FP Agreements in an Agricultural Enterprise Area
Eligible landowners may choose to enter into a farmland preservation agreement with the Wisconsin Department of Agriculture, Trade and Consumer Protection if their land is located within a designated agricultural enterprise area. Under the 15-year agreement, the landowner may claim the farmland preservation tax credit in exchange for keeping the land in agricultural use and meeting state soil and water conservation standards. This tax credit is worth either $5 per acre, or $10 per acre if the land is also covered by farmland preservation zoning. Landowners must use Schedule FC-A when filing an income tax return to claim this credit.
Farmland Preservation Agreement Overview
FP Agreements signed before July 1, 2009 or under 2009 WI Act 374
Landowners with one of these agreements may also claim a farmland preservation tax credit in exchange for meeting the terms of the agreement. The tax credit associated with these 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 is required when land is sold or ownership of the land is transferred.
Notification of Transfer Worksheet
- Modification of this agreement to claim a per acre tax credit is allowed. Once modified, landowners must use Schedule FC-A when filing an income tax return to claim the tax credit.
- Agreement renewal is not available unless the land is located within an agricultural enterprise area.