Conservation Easements...the good, the bad, and the money

[nwmn]

We met with the NRCS as they are facilitating the easements now and we are planning on a site visit. I'd like to be able to enroll 60 of our 117 acres of crp into an easement yo hopefully get the ground back to its natural state (wooded wetlands). The portion of interest would be an area that would be kiddy corner to state land across a road, and would be an area that we can't hunt and haven't really been on before. It's off the road, and is mostly willow and WET. I figured it'd be a good time to enroll the land in an easement and help with paying the cabin we are remodeling and look at using cash for future expansion. Keeping half our CRP will keep the income stream intact to offset taxes.

Minnesota has the RIM program, which I've heard can be a mutual effort with WRP. Anybody have anything of value to share about easements? I know they work in the right situation, and I know they bring great difficulties in selling further down the road.

What are differences with RIM what are payment terms like? I've read 60% non crop and 90% crop for land values. Ownership of a year in RIM vs 7 years with WRP. Can you plant trees on RIM?

Sorry for being longwinded, I'm just trying to play this out in my head and find ways to generate coin from our most coveted asset.

 

[bwoods11]

I have quite a bit of background with both RIM and WRP.

Big positive---cash payment for your land and you still own it and have exclusive rights to use it. RIM allows for food plots and big time cost share for habitat.

WRP is a bit more in depth. Has to be wetland acres and it has limitations on food plots etc... WRP may not even be available right now in MN?

The RIM program is great if you plan on keeping the farm!! If you are going to sell it will drop the value considerably.

Enrolling into RIM may allow you to---
1-pay off the farm 2-buy another farm
3- improve the habitat on your farm from crop to habitat.

I've done it, and I'm happy with the decision. That being said, not every farm qualifies or should be considered for RIM.

Keep some income acres out of program would be my advice, and a building location.

I did 120 acres and received 3 times $$$ than what I paid for the land, plus I kept out some CRP for income, food plots and a building spot.

The plan is to keep the farm forever.

 

[Freeborn]

Kurt,

If a person had 50 acres of crop land and 50 acres of marsh/wooded high ground would you keep the 50 of crop out and enroll the remaining? Just curious, could be a future event.

 

[bwoods11]

In most cases RIM requires some tillable or CRP to be involved. I don't think they will take straight woods or low land?

You could look at 25 of each. If crop borders a creek, River or wetland that is what they like!

When I say (they) I mean the MN soil and Water.

 

[bwoods11]

Also yes you can plant trees on RIM.

 

[nwmn]

I have quite a bit of background with both RIM and WRP.

Big positive---cash payment for your land and you still own it and have exclusive rights to use it. RIM allows for food plots and big time cost share for habitat.

WRP is a bit more in depth. Has to be wetland acres and it has limitations on food plots etc... WRP may not even be available right now in MN?

The RIM program is great if you plan on keeping the farm!! If you are going to sell it will drop the value considerably.

Enrolling into RIM may allow you to---
1-pay off the farm 2-buy another farm
3- improve the habitat on your farm from crop to habitat.

I've done it, and I'm happy with the decision. That being said, not every farm qualifies or should be considered for RIM.

Keep some income acres out of program would be my advice, and a building location.

I did 120 acres and received 3 times $$$ than what I paid for the land, plus I kept out some CRP for income, food plots and a building spot.

The plan is to keep the farm forever.

RIM looks far more appealing, with habitat improvement being priority and ability for food plots and tree planting. The plan is to keep the farm, and pay off cabin and potentially consume more acreage for management and try and keep adding land.

 

[nwmn]

How did the RIM pay you? Was it pretty close to the market value, or did it go by the county average land sales for the year?

 

[j-bird]

is this RIM program only a MN thing or is it a federal program?

 

[nwmn]

It's a MN thing. The program is called Reinvest in Minnesota.

 

[wiscwhip]

It's a MN thing. The program is called Reinvest in Minnesota.

A few other states have similar programs as I understand it, but I would assume you would have to do some searching and investigation with the NRCS/WRP folks to find out if there is anything specific to the state you live in.

My understanding is apparently the RIM program has some drawbacks from a resale standpoint and never being able to get that land back out of the program. From what I have gathered, a few folks who have bought or inherited land with RIM easements that did not fully understand the ramifications of the program are having "buyers remorse" and are seeking to get the law changed to accommodate being able to buy some of the land back out of the easement program(with stipulations near wetlands and waterways) so they can do what they please with those acres, given they are required to maintain those areas yet they receive no subsequent payments and it becomes very costly with no way to make up those funds.

 

[Freeborn]

Can Crop land that is enrolled into CRP be continued in CRP once the land is enrolled in RIM? Seems like it shoukld be as someone still needs to maintain the CRP.

 

[nwmn]

You can enroll the CRP land into a program but you forfeit the annual payments. I believe you'd be able to keep the land in grassland with similar maintenance requirements

 

[bwoods11]

You can enroll the CRP land into a program but you forfeit the annual payments. I believe you'd be able to keep the land in grassland with similar maintenance requirements

Actually no you get to keep the remaining payments!

If you get a new 10/15 year contract you will get all those payments and you are required to manage the CRP just as you would otherwise.

The RIM program will work with existing CRP.

I have payments until 2022 in CRP that I get to keep...then it shuts off, no more income.

 

[bwoods11]

Can be a good deal for current landowner, not so good if you are buying a parcel with RIM, price of the land drops.

Each county and township has RIM values for crop and non-crop land.

 

[bowhunternw]

Seems a little funny that these programs are only for farmed land, why not reward those or put and incentive on land that has not gone under plow.

 

[bwoods11]

Seems a little funny that these programs are only for farmed land, why not reward those or put and incentive on land that has not gone under plow.

Totally agree!

 

[wiscwhip]

Many of the landowners that are wanting the rules changed are doing so because they want to put the productive crop land back into production and cannot do so since the prior owners were in RIM

 

[bwoods11]

I agree...and IMHO its because we don't have any large group (like the Farm Bureau) lobbying for us. Those of us who improve our land and do "the right thing" at our own expense are becoming rarer and rarer.

I improve my property at my own expense too, but when this program is out there why not take advantage of it.

Some don't like it because it's taxpayer money...yeah I know, but I pay plenty and its permanent wildlife habitat not an Obama phone.

 

[Freeborn]

I am not that familar with RIM but in general arn't they trying to tie-up wetlands near farm land because of the run-off? I know in SW/W minnesota the farmers have tiled and drained so many of the wetlands that they have moved the duck flyway west.

 

[bwoods11]

I am not that familar with RIM but in general arn't they trying to tie-up wetlands near farm land because of the run-off? I know in SW/W minnesota the farmers have tiled and drained so many of the wetlands that they have moved the duck flyway west.

Yes, they target drainage areas and wetlands. In some cases blocks of newly planted trees are preferred. It's not necessarily for ducks only.