Working Lands

What is PACE?

The Purchase of Agricultural Conservation Easement (PACE) grant program provides funding to reimburse qualified entities -- land trusts or local governments -- for part of the purchase price of agricultural conservation easements from willing landowners.  The Department of Agriculture, Trade, and Consumer Protection (DATCP) will administer the reimbursement program, but will not hold the conservation easements.

What is an agricultural conservation easement?

Agricultural conservation easements are permanent deed restrictions that landowners voluntarily place on their property to preserve the agricultural value of their land.  The landowner continues to own and use the land, however the easement prevents the landowner from developing the protected land for nonagricultural purposes. Trough an agricultural conservation easement, the landowner essentially sells the right to develop the property.  An agricultural conservation easement can enable a landowner to get some equity out of his property while still being able to farm the land.

How long does an agricultural conservation easement last?

Most agricultural conservation easements are perpetual.  The easements run with the title to the property.  In other words, the landowner may sell, bequeath, or otherwise transfer the land but all subsequent landowners are bound by the terms of the easement.  Some programs allow agricultural conservation easements to last for a period of years.  The Wisconsin program, however, will only fund easements that last forever.

What restrictions are found in a typical agreement?

Agricultural conservation easements purchased under the new law prevent landowners from subdividing or developing their land in a way that makes the land unavailable or unsuitable for agriculture.  The easements attempt to balance the need to preserve the land for future agricultural use with the landowners’ need to make economic use of the land.  As a result, the land use limitations in an agricultural conservation easement typically focus on prohibiting any use that is deemed inconsistent with farming.  Such inconsistent uses might include non-farm housing or golf courses or paved parking lots.  The landowner with restricted land would be able, however, to build structures for housing farm equipment or for sheltering livestock.

Are all conservation easements the same?

Typically, no.  There are general restrictions found in most easements that will prohibit a landowner from using the land in a way that makes it unavailable for agriculture.  The exact terms of each agreement, however, are typically negotiated between the parties involved. Generally, easements are flexible documents that can be tailored to the characteristics of a particular property.

If I limit the uses on my land now and times change, will I be prevented from adapting to those changes by the terms of my easement?

The language of an easement generally takes into consideration the fact that we cannot see into the future and we cannot predict what ecological and economic demands may be placed on farmland.  If technologies develop that are consistent with agricultural use of the land, the landowner will not be prevented from implementing those technologies.

What about wind turbines and wind farms?

This is a tricky question and DATCP is currently in the process of determining how to treat these structures.  Wind turbines that generate power for the farming operation may be considered appropriate and will most likely be allowed by the PACE program.  Wind farms that generate power beyond what is required to operate the farm, however, may be handled differently.  These may require DATCP approval before a landowner can construct the wind farm on property protected by a Wisconsin PACE easement.  It is possible, as well, that a PACE easement may simply exclude a portion of the property from its terms, and thus not placing any land use restrictions on that portion of the land. 

If I have an easement on my land, is there anything I am required to do?   Do I have to make sure it is always being farmed?

Landowners with agricultural conservation easements are under no obligation to actively farm their land at all times.  If a landowner cannot continue farming the land for whatever reason, the land can remain as open space without violating the easement.  In addition, the landowner is generally not limited in the types of farming that can occur on the land.  The landowner must, however, comply with certain state soil and water conservation practices on the land. 

What’s the role of a local land trust or government in the PACE program?

Conservation easements are necessarily agreements between landowners and an easement-holding entity.  The easement holder is responsible for making sure the terms of the easement are upheld: that means annual monitoring of lands protected by easements and regular communication when landowners undertake activities or building allowed by the easement.  Easement holders are legally bound to uphold easements, just as landowners are. They work with landowners to resolve questions about the easement allows and restricts, and in extreme cases, defend easements in court.  In Wisconsin’s PACE program, local land trusts and governments are eligible easement holders.  DATCP is providing money to cover the purchase price, but will not have a direct relationship with participating landowners.

I think I’m interested in an agricultural conservation easement.  How do I apply for the PACE program?

Interested landowners should work with a local entity—either a land trust or local government--to see if they qualify for the program.  Some local governments are in the process of setting up their own PACE advisory committees to help local landowners participate in the program.  There are also numerous land trusts across the state with experience negotiating, holding, and monitoring easements and these organizations can help individuals apply for the program.

Whether a landowner chooses to work with a local government or a local land trust, the first step is to determine whether the property is eligible for the program. 

How do I know if my farm is eligible?

The minimum eligibility requirements are as follows:

(1) The entire property must be located in a certified farmland preservation area designated in the county preservation plan.  The new Working Lands law requires all counties to plan for agriculture within their boundaries.  Farmland preservation areas are those areas that the county has identified as being specifically for agricultural use or agriculture-related use.  No land may be included in this area that is planned for nonagricultural development within 15 years from the date when the plan is adopted.    There is no requirement that the property be located in an area that has been zoned agricultural.  As a result, properties in towns or counties that do not have zoning may still participate in the program provided the county has identified the land as an agricultural area.

(2) A qualified farm conservation plan is in effect for the property.  A qualified farm conservation plan is a plan prepared by local, state, or federal conservation agency staff for the purposes of compliance with state or federal Soil and Water Conservation Standards.  These standards include compliance with erosion, manure storage and management, water diversion, and nutrient management requirements. 

(3) At least 50% of the property is cropland, pasture or grassland.  

(4) The landowner meets the Gross Farm Revenue Requirements for Farmland Preservation Tax Credits.  To qualify for Farmland Preservation Tax Credits, the farm must have produced at least $6,000 in Gross Farm Revenues during the past tax year or $18,000 during the last three years.  Gross Farm Revenues mean gross receipts minus the cost or other basis of livestock or other items purchased for resale that are sold or otherwise disposed of during the taxable year.  Gross Farm Revenues do not include any rent earned from the land’s agricultural use.  If the landowner does rent out the land, however, Gross Farm Revenues may include any revenues produced from the owner’s farmland received by the renter.

If the land meets the above minimum eligibility requirements, the landowner and the land trust or local government then cooperatively complete an application providing information about the land to be protected.  All landowners must sign a statement indicating that they are willing to convey the easement and then the local entity must submit the entire application directly to DATCP. 

What sort of information will be required in the application?

In the next couple of months DATCP will release a formal request for easement applications.  Accompanying that request will be a detailed set of instructions letting applicants know what documentation they will need to provide and where they can obtain the requisite information.  While the exact requirements are still being developed, applicants will need to provide:

(1) information identifying the local entity, including proof that the local entity is qualified to co-hold the easement – in other words, the local entity is either a local government or a non-profit land conservation organization;

(2) a description of the land that would be subject to the easement, including the location, number of acres, and current use;

(3) the name and address of each landowner of the property and evidence that each landowner is willing to convey the easement;

(4) evidence of the local entity’s commitment to arrange the purchase of the easement and share in the purchase cost, subject to reimbursement from DATCP.

What sort of criteria will be used to evaluate the applications?

In selecting applications, DATCP will consider both the agricultural value of the parcel and its how its location will influence the continued viability of its agricultural use.  While DATCP staff and the PACE council are still working on c the exact factors that will be used for determining what applications to select, the department will evaluate the following criteria: 

·               the agricultural capacity and productivity of the land

·               the consistency with local land use planning and zoning,

·               the development pressure on the parcel

·               the ecological services that will benefit by protecting the parcel

·               the cost-effectiveness of the easement

·               the capacity of the local entity to manage and enforce the easement.

Will the criteria be available to the public once the criteria are finalized?

Yes.  As soon as DATCP finishes developing the criteria and the PACE advisory council approves the them, DATCP will post the criteria to its website.  Applicants will be able to see relative importance of each factor and will be able to get an idea of how successful their application may be.

Once the applications are submitted, who will evaluate them?

DATCP staff will review and evaluate applications according to the set criteria.  They will work with an advisory council to determine which applications to fund.