FP Agreements in an Agricultural Enterprise Area
NEW! Farmland Preservation Program Legislative Updates
On December 6, 2023, Governor Evers signed Assembly Bill 133, now Wisconsin Act 42, which makes changes to farmland preservation agreements minimum term lengths and increasing farmland preservation tax credits for all current participants. These changes go into effect starting on December 8, 2023 and will affect tax credit claims beginning tax year 2023.
Check out the Legislative Updates to the Farmland Preservation Program handout for more information.
Enrolling lands in a new FP Agreement
A farmland preservation agreement is a 10-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. Prior to December 8, 2023, effective farmland preservation agreements were a minimum of 15-year agreements. In return, individuals who own land covered by a farmland preservation agreement may claim the farmland preservation tax credit at either $10.00 per acre or $12.50 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.
Amending an Existing FP Agreement
Effective farmland preservation agreements in an agricultural enterprise area can be amended to include additional lands 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 existing 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 original agreement's expiration date. If you are interested in amending an existing agreement contact DATCP or your
local county land conservation department to get started.
Releasing Lands from a FP Agreement
Landowners with lands enrolled in an effective farmland preservation agreement have the option to release all or a portion of their land from the agreement prior to the natural expiration of an agreement. Landowners may choose to release lands if they plan on developing lands to a land use that would be incompatible with the land use restrictions of an agreement.
Any lands that are release from the agreement are subject to a conversion fee. The conversion fee is equal to three times the per acre value of the highest value category of tillable cropland in the town in which the land is located in, as specified by the Wisconsin Department of Revenue under s.73.03(2a), Wis. Stats. for the year in which the land is released.
FP Agreements Signed before July 1, 2009
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.
Transferring Ownership of Pre-2009 FP Agreements
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 fill out the
Notification of Transfer Worksheet and submit the notification of transfer to DATCP by mail to WI DATCP, ATTN: Farmland Preservation Agreements, PO Box 8911, Madison, WI 53708-8911 or by email to
DATCPWorkingLands@wi.gov.
Modifying an Agreement Signed Before July 1, 2009
Effective farmland preservation agreements signed before July 1, 2009 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.