Natural Area, which less than two years later was tripled in size by acquisition of adjacent land. The additional acreage had been owned by the nonprofit Trust Fo r Public Land (TPL), which sold the land to the DNR at half its va l u e , donating the re m a i n d e r. Both the Scherer donation and the TPL dona- tion qualified for matching funds through the RIM Critical Ha b i t a t Match Fund Program (see page 40). With its ridges rising a thousand feet above Lake Su p e r i o r, its fore s t floor s c a t t e red with great logs that contribute to a diversity of plant and animal life, and its assortment of large diameter sugar maples, ye l l ow b i rch, and white cedars-some of which are believed to be as many as 300 years old-the Lutsen SNA protects a priceless piece of the nort h s h o re's natural heritage. L l oyd Scherer is a man of modest means who could have re a l i zed signif- icant income had he sold the land. But for Lloyd, this land was not about m o n e y. He puts it this way: "We don't actually own land; we are entru s t- ed with it. In e v i t a b l y, we must pass it on to the next generation. We should be ever thankful for it and the water and air that sustain our p h y sical lives and use them only with care and respect, never arro g a n c e . All life shares this earth with us. We should love this whole great gift f rom Go d . " We don't actually own land; we are entru s t- ed with it . Inevitably we must pass it on to the next genera t i o n . L l oyd Schere r 4 5 B. S E L L I N G LA N D TO C O N S E RVAT I O N BU Y E R S Suppose that you want or need to sell your land. You hope to get at least fair market value for the pro p e rt y, but at the same time yo u're concerned about the capital gains tax yo u'd need to pay on the income. If you could, yo u'd like to see the land go to someone who will protect its conserva- tion values. Maybe a conservation organization has already expre s s e d some interest in purchasing the pro p e rt y, or yo u're thinking of contact- ing a few to see if any might be interested. Can you find a solution that will accommodate your financial needs and protect the land? T h e re are a number of ways that you can increase your chances of selling your land to a conservation buyer (a private individual, a nonprofit orga- nization, or public agency that intends to manage the land for continued p rotection of its natural and/or open space values). You can: 1. In vestigate potential interest by conservation organizations Do you think the land is of conservation interest because of its natural character or known rare or significant natural elements? If so, there may be federal or state funds available for its purchase. A good place to s t a rt is the DNR's Scientific and Natural Areas Program (see Pa rtners in Your Ef f o rts, page 67). If the land borders or is located within an existing designated natural area such as a pre s e rve owned by The Na t u re C o n s e rva n c y, a state park, Scientific and Natural Area, or a national park , f o rest, or wildlife refuge, be sure to contact the managing agency or orga- nization. They may have funds allocated for purchase of lands that enhance and expand their own sites. 2. In f o rm neighboring landow n e r s Neighbors will often work in cooperation for the purpose of pro t e c t i n g neighborhood open space, either by making personal contributions to a fund to purchase the land or, in some cases, to purchase a perpetual con- s e rvation easement on the land. 3. Pa rticipate in a Co n s e rvation Bu yer Pro g ra m If yo u're selling pro p e rty that carries a conservation easement or other deed restriction, you may be able to get some help finding a buye r. In the case of pro p e rty with an easement, begin by contacting the conser- vation organization that holds the easement. 4 6 4. Consider your community's park and open space needs If the land you wish to sell has potential value as a public park or com- munity open space, contact your local and county parks departments to assess their interest in acquiring the land. 5. Making it work for a conservation buye r Using the following strategies, you can stru c t u re a sale to help make it possible for a conservation buyer to purchase your land. Grant of Rights of First Re f u s a l If yo u'd like a conservation buyer to have "first dibs" at buying your land, you can grant the individual, organization, or agency a right of first refusal. The conservation buyer would then be informed of any bona fide offer by another interested party to buy the pro p e rt y, and would h a ve the right-generally within a short time period-to buy the pro p- e rty at whatever price was offered by the other part y. Option to Bu y If a conservation buyer is interested in purchasing your land but needs some time to muster the funding, you can offer the individual, organi- zation, or agency a long-term option on the land. In exchange for a generally minimal fee (the amount of which is negotiated), the conser- vation buyer is extended the right to buy the pro p e rty for a given price within a specified period of time. No other buyer will be able to pur- chase the land during this period. The option fee is nonrefundable, and is generally applied to the purchase price if the option is exe rcised. Installment Sa l e s With an installment sale, you allow a conservation buyer to purc h a s e your land by making a series of payments over time. This gives the buye r time to arrange for financing. T h e re may also be tax advantages to yo u , as the seller, to receiving the income over time rather than in a lump sum. Bargain Sa l e s In a bargain sale, you sell your pro p e rty to a charity or government unit at less than fair market value. This is beneficial to the buyer for obv i o u s reasons, but it can also be beneficial for the seller. If the bargain sale is o f f e red to a qualified nonprofit organization, the difference between the fair market value and the bargain sale price may qualify as a charitable donation to the organization, and thus a tax deduction for the donor. Since the seller re c e i ves reduced proceeds from the sale, he or she is subject 4 7 to less capital gains tax; this, along with the charitable contribution deduction (if the seller's tax situation allows them to fully utilize such deductions), may actually result in greater financial benefit to the seller f rom a bargain sale than would have been re c e i ved from a fair mark e t value sale-with the added benefit of the land going to a conserva t i o n b u ye r. Appraised Va l u e Sale Price to Potential Ta x C o n s e rvation Deduction Bu ye r for Se l l e r A $460,000 $ 4 0 0 , 0 0 0 $ 6 0 , 0 0 0 B $578,000 $ 4 6 2 , 4 0 0 $ 1 1 5 , 6 0 0 C $1,700,000 $ 1 , 5 3 0 , 0 0 0 $ 1 7 0 , 0 0 0 D $580,000 $ 5 0 0 , 0 0 0 $ 8 0 , 0 0 0 Fi g u re (3) Fi g u res re p resent actual bargain sales completed by The Trust for Pu b l i c Land in the years 1996-1999. Resolving Timing and Financing Issues If you want to sell your land to a public conservation agency at the city, c o u n t y, state, or federal level, your first step will be to contact that agency d i re c t l y. If the agency is interested in the land but is not able to attain authorization or financing for the purchase within a time frame that meets your needs, you may wish to enlist the aid of the Trust for Pu b l i c Land (TPL). This nonprofit organization specializes in the acquisition of land for resale to public agencies, focusing on those land opport u n i- ties that public agencies cannot promptly act upon. Other nonpro f i t c o n s e rvation organizations, such as the Minnesota Land Trust and T h e Na t u re Conserva n c y, may also be helpful in devising interim strategies to meet a landow n e r's immediate financial re q u i rements while a public agency is making the necessary arrangements for purchase (See Pa rt n e r s in Your Ef f o rts, page 67). 4 8 C. LA N D EXC H A N G E S A land exchange is just what the name implies; you re c e i ve title to another piece of pro p e rty in exchange for title to a parcel that yo u own. A conservation organization that seeks to acquire your pro p- e rty for protection may propose such an exchange as an alternative to an easement or sale.The pro p e rty that you re c e i ve in exchange may have equal-or gre a t e r - value for your intended use, since many va l u a b l e natural lands a re located on marginal soils and highly erodible sites not well suited for farming or other production-oriented uses. An e xchange may further benefit the landowner by serving to defer capital gains taxes that would h a ve been incurred by sale of appreciated pro p- e rt y. Land exchanges may there f o re be viewed as a cre a t i ve option that accomplishes conservation objectives while at the same time serv i n g to benefit the interests of l a n d ow n e r s . 4 9 Landowner Pro file Klaas and Ma ry Van Zee knew, as they considered what they might do with their 211-acre parcel of land in Scott County, that they would need to make accommodations for the protection of the s t ream that cut through the pro p e rt y. Eagle Creek is one of the last remaining trout streams in the Twin Cities area, and is host to a natural a rtesian spring, Boiling Springs, that is of spiritual significance to the Shakopee Md ewakanton Sioux community. Having purchased the land as an investment, the Van Zees we re looking into the possibility of subdividing and selling lots for residential housing. Klaas first sought the advice of the De p a rtment of Natural Re s o u rc e s' Division of Fisheries and Wildlife, and Division of Waters. "From the beginning," says Klaas, "we intended to protect some of the land along Eagle Creek." Recommendations from the DNR we re incorporated into a plan for possible development of the site. But when the Van Ze e s b rought their pre l i m i n a ry plan to the cities of Sa vage and Shakopee, it quickly became clear that the plan would re q u i re revision. The people of the Md ewakanton Sioux community wanted to assure their contin- ued access to the site. Trout fishing enthusiasts, re p resented by Tro u t Unlimited, we re concerned that the plan did not adequately protect the complex hyd rology of the cre e k's watershed. Some city officials thought that the land should be granted to the city as a park and that paved trails should be installed. Public hearings re g a rding the proposed deve l o p m e n t became increasingly heated. Local residents, more than fifty conserva- tion groups, and elected city officials we re split in their opinions as to whether the plan re p resented a threat to an area of natural and cultural significance, or an opportunity to build the community's tax base. T h e Van Zees, of course, we re at the center of the debate, amenable to pro- viding the site with some protection but also keeping a watchful eye on their financial interests. "At a certain point eve ryone digs their heels in," says Klaas. It was at such a point in the long-running Eagle Creek debate that the Trust for Public Land (TPL) was invited to lend a hand in the effort to find a workable solution. TPL is a nonprofit conservation organization that works to save threatened open space in both rural and urban are a s for use and enjoyment by the public. A coalition of organizations and community groups, spearheaded by Trout Unlimited, had already been working hard-and with some success-to generate support and funds for purchase of land and ease- 5 0 Landowner Pro file ments around Eagle Creek. By building on the foundation of their effort s , TPL was able to facilitate transactions to create a 52.5-acre pro t e c t e d corridor of land, including Boiling Springs, along roughly a mile of the west branch of Eagle Creek. TPL coordinated funding from the many public and private partners, negotiated option agreements with the Va n Zees, served as interim title holder, facilitated establishment of trail and c o n s e rvation easements, and ultimately conve yed the land and easements by sale to the DNR. The DNR and the Lower Minnesota River Va l l e y Watershed District will cooperatively manage the site to protect the c re e k's water quality and the habitat it provides for trout and other wildlife. Restoration of prairie vegetation is planned for selected upland sites, and a small trail will be maintained to provide for low-impact public access to the site. Klaas and Ma ry Van Zee contributed to the conservation effort with a financial contribution to the TPL in conjunction with the land sale, making the transaction a bargain sale. They also made a donation of 14 a c res to the DNR as part of the Re i n vest in Minnesota Critical Ha b i t a t Matching Fund Program. Both contributions are potentially deductible f rom the Van Ze e s' income taxe s . The outcome has meant compromise for all concerned. Only time will tell whether the buffer corridor of protected land is sufficient to main- tain the qualities that make Eagle Creek a good trout stream: swift c u r re n t s, cold temperatures, high oxygen levels, and low levels of pollutants. Klaas Van Zee hopes it is enough. "I didn't want to be k n own as the person who de- s t royed the creek," he says. To other would-be developers of land, he offers a word of advice; "I think that it is always wise, when you develop a piece of land, to look at all the assets of the land, including its enviro n- mental assets. You need to consider the environmental assets at the onset, and take pro p e r steps to re s o l ve any issues before you deve l o p." 5 1 5 2 Chapter 6 Tax Matters T h roughout this publication, the word "p o t e n t i a l" has attended any mention of tax advantages related to the various land protection options. What will determine the extent to which you will be able to re a l i ze these potential benefits? Dynamic status of tax law First and foremost, it is essential to re c o g n i ze the changing nature of tax law in re g a rd to income, pro p e rt y, and estate taxes. What is standard accepted pro c e d u re today may be amended or abolished tomorrow. If tax implications are an important consideration to you in making a deci- sion re g a rding donation of an easement or other interests in land, yo u must consult your own tax advisor to see how current law will apply to your situation. A conservation organization cannot properly advise yo u in these matters. Your annual income Your ability to deduct the full value of a charitable donation from yo u r federal income taxes will depend on your annual adjusted gross income, since the IRS bases the amount you may deduct on this figure (curre n t- ly for appreciated real pro p e rt y, this percentage is 30% for individuals and 10% for corporate donors). Fo rt u n a t e l y, current law allows a tax- p a yer up to six consecutive tax years in which to deduct the value of a charitable donation, taking the maximum allowable deduction each ye a r and carrying over the unused portion as needed. But when a donor with modest annual income makes a donation of high value, even six ye a r s may not be enough to accommodate deductions equal to the full va l u e of the donation. You can compensate for this by timing your donation to coincide with a period of years when you expect higher than average income, such as a spike in income related to the sale of pro p e rty or other assets. Si m i l a r l y, you may wish to make such a donation prior to an anticipated drop in your annual income, such as impending re t i rement. Donors are not similarly limited in re g a rd to estate taxes. The full va l u e of donated land or interest in land may be used to reduce the value of 5 3 the donor's estate, and there f o re the amount of the estate tax owed. In addition, a separate exclusion is available for donations of easements. Wo rking with qualified org a n i z a t i o n s To be eligible for consideration as a charitable deduction on your income tax, your donation of funds, assets, land, or interest in land must be made to a qualifying charitable organization or a unit of government. The orga- nization should be able to provide you with appropriate documentation (typically an IRS letter of determination or listing in the Cu m u l a t i ve Bulletin of Exempt Organizations, maintained by the IRS) that confirms its status to the satisfaction of your tax advisor. Qualified appra i s a l s If you intend to claim an income tax deduction for a charitable dona- tion of land or interest in land valued at or above $5,000, you are obligated to have an appraisal completed on the pro p e rty by a qualified independent appraiser. This appraisal may be completed any time during the period 60 days prior to the contribution up to the donor's deadline for filing his or her federal tax return on the year of contribution. A summary of the appraisal must be attached to the donor's tax re t u r n and the nonprofit must acknowledge that it re c e i ved the pro p e rt y. As noted earlier, the state will obtain appraisals free of charge for landow n- ers who donate pro p e rty to the Scientific and Natural Area Program or other DNR program. Note: donors must provide their own appraisal to be eligible for a charitable deduction under IRS ru l e s . It's in your best interest to get a qualified appraiser who is experienced in appraising charitable gifts of land and partial interests in land, so that your gift is neither undervalued nor ove rvalued. As you might expect, ove rvaluation of any such donation for tax purposes is illegal and can result in serious penalties to the donor. Valuation of your donation Tax benefits are based on the value of your gift. When title to land is donated outright, this is a fairly straightforw a rd process; the value of your gift is then the fair market value of the land, which is the income that an appraiser estimates the pro p e rty would bring to the landow n e r if it we re sold (at the time of appraisal) on the open market. This will be the amount that you can claim as a charitable contribution deduction on your income tax. In addition, having donated the pro p e rt y, it will not be part of your estate, and thus will lower estate taxe s . 5 4 The deductible element of a bargain sale is also straightforw a rd. T h e value of your donation is equal to the difference between the fair mark e t value of the pro p e rty and the price that the conservation organization paid you for it. You will be subject to capital gains taxation on the sale p a rt of the transaction. Valuing the donation of land subject to a life estate gets a bit more inter- esting. We have already discussed, in general terms, how such donations a re treated by the Internal Re venue Se rvice. Full ownership of the land typically does not vest in the recipient charitable organization until ye a r s after the donation was made, because of use of the land by the life estate holder(s). This delay lowers the value of the donation for tax purposes, but does not mean that the donor must wait to claim the associated deduction on his or her income taxes. Deductions may be taken for the year in which the donation was granted, with the donation's value approx- imated using a combination of actuarial (life expectancy) tables, the ages of the life estate holders, and the market value of the land at the time of the donation. Valuing the donation of a conservation easement is perhaps the most complex of all. Fo rt u n a t e l y, this is the responsibility of an appraiser, not the donor. An appraiser will generally follow a valuation method know n as "Be f o re and After." First, he or she will calculate the present fair mark e t value of your land before the establishment of an easement. Then, the appraiser will make an estimation of what the fair market value will be after the imposition of the easement restrictions. The difference betwe e n the two is the value of your gift. As a general rule it is safe to say that values of easement donations are highest when the terms of an easement s e ve rely limit development on pro p e rties considered by the appraiser to h a ve ve ry high development potential. D i s c retion of county assessors Will your pro p e rty taxes drop as a result of an easement? It depends in p a rt on your county assessor and how he or she views the effect of such restrictions on the value of your pro p e rty as compared to the rate at which it is presently assessed. While assessors have been directed by state law to take conservation easements into account when determining the va l u e of land for pro p e rty tax purposes, there is neve rtheless a degree of variation in how assessors interpret this dire c t i ve. If yo u're considering an easement and pro p e rty taxes are an important issue for you, you can investigate the effects that easements and deed restrictions have had 5 5 on the pro p e rty taxes of other landowners in your county (a matter of public re c o rd, available at the county courthouse). For more pre c i s e information on how the particular restrictions of your easement would affect your pro p e rty tax status, you will need to talk directly with yo u r county assessor. As a landow n e r, you do of course have the right to contest the rate at which your pro p e rty is taxed if you consider it to be inappropriately high. The appraisal performed in order to take advantage of the charitable con- tribution deduction for income tax purposes could be ve ry helpful in contesting the amount of your pro p e rty tax on easement pro p e rties. Bu t since the outcome is uncertain, pro p e rty tax relief should not be yo u r p r i m a ry reason for establishing an easement or other deed restriction. Actions that impact a donation's deductibility As long as you make your donation to a qualified charitable organiza- tion, the value of your gift should be fully deductible for income tax purposes, subject to tax law. No t ew o rthy exceptions include the follow- ing: 1) donations made by bequest (to be granted upon execution of the d o n o r's will) do not entitle the donor to an income tax deduction, but they do reduce the value of the estate for estate tax purposes; 2) dona- tions of land and interest in land must be permanent to qualify as income tax deductions; this rules out term (nonperpetual) easements, mutual c ovenants, deed restrictions, and any donations of land subject to a re ve rt- er clause (conditional transfer), in which title may re ve rt back to the donor if specified deed restrictions are not honored; 3) donations must be accompanied by "d o n a t i ve intent;" 4) if the donor re c e i ves something of value in exchange for the donation, the deduction is lowe red; 5) con- tributions of land held for less than one year or "d e a l e r" pro p e rty are deductible to the extent of "basis" (your cost), not current fair mark e t value. Special state laws also govern charitable deductions for corpora- tions; consult you tax advisor for details. Note to Readers: Looking for an easy to understand guide to tax and financial strategies that can help you to keep your family lands? Ob t a i n a copy of "Pre s e rving Family Lands: Book 1; Essential Tax St r a t e g i e s for the Landow n e r," 3rd edition, by Stephen J. Small. Available fro m Pre s e rving Family Lands, Boston, MA, phone (617) 357-1644, or ava i l- able online at www. s t e ve s m a l l . c o m . 5 6 Chapter 7 Living with Natural Lands: Stewardship Considerations for Private Landowners " So what's it going to be, people or the enviro n m e n t ? " A person interested in stew a rdship might respond, "It's going to be people a nd the environment." St ew a rdship describes the desire of people to care for and live compatibly with the natural environment. It is not some lofty ideal that views people as isolated from the land. Instead, it is a practical approach to eve ryday life, where by people consider the natural e n v i ronment in their decision-making and, at eve ry opport u n i t y, make an effort to accommodate, enhance, and protect their land. St ew a rdship invites a broad perspective. It asks a landowner to step back and view the natural areas on his or her pro p e rty as an assembly of com- munities that take their strength from relationships. It considers the ro l e of the pro p e rty in the context of neighboring lands and the larger, re g i o n- al landscape. It looks into the history of the land, not to re c reate the past, but in the way that one might look into an engine: to try to understand h ow it works, and to identify the elements and conditions necessary to sustain it. It acknowledges that those things which we see-trees, geese, d e e r, songbird s - rely on many things which we cannot see and may not e ven know exist. To look at land in this way is both thrilling and humbling. Notions like c reating a wetland, forest, or prairie come to seem nigh impossible; how can we possibly hope to replicate the intricate relationships found in n a t i ve communities that took thousands, even millions of years to d e velop? The truth is, we can't, which is why pre s e rving the integrity of an existing natural area is always preferable to trying to re s t o re or c reate one. But many lands have already undergone dramatic change, and can surely benefit from our efforts to replace what has been lost and c reate at least the opportunity for the natural relationships to begin e s t a b l i s hing anew. 5 7 Do you own a working farm with some wild lands still found along a c reek, or along a gravel ridge too steep to plow? Ha ve you recently pur- chased an undeveloped lot with the intention of building a new home? Consider creating a stew a rdship plan to guide your management and use of the pro p e rt y. If you have the interest and energy, there are many things that you can do on your own. Many landowners find it fun and satisfy- ing to learn more about their land's natural feature s . You may also enlist the aid of ecologists and other natural re s o u rce professionals to supple- ment your independent efforts. St e w a rdship goals Successful stew a rdship maintains the naturally occurring mosaic of native plant communities across a landscape, and sustains each community's d i versity of species and ability to function. It reduces negative human disturbance and allows natural processes to continue their work of shaping and reshaping the land. When a landscape has been greatly altered or when surrounding land use has interf e red with its characteristic natural p rocesses, stew a rdship may re q u i re a landowner to take an active ro l e , p a rticipating in activities such as prescribed (controlled) burning, plant- ing of selected native species, or restoration of a site's hyd ro l o g y. By focusing on maintaining or restoring the integrity of the native plant communities present (such as oak savanna, wet meadow, and tallgrass prairie), you can trust that you are also working for the benefit of native wildlife populations. T h e re are many intricate and elegant re l a t i o n s h i p s that exist between wildlife and native plant communities. These re l a- tionships between living things, together with the influence of such factors as soils, topography, climate, and hyd ro l o g y, define the unique character of a landscape. The aim of stew a rdship is to do what is neces- s a ry to enable these relationships to flourish by protecting the entire system that makes them possible. A guide for land use decisions W h a t e ver your land's level of development and use, you can appro a c h its management from a stew a rdship perspective. A farmer can engage in practices such as contour plowing to reduce soil erosion, or integrated pest management to minimize chemical use. A lakeshore pro p e rty ow n e r can choose to keep his or her land in native vegetation rather than plant- ing Kentucky bluegrass. The owner of a timbering operation can engage in fore s t ry practices such as long rotation cuttings, and maintain stands with mixed ages and species of trees. A person constructing a house, ro a d , 5 8 or trail can be selective about the placement of such development. Of course, many pro p e rties have not one but a mosaic of land uses: a pro p- e rty may include a home and yard, farm fields, and natural lands. Each land use will lend itself to different stew a rdship practices. To determine what stew a rdship practices might be appropriate for your land will invo l ve a bit of detective work. Consider the context: tailoring your plan With enough time, money, expertise, and effort, it would probably be possible to turn a dry prairie into something that resembles a we t l a n d , or a wetland into something that resembles an upland forest. St ew a rd s h i p, h owe ve r, is guided by a respect for a landscape's natural inclinations. Ac c o rd i n g l y, your first step will be to increase your understanding of the p resent and past natural features of your pro p e rt y, as well as the re l a- tionship between your pro p e rty and the larger, regional landscape.Yo u r i n vestigation will address four key questions: * To what native plant communities is your pro p e rty best suited? * Is your pro p e rty host to natural features of local, regional, nation- al, or even global significance? * T h rough the management of your pro p e rt y, can you support the integrity of natural elements that extend beyond your pro p e rt y b o u n d a r i e s ? * How healthy are the native plant communities on your land? Do they retain their characteristic composition, stru c t u re, and func- tion? Are they in need of re s t o r a t i o n ? To help answer these questions and lay the gro u n d w o rk for your stew- a rdship efforts, you can gather information from a variety of sourc e s . Some possible sources include: MAPS & PH OTO S To p o g raphic map A topographic map of your land can be purchased at minimal cost fro m the Minnesota Geologic Su rvey (MGS). It will be helpful if you have a vailable your pro p e rt y's legal description (section, tow n s h i p, and range). Ask for a map with scale of 1:24,000, also called a 7.5 minute map (On e inch on a map of this scale is equivalent to 2000 feet on the gro u n d , t h e re f o re offering a reasonable level of detail). Stop by the MGS map s t o re at 2642 Un i versity Avenue, St. Paul, or call (612) 627-4782, or email: mgs@tc.umn.edu. 5 9 Soil map A map of your pro p e rt y's soils can be obtained from your county So i l and Water Conservation District office, located at your county seat. Minnesota County Biological Su rvey (MCBS) Ma p If the MCBS has completed its survey of remaining natural are a s and rare species in the county in which your pro p e rty is located, you may be able to obtain a map that will indicate whether any rare or significant natural features have been found on or near your pro p e rt y. For infor- mation about availability of MCBS maps, contact the Division of Ecological Se rvices, MN Dept. of Natural Re s o u rces, 500 Lafaye t t e Road, St. Paul, MN, 55155, phone (651) 296-2835; or call toll free (800) 766-6000 and specify the Division of Ecological Se rv i c e s . Minnesota Presettlement Vegetation Ma p When the public lands survey was undertaken in Minnesota in the latter half of the 19th century, the surve yo r s' notes included a wealth of infor- mation about the trees and vegetation they observed as they placed their section and quarter section markers. These notes we re a primary sourc e of information used by Francis J. Marschner when, in 1930, he cre a t e d a map of the state's presettlement vegetation. The map offers an inter- esting perspective on the historic diversity and distribution of major plant communities in the state. Although out of print in its original large format, it may be viewed at the John R. Borc h e rt Map Library at the Un i versity of Minnesota, phone (612) 624-4549. A booklet featuring the Marschner map, entitled Na t u ral Vegetation of Minnesota at the Ti m e of the Public Land Su rvey: 1847-1907, is available from the Mi n n e s o t a DNR Division of Ecological Se rvices. For a free copy of this booklet, phone (651) 296-2835; or call toll free (800) 766-6000 and specify the Division of Ecological Se rv i c e s . Aerial photogra p h An aerial photograph of your land can provide you with a good per- s p e c t i ve for stew a rdship planning purposes. Photos are generally ava i l a b l e for free or at a nominal fee from the Consolidated Farm Se rvices Agency (CFSA) located at the county seat of the county in which your pro p e r- ty is located. (Note: This agency has recently undergone a name change; it was formerly known as the Agricultural Stabilization and Conserva t i o n Se rvice, or ASCS). 6 0 PE O P L E College and university professors in natural re s o u rce departments (such as soil science, landscape ecology, biology, geology, and wildlife) can be an excellent source for information re g a rding their area of expertise. Organizations that administer re g i s t ry programs and restoration cost- s h a re programs may have staff available to help landowners identify native plant communities on their pro p e rt y. * See also, Pa rtners in Your Ef f o rts, p. 6 7 . BOOKS & SPECIAL REPORTS Mi n n e s o t a's Na t u ral Heritage: An Ecological Pe r s p e c t i ve, by John R. Te s t e r, a vailable for purchase from the Un i versity of Minnesota Press, phone toll free at (800) 388-3863. A Guide to Mi n n e s o t a's Scientific and Na t u ral Are as, MN De p a rtment of Natural Re s o u rces, Division of Ecological Se rvices, Scientific and Na t u r a l A reas Program, available for purchase from the DNR Gift Sh o p, phone toll free (800) 766-6000, or (651) 228-9165 in the Twin Cities metro a re a . Regional Landscape Ecosystems of Michigan, Minnesota, and Wisconsin: A Wo rking Map and Classification, by Dennis Albert, General Te c h n i c a l Re p o rt NC-178, available from the No rth Central Fo rest Ex p e r i m e n t Station, phone (612) 649-5108. This re p o rt can also be downloaded at w w w. n pw rc . u s g s . g ov / re s o u rc e / 1 9 9 8 / r l a n d s c p / r l a n d s c p. h t m Mi n n e s o t a's St. Croix River Valley and Anoka Sandplain, A Guide to Na t i ve Ha b i t a ts, by Daniel Wovcha, Barbara De l a n e y, and Ge rda No rd q u i s t , MN De p a rtment of Natural Re s o u rces, available from the Un i versity of Minnesota Press, phone toll free (800) 388-3863. Mi n n e s o t a's En d a n g e red Fl o ra and Fa u n a, Barbara Coffin and Lee P f a n n m u l l e r, editors, published by Un i versity of Minnesota Pre s s . Cu r rently out of print. Look for copies at local libraries or natural re s o u rc e agency offices. 6 1 D ATA B A S E S Minnesota Na t u ral Heritage In f o rmation Sy s t e m The Minnesota De p a rtment of Natural Re s o u rces Natural He r i t a g e Information System consists of more than 20 component databases with a wealth of information on the state's rare plants, animals, native plant communities, and critical habitat sites such as prairie chicken booming g rounds, bald eagle roosts, and waterf owl nesting colonies. Although this is a fairly sophisticated system, it may offer useful information for l a n d owners whose pro p e rty contains such elements. Data request forms a re available on the DNR's web site, or by writing: En d a n g e re d Re s o u rc e / En v i ronmental Re v i ew Specialist, Minnesota Natural He r i t a g e and Nongame Re s e a rch Program, De p a rtment of Natural Re s o u rc e s , 500 Lafayette Rd., St. Paul, MN 55155. Phone: (651) 296-8324; or call toll free (800) 766-6000 and specify the Natural He r i t a g e Pro g r a m . LIVING EXAMPLES If yo u'd like to know what a healthy bluff prairie, maple-basswood fore s t , or other native plant community looks like, visit some of the state's Scientific and Natural Areas (SNAs) or The Na t u re Conservancy (T N C ) Pre s e rves. These sites have been selected for protection because they e xemplify many of the best remaining examples of Mi n n e s o t a's func- tioning ecosystems. If someone tells you that your oak woods, with a little management, could be re s t o red to a fine oak savanna, go check out an oak savanna to get an idea of what they're talking about. The Mi n n e s o t a DNR has published a guide to its SNAs (see listing, BOOKS & SPE C I A L R E P O RTS). A Guide to The Na t u re Conserva n c y's Pre s e rves in Minnesota is available for purchase from the organization's local office in Minneapolis; refer to "Pa rtners in Your Ef f o rts," page 67, for contact i n f o r m a t i o n . De veloping your stewardship plan The information you have gathered will help to inform your decisions re g a rding land use. If you wish, you could follow the rough plan of action outlined below. For some of the steps that re q u i re rather specialize d k n owledge, you may wish to seek assistance from one of the groups listed in "Pa rtners in Your Ef f o rts," Chapter 8. 1. Identify your goals for your pro p e rt y. As you feel is appropriate, invite ideas from family members or others with a direct interest in the land. 6 2 2. Do an inve n t o ry of your pro p e rty and note the locations of existing n a t i ve plant communities, areas you would like to re s t o re to native ve g- etation, environmental problem areas (e.g., erosion sites), areas that offer seasonal and ye a r - round habitat for wildlife, and other natural feature s i m p o rtant to you. The DNR may be able to provide you with a species list for the native plant community on your land. See Natural He r i t a g e and Nongame Re s e a rch Program in "Pa rtners in Your Ef f o rts," Chapter 8 . 3. If you intend to re s t o re a degraded native plant community or try to "re c re a t e" a historic natural community on your land, be sure to visit a p re s e rve or state natural area to familiarize yourself with some of the asso- ciated species and the overall stru c t u re of the community. 4. Based on what you have learned about the native plant communities identified on your land, make a list of the possible implications for man- agement and land use. Note any natural processes that you think might be important to their continued integrity. (It will be helpful to seek advice f rom an ecologist here.) Examples might include: * Oak savanna: clear out Eu ropean buckthorn, possibly conduct a c o n t rolled burn to open up the understory * Prairie: delay haying until after nesting of grassland birds, conduct periodic controlled burns, regulate grazing * St ream bank/lakeshore: retain native vegetation, limit chemical use within watershed, avoid disturbing shoreline nesting bird s 5. De velop a stew a rdship plan that integrates these management goals and desired outcomes. Your plan should identify specific tasks, set up a timeline for their completion, identify sources for financial and techni- cal assistance, define appropriate locations for any future deve l o p m e n t (such as roadways, utilities development, or stru c t u res), note locations planned for any restoration efforts, and outline general guidelines yo u'd like to follow re g a rding your use of the land. If you wish, you may incor- porate into your stew a rdship plan some more permanent options, such as a conservation easement on part or all of your pro p e rt y. If a landscape element or native plant community extends beyond your pro p e rty bound- aries (such as a forest, bluff, or stream), you may also wish to contact adjacent landowners to make them aware of your interest in stew a rd s h i p and find out if they have an interest in similarly managing their land. 6 3 Keep in mind It's best to make your decisions in the context of an overall stew a rd s h i p plan. But if a compre h e n s i ve stew a rdship plan sounds like a more ambi- tious project than yo u're able to undertake, there are still some general principles you may keep in mind as you make your land use decisions. * When seeking advice, consider the source. Remember that the goal of s t ew a rdship is to protect the composition, stru c t u re, and function of natural systems as a whole, not just isolated parts. One conservation spe- cialist may be extremely knowledgeable about timber trees and the soils they re q u i re, but less informed about native prairie, wetland issues, or e ven non-timber related forest uses. Another conservation specialist may be able to tell you what to plant to promote pheasant or deer popula- tions, but will be less informed about what is important for songbird s , b i rds of pre y, or other nongame species. The information may be good, but incomplete. The solution? Consult with a variety of conserva t i o n specialists from different fields of study (and literature from a variety of s o u rces) before making a decision. * When purchasing plant materials for your pro p e rt y, select native species, ideally seeds or plants from local sources (just because the seed packet or catalog promises "w i l d" flowers or grasses does not necessarily mean that the plants are appropriate for your location). * Plan pro p e rty development to avoid fragmenting native plant com- munities. One large native plant community tends to function better than many small ones. A house in the middle of a natural area, for example, will cause more disturbance than a house located near the p e r i m e t e r. A road that runs right through a natural area will cause more disturbance than a road that runs along its edge. Gi ven the option, pre- s e rve natural areas in blocks rather than in long, narrow strips; this offers better protection to species that re q u i re less disturbed environments. 6 4 * Be aware that just because there are plenty of birds, raccoons, and deer at your feeder does not mean that all is well with the wildlife on yo u r land. Ma n y, many wildlife species-including most of Mi n n e s o t a's nesting s o n g b i rd s - n e ver use feeding stations or nestboxes. The only way to p rotect a broad array of wildlife species is to protect natural habitats. * Consider the merits of fire; it's as natural as rain. Fi re is an appro p r i- ate management tool for certain types of native plant communities when used strategically by people with proper training. * In forest communities, old doesn't mean useless and tidy doesn't mean h e a l t h y. Ma t u re trees riddled with cavities and downed logs offer impor- tant habitat for many nesting species. The decomposition of woody debris on the forest floor replenishes soil nutrients.Unless you are doing re s t o r a- tion work to open up an ove r g rown oak savanna or prairie, or re m ov i n g i n va s i ve exotic species, resist the urge to clear out undergrowth. If yo u're h a rvesting downed trees for firewood, leave some behind. * Planting trees may not be the best contribution you can make to yo u r l a n d's natural environment! If you look at the presettlement ve g e t a t i o n maps of Minnesota, yo u'll find a wonderful diversity of native plant com- munities, many of which are characterized by few or no trees. Pr a i r i e s , oak savannas, and marshlands are just a few examples. Consider care- fully whether tree planting is appropriate for your site, or whether the health of the community would benefit more if the area remained open. Also, as you make land use decisions, remember that forested sites are not the only natural areas on your pro p e rty worthy of pro t e c t i o n . 6 5 6 6 Chapter 8 Partners in Your Efforts Please note that the following listing includes only a sampling of the many Minnesota conservation agencies and organizations able to offer practical assistance to private landowners. While far from compre h e n- s i ve, it can serve to get you started. Each of these organizations can assess your land protection goals and point you in the right direction for help if they are not equipped to address your particular situation. L a n d owners are encouraged to select an organization and appro p r i a t e land protection options that will ensure the highest possible level of pro- tection for their land. 6 7 The Na t u re Conservancy of Minnesota 1313 Fifth St reet Southeast, Suite 320 Minneapolis, MN 55414-1588 Phone: (612) 331-0750 FAX: (612)331-0770 w w w. t n c . o r g / m i n n e s o t a The Na t u re Conservancy is an international, member-based, nonpro f i t organization, whose mission is to pre s e rve the plants, animals and natural communities that re p resent the diversity of life on Earth by pro t e c t i n g the land and waters they need to surv i ve. With priorities guided by science and ecological re s e a rch, the Conservancy protects land through acqui- sitions, gifts of land, management agreements, conservation easements, cooperation with state and local units of government, and enro l l m e n t by private landowners in a vo l u n t a ry re g i s t ry program. The Conserva n c y also actively supports citizen efforts at the community level and work s in partnership with other organizations to accomplish broad conserva- tion initiatives. It is funded by memberships, dues, corporate foundation grants, and contributions from individuals. The Na t u re Conservancy of Mi n n e s o t a : * has helped protect 330,000 acres of land re p resenting some of the best examples of Mi n n e s o t a's natural heritage * owns and manages a system of 52 pre s e rves totaling more than 55,000 acres, most of which are open to the public * has more than 21,000 members statewide * champions legislation critical to environmental policy and funding of federal, state, and local conservation initiative s * is a major contributor of land to the St a t e's Critical Ha b i t a t Matching Fund Program, helping to protect Mi n n e s o t a's most t h reatened habitats * is an active partner in local conservation efforts, working with communities to protect ecosystems in landscapes like the Lake Superior Highlands, nort hern hardwood forests, aspen park- lands, tallgrass prairie and the Big Wo o d s * promotes landowner stew a rdship of private lands with a vo l u n- t a ry re g i s t ry pro g r a m * invites volunteers to become active, to assist with land manage- ment projects, or participate in other aspects of the organization's c o n s e rvation work 6 8 The Trust for Public Land, Minnesota State Office 2610 University Ave., Suite 300 St. Paul, MN 55114 Phone: (651) 917-2240 FAX: (651) 917-2248 www.tpl.org A national non-profit conservation organization with its Minnesota state office located in St. Paul, the Trust for Public Land (TPL) specializes in the purchase of properties from willing sellers, with subsequent resale of the land to public agencies or nonprofit organizations for public open space use. With a motto of "Conserving Land for People," TPL's work in Minnesota has helped to protect nearly 100,000 acres in the past 10 years, by bringing open space land into public ownership for parks, recre- ation areas, cultural and historic sites, and wilderness areas. Highlights include: TPL's participation in a planning and acquisition effort involv- ing the City of Maplewood which resulted in the City's procurement of 85 acres of critical open space land for citizen enjoyment; TPL's purchase and subsequent conveyance of a 2523-acre wild rice farm in northwest- ern Minnesota from a private landowner to the Red Lake Band of Chippewa Indians, who will continue to manage the site for wild rice and to preserve its value as a staging area for migratory waterfowl; and TPL's assistance to the City of Grand Marais in its efforts to acquire the last parcel of privately held land along the historic Grand Marais Harbor, completing a long standing community vision. TPL participates in land transactions at the invitation of the parties involved. While its role varies on a case by case basis, TPL is able to: * serve as an advocate for landowners, assisting them in achieving a satisfactory outcome and offering confidentiality * identify potential funding sources and creative financing for the public agencies * act quickly and serve as interim title holder while a public agency procures the funds and authorizations necessary for a purchase * help community groups implement campaigns to mobilize support for park and open space projects and their funding TPL is supported largely through landowner donations, foundation and corporate contributions, and limited fee-for-service work. TPL ensures that the public pays fair market value or less for the property it seeks to protect. TPL's transaction assistance can capture potential tax benefits for the private landowner and relieve the acquiring public agency of many costs involved with administration of the sale. 69 Minnesota Land Tru s t 2 3 5 6 Un i versity Avenue W., Suite 400 St. Paul, MN 55114 Phone: (651) 647-9590 FAX: (651) 647-9769 w w w. m n l a n d . o r g The Minnesota Land Trust (MLT) is a private, nonprofit organization dedicated to permanently protecting the land and water re s o u rces that define Minnesota communities and enrich the quality of life of its re s i- dents and visitors. With a small professional staff and a network of citize n volunteers active in community-based chapters throughout the state, M LT specializes in providing landowners with the legal tools they need to pre s e rve lands that promote quality of life for themselves, their heirs, and their communities. While the organization is able to provide information on a variety of land protection options, it is perhaps best known for its work in assist- ing private landowners who wish to establish perpetual conserva t i o n easements on their land. MLT conservation easements are distinguished by their inclusive focus, not only on lands of ecological significance, but also on lands of historic, scenic, open space, and agricultural value. Pe o p l e who choose to donate easements to MLT are often attracted by the orga- n i z a t i o n's willingness to design easements that accommodate the wishes of the landowner to the extent possible while protecting the land's con- s e rvation values. In addition to its work with private landowners, MLT participates as a p a rtner in conservation planning efforts with local governments and community groups. With the organization's help, such groups have been able to successfully protect neighborhood open space, scenic vistas, and natural lands of benefit to their communities. The Minnesota Land Trust is funded primarily through memberships and donations from individuals, businesses, and foundations. It pub- lishes a semi-annual new s l e t t e r, the Minnesota Land Trust News & Vi e w s, and maintains an active we b s i t e . 7 0 Minnesota De p a rtment of Natural Re s o u rc e s 500 Lafayette Ro a d St. Paul, MN 55155-4007 w w w. d n r. s t a t e . m n . u s The DNR administers a variety of programs that can help p r i vate landowners to accomplish their land protection objective s . For information about natural features contact: Natural Heritage and Nongame Re s e a rch Program Minnesota County Biological Su rvey The Natural Heritage and Nongame Re s e a rch Program provides infor- mation on the state's native plant communities, rare plants, and rare animals. One of the most important tools for acquiring this information is the Minnesota County Biological Su rvey (MCBS). Biologists work i n g for the MCBS program are conducting systematic surveys of natural are a s and rare plants and animals in the state. MCBS findings are used to: * assist with land use planning efforts by local gove r n m e n t s * help landowners to demonstrate the eligibility of their lands for c o n s e rvation cost-share funds, land re t i rement programs, and ease- m e n t s * provide knowledge to landowners interested in caring for the natural lands on their pro p e rt i e s To obtain maps, written re p o rts, and published books that help inter- p ret MCBS findings, call (651) 296-2835. Information on rare species and native plant communities on lands throughout the state is ava i l a b l e f rom the computerized Natural Heritage Information System. Pr i n t o u t s can be obtained by calling (651) 296-8324, or by filling out a "d a t a request form," available on the DNR's web site under the Na t u r a l He r i t a g e and Nongame Re s e a rch Pro g r a m . For protection of natural areas, contact: S c i e n t i fic and Natural Areas Program (651) 297-2357 Natural and Scenic Areas Grant Program (651) 296-1567 Me t ro Greenways Program (651) 772-7952 The Scientific and Natural Areas (SNA) Program selectively acquires and manages land throughout the state that hosts exceptional natural fea- t u res such as undisturbed native plant communities, rare or endangere d species habitat, geologic formations, and seasonal habitat for concen- trations of birds and other wildlife. The program seeks to protect such lands in sufficient quantity (multiple sites of appropriate size) and dis- tribution to provide for their long-term surv i val. Scientific and Na t u r a l 7 1 A reas are storehouses of the state's biological dive r s i t y. They are managed so as to foster natural processes to the extent possible in the context of the surrounding landscape. Most SNAs, over 130 sites across the state, a re open to the public for nature observation, re s e a rch and education. Howe ve r, as a general rule there are no trails, re s t room facilities, or other amenities. The visitor should understand these areas are not a place designed for intensive re c reational activities. SNAs are established: * with gifts of land from private citize n s * by purchase of land from willing sellers * through purchase or donation of conservation easements * by dedication of existing public lands * through exchanges, long-term leases and cooperative projects with p r i vate conservation organizations Designation of SNA status is a recognition of a site's outstanding va l u e for scientific, ecological, and educational purposes. Once established as an SNA, a site is afforded the highest level of protection provided for on state lands, with management and use restrictions designed to perpetu- ate the site's resident species and native plant communities. An estimated 500 SNAs are needed in order to adequately protect significant feature s within the state's major landscape regions. Citizen contributions of l a n d and funds directly to the SNA Program that are matched through pro- grams such as the RIM Critical Habitat Match Fund (see page 40) are of vital importance in achieving this goal. Two additional DNR p rograms administer land acquisition pro g r a m s that focus on natural areas. The Natural and Scenic Areas Grant Pro g r a m p rovides matching funds to local governments to purchase conserva t i o n easements or fee title on lands throughout the state that qualify as natural or scenic areas. The Me t ro Greenways Program provides funds for the p u rchase of conservation easements, fee title, and restoration on lands that contribute to the regional network of natural areas in the seve n - county Twin Cities metropolitan are a . For protection of wildlife and aquatic habitat, contact: Wildlife Ha b i t a t : Re i n vest in Minnesota (RIM) Critical Ha b i t a t Match Fund Program and/or Wildlife Management Area Pro g r a m (651) 297-2823. Aquatic Ha b i t a t : Local area Fisheries Manager 7 2 Wildlife Management Areas (WMAs) are managed by the De p a rt m e n t o f Natural Re s o u rces Division of Fish and Wildlife for wildlife pro d u c- tion and habitat, public hunting and trapping, and other re c re a t i o n a l uses compatible with wildlife, such as cro s s - c o u n t ry skiing, nature p h ot o g r a p h y, and bird watching. WMAs are also important for con- s e rving water, protecting native vegetation, and pre s e rving natural beauty and open space.With rising land costs and a growing demand for re c re- ational opportunities, donations of wildlife lands have become an i n c reasingly important way to help protect these critical habitats for all Minnesotans to enjoy. Aquatic Management Areas (AMAs) are managed by the De p a rtment of Natural Re s o u rces, Division of Fisheries to protect natural shore l i n e values while allowing for public use and enjoyment. Lakeshore AMAs tend to be small parcels that protect critical shoreline habitat for both game and nongame species. They also serve as examples for people to f o l l ow during efforts to re s t o re disturbed shorelines to a more natural state. St ream AMAs allow non-boat anglers access to trout streams. T h i s p rogram accepts small parcels that often do not qualify under other pro- grams. With the increasing value of stream and lakeshore pro p e rties, it is more important than ever to protect this rapidly disappearing habitat. For technical assistance re g a rding management of natural areas and fish and wildlife habitat: While staffing is limited, some technical assistance is available. For help with questions about managing natural areas, contact the SNA pro g r a m , (651) 297-2357. Questions about nongame wildlife can be handled by regional Nongame Specialists, and other questions about wildlife habitat can be answe red by Area Wildlife Managers. Questions about shore l i n e habitat can be handled by your Area Fisheries office. To contact the Nongame Specialist, Area Wildlife Ma n a g e r, or Fisheries Manager neare s t you, check your local phone dire c t o ry's state government listings under Dept. of Natural Re s o u rces, call the Division of Wildlife in St. Pa u l , MN at (651) 296-3344, or call the Division of Fisheries in St. Paul, MN at (651) 296-3325. For information about forest stewardship planning, contact: Fo rest St ew a rdship Program (651) 296-5970; www. f o re s t ew a rd . o r g The Fo rest St ew a rdship Program provides free planning assistance to l a n d owners who wish to develop long-term forest stew a rdship plans for their pro p e rties. The program also provides technical assistance to 7 3 l a n d owner participants in state and federal cost-share programs. W h i l e the program is administered by the DNR, services may be delive red by DNR professionals, fore s t ry or biology consultants, industrial fore s t e r s , c o n s e rvation organizations, the U.S. Fo rest Se rvice, the U.S. Fish and Wildlife Se rvice, or Soil and Water Conservation Districts. Fo rest stew- a rdship plans are generally free or low cost. They are available to l a n d owners who own between 20 and 5,000 acres. Plan pre p a rers can be selected directly by the landow n e r. Based on the goals of the landow n- er as well as the capacity of the landscape, each plan covers the entire p ro p e rty (except active agricultural areas), including woodlands, we t- lands, prairies, and water bodies. Implementation of the plan's advice is vo l u n t a ry. If a landowner does wish to implement conservation practices, the plan pre p a rer is also ava i l- able to help with implementation. Cost-share assistance is often ava i l a b l e t h rough a variety of local, state, and federal programs. For information about the Fo rest Legacy Pro g ram, contact: A rea Fo re s t e r, Rice County (507) 333-2012. The Fo rest Legacy Program provides federal funds to protect enviro n- mentally important forest lands threatened by conversion to nonfore s t uses. It does so principally through the purchase of conservation ease- ments from willing private forest landowners. Acquisition of conserva t i o n easements will be targeted to one or more of the 14 locations in the state that have been identified as Candidate Fo rest Legacy Areas. Cu r re n t l y only the Rice County Big Woods Fo rest Legacy Area is activated and eli- gible for Fo rest Legacy Program funding. When feasible, Minnesota will seek to activate additional Candidate Fo rest Legacy Are a s . 7 4 Land St e w a rdship Pro j e c t 2200 Fo u rth St . White Bear Lake, MN 55110 Phone: (651) 653-0618 FAX: (651) 653-0589 w w w. l a n d s t e w a rd s h i p p ro j e c t . o r g The Land St ew a rdship Project (LSP) is a private, nonprofit membership organization that promotes pro s p e rous, diversified family-sized farms and thoughtful community development that conserves farmland, fore s t s , and natural re s o u rces. It fosters information exchange through work- shops, videos and publications, and partnerships with community gro u p s and other organizations, and serves as a re s o u rce and referral center for l a n d owners with questions re g a rding sustainable agriculture. 1000 Friends of Minnesota 370 Se l by Avenue, Suite 300 St. Paul, MN 55102 Phone: (651) 312-1000 Founded in 1998, 1000 Friends of Minnesota grew out of a successful land use program of the Land St ew a rdship Project. It is an advocate for Sm a rt Growth, where cities do not sprawl into the countryside but are concentrated around existing infrastru c t u re. 1000 Friends is working to p re s e rve farmland and open space through the Pu rchase of De ve l o p m e n t Rights (PDR) and Transfer of De velopment Rights (TDR) pro g r a m s . Their mission is to encourage sustainable development patterns that con- s e rve farmlands, forests and natural re s o u rces, and promote healthy, l i vable communities. Minnesota Bo a rd of Soil and Water Re s o u rc e s One West Water St . Suite 200, St. Paul, MN 55107 Phone: (651) 296-3767 w w w. bw s r. s t a t e . m n . u s This state agency is able to provide addresses and phone numbers for all Soil and Water Conservation District (SWCD) offices and other local g overnment officials located in counties throughout the state. SWC D s and other local authorities administer a variety of conservation incen- t i ve programs, including the Minnesota Fo rest In c e n t i ves Program; the State Cost-share Program for soil and water conservation projects; the St reambank, Lakeshore and Roadside Erosion Control Program; the Wetland Establishment and Restoration Program; the Permanent We t l a n d 7 5 Pre s e rve Program; the Re i n vest in Minnesota (RIM) Re s e rve Pro g r a m , which re t i res marginal agricultural land through conservation easements; and the Wetlands Pre s e rvation Areas Program, which exempts eligible wetlands from annual pro p e rty taxes. U.S. Fish and Wildlife Se rv i c e Whipple Federal Bu i l d i n g 1 Federal Dr i ve Fo rt Snelling, MN 55111 Phone: (612) 713-5360 w w w. f w s . g ov / r 3 p a o / m a p s / m i n n . h t m The Fish and Wildlife Se rvice (USFWS) is part of the U.S. De p a rt m e n t of the Interior and helps to protect the nation's wildlife re s o u rces. It has specific authorities in re g a rd to migratory birds, certain marine mammals, and most threatened and endangered species of plants and animals. T h e USFWS manages national wildlife refuges and waterf owl pro d u c t i o n a reas totaling more than 90 million acres of land. It has several easement p rograms that provide financial and technical assistance to priva t e l a n d owners who want to re s t o re and protect wetlands, riparian are a s , and other wildlife habitats on their lands. No rt h e a s t e rn Area State & Pr i vate Fo re s t ry U.S.D.A. Fo rest Se rv i c e 1992 Fo l well Ave . St. Paul, MN 55108 Phone: (651) 649-5243, FAX: (651) 649-5238 w w w. w i l l ow. n c f e s . u m n . e d u The No rtheastern Area State and Pr i vate Fo re s t ry is a branch of the U.S. De p a rtment of Agriculture Fo rest Se rvice that brings fore s t ry to the people. The cooperative programs offer assistance to a wide range of clients, including state fore s t ry agencies, schools and universities, asso- ciations, local governments, and volunteer groups. In Minnesota, this is done through grants with the Minnesota De p a rtment of Na t u r a l Re s o u rces (DNR). Popular programs include Fo rest St ew a rdship (assists in developing plans for forest management), and Urban and Community De velopment. Assistance with these and other Fo rest Se rvice coopera- t i ve programs can be obtained from the U.S. Fo rest Se rvice (phone number above) or from your local DNR office. 7 6 G l o s s a r y a p p ra i s a l The estimation of a pro p e rt y's fair market value, as determined by an a p p r a i s e r. b a rgain sale Sale of land (or sale of a conservation easement) for less than its fair m a rket value. When land or an easement are sold in a bargain sale to a charitable organization, the difference between the bargain sale price and the fair market value is considered a donation that may entitle the donor to a charitable contribution deduction from his or her income tax. b i o d i versity A measure of the variation in life forms found in a given area, as con- s i d e red from three perspectives: (1) the number of different species of plants, animals and other living organisms, (2) the degree of genetic va r i- ation among individuals of the same species, and (3) the intricate pattern c reated as plants and animals assemble in communities in response to variations in physical and chemical attributes across a landscape, know n as ecosystem dive r s i t y. charitable contribution deduction A dollar amount deducted from a donor's income tax as a result of his or her gift to a qualified charitable organization. c o n s e rvation buyer A private individual, a nonprofit organization, or a public agency that p u rchases land with the intent to manage the land for continued pro- tection of its natural and/or open space va l u e s . c o n s e rvation easement A legal document in which a landowner retains title to a given pro p e r- t y, while voluntarily restricting uses of the pro p e rt y. A conserva t i o n organization is designated to monitor and enforce the use re s t r i c t i o n s for a given term or in perpetuity (fore ve r ) . c o n s e rvation organization Any private or governmental organization devoted to the protection and s t ew a rdship of open space lands. c o n s e rvation value See open space estate The sum total of an individual's possessions at the time of his or her d e a t h . 7 7 estate tax A tax on assets transferred from a deceased person to his or her heirs, imposed on the portion of such assets that exceeds a specified thre s h o l d value (presently $600,000 in Minnesota). Also called inheritance tax. fair market value The price that a seller of land might reasonably expect to be paid for a g i ven pro p e rt y, given its income potential and the current prices at which similar pro p e rties are being sold in that geographic area. land trust An organization (usually private nonprofit) that promotes and utilizes a variety of legal tools to help citizens and communities accomplish their land protection objectives. limited development A development plan for pro p e rty that leaves the more enviro n m e n t a l l y significant areas permanently protected and is guided overall by an inten- tion to minimize disturbance to a pro p e rt y's conservation va l u e s . n a t i ve plant community A group of native plants that interact with each other and the surro u n d i n g e n v i ronment in ways not greatly altered by humans or by intro d u c e d plant or animal species (formerly re f e r red to as "natural community" ) . open space Land that is largely free of man-made stru c t u res, where ground cover is such that rain may enter the soil to replenish gro u n d w a t e r, and where use of the land promotes air and water quality, scenic beauty, wildlife habitat and/or natural communities. Such open space lands are said to h a ve "c o n s e rvation value." (See Preface for types of open space land.) p ro p e rty assessment The evaluation of pro p e rty value for purposes of determining the annual p ro p e rty taxes to be paid by a landowner for a given pro p e rt y. Pro p e rt y assessments are conducted by a county assessor. re s t o ration An effort to repair the composition, stru c t u re, and function of a natural s y s t e m . t rade lands Lands (usually of l ow conservation value) that are donated to a conser- vation organization and are subsequently sold to generate funds used to finance purchase or protection of other lands of greater conserva t i o n va l u e . 7 8 I n d e x a g r i c u l t u re, see: C o n s e rvation Re s e rve Program (CRP), 21, 26 Consolidated Farm Se rvices Agency (CFSA), 60 Farmers Home Administration (FmHA), 20 Federal Farm Bill, 21 Green Ac res Program, 25 Land St ew a rdship Project, 74 Me t ropolitan Agricultural Pre s e rves Program, 25 Minnesota Agricultural Land Pre s e rvation Program, 24 Aquatic Management Areas (AMAs), 73 bargain sale, 47, 77 B o a rd of Soil and Water Re s o u rces, 21, 73 c o n s e rvation buye r, 46 C o n s e rvation Bu yer Program, 46 c o n s e rvation easement, 12, 13-17, 19, 20 and debt cancellation, 20 and limited development plans, 14 by bequest, 16 donated vs. sold, 14 e n d owment of, 17 C o n s e rvation Re s e rve Program (CRP), 21, 26 Consolidated Farm Se rvices Agency (CFSA), 60 Critical Habitat Match Fund, 39, 40, 45, 51, 68, 72 deed restriction, 12, 34 donating land, 12, 37-45 as life income gift, 41-42 by bequest, 41 outright (unrestricted), 38 restricted, 39 trade lands, 39 with re s e rvation of life estate, 41 Eagle Creek, 50-51 Fo rest and Prairie St ew a rdship of Pr i vate Lands Program, 29 Fo rest Legacy Program, 74 Fo rest St ew a rdship Program, 73 Friends of the Minnesota Va l l e y, 31 Friends of the Mississippi Rive r, 31 Green Ac res Program, 25 land exchanges, 49 7 9 land re t i rement programs, 12, 20 Land St ew a rdship Project, 74, 75 life estate, see donating land, selling land life income gifts, see donating land leases, 12, 35 Lutsen SNA, 45 management agreements, 12, 35 Me t ro Greenways Program, 71-72 Me t ropolitan Agricultural Pre s e rves Program, 25 Minnesota Board of Soil and Water Re s o u rces, 75 Minnesota County Biological Su rvey (MCBS), 27, 60, 71 Minnesota De p a rtment of Natural Re s o u rces (DNR), 26-27, 29, 33, 38, 40, 50, 51, 54, 60-62, 71-74 Minnesota Geological Su rvey (MGS), 59 Minnesota Land Trust (MLT), 16, 19, 48, 70 Minnesota Natural Heritage Information System, 62, 71 Minnesota Wa t e rf owl Association, 28 mutual covenants, 12, 34 Na t i ve Prairie Bank Program, 21 Natural and Scenic Areas Grant Program, 71,72 Natural Heritage and Nongame Re s e a rch Program, 71 Natural Re s o u rce Conservation Se rvice (NRCS), 21, 22 No rtheastern Area State and Pr i vate Fo re s t ry, 76 1,000 Friends of Minnesota, 75 open space, 5, 78 Pa rtners for Wildlife Program, 28, 29 Pheasant Habitat Im p rovement Program, 29 Pine Point, 18-19 prairie, see Fo rest and Prairie St ew a rdship of Pr i vate Lands Program, 29 Na t i ve Prairie Bank Program, 21 Na t i ve Prairie Tax Exemption Program, 23 p ro p e rty tax relief programs, 12, 23-27 Re i n vest in Minnesota (RIM) Public Lands Program, 40 Re i n vest in Minnesota (RIM) Re s e rve Program, 21, 27, 40 re g i s t ry programs, 12, 30-33 restoration cost-share programs, 12, 28-30 Scientific and Natural Areas Program (SNA), 38-40, 44-46, 54, 61-62, 7 1 - 7 2 selling land (to conservation buyers) 46-49 bargain sale, 12, 47-48 8 0 fair market value sale, 12 grant of rights of first refusal, 47 installment sale, 12, 47 option to buy, 47 with re s e rvation of life estate, 12, 41 Soil and Water Conservation District (SWCD), 21, 22, 24, 60, 75 s t ew a rd s h i p, 57-65, 73 St ew a rdship In c e n t i ves Program, 29 Sustainable Agriculture Re s o u rces and Information Di re c t o ry, 24 tax benefits, 15, 16, 19, 23-25, 38-39, 41-42, 47-48, 49, 51, 53-56 The Na t u re Conservancy (TNC), 31, 32-33, 38, 40, 46, 48, 62, 68 trade lands, see donating land Trout Unlimited, 28, 50 Trust for Public Land (TPL), 45, 48, 50-51, 69 United States Fish and Wildlife Se rvice (USFWS), 28, 29, 74, 75, 76 United States Fo rest Se rvice, 74, 76 wetlands, see Minnesota Board of Soil and Water Re s o u rces, 75 Permanent Wetland Pre s e rves Program, 21 Wetland Pre s e rvation Areas Program, 24 Wetlands Re s e rve Program, 21, 22 Wetland Tax Exemption Program, 23 Wildlife Management Areas (WMAs), 72, 73 8 1