Not so long ago, our nation's profound connections to the land were obvious. These ties may be less apparent now, but they are no less real. Vital needs such as fresh food and clean water still depend on the land. And that is only the beginning.
Land conservation keeps our rural heritage alive, fosters healthy communities, generates good jobs, supports sustainable agriculture, preserves diverse wildlife habitats, and maintains the wild landscapes of the West.
More than 80% of Colorado's private lands are owned by farmers and ranchers, families whose commitment to stewardship runs generations deep. Carrying on this legacy so the land continues to thrive for future generations is the essence of conservation.
Colorado's population is expected to grow by more than two million people in the next 20 years, putting millions of acres at risk of development. Stewardship of our agricultural lands has never been more important, and CCALT is the only land trust in the state dedicated exclusively to conserving these working lands.
Conservation easements are voluntary agreements between a landowner and a qualified organization like CCALT to restrict development of a property. They are permanent and run with the land despite any changes in ownership. No two conservation easements are alike. Each is tailored to a specific piece of land and the conservation values of its owner.
In general, easements limit development to protect certain resources in perpetuity, such as open space, wildlife habitat, agricultural use, scenic vistas, historic landmarks and more. Easements encourage traditional activities such as farming, grazing, hunting, fishing, and recreation on the land. CCALT focuses on agricultural easements, which are designed specifically to preserve the land for farming or ranching.
CCALT's conservation easements tie water resources to the land and permanently restrict development so the land will always be available for agricultural use. Easements also devalue property, making it easier for families to retain and work their land, which can be difficult as development pressures increase property values.
Conservation easements support rural communities by helping to stabilize the agricultural economy as a whole. They also offer a way for communities to preserve the natural resources, open spaces, scenic landscapes, and wildlife habitat that draw recreation and tourism dollars.
Conservation easements can generate financial benefits, helping landowners reduce debt, save for retirement, pay for long-term health care or college education, buy out partners, or purchase land and equipment to diversify their agricultural activities, making it more likely the land will be cared for in the future.
CCALT does not solicit conservation projects. Landowners must first contact CCALT about their interest in an easement and request an information packet.
The landowner information packet includes detailed information about CCALT, the uses and benefits of agricultural conservation easements, tax and financial topics, and many additional resources. After reviewing the packet, landowners interested in an easement must contact CCALT and ask to speak with the project manager who covers the area of the State where the property is located.
The Landowner Project Application should be submitted to CCALT for review, and CCALT will provide a Transaction Cost Memo which outlines and estimates all costs associated with the conveyance of the conservation easement. Typically a donated conservation easement will cost between $50,000 and $75,000 to complete.
After reviewing the Landowner Project Application, CCALT staff will determine if the project meets CCALT’s project selection criteria. If so, a project manager will schedule a time to visit the property for further evaluation.
The CCALT Board of Directors formally approves all projects. Once approved, the CCALT project manager and landowner will begin the process of ordering the required due diligence reports and negotiating the terms of the conservation easement. NOTE: CCALT recommends that the landowner hire independent legal counsel to assist in negotiating and reviewing the conservation easements.
Multiple due diligence reports need to be completed prior to conveying a conservation easement. These include, but may not be limited to: title; a conservation easement appraisal; a mineral remoteness assessment; and a baseline inventory report. Other due diligence reports may be required to complete the transaction. CCALT will provide a list of qualified professionals who specialize in the development of the required reports, but it is the landowner’s responsibility to contact, hire and pay for their production.
CCALT requires a title commitment be issued by a title company to determine ownership and evaluate all exceptions that may affect the title to the property. This is typically the first step in the due diligence process.
The value of the conservation easement must be determined by an independent qualified conservation easement appraisal. The value of the conservation easement establishes the value by which both state and federal tax benefits are determined. NOTE: Standard land appraisals do not qualify.
Federal law requires a mineral remoteness assessment be completed in all instances where the mineral estate has been severed and is owned separately from the surface estate. (This also includes any federally reserved minerals.) The mineral report must be completed by a certified geologist and must conclude that the likelihood of surface mining is “so remote as to be negligible”. NOTE: Oil and gas development is not considered to be surface mining, but must be assessed by CCALT staff to determine compatibility with a conservation easement.
Federal law requires that a Baseline Inventory Report documenting the property’s current and historic natural resources be completed. This document is used by CCALT to carry out its perpetual stewardship obligations.
CCALT, the landowner and legal counsel for both parties will draft the deed of conservation easement. The initial drafting will be based on CCALT’s model deed of conservation easement, but tailored to the specific characteristics and conservation values of the property, as well as the needs of the landowner. Negotiating the deed can be complex and time consuming, and it is essential that CCALT and the landowner fully agree on all of the terms.
Closing will be handled through a title company. The signed deed will be recorded in the county records by the title company, which will then issue a title policy on the conservation easement interest to CCALT.
Following closing and recording, the landowner and CCALT project manager will work cooperatively with the tax credit broker to complete all necessary forms and applications related to the issuance and sale of conservation easement tax credits. This process may take up to three to four months to complete.
CCALT strongly encourages landowners who desire to sell their Colorado conservation easement tax credits to work with a reputable conservation easement tax credit broker. CCALT will provide a list of names of individuals who specialize in this work.
To download a PDF of our process, including a flow chart, click here. The process described in this section is for donated conservation easements. Bargain sale purchase transactions, whereby a landowner sells a portion of the value of the easement to CCALT, follow a slightly different process, outlined here.
Please contact CCALT (303.225.8677) with any additional questions you have related to the process for conveying a conservation easement.
Stewardship Depends on Strong Relationships
Finalizing a conservation easement is only the beginning of our relationship with a landowner. Easements are forever, making long-term stewardship of the land a critical part of CCALT’s work. We are committed to defending and enforcing each and every one of our conservation easements.
Personal, honest, and open relationships with our landowners are the best way to meet our perpetual stewardship obligations.
Because the agricultural community differs significantly from the larger landowning community, CCALT takes a unique approach to stewardship.
Ultimately, CCALT's stewardship program has been successful because we share the goals and values of our partners in land conservation. For the past two decades, we have worked hard to be a faithful advisor to landowners and have been recognized for our character and achievements. But we are proudest to have earned the respect of the families that trust us with their heritage.