Q: I’ve been hearing about agricultural easements. What are they? A:
An agricultural easement is a legal property interest that dedicates land to agricultural uses. A landowner who enters into an agricultural easement agreement with an “easement holder” (such as the State of Ohio) agrees to use the land predominantly for agricultural purposes, and forfeits the right to develop the land for other purposes.Q: Are agricultural easements new to Ohio? A:
Yes. While for many years, Ohio has allowed the use of “conservation easements” (agreements to preserve and maintain private land for its conservation or open space value), Ohio law did not recognize a landowner’s right to enter into an agricultural easement until 1999. The Ohio legislature created the agricultural easement as a separate legal instrument whose primary purpose is to preserve and maintain private land for its agricultural value.Q: Why would a landowner enter into an agricultural easement? A:
A landowner would place an agricultural easement on the land for any of the following reasons: to protect the land in its agricultural state; to ensure long-term viability of the farm operation; to help create a region dedicated to agriculture; or to receive tax benefits or a payment for the easement.Q: I’ve heard that the Clean Ohio Local Agricultural Easement Purchase Program (LAEPP) provides money for agricultural easements. How does that program work? A:
The Clean Ohio Local Agricultural Eastment Purchase Program works by providing funding to assist landowners and communities in preserving Ohio's farmland. Landowners who wish to sell and easement to the Ohio Department of Agriculture (ODA) will first have to apply through a local sponsor where they live (e.g., through their county, city, township, Soil & Water Conservation District or land trust). Information about the program and how landowners and local sponsors apply is available through the ODA website (www.agri.ohio.gov
).Q: How long does an agricultural easement last? A:
Agricultural easements purchased with money from the Clean Ohio Local Agricultural Easement Purchase Program must remain as part of the land in perpetuity (forever). If the landowner sells or transfers the land, the agricultural easement will be binding on the new owner and all subsequent owners of the land. Agricultural easements funded through other sources may either be perpetual or may last for a certain term of years, depending on the agreement made by the landowner.Q: Who ensures that the land remains in agriculture? A:
The landowner enters into an agricultural easement with a “holder” of the easement. Under Ohio law, the only parties legally authorized to act as holders of agricultural easements are the State of Ohio, counties, townships, municipalities and charitable organizations whose purpose is to preserve agricultural land. The holder has a legal right to monitor the property and ensure that the land remains in agricultural use.Q: Can a landowner donate an agricultural easement? A:
Yes, and a landowner might qualify for federal income and estate tax benefits for donating an agricultural easement. The State of Ohio currently holds dozens of agricultural easements that were donated, and many land trusts around the state also hold donated agricultural easements. Through the Agricultural Easement Donation Partnership Program (AEDPP), landowners may donate viable farmland to ODA, and it will remain in agricultural use forever. There are certain eligibility requirements that can be found at www.agri.ohio.gov
.Q: Does the agricultural easement prevent the landowner from selling the land? A:
No. The landowner maintains ownership rights to the land, and may sell the land at any time. However, the new landowner would be bound by the agricultural easement, and could not develop the land for non-agricultural purposes.Q: Does the public have access to agricultural easement land? A:
No. The agricultural easement does not open the land to members of the public for hiking, picnicking, or any other public uses. The landowner maintains the right to keep uninvited guests off the property.Q: Does the agricultural easement limit the type of agriculture that may take place on the land? A:
Not unless the landowner agrees to the limitations. Generally, the agricultural easement allows the landowner to conduct any activities that are defined as “agriculture” (such as producing crops, raising livestock or processing farm products) under Ohio law and are in accordance with all applicable laws and regulations.
11/20/2015This "Law You Can Use" consumer legal information column was provided by the Ohio State Bar Association (OSBA). It was prepared by Peggy Kirk Hall, Director of Agricultural and Resource Law, The Ohio State University Extension.