FP Agreements in an Agricultural Enterprise Area
A farmland preservation agreement is a 15-year agreement between a landowner and the state to keep the covered land in agricultural use and to meet the state soil and water conservation standards. In return, individuals who own land covered by a farmland preservation agreement may claim the farmland preservation tax credit at either $5.00 per acre or $10.00 per acre if the land is also located in a farmland preservation zoning district. To enter into a farmland preservation agreement, land must also be located within one of the state's
Agricultural Enterprise Areas.
FP Agreements signed before July 1, 2009 or under 2009 WI Act 374
Landowners may own land subject to a farmland preservation agreement signed before July 1, 2009. Similar to an agreement signed in one of the state's AEAs, these agreements between a landowner and the state keep land in agricultural use for a duration of 10 to 25 years. Landowners who own land subject to an effective pre-2009 farmland preservation agreement must meet applicable soil and water conservation standards. For more information on a specific agreement, please contact either DATCP or your local county land conservation department.
The tax credit associated with pre-2009 farmland preservation agreements varies and is calculated with consideration of household income and property tax liability. Landowners must use Schedule FC when filing an income tax return to claim this credit.
- Notification to DATCP is required when land subject to a pre-2009 farmland preservation agreement is sold or ownership of the land is transferred. Please use the document linked below to submit notification of transfers.
Notification of Transfer Worksheet
Modifying FP Agreements
Modifying an Agreement in an Agricultural Enterprise Area
Effective farmland preservation agreements in an agricultural enterprise area can be modified to include additional acres that were not included in the initial application or were purchased after the agreement went into effect. Any land that is to be added to an exisitng agreement must also be located within one of the state's Agricultural Enterprise Areas. Modifying an agreement in an agricultural enterprise area will not extend the originial agreement's expiration date.
Modifying an Agreement signed before July 1, 2009 or under 2009 WI Act 374
Effective farmland preservation agreements signed before July 1, 2009 or under 2009 WI Act 374 can be modified to meet the updated state soil and water conservation standards. Modifying the terms of these agreements allows the landowner to claim the farmland preservation tax credit at either $5.00 per acre or $10.00 per acre if the covered land is also located in a certified farmland preservation zoning district. In many cases, this calculation will enable the landowner to claim a higher tax credit than if filing on Schedule FC. Once modified, landowners must used Schedule FC-A when filing an income tax return to claim the tax credit.