CONSERVATION
AND THE CRANES

By George S. Wislocki and Wendy Grahm


In 1978, the Dalton Planning Board proposed changes in the zoning bylaws that would define the term "piggery".  As pigs had been raised in town without any problem for as long as anyone could remember, most residents objected and proposed changes were voted down at a special town meeting. The pigs were left wallowing peacefully in their in-town pens. "Pigs tend to be a sore subject," said Frederick G. Crane III, a Dalton resident and vice president of Crane & Co. "The zoning rules are somewhat unclear on farm animals and no one wants a pigsty next to his house.  But pigs are an integral part of the rural way of life here." As the largest landowner in Dalton and one of the largest in Berkshire County, Crane is a strong force in efforts to protect and preserve that rural heritage.  All of his 2300 acres are restricted under one land use program or another, which allows Crane and his family to enjoy the rights and pleasures of ownership while also ensuring that the property will remain forestland and farmland forever.


Too often today, the heavy burden of land taxes, plus sky-high prices prime acreage can bring, tempt large landowners to sell their woodlands, farmlands and open space for commercial development.  As the Cranes have demonstrated, however, the restricted land use programs offered by the state can significantly ease the pressure to sell by substantially reducing taxes and, in the case of farmland, by allowing the landowner to both realize the commercial value of his land and maintain it for agricultural use.


The Cranes are unique in that they've used all five programs available through the state to restrict the usage of their land, making it possible for each successive generation to continue to own and use it and also providing immeasurable benefits for their neighbors and the town.  Yet, except for some outright gifts of land, and a few large parcels they've sold, the Cranes still own every last acre they began with. "We knew we wanted to see our land maintained as woods and farmland," Crane said, "and so we decided we might as well make it permanent by putting it under the various restrictions.  In each case, there were set procedures to follow but the Berkshire Natural Resources Council was always right there to help out."


Crane's grandfather, Frederick G. Crane Sr., began buying farmland in Dalton in 1895 and by about 1910 had acquired approximately 3600 acres. The property, called Flintstone Farm, contained several barns, farmhouses, a blacksmith shop, a granary and a dairy, as well as a smaller property known as Holiday Farm.


Land conservation as we think of it today, when so much open spade has been lost to commercial development, wasn't a large consideration at the turn of the century but the Crane family has always believed in creative, productive use of the land.  Fred Crane Sr. used Flintstone Farm to experiment with new crops, new methods and new breeds of poultry, sheep, cattle and horses.  He helped establish apple raising as a viable venture in Berkshire County and his 1500 tree orchard is still well known for its rich produce. His sister, Mary Crane Johnson, established a Fresh Air Camp in the late 1800s at Holiday Cottage, the farmhouse at Holiday Farm.  For the children, many of whom had never been out of New York City, the summer was unforgettable.  "I have spent the happiest summer of my life at Holiday Cottage," wrote one 12-year-Old visitor; "I love Holiday Cottage where I got so fat and Jolly," wrote another.


From Fred Crane Sr., the property passed to his son, Frederick G. Crane Jr., who carried on the family's concern with using the land in a productive and protective manner.  His long involvement with tree farming began in 1925, when he took over an extensive planting program designed by his father and started having approximately 10,000 trees planted every year until 100 acres of open fields were covered with red pine, white pine and white spruce.  The younger Crane also practiced woodlot management on the 2400 acres of the property that were already forested and, through judicious management and selective timberharvesting, was later able to realize $200,000 in a six year period.


In recognition of Fred Crane Jr.'s dedication and innovative forestry practices, he was named "Outstanding Tree Farmer of the Year" in Massachusetts in 1976.  The results of his efforts can be seen today behind Holiday Farm at the Dalton-Windsor line.


Crane used his property for innovative agriculture, too, raising "great white cattle" or Charolais, a French breed dating back to the first century B.C. and known as the best in the world for meat production. It was in 1972, however, that the Cranes first began putting their land under the programs that would preserve it perpetually in its undeveloped state.  That was the year that Fred Crane Jr. put 1900 acres under a conservation restriction, thereby protecting the parcel forever from development of any kind. Under the terms of the restriction, no structures can be built nor improvements of any kind made to the land; soil removal and dumping are prohibited; and motorized vehicles are banned completely.  The restriction does allow free use of the land by the public under the rules of the Appalachian Mountain Club and, as is always the case with a conservation restriction, the Cranes retain ownership of the acreage.


"No one thought developing this land would be in Dalton's best interests," said Fred Crane III, "and we certainly didn't want to see it' happen.  So MY father suggested a conservation restriction and the rest of the family agreed it was a great idea." This is typical of the way conservation restrictions come about, with the decision growing out of family-wide discussions rather than being made by any one individual in the group.  An important component of estate planning, a conservation restriction ensures the continuity of the family's land legacy and can be set up to serve the needs of successive generations. In the Cranes' case, Fred Crane Jr. reserved the right in his restriction to cultivate and harvest forest products on the property, thereby allowing a fourth generation Crane, Fred III's son Dicken, to go into the logging business. "There's a generational continuity to it," said Fred Crane III, "which is one of the most appealing aspects of a conservation restriction.  There are also tax benefits," he continued, "but no one gives a conservation restriction just for the deductions."


The Cranes' conservation restriction stabilized indefinitely the tax assessment on the 1900 acres and entitled Fred Crane Jr. to a charitable deduction on his federal income tax returns over a five year period.  The restriction also substantially reduced the estate tax when the property passed on to Fred Crane III. By giving away the development rights to the property, however, a landowner lessens the value of the land.  As Fred Crane III pointed out, his family can harvest the timber but the best trees have already been cut and it will be years before the newer plantings are ready to harvest.  Also, while the family can hunt and fish on the property, so can everyone else without the worries and taxes that come with ownership. "There are many people who benefit from a conservation restriction," Crane explained.  "It's not just for the landholding family."


The Crane acreage is the largest parcel in Massachusetts to be protected by a conservation restriction.  Mostly woodlands, it is situated in northern Dalton and includes Anthony and Egypt ponds.  At the time of its conveyance, the parcel was assessed at  $10,700. ($107,000) The restriction is enforced by the Berkshire County Land Trust and Conservation Fund, a tax- exempt trust set up by the Berkshire Natural Resources Council in 1969 to receive land and easements from property owners for the purpose of preserving the land in its natural state. In addition to the 1900 acres under the conservation restriction, the Crane holdings include another 150 acres of woodlands not under the restriction. The family has all of it protected, however, under Chapter 61 of the Massachusetts General Laws.  This legislation deals with taxation of forestlands and forest products and allows a landowner to classify his wooded acreage as forestland.  He then enjoys reduced taxes while continuing to own the property and harvest its products.


For the protection of farmland, the Agricultural Preservation Restriction Act was passed by the Massachusetts Legislature in 1977 to keep working farms intact.  Under the legislation, a landowner can sell the development rights to his property to the state in return for putting a permanent deed restriction on the land that allows only agricultural use and prohibits all non-farm development.  The value of the development rights is the difference between the land's full market value and its agricultural value. "Our farm is one of the last working farms in Dalton and it's an asset to the town to keep it that way," said Fred Crane III in explanation of his current application for an Agricultural Preservation Restriction (APR). "There's a lot of nice open land there and for aesthetic reasons as well as for, wildlife it makes sense to maintain it." Situated right at the entrance to the town of Dalton, the farm creates an appealing transitional space from the ruralness of Windsor, It's also a viable farm so someone, namely Crane's nephew Sam Smith, can make a living off it.


Crane's application is on the major portion of his usable farmland -approximately 250 acres, excluding parcels around the residential dwellings on the property.  The Resources Council is assisting him in its preparation.


Since its start seven years ago, the APR Program has received some $25 million in state funding and has proved to be highly effective in saving the farmland that's left in Massachusetts.  As there are less than 600,000 acres of land devoted to agriculture in the state today, down from more than two million acres in 1945, preserving the working farms that remain must continue to be a top priority.


Classification of lands devoted to agricultural and horticultural use is another program the Cranes have used to protect their farmland.  Under Chapter 61A of the Massachusetts General Laws, approved in 1972, actively farmed land can be-assessed and taxed based solely upon its agricultural and horticultural value. "All our farmland is under Chapter 61A," said Fred Crane III.  "It keeps the taxes down and the farm in production -- which is just as it should be, since this has been farmland since the early 1800s." Between the conservation restriction, the proposed APR, Chapters 61 and 61A, the Cranes have covered all of their currently owned 2300 acres.  They have also ensured the non-development of the lands they have donated through the fifth program offered by the state to offset the pressures of land ownership -- outright gifts of land.  Their donations have resulted in substantial charitable deductions for the family, while the acreage has been designated for various restricted conservation and recreation uses. Fred Crane Sr. donated 100 acres for a Dalton town forest, now surrounded by conservation restriction land, and gave acreage to the state for, the Wahconah Falls park.  His son donated 500 acres for the Wahconah Golf Course; he also sold the 65-acre Flintstone Farm orchard and the Flintstone Farm, including 150 acres and the main farmhouse.


Fred Crane III, who re-bought Flintstone Farm, is continuing the tradition of giving land gifts and in 1982 donated 42 acres containing a two-mile section of the Appalachian Trail to the Berkshire County Land Trust and Conservation Fund.  The parcel, consisting of a 400-foot-wide corridor along the Dalton Lanesboro town line, was given with the understanding that it would be sold to the state Department of Environmental Management and the money used for Appalachian Trail maintenance.


"There's plenty of money to acquire the Appalachian Trail," said AMC President Tom Deans, "but money to maintain it and to support volunteer efforts is very hard to come by.  So we're particularly appreciative of the way this gift was given." Though it's obvious after all their efforts that the Cranes are highly sophisticated in their land use knowledge, surprises still are possible, as Fred Crane III found out last winter when he discovered that for 90 years his family has been paying taxes on 231 acres of town property.  The acreage, consisting of Egypt Reservoir, was taken over by Dalton in 1894,but has mistakenly been included since then in the Cranes' property tax assessment. "You can be sure I was amazed!" Crane exclaimed. As chairman of the board of the Berkshire Natural Resources Council, Fred Crane III is carrying on the family tradition of close involvement with land use issues in the county and strong support of conservation efforts here.  By protecting his own land, he hopes to show the way for other large landowners and also guarantee the continuance of Berkshire County's rural character.  Closer to home, he is making sure future Cranes can continue to use and enjoy the land.


"There's a very neat chronology to it all," Crane said, "because each land use restriction makes it that much easier for the next generation to own the land and be productive on it.  My son Dicken practices forest management, for example, and my nephew Sam Smith wants to farm the property proposed for APR protection.  We've used every land use program we could in Massachusetts because thats the only way we could keep the land undeveloped and still own and use it.  "In fact," he added with a smile, "when you come right down to it, these programs have let us have our cake -- or land -- and restrict it, eat off it and give it away, too."


CONSERVATION RESTRICTION PROGRAM
A conservation restriction is a legally enforceable agreement between a landholder and the Berkshire County Land Trust and Conservation Fund stating that the landholder will not develop his land and that the agreement will be binding in perpetuity.  Under a conservation restriction, construction or placing of buildings, roads, signs and billboards on the property can be forbidden, as can dumping, excavation, removal of trees or shrubs and all use of the land except for agriculture, farming, forestry or outdoor recreation. The landowner retains ownership of his property and has the right to sell, lease or will the land, as well as the right to restrict or prohibit public access.  In return for giving up the development rights, he may be entitled to a charitable deduction on his income tax over a five year period.  In addition, the tax assessment on the property will be stabilized indefinitely and the estate tax when the land is passed on may be significantly reduced or eliminated. Conservation restrictions are given to the Land Trust through the Berkshire Natural Resources Council, which determines whether a parcel is suitable for preservation and assists in conveyance of easements to the Trust.
MASSACHUSETTS GENERAL LAWS
CHAPTER 61
Under Chapter 61, land can be classified as forestland for tax purposes. To qualify for classification, parcels must consist of at least 10 contiguous acres that are used for forest production. Application for forestland classification is made to the local board of assessors accompanied by a 10 year forest management plan that provides for intermediate and regenerative cuttings.  Once classified, a new certification by a state forester must be filed at least every 10 years to continue the classification. The owner of classified forestland is, levied an annual forest products tax equal to 8 percent of the stumpage value (fair market value just prior to cutting) af all forest products cut.  He also must pay a yearly land tax based on application of the local rate for commercial property on 5 percent of the classified land's fair cash valuation.
MASSACHUSETTS GENERAL LAWS -- CHAPTER 61A
Under Chapter 61A, land can be classified as agricultural or horticultural and taxed based solely upon its agricultural or horticultural use.  To qualify for classification, a parcel must consist of at least five contiguous acres that have been in active agricultural or horticultural use for-at least two preceding tax years, with gross sales of $500 or more per year. Land classified as agricultural must be used primarily for raising animals for the purpose of selling them or the products derived from them.  Land listed as horticultural must be used primarily for growing salable food for human or animal consumption, tobacco, flowers, plants, shrubs or forest products. The Farmland Valuation Advisory Commission determines the values per acre for each fiscal year for the various classifications of land. Application for agricultural or horticultural classification is made to the local board of assessors and must be filed anew each year.
AGRICULTURAL PRESERVATION RESTRICTION PROGRAM
In the Agricultural Preservation Restriction (APR) Program, a landowner sells the development rights to his property to the state in return for putting a permanent deed restriction on the land that allows only agricultural use.  The landowner retains ownership of the land and virtually all rights of ownership, including the right to privacy, the right to sell, lease or will the land and the right to carry out all normal farming practices.  The only right he no longer has is to develop the land for non-agricultural purposes. To qualify for an APR, a landowner must have at least five acres of agricultural land that have been used as farmland for two consecutive years prior to the application and that have produced at least $100 per acre annually in gross sales. Application is made to the state Department of Food and Agriculture and to the local conservation commission.  State agents then inspect the property to determine its suitability, with final selections for appraisal and purchase made by the state Agricultural Lands Preservation Committee. If selected, two independent appraisals are carried out on the property, one to determine the land's highest market value without an APR, the other, its farm value with an APR; the development rights figure is the difference between the two.  If the landowner agrees with the appraised value, the application then goes before the committee for a final vote and,, if OK'd, a Purchase and Sale agreement is signed. The entire process, from application to completion of sale, averages 12 to 14 months.
LAND GIFTS
Donations of land are given to the Berkshire County Land Trust and Conservation Fund, a not-for-profit trust set up with the First Agricultural Bank for the purpose of preserving and protecting wilderness areas, scenic properties and wildlife habitats.  Most lands are held by the Trust as forest reserves, though some parcels are conveyed to public agencies for park and conservation purposes and others are sold. In all cases, the land is restricted in its use and maintained in its undeveloped state.  The landowner is entitled to a charitable gift tax deduction, which can be taken over a five year period. Land donations are made through the Berkshire Natural Resources Council, which assists in their conveyance to the Land Trust and determines how best to take advantage of the gifts.