Ensuring Success in Navigating the NRCS Ag Land Easement Program and Appraisal Review process
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1 Ensuring Success in Navigating the NRCS Ag Land Easement Program and Appraisal Review process
2 Agricultural Conservation Easement Program - ACEP Agricultural Land Easement (ALE)
3 Agricultural Conservation Easement Program - ACEP Agricultural Land Easement (ALE) 18 Months
4 Agricultural Conservation Easement Program - ACEP Agricultural Land Easement (ALE)
5 Agricultural Conservation Easement Program - ACEP Agricultural Land Easement (ALE) Agricultural Land Easement Plan Describe activities which promote the long-term viability of the land to meet purposes for which easement was acquired Address the Purposes for which Easement was acquired Loss of prime farmland Continue agricultural viability Grasslands and grazing uses May Include a Farm or Ranch Succession Plan Does not have to be a formal/industry succession plan Provides a documentation of discussion of succession strategy Provide a future development of formal plan for succession
6 Agricultural Land Easement Plan (ALEP) Recommended Practices Addresses resource concerns identified in onsite visit Practices identified by landowner/entity to address their conservation priorities Practices identified in other documents Required Practices Resulted in the project selection or determination of eligibility Identified on ALE ranking sheet Deed required practices Historic site care for easements with historical resources
7 Agricultural Land Easement Plan (ALEP) Required component plans A grasslands management plan is required if the parcel contains grassland or meets land eligibility for grassland A conservation compliance plan is required if parcel contains Highly Erodible Land (HEL) A forest management plan is required if the parcel contains contiguous forest that exceeds the greater of 40 acres or 20 percent of the total easement area
8 Conservation Values ALE Plan Conservation Easement Baseline Closing Perpetuity
9 Review & Approval of the ALE Plan Kristy Oates NRCS State Resource Conservationist
10 Agricultural Conservation Easement Program - ACEP Agricultural Land Easement (ALE) Appraisals USPAP or USFLA (Yellow Book) Due to NRCS 120 days prior to planned closing Specifications included as Exhibit to Cooperative Agreement Each Appraisal must have a technical review Appraisals for easements >$1 Million will have a final review by NRCS National Appraiser Effective Dates Within 6 months of Cooperative Agreement date; or Within 12 months of closing Slide 10
11 Dugger, Canaday, Grafe, Inc. Valbridge Property Advisors
12 ACEP-ALE Appraisal Specs & Scope Highest and Best Use Sales Comparison Value Before Easement Description Value After Easement Value
13 Land Characteristics Market Area Land Characteristics Most Feasible and Probable Use Before Most Feasible and Probable Use After
14 Comparable Sales Identify degree of comparability Quantitative Adjustments for different characteristics Qualitative Adjustments for different characteristics Value Before
15 Analyze the Requirements of the Easement How different from market Describe Market Reaction Conclusions about easement effects, if any
16 Discussion about Comparable Sales with Easements Present Paired Sales Discussion Discuss range of Discounts Discuss Sales Comparison Approach in After Condition Discuss Discount Rate Range Conclude After Value
17 Difference Between Before and After
18 Claude Ross Natural Resources Specialist 101 South Main Temple, Texas NRCS Programs website: Follow on Twitter: Like on Facebook: Subscribe to our YouTube Channel: "The U.S. Department of Agriculture (USDA) prohibits discrimination in all of its programs and activities on the basis of race, color, national origin, age, disability, and where applicable, sex, marital status, familial status, parental status, religion, sexual orientation, political beliefs, genetic information, reprisal, or because all or part of an individual's income is derived from any public assistance program. (Not all prohibited bases apply to all programs.) Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USDA's TARGET Center at (202) (voice and TDD)."
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