FPP

The purpose of the program 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 can qualify for tax relief if they sign a contract agreeing to keep the land in agriculture and by complying with conservation standards.

Who is Eligible?

Land Eligible:

Parcel must be in exclusive Ag Zoning.
Parcel must be 35 acres or larger.
Land must produce gross farm receipts of $6,000 in the last year or $18,000 in the past three years or 35 acres or more enrolled in the Federal Conservation Reserve Program.
Land must be farmed in compliance with county soil and water conservation standards.

Individual:

Must be farm owner.
Must be resident of Wisconsin.

What are the Zoning Provisions? (Top of Page)

Benefits:

Landowner is made eligible for a State income tax credit.
Landowner is protected from special assessments (such as sewer or water utilities).
Conflicting non-farm uses cannot occur nearby unless the land is rezoned.

Requirements:

Land must be kept in Ag use.
Only farm structures can be built. (Farm structures include housing for farmers, farm workers, and parents or children of the farm operator.)
Conditional uses or special exceptions are limited to Ag-related, religious, utility, institutional or governmental uses.

Note: Zoning under the Farmland Preservation Program is local, county or town zoning. Therefore, local governments are responsible for the adoption, administration, enforcement, and amendment of the ordinance and rezoning.

What Tax Credits are Available? (Top of Page)

Farmers whose land is agriculturally zoned, or who have signed agreements, are eligible for tax credits or refunds against their state income tax. The income tax credit is based on household income and property tax. The household income includes: the net farm income; any nonfarm income and any other miscellaneous sources of income; nonfarm business losses; and farm depreciation of $25,000. Property taxes up to $6,000 are eligible for relief and the maximum credit is $4,200. Basically, the higher the property tax, the higher the tax credit, and the lower the income, the higher the credit.

Households whose incomes are too high for the formula credit are eligible for a minimum credit of 10 percent of property taxes. The maximum amount of property taxes eligible for the 10 percent credit is $6,000. A person with a tax bill of $6,000 or more would be eligible for a $600 tax credit.

The level of tax credits also depends on whether the county has an agricultural plan, exclusive agricultural zoning, or both.

Possible Payback Provisions (Top of Page)

If land is removed from the program by having it rezoned out of exclusive agricultural district or granted a nonagricultural conditional use/special exception, a payback of tax credits is required. On the other hand, land may be sold for permitted uses at any time without payback.

Payback is the total amount of tax credits claimed during the last 10 years the property was eligible. If repaid upon notification of amount due, no interest is assessed. If not repaid, a lien on real estate is recorded on the land and interest (6% annually) begins to accrue.

This is a quick overview of the Wisconsin Farmland Preservation Program. If you are interested or have any questions about this program, please call the Winnebago County Land & Water Conservation Department at (920) 232-1950.