What Is a Conservation Easement?

A conservation easement is a voluntary agreement to grant permanent, legally binding restrictions between a landowner and a qualified conservation organization (such as a land trust) or government agency. Once signed and recorded, it applies to all future owners. It protects a property’s natural, scenic, agricultural, or historic values by placing specific limits on its use while allowing the land to remain under private ownership.

Easements are customized for each property and are created through negotiation between the landowner and the easement holder. This process determines:

• Which portions of the property are included in the easement and which are excluded.

• The terms of protection, including what activities are restricted, allowed, or encouraged.

• The level of protection for different areas within the easement—often called protection areas—which can range from “highest protection” (minimal disturbance) to “standard” or “minimal protection” zones where certain uses or improvements may be permitted.

These decisions are made up-front during easement drafting. If the landowner anticipates the need for specific uses—such as retaining a site for water infrastructure, utility corridors, or other essential functions—those can be accommodated in the agreement by excluding those areas from the easement or by tailoring the restrictions so they remain compatible with the intended use.

Once the easement is recorded with the property’s deed, its terms remain in effect permanently, applying to all future owners. Pennsylvania law—through the Conservation and Preservation Easements Act—recognizes and enforces these agreements, interpreting ambiguities in favor of their conservation purpose.

Protection Areas: Levels of Conservation

The level of protection for different areas within the easement—often called protection areas—is a standard feature of modern easement design.

Rather than applying one set of rules to the entire property, the easement divides the land into zones, each with its own level of conservation protection based on ecological value, existing uses, or anticipated future needs.

While the exact terms are negotiated for each property, many easements use a three-tier system similar to the Model Grant of Conservation Easement developed by WeConservePA:

This tiered approach allows the landowner to protect the most critical parts of the property at the highest level while retaining flexibility for ongoing or future needs in other zones. Each protection area is mapped and described in detail so all parties—and future owners—know exactly what is allowed where.

What a Conservation Easement Is

While every easement is unique, most share a few key traits that define how they work in practice.

• Permanent — The restrictions “run with the land,” applying to current and future owners.

• Tailored — Each easement is unique, reflecting the property’s conservation values and the landowner’s priorities for protection and use.

• Keeps Ownership — The landowner continues to own, use, sell, or bequeath the property—within the agreed limits.

• Enforceable — The easement holder is responsible for ongoing monitoring and enforcement to ensure its terms are upheld.

What a Conservation Easement Is Not

Equally important is clearing up common misconceptions about what a conservation easement does not do.

• It does not transfer ownership to another party.

• It does not automatically grant public access—public use is allowed only if the easement explicitly permits it.

• It does not prohibit all land use—compatible, conservation-friendly activities may still be allowed.

Why It Matters

Understanding why conservation easements matter helps put their value into perspective—both for the land and for the community. Their importance comes from the strength of their legal protections, the credibility of the organizations that hold them, and the lasting environmental and public benefits they provide.

• Strong Legal Standing — The Conservation and Preservation Easements Act affirms the validity of conservation easements and supports their long-term enforceability.

• Trusted Stewardship — Experienced Pennsylvania land trusts, such as the Lebanon Valley Conservancy, Natural Lands, and the Lancaster Conservancy, have decades of experience holding and monitoring easements.

• Program Support
  Conservation easements can qualify landowners for a range of funding and tax assistance, enhancing the feasibility of land protection. Besides federal programs through the USDA Natural Resources Conservation Service, the following option is particularly relevant:

  • Community Conservation Partnerships Program (C2P2) — A competitive grant administered by the Pennsylvania Department of Conservation and Natural Resources (DCNR). Under the Land Acquisition and Conservation subprogram, it specifically supports projects that protect natural areas and open spaces through acquisition or conservation easements. In 2022, this program protected over 6,000 acres of land across the state.

  • Additional C2P2 funding sources include the Keystone Recreation, Park and Conservation Fund, Environmental Stewardship Fund, Heritage and Other Parks Fund, and Keystone Tree Fund

• Enduring Legacy — Easements help protect forests, farmland, water quality, and scenic character while keeping land in private hands.

Easements and Heritage Protection

Conservation easements don’t just protect land — they safeguard family history and community identity. A local example is the Donmoyer Farm in Lebanon County, now permanently preserved, which also holds Century Farm Status — Pennsylvania’s recognition of farms stewarded by the same family for over 100 years. Easements make this kind of legacy possible, ensuring that future generations inherit both working landscapes and the stories attached to them.

Easements are also flexible and fluid. They can be written to reflect the needs of each property, and they transfer seamlessly from one owner to the next. In Lebanon County — one of the fastest-growing counties in Pennsylvania — more than 21,000 acres are permanently preserved through farmland easement programs. the Lebanon Valley Conservancy (TLVC) alone holds over 1,300 acres of easements locally.

Conservation easements limit development potential and alter a property’s highest and best use, so their effect on resale value varies. In some cases, preserved lands sell at values close to comparable properties — especially when there is strong demand for protected natural or agricultural land — but in other cases easement restrictions reduce value significantly. For many landowners, easements offer tax benefits, legacy protection, and reduced carrying costs, which can bring financial stability and peace of mind, even if resale value is uncertain.

Financial Considerations & Collateral Impacts

Money questions often come up when people hear the words “conservation easement.”
What will this do to the land’s value? Can it still be used to get a loan? Will we still “own” it?

This section breaks down, in everyday terms, how an easement changes the way the land is valued for appraisals, how banks look at it when deciding to lend, and what “donating” development rights really means. It also covers the difference between having no easement but choosing not to develop, and having an easement that permanently limits development.

The goal here is to replace guesswork and rumors with clear, factual answers—so everyone can understand the real financial trade-offs of protecting land.

Clarifying “Donation” Misconceptions

In conservation contexts, “donation” typically means donating the development rights, not the land itself.

• An easement restricts certain uses but does not transfer ownership.

• The landowner can exclude certain areas from the easement or write terms to allow necessary uses such as water infrastructure or utility corridors.

How Easements Affect Appraised Value

A conservation easement generally reduces the fair market value because it permanently removes some or all development rights.

• Appraisers determine this by comparing the value before (full development potential) and after (restricted uses).

• The reduction often ranges from 35–65%.

• The reduced value becomes the basis for borrowing capacity if the land is used as collateral.

Financing with an Easement in Place

• • Banks will lend against land under an easement, but the loan-to-value ratio (LTV) is calculated from the reduced value.

  • More restrictive easements typically result in a lower LTV and smaller loan amount.

  • For heavily restricted land, LTV can be 50% or lower.

When There Is No Easement, But the Landowner Does Not Intend to Develop

Without an easement, banks base valuation on what is legally allowed, not the owner’s personal intent.

• If the property is zoned and permitted for full development, the bank values it at that highest potential use.

• A loan made at this value assumes that, in case of default, the bank could foreclose and the land could be developed.

• If the owner wants to prevent development, borrowing at full development value works against that goal because foreclosure would allow it.

If zoning, deed restrictions, or other binding limits already prevent development, lenders lower value and LTV—sometimes to 50% or less.