The document provides an overview of a webinar about Fauquier County's Purchase of Development Rights program, which allows landowners to voluntarily sell the development rights of their farm or forest land to the county in exchange for compensation. It discusses the goals and criteria of Fauquier County's PDR program, including eligibility requirements and the scoring process used to evaluate applications. The webinar also covers conservation easements more broadly and resources available to landowners.

1. Fauquier
Farm & Land
Conservation
Webinar
MAY 12, 2020
PEC JULIAN SCHEER FAUQUIER
LAND CONSERVATION FUND

2. Webinar Overview
1. Housekeeping & Introductions
2. Fauquier Co. Purchase of Development Rights
Program, with Ray Pickering
3. PEC Introduction to Conservation Easements,
with Claire Catlett
4. Resources for Landowners
5. Questions with Audience (via chat or emailed
questions)

3. FAUQUIER COUNTY PURCHASE OF
DEVELOPMENT RIGHTS PROGRAM
May 2020

4. WHAT IS A PDR PROGRAM?
•Voluntary sale by landowner of development potential
on farm and forest land.
•Permanent Conservation Easement purchased by
governmental agency.
•Landowner receives compensation in return for giving
up the right to develop the land.
•Landowner retains title to the land and may sell or pass
on the farm to others.
•PDR Programs also known as Purchase of Agricultural
Conservation Easement (PACE) Programs.

5. WHAT ARE DEVELOPMENT
RIGHTS?
Development Rights are one of the so-called “bundle
of rights” associated with land ownership.
A locality may acquire or restrict development
through a purchase, leaving possession and other
use with the fee simple owner.

6. LEGALAUTHORITY
In Virginia, the legal authority for local PDR
programs is provided by the Open Space Land
Act (Virginia Code § 10.1-1700 et seq.)

9. Fauquier County
Program Goals & Purpose
•To preserve and enhance the county’s agricultural
industry.
•To implement the County Comprehensive Plan, which
recommended a PDR Program as one tool to
preserve farmland.

10. Fauquier County Agricultural
Production Statistics
2017 U.S. Census of Agriculture
•Cash Receipts: $54.8 million
•Equine Industry: $54 million annual revenue
•Acres in Farms: 216,666
•No. of Farms: 1,154
• Total Economic Impact: $308 million(Weldon Cooper
Center/UVA (2014)

11. Fauquier County, Virginia
Farmland Preservation Program
Purchase of Development Rights
Application period
April 1, 2020 – June 30, 2020

12. PDR Eligibility Criteria
1. Land is used for a bona fide agricultural
operation.
2. Parcel is greater than 50 acres, or comprises a
combined area of contiguous parcels to total
at least 50 acres.
3. Parcel is zoned Rural Agricultural (RA) or
Rural Conservation (RC).
4. Parcel is not under conservation easement or
otherwise restricted from development.

13. Scoring Process
When reviewing a PDR Application, the following are considered:
•Parcel Size
•Maximum Potential Residential Density
•Strategic Value
•Parcel risk of development and road frontage
•Proximity to Service District and proximity to sewer
•Proximity to protected (eased) property
•Suitability of soils for standard and alternative waste disposal systems.
•Quality of Soils
•Agricultural Economic Viability
• Property is actively farmed by the landowner or his/her immediate family
member;
• If the property is not farmed by the landowner or his/her family, the property
is leased to and actively farmed by another farmer;
• The farm/property has substantial infrastructure improvements such as barns,
bins, specialty structures, fencing, drainage, ditches, waterway improvements,
etc.
•Historic, Scenic and Environmental Qualities

14. This Deed is Exempt from Taxation under Virginia
Code §§58.1-811(A)(3) and 58.1-811(C)(4)
[no retention of dwelling unit rights]
PIN _______________________
DEED OF EASEMENT
THIS DEED OF EASEMENT made this _______ day of ________, 2009, by and between
___________________ and _____________________, husband and wife, Grantors (hereinafter
"Grantor"); and the COUNTY OF FAUQUIER, a political subdivision of the Commonwealth of
Virginia (hereinafter the "County" and sometimes "Grantee"), whose address is 10 Hotel Street,
Warrenton, Virginia 20186.
WITNESSETH:
WHEREAS, Grantor is the owner in fee simple of the property located in Fauquier County,
Virginia, consisting of ____________ acres more accurately described in "Exhibit A" attached
hereto and hereinafter referred to as the "Property"; and
WHEREAS, under the County's Purchase of Development Rights ("PDR") Program, the County is
authorized to acquire conservation easements over qualifying properties in order to accomplish the
purposes of the PDR Program and the Open-Space Land Act (Virginia Code §10.1-1700 et seq.);
and
WHEREAS, the purpose of the Fauquier County Purchase of Development Rights Program is to protect
the
critical mass of farmland which is necessary for the continued vitality of production agriculture by
acquiring
conservation easements for the purpose of conserving lands for farming and to provide open space that
ameliorates the impact of development in the County as stated in the February 19, 2002 Resolution of the
Board of Supervisors and the April 19, 2004 Ordinance amending Chapter 8 of the Code of Fauquier
County; and

15. This Deed is Exempt from Taxation under Virginia
Code §§58.1-811(A)(3) and 58.1-811(C)(4)
[retention of dwelling unit rights]
PIN _______________________
DEED OF EASEMENT
THIS DEED OF EASEMENT made this _______ day of ________, 2009, by and between
___________________ and _____________________, husband and wife, Grantors (hereinafter
"Grantor"); and the COUNTY OF FAUQUIER, a political subdivision of the Commonwealth of
Virginia (hereinafter the "County" and sometimes "Grantee"), whose address is 10 Hotel Street,
Warrenton, Virginia 20186.
WITNESSETH:
WHEREAS, Grantor is the owner in fee simple of the property located in Fauquier County,
Virginia, consisting of ____________ acres more accurately described in "Exhibit A" attached
hereto and hereinafter referred to as the "Property"; and
WHEREAS, under the County's Purchase of Development Rights ("PDR") Program, the County is
authorized to acquire conservation easements over qualifying properties in order to accomplish the
purposes of the PDR Program and the Open-Space Land Act (Virginia Code §10.1-1700 et seq.);
and
WHEREAS, the purpose of the Fauquier County Purchase of Development Rights Program is to
protect the
critical mass of farmland which is necessary for the continued vitality of production agriculture by
acquiring
conservation easements for the purpose of conserving lands for farming and to provide open space
that
ameliorates the impact of development in the County as stated in the February 19, 2002 Resolution
of the Board of Supervisors and the April 19, 2004 Ordinance amending Chapter 8 of the Code of
Fauquier County; and

16. PDR Payment
•The current payment under the PDR Program
is $25,000.00 per residential development
right.
•The number of development rights for each
parcel are determined by the Fauquier County
Department of Community Development,
according to the County Zoning Ordinance.

17. Compatibility with State and Federal
Tax Programs
BARGAIN SALES:
•Virginia Land Preservation Tax Credit
•Federal Charitable Deduction

18. Status of Fauquier County PDR Program
April 2020
PDR Easements currently in place or pending
settlement are protecting:
• 74 farms
• 13,090 acres
• 665 development rights
Donated Conservation Easements currently in place
are protecting:
• Approximately 8,000 acres

19. April 2, 2020

21. Fauquier County Purchase of Development Rights
Program
“A tool for preserving and enhancing the agricultural industry”

25. Fauquier County Board of Supervisors
Mary Leigh McDaniel, Chairman (Marshall District)
R. Holder Trumbo, Jr., Vice Chairman (Scott District)
Christopher T. Butler (Lee District)
Christopher N. Granger (Center District)
Richard R. Gerhardt (Cedar Run District)
Fauquier County PDR Committee Members
John Schied, Chairman (Cedar Run District)
Ike Broaddus, Vice Chairman (Scott District)
Daron Culbertson (Lee District)
Doug Larson (Center District)
Ann McCarty (Marshall District)
For more information on the Fauquier County PDR
Program, please contact the Agricultural
Development Department
Ray Pickering, Director
Raquel Kines, PDR Associate
35 Culpeper Street
Warrenton, Virginia 20186
(540) 422-8280 (phone)
(540) 422-8277 (fax)
www.fauquierag.com

28. Fauquier
Farm & Land
Conservation
Webinar
MAY 12, 2020
PEC JULIAN SCHEER FAUQUIER
LAND CONSERVATION FUND

29. Introductions
Maggi Blomstrom
PEC Rappahannock-Rapidan
Conservation Initiative Coordinator
(540) 347-2334 ext. 7067
mblomstrom@pecva.org
Claire Catlett
PEC Field Representative
Fauquier & Rappahannock County
(540) 347-2334 ext. 7060
ccatlett@pecva.org

30. Introductions
Mike Kane
PEC Director of Conservation
703-371-4373 (cell)
mkane@pecva.org
Ray Pickering
Fauquier County Agricultural
Development Director
(540) 422-8280 (office)
Ray.pickering@fauquiercounty.gov

31. Presentation Overview
1. Fauquier County’s Conservation Today
2. What is a Conservation Easement?
3. Common Easement Questions
4. Financial and Tax Benefits
5. Conservation Easement Steps
6. Resources for Landowners
7. Questions with Audience (via chat or emailed questions)

32. PEC’s
Julian Scheer
Fauquier Land
Conservation
Fund
PEC’s Julian Scheer Fauquier Land Conservation
Fund is one of several regional advisory committees
that fundraise locally to support the costs of land
transactions, conservation easements, agricultural
best management practices, and environmental
education for the Piedmont.
FOR DONATIONS, CONTACT DOUG LARSON
540-347-2334 ext. 7004 dlarson@pecva.org
2020 Advisory Board Members:
Margrete Stevens
Sue Scheer
Hillary Gerhardt
Hope Porter
Jocelyn Sladen
Ken Smith
Doug Larson

34. The
Piedmont in
2020
Conservation Totals by County

35. Fauquier
County
2019 Totals
• 1,617 acres in
2019
• 108,687 acres total
• Over ¼ County
protected

36. What is a conservation
easement?
PHOTO CREDIT WILL PARSONS
• A voluntary agreement between a landowner and a land
trust or government agency to limit future development
of property.
•Advances a conservation purpose and result in public
benefit.
• Consistent with local Comprehensive Plan.
• A conservation easement is forever.

37. TOP THREE Reasons
landowners protect
their land:
1. You love your land
PEC’s Julian Scheer Fauquier Land
Conservation Fund hosts an Annual
Bluebell Walk on Cedar Run at Bonnybrook
Farm, near Catlett.
PHOTO CREDIT CLAIRE CATLETT
PHOTO CREDIT CLAIRE CATLETT

38. • The Elgin family runs a 9-generation cattle farm on their property in N. Fauquier.
• In 2019, they installed stream exclusion fencing for water quality protection.
• This “best management practice” was with completed John Marshall SWCD and PEC.
2. You love your land
PHOTO CREDIT HUGH KENNYPHOTO CREDIT HUGH KENNY

39. Check your
mail!
www.pecva.org/conservation

40. Best Management
Practices
• NRCS & SWCD Ag BMPs:
• Cattle-exclusion fencing
• Water sources
• Hardened Stream Crossings
• Cover Crops & No-till
• Nutrient Management Plan
• Composting/ Waste management systems
• Up to 80-90% cost-share funding in 2019
• Revolving loans with PEC
• Goose Creek Fund
• Fauquier Fund
PHOTO CREDIT CLAIRE CATLETT, PEC

41. 3. You love your land
• Ken and Ben Smith are a father-and-son business that together run Cool Lawn Farm,
near Bealeton.
• Cool Lawn Farm protected 800+ acres working farmland with Fauquier County’s
Purchase of Development Rights and conservation easement program.
• PDR funds helped expand family business, and create Moo Thru Ice Cream.
PHOTO CREDIT ROSE JENKINS, PEC PHOTO CREDIT VICKY MOON, FAUQUIER TIMESPHOTO CREDIT VICKY MOON, FAUQUIER TIMES

42. Public Benefit
The property contains significant natural, agricultural,
recreational, educational, scenic or historical resources that
meet the criteria of Section 170(h) (4)(A) of the IRS Code.
PHOTO CREDIT WILL PARSONS

43. Conservation
Values
• Riparian areas with forested
streamside areas
• Agricultural soils
• Forestry best practices
• Scenic values: views from scenic
roads, rivers, parks, etc.
• Historic resources: Virginia Historic
Landmark (Battlefield, Study Area),
located in a state, local, or National
Historic District
• Natural habitat: Virginia Natural
Heritage Program
PHOTO CREDIT CLAIRE CATLETT
PHOTO CREDIT CLAIRE CATLETT

44. Mapping Your
Property
• PEC helps landowners map
conservation values & craft
easement terms that protect
natural, historic, scenic
resources:
• Example 1: FEMA Floodplain
• Example 2: Civil War Battlefield
Study Area
• Example 3: Scenic Viewshed of
Shenandoah National Park

45. Common Easement Questions

46. Who can hold a conservation
easement?
• State agencies: VA Dept. Forestry,
Dept. Conservation & Recreation,
VA Outdoors Foundation, SWCD
• Local governments: Counties
with Purchase of Development
Rights (PDR) Programs
• Non-profit organizations that
meet state and federal
requirements

47. Who’s on my
“team”?
1. PEC will help you navigate the steps
of donating a conservation easement.
2. Fauquier County: PDR program,
conservation easement program
3. Attorney who is familiar with
conservation easements.
4. Financial/ Tax Advisor regarding
potential tax implications/ benefits.
5. Real Estate Appraiser: qualified for
conservation easement appraisals.
This is required by the IRS.
PHOTO CREDIT CAT KUTZ, PEC
PHOTO CREDIT CYNTHIA BENITZ

48. o Federal Tax Deduction – full or
partial easement donation
o State Tax Credits – full or partial
easement donation
o Local Purchase of Development
Rights programs
o Property Tax Benefits
o Estate Tax Benefits
When Love of the Land Provides Public Benefit
When the easement has a conservation purpose that provides
public benefit, the landowner may be eligible for financial incentives:

49. What are the federal tax benefits?
FEDERAL TAX DEDUCTION: A qualifying easement donation is a charitable
gift that may be eligible for a deduction on donor’s federal income taxes.
• Deduction is equal to the value of the charitable gift (i.e. the value of
the conservation easement, minus any payments received (like PDRs)
or tax credits that could be claimed.)
• Since the value the gift may be large (compared to income), donor can
use the deduction by carrying it forward for up to 15 years.

50. Virginia Land Preservation Tax Credit (LPTC)
 CREDIT is different than deduction
 $1 of credit can be used to pay $1 of VA Income Taxes owed.
 Easement donor can claim credit = 40% of the land or easement
donated.
 Can use the credits in the year of the donation plus 10 additional yrs.
 Individual taxpayer limited to using $50,000 per year
 Can sell unused credits to other taxpayers.
Virginia is one of the few states that offer a state income tax CREDIT
for conservation easement donations
What are the state tax benefits?

51. How do I determine an
easement’s value?
$1,000,000
Value of property before a
conservation easement
- $600,000
Value of property after a
conservation easement
= $400,000
Value of conservation easement
(i.e. loss of property value due to easement)
(potential value of tax deductible charitable gift)

52. Assumptions:
Before Easement Value $ 1,000,000
After Easement Value $ 600,000
Easement Value (donation) $ 400,000 (40%)
Estimated Benefits:
• State Tax Credit (40% of $400,000 donation) $ 160,000
Tax Incentives Available:
• Federal Tax Deduction $ 240,000
(easement value – state tax credits)
*THIS IS A HYPOTHETICAL EXAMPLE ONLY AND IT IS NOT INTENDED TO BE TAX OR LEGAL ADVICE. CONSULT YOUR OWN
LEGAL OR FINANCIAL ADVISOR ABOUT YOUR PARTICULAR SITUATION.
Easement Example 1:
“Run the Numbers”

53. Assumptions:
Before Easement Value $ 1,000,000
After Easement Value $ 600,000
Easement Value (donation) $ 400,000 (40%)
Estimated Benefits:
• Payment by PDR Program (Bargain Sale) $ 100,000
= 4 dev. Rights (@ $25,000/ dev. Right*)
• Remaining Value Donated as Charitable Gift $ 300,000
(easement value – PDR Bargain Sale)
Tax Incentives Available:
• State Tax Credits (40% $300,000) $ 120,000
• Federal Tax Deduction $ 180,000
(Bargain Sale Value – State Tax Credits)
*THIS IS A HYPOTHETICAL EXAMPLE ONLY AND IT IS NOT INTENDED TO BE TAX OR LEGAL ADVICE. CONSULT YOUR OWN
LEGAL OR FINANCIAL ADVISOR ABOUT YOUR PARTICULAR SITUATION.
Easement Example 2: PDR
“Run the Numbers”

54. Important!
Any deed of trust or mortgage must be
subordinated to the conservation easement
in order to ensure the property is protected
forever. This subordination is required for
a valid charitable gift deduction.

55. Easement
“Soft Costs”
•PEC’s Fauquier Land
Conservation Fund offers
financial aid for soft costs:
• Attorney
• Appraisal
• Stewardship Gift
• (for non-profit land trusts)
PHOTO CREDIT PEC
PHOTO CREDIT CLAIRE CATLETT

56. Wrapping-up:
Benefits of Conservation Easement
• Permanently protect the land you love
• Extract some of the land’s cash value now
• Retain the right to own & farm the property
• Maintain the ability to sell the property (subject to
easement restrictions)
• Assist in estate planning and next generation plans
• Ability to take direct action that can benefit the entire
community (i.e. public benefits of conservation)

57. Who do I call?
Maggi Blomstrom
PEC Rappahannock-Rapidan
Conservation Initiative Coordinator
(540) 347-2334 ext. 7067
mblomstrom@pecva.org
Claire Catlett
PEC Field Representative
Fauquier & Rappahannock County
(540) 347-2334 ext. 7060
ccatlett@pecva.org

58. Who do I call?
Ray Pickering
Fauquier County Agricultural
Development Director
(540) 422-8280 (office)
Ray.pickering@fauquiercounty.gov

59. Keep in touch!
Extra resources are waiting for you in your in-box!
• Video recording of this webinar
• Full Powerpoint presentations:
• PEC Easement 101 with Claire Catlett
• Fauquier County PDR with Ray Pickering
• Fauquier County Purchase of Development Rights 2020 Application
• PEC Land Conservation Update 2020
• Agricultural Best Management Practices & available cost-share programs
• John Marshall Soil and Water Conservation District (Fauquier County)
• Culpeper Soil and Water Conservation District (Counties of Rappahannock,
Culpeper, Orange, Madison, and Greene)
• Natural Resource Conservation Service
• Conservation Reserve Enhancement Program (CREP)

60. Questions?
PHOTO CREDIT CLAIRE CATLETTPHOTO CREDIT CLAIRE CATLETT