Conservation Easements
Range Rescue LLC offers NRCS Conservation Easement facilitation services.
The Agricultural Conservation Easement Program (ACEP) protects the agricultural viability and related conservation values of eligible land by limiting nonagricultural uses which negatively affect agricultural uses and conservation values, protect grazing uses and related conservation values by restoring or conserving eligible grazing land, and protecting and restoring and enhancing wetlands on eligible land.
Conservation Easement Process Facilitated by Range Rescue, LLC (RR):
1. RR will identify potential organizations, such as Nevada Land Trust as a holder for a conservation easement funded by The Natural Resource Conservation Service (NRCS), or other funding sources that may be interested in purchasing and holding the conservation easement for the land and features designated by the participating landowner.
2. Once an organization(s) has been identified, RR will coordinate with them to provide any necessary documents and information to assist in securing funding.
3. RR will assist in the development of maps to be verified by the landowner to confirm the conservation easement meets the objective boundaries and includes any specific current or planned features, building envelope(s) and operational improvements.
4. RR will draft the Letter of Intent to satisfy the requirements of the selected organization(s) to obtain funding.
5. RR will work with the selected organization(s) as needed in the submission of an application for funding.
6. RR will work with the selected organization(s) to provide the landowner with all the documentation and requirements associated with the conservation easement for final review to ensure the terms are acceptable to the landowner allow for continued agricultural and/or recreational operations without impact.
7. RR will provide the landowner with a clear analysis of how the values of the conservation easement will be divided, what can be expected as the percentage of cash value and the expectation of your contribution to the easement and how the tax credits for that contribution can be managed including the option to sell a portion of the credits.
8. RR will work with the selected organization(s) to obtain a title commitment and preliminary appraisal on the property for review to identify any title issues that need to be corrected and to establish the value of the conservation easement. Landowners will be responsible for the costs associated with these, but there may be grant options to cover these costs at least until closing.
9. At the landowner's expense, a separate tax credit appraisal will be required within 30 days of closing. In addition, landowners will be required to pay for the tax credit value appraisal and if some credits are sold potentially a sale fee. Some entities that market tax credits provide funding to be used in obtaining the tax credit appraisal.
10. RR will work with landowners, the selected organization(s), and resource specialists to develop the required baseline inventory, management plan and monitoring plan, if required to ensure compliance once the easement is completed. Landowners will be responsible for these expenses, but they may be included in options for payment prior to closing thus eliminating out of pocket expenses incurred during the process.
11. If necessary, RR will work with state and federal agencies and other private landowners with lands that could be inholdings in or adjacent to land enrolled in a Conservation easement ensure any current leases or permits you have on those lands can and will continue without interruption.
12. RR will work with landowners, the selected organization(s), and any required resource specialists to complete any field work needed to develop the conservation easement and the conservation plan for the properties.
13. RR will work with the selected organization(s) to draft, review and complete the purchase agreement for acquisition of the conservation easement for landowner signature and the signature of the selected organization(s). This agreement will be subject to landowner approval.
14. RR will assist in the drafting of the Deed of Conservation Easement document and will review it with the landowner to ensure it meets expectations and does not impact agricultural and/or recreational operations in any manner that would deter use of the property. If legal counsel is requested, RR can provide contacts for attorneys that specialize in conservation easements.
15. RR will work with the selected organization(s) to complete the requirements for the conservation easement to close the transaction, including review of closing documents and preparation of documents for sale of or use of tax credits. These will be subject to landowner approval.
16. As needed, RR will work with landowners to facilitate the sale of tax credits and completion of any documents necessary to best position clients to fully utilize tax credits.
Conservation Easement Timelines
Easement funded by the Natural Resource Conservation Service (NRCS) process should start during the summer, the earlier the better.
1. Identify landowner interested in an NRCS easement. Range Rescue, LLC would require an Engagement Letter to move forward as the facilitator for the conservation easement and as the facilitator would manage the process on behalf of the landowner.
2. Identify Land Trust that would hold the NRCS easement. The NRCS will not be the easement holder.
3. Tour the property with the landowner, potential Land Trust officials and the local NRCS representative to identify conservation values, take pictures, and get a clear understanding of the operation and what the landowner's expectations are. The Land Trust may require an Engagement Letter at this point.
4. Determine which easement funding program from the NRCS the property would best qualify to receive.
5. Create maps and other documentation needed to prepare the application for funding including the preliminary appraisal. This provides the Land Trust with the values for funding in the application. The Land Trust will set the funding value as high as possible to ensure sufficient cash availability at the end of the process.
Applications for NRCS funding are due between January and April of each calendar year. Submission of the application with the first round, usually in January or February, will provide the best chance of success.
6. Preliminary approvals from the NRCS are usually received by the end of May. NRCS approval may include some additional information or documentation needed prior to final approval. Unless there is something significant in the additional information or
documentation required that could result in a problem with funding, which is very improbable, the final approval is likely guaranteed. This preliminary approval will include the maximum funding that will be available from the NRCS for the conservation easement. The landowner will have the opportunity to determine if the project should go move forward.
7. Final approval from the NRCS usually occurs by the end of summer and funding is authorized subject to process completion.
8. The Conservation Easement Purchase Agreement if completed and the Deed for Conservation Easement is drafted for review, comments, and requested edits by the landowner. NRCS requirements are generally agriculture friendly and allow the landowner to continue the operation as they historically have.
9. During that summer the NRCS management plan and the Environmental Baseline Inventory are completed in cooperation with the landowner. These may require some action by the landowner prior to the final documents being prepared. The landowner has approval right for the documents. The NRCS management plan can include proposed improvement projects and can often get priority for cost share funding because of the conservation easement. An NRCS conservation easement may also be beneficial in protecting water rights associated with the property.
10. Order the final appraisal. This document is first reviewed by the Land Trust and then by the landowner for approval. These documents, plans, etc. are generally completed by the end of that calendar year.
11. All the final documents that have been reviewed and approved by the Land Trust and the landowner are submitted to the NRCS for final approval. This can take up to 5 months and may require some edits, but generally very few and nothing significant.
12. Closing can generally occur prior to the end of the year so the process can take as little as 10 months and up to 36 months.
The landowner can stop the process at any point prior to closing. There may be costs incurred that would have to be paid in order to cancel the transaction at later steps in the process.
