MD Agricultural Land Preservation Program
Maryland Department of Agriculture - Locally Administered

Easement Purpose:
To preserve Maryland's productive agricultural land and woodland for continued food and fiber production. Easements are purchased by both the State and County.

Type of Easement:
Purchased or donated agricultural easement, perpetual. (A 25-year buy-back option is available if profitable farming is no longer deemed feasible.)

Eligibility Factors and Criteria:
Property must be in an Agricultural Preservation District and subject to a soil and water conservation plan. To qualify, a property must include at least 50 contiguous acres of farmland - of which 50% consists of USDA Class I, II or III soil capability and/or woodland group 1 or 2 - and the easement must be approved by the local governing body.

Minimum Size Property:
50 acres unless contiguous to an existing easement. Other exceptions may be considered.

Limitations on Development:
No development for non-agricultural uses, but the original easement seller may reserve one building lot for him/herself and each of his/her children. New farm structures and tenant houses are permitted if such buildings are integral to the farm's continued operation.

Potential Tax Benefits:
· Income - No Income Tax benefits. However, the difference between the easement value and actual offer may be deemed a charitable contribution.
· Property - Property Tax benefits are proposed and are pending approval.
· Estate - While the land component value is reduced, the cash component value of the estate is increased. Estate planning instruments can transfer cash so that the land value advantage is not minimized.

Easement Value:
Easement value is the difference between the fair market value and the agricultural value (or the asking price). Two appraisals are undertaken and the appraisal that best represents the property is selected. The Department of Agriculture determines agricultural value which is based on land rents and adjusted distance (from Washington and Baltimore) and calculated rent. If an easement offer is made it will be based on the lower value of the asking price or the appraised easement value. Those properties with the lowest asking price to appraised easement value ratio are given priority during the easement offer process.

Stewardship:
Seller agrees to allow periodic inspection of the property and to implement a soil and water conservation plan.

Source = Frederick County Planning Department