Conservation Tools

The Pennsylvania Agricultural Conservation Easement Purchase Program (ACEPP) is a voluntary program that enables government entities to purchase agricultural conservation easements from willing landowners. (This is sometimes referred to as “purchase of development rights”.) These easements limit the use of farmland to agricultural production and certain other uses while keeping the land in the landowner’s ownership and control.

Farmers in counties with an agricultural land preservation board – all but 10 counties have one – may apply to the board to have one or more of their farm parcels considered for easement purchase. The farm must be located in a qualifying Agricultural Security Area. With farmer demand far exceeding available government funding, only farms with the best soils and other key characteristics (such as stewardship practices and likelihood of development) rank high enough for easement purchase offers to be made.

A county may engage in the purchase program as long as there are one or more agricultural security areas in the county. The county must appoint an agricultural land preservation board to administer the county’s program. The county may use county funds to purchase easements or seek state funds through the state program.

ACEPP is overseen by the State Agricultural Land Preservation Board and managed by the Pennsylvania Department of Agriculture Bureau of Farmland Preservation.

Agricultural security areas are intended to promote viable farming operations over the long term by strengthening the rights of farmers to farm and the farming community's sense of security in their use of the land. Landowners in an ASA receive protection from local laws and ordinances that would unreasonably restrict farm practices as well as protection from condemnation. Farmers also receive a 1% interest rate reduction on loans through the Small Business First Program and the Machinery and Equipment Loan Fund.

Farmland owners with a combined area of at least 250 acres of active farmland may petition their local government to establish an ASA.  The governing body of the local municipality may approve the proposal or a modified version or it may reject the proposal.

To qualify for the state agricultural conservation easement purchase program, land must be part of an ASA that is at least 500 acres.

The Pennsylvania Farmland and Forest Land Assessment Act, commonly known as “Clean and Green” or Act 319, provides for preferential tax assessment of land. To qualify, the land must fit into one of three categories: land capable of producing wood products, “forest reserve”; land in agricultural production or enrolled in a federal soil conservation program, “agricultural use”; or open space open to the public, “agricultural reserve”. The land must also be comprised of at least 10 acres or be anticipated to generate at least $2,000 annually from the production of an agricultural commodity.

Land enrolled in the Clean and Green program is taxed on the basis of its “use value” (i.e., its value for timber or agricultural production without considering any development potential) rather than its market value (i.e., the amount that a willing buyer would pay a willing seller). This generally results in a lower tax assessment value unless the county in which the property is located has not reassessed property values in many years.

Pennsylvania’s Recreational Use of Land and Water Act limits landowners’ liability for personal injury or property damage if they make their land available to the public for recreation free of charge. Landowners may further limit their liability using the other tools outlined in the guide Reducing Liability Associated with Public Access.

Land that is perpetually restricted by a conservation easement is valued at its restricted value for federal estate tax purposes. In addition, up to 40% (capped at $500,000) of the value of land restricted by a conservation easement can be excluded from the value of the estate if the easement conforms with Section 2031(c) of the tax code.

A charitable contribution of a conservation easement granted by the persons administering the estate (called "personal representatives") can reduce federal estate tax otherwise due. In other words, a conservation easement donated after the death of a landowner can reduce federal estate taxes.

Pennsylvania’s Recreational Use of Land and Water Act and other statutes provide substantial protection from liability to landowners who permit the public to come onto their land for outdoor recreation. These protections also apply to holders of trail and other easements. The best defense for landowners and easement holders, however, is preparedness: posting signs, obtaining releases, requiring indemnity, securing insurance coverage and taking steps to warn users of potentially dangerous conditions. This guidance discusses a variety of legal and other means to avoid or minimize liability.

In Pennsylvania, land that is perpetually restricted by a conservation easement is valued at its restricted value for state inheritance tax purposes.

The value of land restricted by an agricultural conservation easement can be reduced by 50% for state inheritance tax purposes.

The value of land enrolled in the Clean and Green preferential taxation program is its agricultural use value for state inheritance tax purposes.