It is unfortunate that the law compels him to sell the land , almost always to developers, to pay the estate tax because farming does not produce the revenues to either pay the estate tax or remain viable if debt is incurred to cover the estate tax liability. We are very supportive of that effort and encourage Congress to consider allowing all lands subject to developmental pressure to qualify for conservation easement tax incentives. The land we can save today will most certainly be threatened tomorrow. Acting proactively to protect our farmers, ranchers and open space is the best way to avoid the decay of our countryside. Eliminating the valuation threshold would also serve to improve the provision and enhance both the benefit and administration of the provision.
Strict tests exist in law to determine whether land qualifies for a conservation easement.
Protecting pristine lands, even in cases where the conservation easement does not cause a drastic drop in land values, should be encouraged rather than disqualified or nullified. Reform of the American Farm and Ranch Protection Act Since adoption of the American Farm and Ranch Protection Act, various technical issues have arisen which, if enacted, would further encourage farmers and ranchers to utilize conservation easements as envisioned by the legislation. It is our hope that Congress include these provisions in the soonest available tax vehicle. The estate tax incentives of the American Farm and Ranch Protection Act do not meet all the challenges facing rural landowners. Further, the combination of income tax and estate tax benefits are of little incentive to the rural family that is generating only marginal income from open space uses.