Farm Land Preservation
What is the Farmland Preservation Program?
On June 29, 1977, Wisconsin's Farmland Preservation Act became law. The purpose of the law is to help local governments that want to preserve farmland through local planning and zoning, and to provide tax relief to farmers who participate. Farmers in rural and urban counties can qualify for tax relief if their land is zoned for exclusive agricultural use, or if they sign an agreement not to develop their land during the agreement period.
Contact the Planning and Zoning Department or the Land Conservation Department to inquire about signing up for the Farmland Preservation Program.
Who is Eligible?
- Parcel must be 35 acres or larger.
- Land must produce "gross farm profits" of $6,000 in the last year or $18,000 in the past three years OR at least 35 acres must be enrolled in the federal conservation reserve program (See Land Conservation Office). "Gross farm profits" means gross receipts, excluding rent from agricultural use, less the cost or other basis of livestock, etc. purchased for resale which are sold or disposed of during the income year.
- Land must be located in an agricultural preservation area or transition area under the farmland preservation plan.
Individual:
- Must be a land owner.
- Must be a resident of Wisconsin.
Provisions of the Agreement
Benefits:
- Landowner is made eligible for formula tax credits at the 70% credit level. Landowners with higher incomes are eligible for a minimum credit of 10% of property taxes.
- Landowner is protected from special assessments (such as sewer or water utilities) under a regular agreement. This does NOT apply to transition area agreements.
Requirements:
- Land must be kept in agricultural use.
- Only farm structures can be built (farm structures include housing for farmers, farm workers, and parents or children of the farm operation).
- Must be farmed in compliance with reasonable soil and water conservation standards adopted by the County Land Conservation Committee
General:
- No public access to the land is required.
- The agreement transfers with the land when ownership changes on all or part.
- The regular agreement length is from 10 to 25 years (transition area agreement length is from 5 to 20 years) with the length determined by the landowner.
Transfers, Relinquishments, Zoning **
During and at the term of the agreement several things could happen. These are:
- Land is sold. Land may be sold at any time for agricultural use. Agreement transfers with the land and the new owners are subject to the agreement provisions. New owners become eligible for tax credits provided minimum eligibility requirements are met.
- Town adopts Exclusive Ag zoning. Formula credit level increases to 100% if town adopts county zoning or 90% if town adopts its own ordinance. Agreement remains in effect until expiration. landowner can claim either under agreement or zoning, whichever is greater.
- Agreement terminates on specified expiration date. Land use restrictions and tax credit eligibility end unless land is under Exclusive Ag zoning or a new agreement is signed. land not covered by either zoning or a new agreement is subject to payback
- Agreement is terminated before expiration date (needs county and state approval). It is extremely difficult to terminate an agreement before its natural expiration. An agreement can only be terminated early based upon one of the following conditions: (1) The agreement causes uneconomic operation of the farm by preventing necessary improvements to the land; (2) The land is subjected to permanent and significant natural physical changes; (3) Surrounding conditions prohibit Ag uses; or (4) Owner dies or is totally and permanently disabled.
