Conservation Options for
Land Protection
Partners
 Coastal Training Program, North
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Inlet-Winyah Bay
Coast Matters
Natural Resource Conservation
Service
Pee Dee Land Trust
The Nature Conservancy
Introduction:
Maria Whitehead, TNC
Presentation Outline
 Purpose
– To help landowners understand the purpose of
land protection activities in Winyah Bay and
the contributing watershed
South Carolina:
40th in size of states
15th in plant and animal diversity
10th in loss of forested and
agricultural lands
Population Growth
South Carolina's population is
expected to grow an average
40,000 each year from the year
2005 through 2025.
Horry County has the largest
projected population growth
rate between 2005 and 2025,
expected population increase of
76,400 over the twenty-year
interval. This leads to an
estimated 60,000 acres converted
from rural to urban use every
year (SCFL)
Where we are: Land Use
• Land Use
• Pee Dee Watershed
•54% Forest
•23% Agriculture
•10% Forested wetlands
•3% Urban
•Waccamaw Watershed
•63% Forest
•17% Forested Wetlands
•7% Urban
•5% Agriculture
*South Carolina United Watershed Assessment (1998)
•
Flowing through swamps and wooded areas, the slow moving waters of the Black,
Big Pee Dee, Little Pee Dee, Sampit and Waccamaw rivers converge along the
coast of Georgetown County to form the third largest estuarine drainage area on
the Eastern Seaboard—Winyah Bay.
Protection: Winyah Bay Drainage
– Acres Protected: Partners have
protected over 126,500 acres in the
Winyah Bay drainage
– Ecological Significance: Contains
the state’s largest tidal freshwater
wetlands; supports more than 66
songbird species and more than 1,000
nesting egrets and herons; 12,000
acres of mature longleaf pine forest,
and extensive cypress-tupelo
swamps; over 100 fish species and 30
mussel species in Pee Dee River
– • Threats: Incompatible development
practices; conversion of agricultural
and forestland to urban use
Ecological and Economic Benefits of
Protection: Forest Lands
 South Carolina has 12.9 million acres of forestland – 67%
of the state’s land area
 Forestry is #1 among manufacturing industries in jobs
(44,708) and payroll ($2.4 million).
 Total economic impact of SC’s forest industry is $17.45
billion annually.
 88% of SC’s forests are privately owned
SC Family Forest Owners
#1 planned activity in the next five years is to transfer land to heirs.
Ability to pass land to their heirs is a primary concern.
Ecological and Economic Benefits of
Protection: Forested Wetlands
 Bottomland hardwood forests recharge water resources by
capturing and dispersing sedimentation
 Filter agricultural and golf course runoff.
 Minimizing flood damage by holding vast amounts of
water.
 Also encourages compatible uses of wetland resources by
residents and tourists including kayaking and canoeing,
bird watching, nature photography, and environmental
education.
Ecological and Economic Benefits of
Protection: Agricultural Lands*
 There are an estimated 42,362 direct jobs in farming in
South Carolina.
 The total economic impact of the farming sector is 63,168
jobs (meaning that 1.49 jobs are generated throughout the
South Carolina economy for every direct job in farming in
the state).
 Earned Income: In terms of earned income, direct impact of $0.764
billion led to a total impact throughout the state economy of $1.448
billion. In other words, $1.90 in earned income is generated in the
state economy for every dollar in earned income generated directly by
farming in the state.
*Preliminary results The Economic Impact of the Agribusiness System
Ecological Benefits
Early-successional and open habitat found on agricultural lands is
required for a suit of grassland and scrub-shrub associated bird
species including Northern Bobwhite, Swallowtailed Kite,
Loggerhead Shrike, Common Yellowthroat, Common Ground-Dove,
Indigo Bunting,, Eastern Meadowlark, and Eastern Towhee
Conservation Easements:
Jennie Williamson, PDLT
Conservation Easements
A permanent legal agreement between a landowner (grantor) and a qualified conservation
organization (grantee) in which the owner
voluntarily restricts the land uses and
development potential on his/her property
in order to protect its conservation values.
Conservation Easements (Cont.)
•Perpetual Legal Agreement
• Most akin to covenants and restrictions
• Filed like a deed in the public record
• Must be perpetual
• Can be amended only under extraordinary circumstances
•Restrictions run with the land, regardless of owner
Conservation Easements (Cont.)
•“Negative” Covenant
•Nothing like other “positive” easements
•Utility easements grant rights to others
•Conservation easements grant no rights to the public
•Landowner decides how he/she will restrict use on land
•Common Restrictions:
•Subdivision / Partition of Property
•Residential or Commercial Activity
•Mining (prohibited)
•Some management restrictions
Conservation Easements (Cont.)
• Who can accept a conservation easement?
• A Qualified Conservation Organization
• Must be a 501(c)(3) or 509(a)(2) publicly supported
conservation organization such as:
• National Organizations
• Local/regional land trusts
Conservation Easements (Cont.)
• Must be voluntary to receive full tax benefits
•Charitable intent is not evident when there is
•quid pro quo such as regulatory requirements,
permitting, or penalty
• Estimation of value must account for enhancement
of nearby properties.
Who can give an easement
•Must own the property
(Joint ownership-partnerships, LLC’s, corporations)
Mortgages or deeds of trust must subordinate
affect of minor interests – rights-of-way etc…
Conservation Purposes
• Conservation Purposes:
•Habitat Protection – relatively natural
• Open Space Protection
• Farm and forest land
• Scenic enjoyment of the public
•Clearly delineated public policy
• Historic Preservation
• Land areas, structures, access
Frequently Asked Questions
1.
Does the public have a right to come on the land ?
2.
Does the owner keep his land?
3.
Can I sell my land or give it to my heirs?
4.
Will this keep my land in the family?
5.
What rights does the government have?
6.
Does the government have to “accept” my easement?
7.
Will this protect me from regulation or condemnation?
8.
Do I have to commit all my property at once?
9.
Can I build houses on my property?
10. Can I hunt, fish, timber, farm and enjoy my property?
11. What other benefits do I get?
Tax Benefits
Conservation Easement Donation
Federal Income
Tax Deduction
SC State
Income Tax
Credit
Estate Tax Reduction
(reduce value of estate by
easement)
Property Tax
Reduction
(sometimes)
Tax Benefits Example
For Demonstration Purposes Only (talk with your tax advisor)
1,000 acre forested property
–
–
–
–
–
–
With considerable development value
Fair Market Value = $3,000,000
Easement Value = $1,000,000
Post-Easement Property Value = $2,000,000
Federal Tax Deduction = 50% of AGI for __ years.
State Tax Credit = $250,000
• State tax credits can be transferred or sold; do not expire
– Federal Estate Tax Reduction
• Post-Easement Property Value
• Additional Estate Tax Reductions are available in some instances
Donated Conservation Easements
 Pros
– Landowner retains title, use of land
– Document is drafted to fit property
– Property is permanently protected
– Tax benefits
– Land remains in economy/tax base
– Cost-effective way to protect large tracts
Donated Conservation Easements
 Cons
– Perpetual restriction on property
– Up front costs
– Income level affects ability to fully realize tax
effects
Conservation Easement Process
 Site visit
 Identification of Conservation Values
 Preparation of Present Condition Report
 Environmental Assessment (Phase I) in some cases
 Signing and recording of documents
 Appraisal
 Tax forms 8283
 Stewardship Contribution
 Monitoring
Conservation Easement Endowment
Purpose
• Perpetual Stewardship
• Monitoring
• Defense of Easement
• (if necessary)
Annual Monitoring
Landowner Relations
• Annual monitoring visit
• Long-term management plans
• Landowner Assistance and Education
Questions?