Ranches of the West Inc. :: Motivation Aside Conservation Benefits Us All

I have been approached by several folks in the past weeks wishing to enlist my guidance in planning and perhaps the eventuality of conservation easements grant on their land. . More on that in another upcoming blog.  It occurred to me, however that the participants in, and users of this great private land conservation tool fall generally into four categories.

There are those who are so wealthy as to view the economic/tax benefits as incidental and whose motivation is strictly the personal empowerment and pure philanthropy of the gift back to the planet in perpetuity.  Others understand the conservation value, and delight in the preservation, but might not be so prone to strip their properties of meaningful development and other rights without the economic incentive of lessened tax at the federal level through deductions, and--depending on the state--at the state level through tax credits.

Generational ranchers, caught in the squeeze of rising operational costs, estate considerations, or other economic quandaries (most not of their own doing) who are proud of the preservation, but need to sell their easements to the various entities who normally act as purchasers, to continue to own and keep viable their ranching operations. 

And there are those ranchers who simply have set their jaw, don't really need the economic benefit, or don't care much about it, that have decided that they will not succumb their land to the eyesore of tasteless McMansion subdivisions.

My conclusion is kudos to all of the above. 

Whether it is personal empowerment, or economic need, a wish to see as little change as possible, or an appreciation of the donation motivated in whole or part by tax benefits, the end result is conservation. 

And that benefits us all.

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Hi Grace! Pitfalls t...
Comment from: Reid (Guest)
Hi Grace! Pitfalls to be avoided by Grantors (givers of the easement) I have not yet touched upon, but will do so in upcoming blogs. Saving the ranch with a poorly done easement might have detrimental affect over and above those coming the families way without an easement. Having said that, most folks are unaware, that in addition to federal deductions, and state income tax credits, easements also help with estate matters in that the after easement valuation of the ranch (give or take some variables within the code--Section 170 IRC) becomes the valuation for estate purposes of the Grantor forever. That is huge.  At current rates, this could potentially mean estate tax savings of millions on a sizable spread, and obviate the need for subdivison, or sell off by the family to simply pay the estate tax. I believe estate tax should be all but abolished at the federal level, though that is yet another thread of discussion. In the meantime, easements might be the answer for many ranch families with aging patriarchs, or matriarchs, and lots of locked in land value. But they have to be done right, and according to a long term plan for  the land to be fully effective and avoid gotchas for the heirs. Have a great weekend.
I\'m not interested ...
Comment from: Grace (Guest)
I\'m not interested in pitfalls or people with ulterior motives.  My interest lies in how to keep the family ranch in the family. Inheritance taxes often make it impossible to pass the family ranch down from one generation to another and if conservation easements can help with that process then the backbone of America, which is the family rancher/farmers remains intact.
Paul, glad you liked...
Comment from: Reid (Guest)
Paul, glad you liked the response. Stay tuned for some thoughts on a few pit falls of conservation easements if done improperly.  And please do not confuse poor spelling with lousy typing, something I am known for--just ask my editor!(smile). Big paws, little keyboards.
Poor spelling aside,...
Comment from: Paul (Guest)
Poor spelling aside, there's good information in this response!
Konrad, Red, and Da...
Comment from: Reid (Guest)
Konrad, Red, and Dayton....thanks much for stopping by. The private, non profit C-503 outfits like the Elk Foundation, Montana Land Reliance, trade associations (for instance, WSGALT--Wyoming Stock Growers) and Nature Conservancy (putting aside the latter's growing beauracracy) are the most motivated in many ways to provide real conservation value.  It is important to remember that each of these groups have their specific niche, or at least point of focus.  For instance, the Elk Foundation is motivated by ungulat habitat, particularly winter range, the key factor in ungulate herd vitality, the Reliance leans toward agricultural preservation, and, etc. That is not to say that certain government outfits do not do a good job, they do. US Fish and Wildlife, and many state fish and game divisions for example also provide platforms for very worthwhile private land conservation.  And the government outfits are far far more likely to purchase an easement for actual cash, which an be a key consideration to the willingness of a generational family ranch to participate.  However, working with a government outfit as Grantee will usually involve some operational limitations, and sacrifice of more iintrinsic social property rights, than working through a private Grantee.
It's my opinion that...
Comment from: Red (Guest)
It's my opinion that private groups like Rocky Mountain Elk do significant good work for conservation. There is also Pheasants Forever, Ducks Unlimited, and a myriad of other groups that have equal impact on conservation throughout the world. I'm not familiar with many government sponsored groups so I cannot comment on that. As to the effectiveness of other organizations mentioned above I think it's safe to say that they all have their followings and they all have an impact. It's up to the genreal public to address their effectiveness per deeds accomplished.
What do you think ab...
Comment from: Konrad (Guest)
What do you think about conservation groups and organizations such as Rocky Mountain Elk?  And how do these differ from governmental organizations that sponsor conservation?  And what do you think of publications such as High Country News?  Do they really have any sort of impact overall?
got some good stuff ...
Comment from: Dayton (Guest)
got some good stuff going here. lookin forward to your book.
yes grace, certain a...
Comment from: Reid (Guest)
yes grace, certain approaches to easement grants can indeed be instrumental to a generational ranching outfit keeping the land, or insuring it is not broken up through the estate tax process. Conservation easements properly planned and integrated in a broader spectrum approach to the ranch, or rural land inclusive of resource, value, exit, and agricultural concerns, among others, can be beneficial to almost any grantor (the "giver") of the easement.  And conservation benefits all of us on a cumulative basis.
It's good to help th...
Comment from: Grace (Guest)
It's good to help the ranchers find a way to keep the ranches that have been in their families for generations.  That it benefits them in more ways than one is OK.
thanks for the comme...
Comment from: Reid (Guest)
thanks for the comment, walt.... and you are 100 percent correct. the bottom line is conservation!
Here here! I agree,...
Comment from: Walt (Guest)
Here here! I agree, it shouldn't matter the motivation as long as the job gets done.
It's good to help th...
Comment from: Grace (Guest)
It's good to help the ranchers find a way to keep the ranches that have been in their families for generations.  That it benefits them in more ways than one is OK.
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