Conservation Easements

A landowner works with MLR to agree on what rights will be limited, such as subdivision or commercial development. The agreement is permanent and “runs with the land,” meaning it applies to future owners as well. MLR’s conservation easements do not require landowners to allow the public onto their land – that decision is left to the landowners.

Conservation easements help keep ranches and farms intact, protect family land for future generations, and can provide financial compensation or potential tax benefits. Easements may also help with estate planning and long-term management by lowering the land’s taxable value.

They help protect Montana’s scenic landscapes, wildlife habitat, clean water, and agricultural lands. Conserved lands support local economies, outdoor traditions, and the state’s natural heritage.

Most easements limit subdivision and non-agricultural development while allowing ongoing ranching, farming, and other agreed-upon uses. They also outline reserved building areas, conservation goals, and how the land trust will monitor the property. MLR does not get involved in day-to-day management. Landowners keep making those decisions for themselves and their families, subject to the conservation easement’s terms.

Conservation easements often have financial value that landowners can use to save on taxes and free up capital. A qualified appraiser determines that value, typically by comparing the value of the property before and after the proposed easement is in place. The difference between those two values is the value of the conservation easement itself.

Landowners who donate a conservation easement to MLR – or sell it for less than its full value (a “bargain sale”) – can realize significant tax benefits based on the easement’s appraised value, including a federal income tax deduction that can help families save more of their hard-earned money. The deduction works especially well for “qualified farm and ranch” families who make most of their income from agriculture. Easements can also reduce estate taxes and help keep land affordable for the next generation.

In rare cases, funding may be available to help MLR purchase a conservation easement. These projects depend on available funding and must meet specific conservation criteria.

We encourage landowners to talk with their attorney or CPA to understand how an easement may benefit their individual situation.

The process usually includes an initial conversation, property visit, MLR staff and board approval, appraisal, title work and other due diligence, and negotiating and drafting the easement terms. If there’s a mortgage on the property, MLR works with the landowner and their lender to ensure that the easement remains on title in the unlikely event of foreclosure.

The process can take a few months (or even years), and MLR staff works closely with landowners throughout the process to ensure they’re comfortable. After both parties agree, the easement is reviewed by the county for compliance with local planning efforts, then signed, recorded with the county, and monitored over time by MLR in partnership with the landowner.

Costs can include appraisal, legal review, title work, baseline and mineral report preparation, and stewardship funds for long-term monitoring. These costs vary depending on the property’s size and complexity and are often covered by the landowner unless MLR receives supplemental funding.