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Conservation Easement Guide

|Last reviewed: August 2026

Texas Farm and Ranch Lands Conservation Program (TFRLCP)

Lush green forest along a river, representing protected conservation land

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.

There is no standing annual budget. TPWD states that funding for the program is subject to appropriation of funds to the TFRLCP by the Texas Legislature, which budgets on a two-year cycle, so what is available moves from biennium to biennium. Do not plan around a fixed number. TPWD publishes its list of approved grant projects, which is the only reliable picture of what the program has actually awarded and at what scale.

Biennial
funding cycle, subject to legislative appropriation
June - July
application window
Sept 1
awards announced

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 Texas Farm and Ranch Lands Conservation Council (Parks and Wildlife Code 84.011) and TPWD staff, using the scoring process in 84.010. 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 conservation easement, either perpetual or for a term of 30 years (PW Code 84.004(a))
  • Property at risk of conversion to non-agricultural use
Effective Sept 1, 2025

HB 2018: timber written into the program

  • PW Code 84.002(1) now defines an agricultural conservation easement as one designed to maintain the land's "agricultural or timber use"
  • 84.010(1) prioritizes applications that protect "agricultural or timber productivity" on land susceptible to development
  • New scoring factor at 84.010(2)(F): the land's agricultural or timber productivity

Practical effect: East Texas timberland now sits squarely inside the program's stated priorities rather than at its edge. Read the enrolled text of HB 2018.

Federal Program

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 ACEP

You 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.

The 30-year term kills the federal deduction

Parks and Wildlife Code 84.004(a) lets a TFRLCP easement run perpetually or for a term of 30 years. The state program accepts either. The IRS does not. IRC 170(h)(2)(C) requires a restriction granted in perpetuity, so a 30-year term easement is not a qualified conservation contribution and produces no federal deduction, including on the bargain-sale portion described above. If a deduction is part of why you are doing this, settle the term before you sign anything.

Not tax or legal advice

This page is general information for Texas landowners. It is not tax or legal advice and it does not create a professional relationship. Whether a conservation easement deduction survives depends on your deed language, how the land is owned, and the facts on your own return. Have a CPA or a tax attorney review your situation before you file.

Federal conservation easement rules have moved three times in recent years. SECURE 2.0 Act section 605 (December 2022) added the partnership and S corporation basis limit now at IRC 170(h)(7). Treasury re-identified syndicated conservation easements as listed transactions by final regulation effective October 8, 2024. And a 0.5% of AGI floor on itemized charitable deductions is reported to apply starting in 2026. The current edition of IRS Publication 526 predates that floor, so confirm it and its effect on your carryforward with your own advisor. It is not built into this site's calculator.

Reviewed as of August 6, 2026.

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?

TPWD does not publish a fixed annual figure, and there is no guaranteed yearly amount. Funding is subject to appropriation to the TFRLCP by the Texas Legislature, which works on a biennial budget cycle, so the money available varies from biennium to biennium. Awards also vary by project: the program typically funds a portion of the total easement cost, with the land trust and other sources covering the remainder. TPWD publishes its approved grant projects, which is the reliable way to see what has actually been awarded.

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 did HB 2018 change?

House Bill 2018 (89th Legislature, Regular Session), effective September 1, 2025, wrote timber into the program. It amended Parks and Wildlife Code 84.002(1) so an agricultural conservation easement is one designed to maintain the land's "agricultural or timber use," amended 84.009(a)(9)(B) to match, changed the grant criteria in 84.010(1) to prioritize protecting "agricultural or timber productivity," and added a new scoring factor at 84.010(2)(F) for the land's agricultural or timber productivity. It did not change who runs the program or how much discretion the council has.

Does a TFRLCP easement have to be perpetual?

No. Parks and Wildlife Code 84.004(a) allows an agricultural conservation easement under this program to be perpetual or for a term of 30 years, and the term is one of the scoring factors the council weighs. This matters for federal taxes: IRC 170(h)(2)(C) requires a perpetual restriction, so a 30-year term easement does not qualify as a qualified conservation contribution and generates no federal income tax deduction, including on the donated portion of a bargain sale. If any part of your plan depends on a federal deduction, the easement has to be perpetual.

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See how much you could deduct from federal income taxes.

Tax deduction calculator

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