Conservation easements are one alternative to selling a ranch.
The economic incentives and possible tax advantages of an easement can offset or exceed the economic gain from selling, says Jim Knight, Montana State University Extension wildlife specialist. Conservation easements work best when their purpose is to maintain existing land uses. They can qualify as a charitable deduction for federal and state income taxes, and they can lower federal inheritance and estate taxes. For tax purposes, the fair market value of a conservation easement is set by a land appraiser. The income tax deduction is generally limited to 30 percent of the landowner's adjusted gross income each year.