Monroe County
Farmland Protection Board
History of the Program
On March 10,
2000, the West Virginia Legislature unanimously passed WV Code
§8-24-72 through §8-24-84;
known collectively as the West Virginia Voluntary Farmland Protection
Act. The act allowed
county commissions in each of West Virginia’s 55 counties to decide if
farmland protection programs should be pursued in their counties.
Monroe County chose to create such a program, and initial local board
members were appointed in 2002. On June 4th, 2003, the
Monroe County Program was officially adopted by the Monroe County
Commission. The program was created and adapted from similar programs
in other areas, by the Monroe County Farmland Protection Board, and
had been approved by farmland board members on March 26th
of 2003.
Goals of the Voluntary Farmland Protection Program, both on the
local and the state level, are to partially offset development
pressures which have led to rapid loss of farmland and open space all
over the nation, to encourage the permanent protection of certain
parcels of farmland, to facilitate the awarding of financial
compensation for those who are willing to sell development rights on
their property, and to assist those who are willing to donate
conservation easements.
Answers to Common Questions
What is a conservation easement?
A conservation easement is a legal document which becomes a
permanent part of a deed, once it is placed on a parcel of real
estate. The concept is similar to that of mineral or timber rights
ownership, wherein one person may own the land, but another may own
rights to the timber or minerals it contains. When a conservation
easement is placed on property, the owner agrees to relinquish (either
by sale or donation) his or her right to use it for most commercial
purposes, other than agriculture. Certain tourism related functions
are exempt from this restriction, and the definition of agriculture is
broad, including such things as tree farming and aquaculture. The
owner may sell the property at any time as a whole, but it cannot be
sold in parcels, except as provided for in the original terms of the
easement.
Restrictions
placed on property by a conservation easement are not limited to the
original owner. The easement remains in effect from heir to heir, if
the property is passed on in this fashion; and from former owner to
new owner, whenever the property is sold. Easements, as such, are
considered permanent attachments, and can rarely be reversed.
Is the Monroe County Farmland Protection
Board going to force me to place an easement?
Absolutely not.
The program is entirely voluntary.
The local board has neither the desire nor the authority to
force anyone to participate against their will.
The program is here to assist those persons who, after
carefully weighing the pros and cons of such a decision, come to the
conclusion that they wish to place a conservation easement on their
property.
Must I include all of my
property? This is a
negotiable topic. If an individual owned 100 acres, and wanted to
protect part of the land, but also wanted to keep his or her options
open on another parcel, a conservation easement could be placed on any
portion of the property.
For example, 50 acres could be protected under easement, while the
remaining 50 acres was excluded. The deed of conservation easement
would have to clearly define which portion was protected under
easement, and which was not.
What about my house?
A primary home site
can be included in property under easement. In fact, a limited number
of future home sites can be reserved within the easement area for use
by children, grandchildren, etc.
If an owner wanted to reserve a larger area for future
commercial or residential development, it would be best to follow the
example in the above paragraph and simply exclude that area from the
easement. The important
thing to remember is that the easement should be tailored to meet the
owner’s wishes when it is created.
Once the easement is in place, future changes cannot be made.
Can I still use my land?
Ownership of the land
remains with the property owner. He or she can continue to live on the
land, and use it for hunting or fishing, or any other personal,
recreational purpose. He or she can farm it in any way they see fit,
or not farm it at all, and simply leave it as open space.
Farm buildings are generally exempt from the conditions of the
easement.
Why would someone want to place a
conservation easement on property?
There are multiple
reasons for considering such a decision. These can probably be grouped
into four categories.
For some, it may be a decision based on emotional ties to the
property. An individual, for instance, who owns a farm which has been
in the family for generations, may simply hate to think that the
property could someday be parceled out and divided into residential or
commercial lots by a future owner.
For others, the decision may be financially based. A person
operating a farm as his or her primary occupation could sell the
development rights to the property (i.e. through the placing of an
easement), continue to practice agriculture on the land, and use the
proceeds of the sale of easement to pay off farm debt or expand
operations.
Some may be motivated to place an easement as another way of
doing their part for the future of agriculture. Land often brings more
at sale when divided in lots for development, rather than as large
parcels. In many areas, this phenomenon has driven the selling price
of land up to the point where it is difficult for prospective farmers
to buy acreage and pay for the same through the proceeds of farming.
Land under easement, however, cannot be subdivided, and will
theoretically sell for less per acre; making it more likely that
persons interested in farming will have parcels of land available at
prices which suit their purpose.
There are certain tax advantages to easements as well. On
particularly large or valuable holdings which exceed current
inheritance tax thresholds, heirs hoping to keep the property often
find themselves in the dilemma of having to sell part of it to pay the
tax. Eliminating the “development value” of the property by placing a
conservation easement may reduce or eliminate this problem.
Also, easements which are donated, or sold for less than the
maximum easement value, can sometimes be considered as an income tax
deduction. Interested persons should talk with their accountant to
find out how and when such deductions can be claimed.
How is the local board set up?
The seven members of
the Monroe County Farmland Protection Board are appointed by the
Monroe County Commission. They serve four year terms, and cannot serve
more than two terms, consecutively. Guidelines of who may be appointed
to these positions are set by the state through the WV Farmland
Protection Act. Members must include: one farmer who is a member of
the local Soil Conservation District, one
farmer who is a member of the local Farm Bureau, one additional
farmer, one county commissioner, the director of the local economic
development authority, and two at large appointees who are not members
of any of the above groups. All are required to be county residents,
with the exception of the economic development authority director. In
Monroe County, the official economic development group is the
Greenbrier Valley Economic Development Authority.
Responsibilities of
board members include: efforts to raise funds for the local program;
assisting county residents who wish to sell or donate conservation
easements, decisions on which easements to accept, public education,
and monitoring of easements which have been acquired to see that they
are not being violated. The local board is the legal holder, or
co-holder, of easements granted through the Monroe County program.
What are my options in
applying for an easement?
A person interested in placing an easement on their property may
offer to donate the easement, or sell it; receiving an amount up to,
but not exceeding the maximum easement value (see easement value
below). The local board will make every effort to assist with either
option.
How is the easement value set, when
easements are sold?
The maximum easement value
is the difference between the fair market value of the land (if sold
for any purpose), and the value of the land if it were to be sold
purely for agricultural purposes. As such, the maximum value will
vary, as real estate values change. The following is offered as an
example of how this works:
A landowner offers to
sell a conservation easement on 100 acres of property. The land is
determined to be worth $1,500 an acre as farmland, giving it a total
agricultural value of 100 x $1,500; or $150,000. Other land in the
area is selling for an average of $3,000 an acre for development, so
the fair market value of the land can be set at 100 x $3,000; or
$300,000. The maximum easement value (the most that a person could ask
for in selling an easement) is the difference between the two values.
In the case of this example, $300,000 less $150,000 gives the
maximum easement value as $150,000.
The person placing the easement on this property could donate
it; they could ask to sell it for up to $150,000; or they could agree
to sell it for any amount less than $150,000.
Will all offers to sell easements be
accepted?
If
the Monroe County Farmland Protection Board had unlimited financial
resources, it is likely that most offers to sell easements would be
accepted. Money available for the program, however, is limited. In the
next few years, it is likely that the local transfer tax will generate
about $75,000 a year for the program. Public and private grants and
contributions will be sought to supplement this amount. Some
properties may also qualify for 50% matching funds from the federal
farmland protection program. Those
offering to sell easements will compete for the funding available; and
decisions on which applications are approved will be made by the local
board.
How will applications
for sale of easement be ranked?
The local board will use a point system based on about 30
characteristics of the properties offered. The system includes such
things as stream access, quality of the farmland, historic or scenic
attributes, size of the parcel offered, and degree of development in
the surrounding area. Those agreeing to sell for less than the maximum
value also receive additional points. Each year, applications will be
compared and those with the highest total points will be given
priority for available funding. Offers of sale which are not funded in
any given year can be resubmitted for funding the following year.
The point system is used to reduce personal bias, and ensure
that all applicants are treated fairly.
Will all offers to
donate easements be accepted?
When a landowner is willing to donate a conservation
easement on their property (for sentimental or tax purposes),
acceptance of this easement by the board is very likely. If funding is
available, the board may offer to cover legal and survey expenses in
these cases, since there will not be a cost involved for purchase of
the easement.
How do I apply?
Applications for sale or donation of a conservation
easement are available at the following locations:
·
Monroe
County NRCS Office, in Union; at the
·
Monroe
County Clerk’s Office, in Union, at the
·
public
libraries in Union and Peterstown, and at
·
Alderson
Town Hall.
Persons interested
in participating in the program should pick up the appropriate
application, complete it, and return it with required attachments to:
The Monroe County Farmland Protection Program
PO Box 574