Conservation easement values

[m wolff]

I am currently appraising the impact of a proposed conservation easement upon an existing farm of approximately 320 acres in northern Arizona. The proposed easement will virtually eliminate all future development and water rights and not allow any new constructions upon the property. Essentially, only the existing residences and farming will remain as legal uses.

1. Does anyone have any data or information about the value impact of conservation easements upon irrigated lands in the southwest U.S.?

2. ...have any information about farm net incomes?

3. ...have any sales data regarding water rights in Arizona?

4. ...know who might?

Any help is appreciated and will be reciprocated.
Sincerely,
Michael Wolff
Arizona Certified General Real Estate Appraiser #30035
928-636-6442
azvaluations@yahoo.com
3010 Northridge Ln.
Chino Valley, Arizona 86323

 

[Travis McGee]

Traditionally, easements can be valued by using a before & after methodology, i.e., what is the property worth before the easement compared to what the property is worth after the easement. A really good book on conservation easements is "Appraising Easements" published by the Land Trust Alliance (www.lta.org). This book includes a lot of general info as well as various Treasury Regulations, Revenue Rulings, etc. that you should be aware of.

Linas Norusis
plnorusis@ameritech.net