{"data":{"id":"us-ky/krs-262.900","jurisdiction":"us-ky","citation":"KRS 262.900","heading":"Definitions for KRS 262.900 to 262.920.","body":"As used in KRS 262.900 to 262.920, unless the context clearly indicates otherwise:\n(1) \"Agricultural conservation easement\" or \"easement\" means an interest in land, less\nthan fee simple, which represents the right to restrict or prevent the development or\nimprovement of the land for purposes other than agricultural production. The\neasement may be granted by the owner of the fee simple to the Commonwealth or to\na qualified organization described in Section 170(c) of the Internal Revenue Code.\nIt may be granted in perpetuity, as the equivalent of the covenants running with the\nland;\n(2) \"Agricultural district\" means a land use category created by voluntary agreement\nbetween the Commonwealth and one (1) or more landowners under Kentucky's\nagricultural district law, KRS 262.850, where the primary use of land is and will\nremain to be agriculture;\n(3) \"Agricultural production\" means the production for commercial purposes of crops,\nlivestock and livestock products, and nursery and greenhouse products, including\nthe processing or retail marketing of these crops, livestock and livestock products,\nand nursery and greenhouse products, if more than fifty percent (50%) of those\nprocessed or merchandised products are produced by the farm operator, and the\nraising and stabling of horses for commercial purposes;\n(4) \"Applicant\" means a person or qualified organization described in Section 170(c) of\nthe Internal Revenue Code offering to sell to the PACE Corporation under the\nPACE Program an easement on a tract of land which is in or available for\nagricultural use;\n(5) \"ASCS\" means the Agricultural Stabilization and Conservation Service of the\nUnited States Department of Agriculture;\n(6) \"Bargain sale\" means the sale of an easement by a landowner at a price below\nappraised market value, when a portion of the value of the easement is donated by\nthe landowner in a properly executed document as a charitable contribution to a\nqualified organization described in Section 170(c) of the Internal Revenue Code;\n(7) \"Capability class\" means a group of soils that have similar characteristics when used\nfor field crop production;\n(8) \"Comparable sales\" means market sales of similar land. In locating comparable\nsales, first priority shall be given to parcels located in the same general vicinity. The\nsecond priority shall be given to farms located in other areas;\n(9) \"Conservation plan\" means a plan describing best land management practices,\nincluding an installation schedule and maintenance program, which, when\ncompletely implemented, will improve  and maintain soil, water, and related plant\nand animal resources of the land;\n(10) \"Contract of sale\" means a legally enforceable agreement in a form provided by the\nPACE Board obligating the owner of a farmland tract to sell and the\nCommonwealth to purch ase an easement or other less -than-fee interest on the\nfarmland tract;\n(11) \"Commonwealth funds\" means money appropriated to the PACE Corporation for\nthe purchase of agricultural conservation easements;\n(12) \"Development\" means the carrying out of any mate rial change in the use or\nappearance of land, or dividing into two (2) or more parcels;\n(13) \"Easement value\" means the value per acre as determined by a numerical point\nsystem or, if an appraisal is used, the difference between the unrestricted value of a\nfarm and its value as restricted by an easement. If only one (1) appraisal is used,\nunrestricted value is equal to market value and restricted value is equal to the value\nof the farm, subject to an agricultural conservation easement. If the landowner\nobtains an independent appraisal, easement value shall be calculated according to\nthe average between the landowner's appraisal and the numerical point system, or if\nthe Commonwealth also obtains an appraisal, the average between the landowner's\nappraisal and the Commonwealth's appraisal;\n(14) \"Eligible land\" means a farmland tract in which the Commonwealth may acquire an\nagricultural conservation easement or other property interest as provided by this\nsection;\n(15) \"Farm\" means land in the Commonwealth which is being used for or is available for\nagricultural production as defined in this section;\n(16) \"Farmland tract\" means land constituting all or part of a farm that is proposed for\nthe purchase of an agricultural conservation easement;\n(17) \"Farmland value\" means the price as of the valuation date for property used for\nnormal farming operations, subject to the terms of an agricultural conservation\neasement, which a willing and informed seller who is not obligated to  sell would\naccept for the property, and which a willing and informed buyer who is not\nobligated to buy would pay for the property;\n(18) \"Fund\" means the agricultural enhancement fund created by KRS 262.920;\n(19) \"Grantor\" means the person or entity holdin g title to the farmland tract on which an\neasement is conveyed;\n(20) \"Grazing or pasture land\" means land used for horse paddocks or the growing of\ngrasses and legumes which are consumed by livestock in the field, and at least\nninety percent (90%) of which  is clear of trees, shrubs, vines, or other woody\ngrowth not consumed by livestock;\n(21) \"Harvested cropland\" means land used for the commercial production of field crops,\nfruit crops, vegetables, and horticultural specialties, such as flowers, nursery sto ck,\nand ornamentals;\n(22) \"Horse paddock\" means an enclosed area used for pasturing and exercising horses;\n(23) \"Landowner\" means a person holding title to land;\n(24) \"Market value\" means the price as of the valuation date for the highest and best use\nof t he property which a willing and informed seller who is not obligated to sell\nwould accept for the property, and which a willing and informed buyer who is not\nobligated to buy would pay for the property;\n(25) \"Nonprofit land conservation organization\" means  nonprofit organization dedicated\nto land conservation purposes recognized by the Internal Revenue Service as a tax -\nexempt organization under Section 170(c) of the Internal Revenue Code;\n(26) \"PACE Corporation\" means the Purchase of Agricultural Conservati on Easement\nCorporation created by KRS 262.906(1);\n(27) \"PACE board\" means the board of directors of the Purchase of Agricultural\nConservation Easement Corporation created by KRS 262.906(2);\n(28) \"Qualified organization\" means a tax -exempt organization des cribed in Section\n170(c) of the Internal Revenue Code;\n(29) \"Reserved life estate\" means property deeded to a nonprofit organization during an\nowner's lifetime with the owner retaining full use of and responsibility for the\nproperty until the death of the last survivor of those retaining life estates,\nwhereupon, the responsibility of the property falls to the nonprofit organization. The\nproperty owner is entitled to an income tax deduction based on an appraised value\nand Internal Revenue Service actuarial t ables, and the taxable estate may also be\nreduced;\n(30) \"Restricted land\" means land and buildings, the use of which is subject to the terms\nof an agricultural conservation easement;\n(31) \"Restricted value\" means the price as of the valuation date for property subject to an\nagricultural conservation easement which a willing and informed seller who is not\nobligated to sell would accept for the property, and which a willing and informed\nbuyer who is not obligated to buy would pay for the property;\n(32) \"Soils report\" means a report which sets forth the amount and description of each\nsoil type and class found on a specific farm;\n(33) \"Title report\" means a report prepared by a person authorized by the state to engage\nin the sale of title insurance or an attorne y setting forth the existence of any liens,\nrestrictions, or other encumbrances on a farmland tract;\n(34) \"Unrestricted value\" means the current market value of a property;\n(35) \"USDA\" means the United States Department of Agriculture; and\n(36) \"Viable agriculture land\" means land suitable for agricultural production and which\nwill continue to be economically feasible for use if real estate taxes, farm use\nrestrictions, and interference with and constraints on normal farming operations are\nlimited to levels  approximating those in commercial agricultural areas not\ninfluenced by the proximity of urban and related nonagricultural development.","path":["KRS Chapter 262"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=48730","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:53:12Z","sha256":"f3b1af304a9825f5bfd55e05ce330dd21e1673406d4d0772c8b4695d9b151241","source_id":"us-ky","stale":false,"prev":"us-ky/krs-262.875","next":"us-ky/krs-262.902"},"notice":"GroundRules: Original legal text. Not legal advice."}