HABITAT

Working lands provide much of the essential habitat many species of wildlife need to survive. Most landowners appreciate wildlife and understand that well-managed land can be a benefit to both wildlife and livestock. However, in some instances, supporting public wildlife can also come at a significant cost to the private landowner. A habitat lease recognizes and compensates landowners and producers for providing public values at private cost. These costs can include such things as competition for forage and disease transmission between ungulates and livestock, damages to hay and fencing, livestock depredation, water-conserving measures, management changes to accommodate wildlife needs, and opportunity cost (e.g. foregoing more lucrative land uses such as development).

How does it work?

The leasing of land for a variety of purposes is long familiar to the agricultural community. Farmers and ranchers lease pasture for grazing, hay production, conservation, energy development, hunting and other public access. Similarly, habitat leasing is a negotiated agreement between a landowner and a lessee in which the landowner receives compensation for providing products or services that benefit public wildlife for a specific amount of time. Lessees can include individuals, businesses, non-profit organizations, charitable funders, government agencies, or a combination of interested parties.

Who should pay to support wildlife?

Human activity has displaced wildlife and habitat from urban areas, transportation corridors, energy and industrial development zones and recreation areas, yet society, as a whole, has done little to account or pay for these impacts. Private lands in the U.S. today provide essential habitat and refuge for up to 80% of wildlife species. Yet as private lands continue to be developed or converted to more intensive forms of use, pressure is increasing on those that remain to sustain what’s left of wildlife and their habitats. This pressure, in turn, can create financial and regulatory hardships on landowners that drive more land into development. Habitat leasing spreads the costs of sustaining public wildlife so that landowners can afford to keep essential habitats intact. Funding for habitat leases can be made available through tax supported government programs, business and charitable contributions, impact and user fees, or a combination of funding sources.

Is a habitat lease compatible with agricultural activities?

Yes, in most cases. Well-managed farms and ranches are already providing habitat to many species, though are often uncompensated for the associated costs. At its most basic level, habitat leasing simply requires that the landowner provide quality habitat that is accessible to wildlife. In some cases, adjustments in management may be needed, such as altering rotation of livestock to accommodate seasonal wildlife needs and to ensure adequate forage and cover remain available. In other cases, management may already be adequately accommodating wildlife needs. Each lease is unique and voluntary, and the terms are negotiated between the landowner and the lessee. In some cases, landowners can receive additional compensation for improving habitat or infrastructure (e.g., installing wildlife-friendly fencing).

How does a habitat lease compare to a perpetual conservation easement?

A perpetual conservation easement is a voluntary agreement by a landowner to permanently retire the rights to develop all or a portion of their land, typically in exchange for tax credits or direct payment. A habitat lease, on the other hand, provides annual payments to the landowner over a specified period of time for land use and management practices that supply quality habitat. A landowner may have both a conservation easement, which protects land from development, and a habitat lease, which provides annual income. Similarly, many agricultural landowners have conservation easements and also lease land for crop production, livestock grazing and recreational access.