Conservation Easement Guide
|Last verified: March 2026Texas Farm and Ranch Lands Conservation Program (TFRLCP)
What is the TFRLCP?
The Texas Farm and Ranch Lands Conservation Program is a state-funded matching-grant program that helps land trusts purchase conservation easements from willing Texas landowners. Unlike a donated conservation easement (which generates a federal tax deduction), the TFRLCP provides direct cash payment for your development rights.
The program was established in 2005 and is governed by Texas Parks and Wildlife Code Chapter 84.
The Process
How the TFRLCP works
Contact a land trust
Find one in your area that participates in TFRLCP. The land trust evaluates whether your property fits the program.
Land trust applies to TPWD
The land trust submits a grant application during the annual window (typically June-July). Landowners do not apply directly.
TPWD evaluates and awards
Applications are reviewed by the Conservation Advisory Board and TPWD staff. Awards are typically announced by September 1.
Negotiate, close, and get paid
The land trust negotiates easement terms with you, completes appraisal and legal work, and closes the transaction. You receive payment.
Priority criteria
- Agricultural and timber lands susceptible to development or fragmentation
- Water quality and quantity protection (aquifer recharge, watersheds, riparian areas)
- Wildlife habitat and ecological corridors
- Properties that complement existing conservation lands
- Land in high-growth areas where development pressure threatens agriculture
Eligible properties
- Privately owned land in Texas
- Agricultural, timber, or significant natural resource values
- Landowner willing to sell a perpetual conservation easement
- Property at risk of conversion to non-agricultural use
SB 2970: Program updates
- Conservation Advisory Board gains wider discretion in setting grant award criteria
- Council can establish additional evaluation factors beyond original statute
- Program mission and funding structure reaffirmed with more operational flexibility
USDA ACEP
The federal Agricultural Conservation Easement Program purchases easements on productive ag land through NRCS offices in Texas. ACEP and TFRLCP can be stacked - a land trust can use both funding sources together.
USDA NRCS ACEPYou can combine a TFRLCP payment with a tax deduction
If the TFRLCP purchase price is less than the full appraised value (a "bargain sale"), the difference can qualify as a federal charitable contribution. You receive both cash and a deduction.
Example: Easement appraised at $800,000, TFRLCP pays $500,000. You may deduct the remaining $300,000 under the same IRS rules as fully donated easements.
Directory
Finding a land trust
The Texas Land Trust Council maintains a directory of 35+ member land trusts searchable by county. Major organizations include:
Frequently asked questions
What is the TFRLCP?
The Texas Farm and Ranch Lands Conservation Program is a state matching-grant program administered by Texas Parks and Wildlife Department. It provides funding to land trusts to purchase conservation easements from willing landowners, protecting agricultural and timber lands from development or fragmentation.
Do I get paid through the TFRLCP?
Yes. Unlike a donated conservation easement (which generates a tax deduction), the TFRLCP is a purchase program. A land trust receives the grant and uses it to pay you for your development rights. You receive a direct cash payment.
When can I apply for the TFRLCP?
Landowners do not apply directly. Land trusts submit grant applications to TPWD on behalf of willing landowners. The application window is typically June through July, with awards announced by September 1. Contact a land trust in your area before the window opens.
How much money is available?
The TFRLCP awards approximately $25 million annually in matching grants. Awards vary by project, but the program typically funds a portion of the total easement cost, with the land trust and other sources covering the remainder.
Can I do both a TFRLCP purchased easement and get a federal tax deduction?
If the purchase price is less than the full appraised value (a "bargain sale"), you can receive a federal tax deduction for the difference. For example, if your easement is appraised at $500,000 and the TFRLCP pays $300,000, you may deduct the remaining $200,000 as a charitable contribution.
What does SB 2970 change?
Senate Bill 2970, effective September 1, 2025, updates the TFRLCP by broadening the Conservation Advisory Board's authority to set grant award criteria and giving the council wider discretion in evaluating applications.
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