Jim and Diane Hofmeister put this 120-acre strip of land on County Road 5 and Highway 56 in a land trust in 2005. As an incentive for landowners to preserve farmland, the state of Colorado offers tax credits to the landowner; these tax credits may be purchased by any Colorado resident in lieu of paying state taxes. Tax credits are still available for the Hofmeister land trust. For more information, contact the Town administrator at (970) 532-2643.
For generations Berthoud has been an agricultural community. The fields of wheat, corn or barley surrounding our town provides a setting that appeals to most residents and protects our borders from “the sea of beige” housing developments that are easily seen from I-25 or in many of the Larimer County developments north of Berthoud along Taft Hill Road. However, with soaring land values and economic pressures for small farmers, more landowners are choosing to sell their land to developers and Berthoud’s idyllic surroundings may slowly disappear.
Ten years ago, several town trustees gathered around the dining room table of former mayor, Milan Karspeck, to discuss how to protect farmland while encouraging reasonable development. Out of these informal talks came the creation of the Berthoud Land Conservation Fund (BLCF). BLCF provides an opportunity for landowners to preserve farmland in perpetuity while keeping or selling other portions of their property for development. The original BLCF steering committee was comprised of farmers, bankers, realtors, two Town trustees and a representative from Colorado Open Lands, a non-profit organization dedicated to land preservation headquartered in Lakewood.
“We didn’t want it [BLCF] to be Town board driven,” explained Karspeck. “The goal was to involve the people who were knowledgeable about the community and the issues.”
Conservation easements can be a win-win situation for both the landowner and the Town. The average farmer is usually “land rich, but cash poor.” With a conservation easement, the Town can purchase development rights for a certain number of acres from a landowner. The landowner forgoes development of those acres and can continue to use the land for agricultural purposes. A farmer can make a significant profit, continue to work the land and still save other portions of their land for future development. The Town benefits by protecting a portion of its boundaries or entry corridors and helps to preserve Berthoud’s agricultural heritage.
In many cases, in conjunction with selling a portion of their development rights, the landowner will also donate development rights as a charitable contribution. This tax credit helps to offset their profit and can also result in a significant tax credit. Colorado is unique in that it allows the landowner to sell the tax credits to third parties who would rather buy credits from a local farmer than pay state income taxes. This process also generates income for the landowner. If a taxpayer owes the state $1,000 of income taxes, they could instead purchase $1,000 of tax credits from a local farmer to support land preservation.
To date, the BLFC has been involved in six land conservation projects with a total preservation of 835 acres of open space and farmland. Two of these are farms along Highway 56, on the eastern corridor into Berthoud; The Hofmeister family preserved 120 acres and the Rockwell family preserved 81. The most recent success was Waggener Farm Park, which preserves 75 acres on the northeast border of Berthoud.
“This was a huge accomplishment,” said Karspeck. “It was a complicated process, but it created open space at our gateway, a ball park and a partnership with the school district.” The Little Thompson School District recently purchased a portion of the land for a new track and basketball courts.
Christine Strickland, of Colorado Open Lands, has been the Berthoud liaison and has worked with many of the local farmers, providing them information about the benefits of land conservation. Although there have been several successes, Strickland stated that there has not been much activity since the Waggener easement.
Strickland pointed out that there is a reluctance among many farmers to make decisions about their land right now. “The land may have been in their family for generations,” said Strickland. “This is their children’s inheritance. Farmers are very cautious about committing to any proposal, even if it means cash in hand.”
Still, Strickland had hoped after the initial success with the Hofmeisters and the Rockwells, other landowners would see the benefit and jump in line to do the same. This has not been the case.
“There are many reasons for this,” said Strickland. “Growth pressures are causing agricultural land values to increase significantly. There are landowners in Berthoud who may only own 80-100 acres of farmland or open space. They have to decide if the land has sufficient value to make it worth conserving. And, for so many landowners it is just a matter of the right timing.”
Currently, there are no conservation efforts underway and the Town did not renew its contract with Colorado Open Lands. According to Town Administrator Jim White, this decision was largely a financial one. “Right now there is not enough activity to warrant the expense of paying Colorado Open Lands and maintaining a dedicated office space and phone line.” However, White emphasized that the Town is supportive of land conservation efforts and the farming community and that the Town is continually seeking opportunities to work with landowners.
“A conservation easement is a mutually beneficial agreement,” said White. “We are happy to talk to any landowner who would like to consider this option.” White said that they would still be willing to work with Colorado Open Lands on a case-by-case basis, but are also considering working with Legacy Land Trust, a Larimer County non-profit corporation dedicated to preserving open space.
For information about land conservation, call Jim White at the Town Hall, (970) 532-2863. Information is also available at Colorado Open Lands, (303) 988-2373 and at Legacy Land Trust, (970) 266-1711.
