Farmland Preservation Program Application

Transcription

1 Farmland Preservation Program Application Purchase of Development Rights Program Application Deadline: Wednesday June 1, 2016 at 11:00a.m. Ingham County Purchasing Department c/o Farmland and Open Space Preservation Board 121 E. Maple 2 nd Floor P.O. Box 319 Mason, MI Applications must be received in a sealed envelope! Section I Landowner Information Name (list all) (include all persons recorded on the deed(s), i.e. spouses, partners, siblings, parents etc.) PLEASE PRINT Ingham County Farmland and Open Space Preservation Board P.O. Box 319 Mason, MI (517) stacy@sheridanland.com Address Telephone (Street/Rd) (City) (State) (Zip) (Daytime) (Evening) (Cell) Section II Property Information 1.) Do you own all Mineral Rights on the Nominated Property? If No, who owns them? (name) (address) (phone) 2.) Is the nominated property already restricted from being developed? (yes / no) If yes, please explain 3.) Tax Parcel ID # and acreage for each: Acres: Parcel ID Number: / / / / / 1

2 4.) How is your land currently zoned? (circle one) Agricultural Agricultural Residential Commercial Commercial/Industrial Other 5.) Do you have a USDA/NRCS Soil Conservation Plan? If yes, what year was it developed? 6.) Type of Agriculture Row Crop (landowners must provide documentation of certified organic rating, attach with application. If certification is not attached, points will be allocated as such.) Corn Acres Certified Organic Wheat Acres Certified Organic Soybeans Acres Certified Organic Hay Acres Certified Organic Other Acres Certified Organic Livestock Beef Cattle Head: Certified Organic? Dairy Head: Certified Organic? Horses Head: Certified Organic? Pigs Head: Certified Organic? Sheep Head: Certified Organic? Chickens Head: Certified Organic? Turkeys Head: Certified Organic? Specialty Crop Fruit Acreage: Total 2015 Sales:$ Certified Organic? Yes No Vegetable Acreage: Total 2015 Sales:$ Certified Organic? Yes No 7.) Is the nominated property within 1 mile of a livestock operation (1000 unit)? Yes Owner s Name Address of operation (street) (city) #of head 2

3 Section III Additional Landowner Information 8.) Total acreage 9.) Total Cropland acre including pasture 10.) Total Forest Land 11.) Total Wooded Wetland 12.) Is the landowner applying with a block application? No Yes If yes, fill out the block application on the parcel worksheet. (You must fill this out to receive points!) 13.) Is the Nominated Property MAEAP (Michigan Agricultural Environmental Assurance Program) Verified? No Yes If yes, list verification number (with MDA) 14.) Is the farm a verified Centennial Farm? Yes No Section IV Certification I certify that the statements made above are a true and accurate representation of the facts regarding the nominated property. X Print Name Date X Signature X Print Name Date X Signature X Print Name Date X Signature X Print Name Date 3

4 Ingham County PDR Application Parcel Worksheet (RETURN WITH APPLICATION) Parcel ID Township Acres Tillable Acres Wood Acres (if any) Type of Ag Practiced (if applicable) Cash Crop, specialty, Christmas trees, livestock, # of head Block Application (include all parcels applying together as a block) Parcel ID Township Acres Landowner Name Address 4

5 INGHAM COUNTY FARMLAND AND OPEN SPACE PRESERVATION BOARD P.O. Box 319, Suite 104, Hilliard Building, Mason, MI Ph: Fax: Dr. Paul K. Kindel, Chairperson Dr. Gabriel Biber, Vice-Chairperson Dr. Kirk Heinze, Secretary Laurie Koelling, Treasurer Members Dr. Kirk Heinze Wendy Villarreal Jeanie Igl Gabriel Biber Dr. Paul K. Kindel Laurie Koelling Randy Maiville To: Interested Landowner From: Ingham County Farmland and Open Space Preservation Board Date: February 28 th, to June 1 st, 2016 (open application period) Re: Request for Information on County PDR program and a PDR application We are pleased with your interest in the Ingham County Farmland and Open Space Preservation Program. The following enclosed items will provide you with information about the program: Ingham County Farmland Preservation Application Form Parcel Worksheet Steps to Completing the Ingham County Purchase of Development Rights Application Ingham County s Farmland Protection Efforts PDR What is a PDR Program? Ingham County PDR Program: Potential Questions and Answers Selection Criteria for Farmland Preservation Program After reading the enclosed material, fill out the application and send it to the following address along with all related material by the application deadline of June 1 st, 2016 at 11:00 a.m.: Ingham County Purchasing Department c/o Farmland and Open Space Preservation Board 121 E. Maple 2 nd Floor P.O. Box 319 Mason, MI Applications must be received in a sealed envelope! The Farmland and Open Space Preservation Board will host a work session for landowners who wish to apply to the County PDR program and want additional assistance filling out the application. You will receive a postcard in the mail notifying you of the date, time and location of the workshop. The Ingham County Farmland and Open Space Preservation Board will score and rank all applications received. After all applications have been scored, you will receive notification of the status of your application. Again, we are delighted with your interest in the Ingham County Farmland and Open Space Preservation Program. Contact the Board office by at stacy@sheridanland.com ( is preferred) or Stacy Byers at (517) , or Jessica Huegli at jhuegli@ingham, , or Christian Smith at christians@gmail.com, if you have any questions. 5

6 Steps to Completing the 2016 Ingham County Purchase of Development Rights Application Application Deadline: June 1, 2016 at 11:00 a.m. Step 1: Step 2: Step 3: Read through all materials. Many of the questions you may have are answered in the written material provided. This section will give you a background of the PDR Program in Michigan. Fill out the application as best you can. Be sure to print clearly. If you don t know answers to some of the questions, simply indicate you are unsure. However, the more information we have, the better, even if you are unsure whether it is pertinent or not, it will still be helpful. You will be asked to provide supporting documentation such as recent tax bills for a current legal description and a copy of your conservation plan. Be sure to include all applicable documentation before submitting the application. Items to be submitted with the application Current tax bill for all applicable parcels Completed Parcel Worksheet Copy of Conservation Plan, Organic Certification, MAEAP Verification, PA 116 contract number (if applicable) Before you turn in the application make sure you have. Signed the application in all applicable places. Included a current tax bill for all applied parcels. Included a current copy of the conservation plan from the Ingham County USDA-NRCS Office (517) x. 3 or at karry.trickey@mi.usda.gov Application Deadline: June 1, 2016 by 11:00 a.m. Ingham County Purchasing Department c/o Farmland and Open Space Preservation Board 121 E. Maple St., 2 nd Floor P.O. Box 319 Mason, MI Applications must be received in a sealed envelope! 6

7 I Ingham County s Farmland Protection Efforts: Purchase of Development Rights Program What is a Purchase of Development Rights (PDR) Program? A Purchase of Development Rights Program is an economic and conservation tool to protect valuable farmland that is economically important to Michigan s second largest industry, agriculture. A PDR Program is a voluntary program that compensates owners of agricultural property for their willingness to accept a permanent deed restriction on their land that limits future development of the land for non agricultural purposes. Landowners are compensated for the fair market value of their land, based on the difference between what it could be sold for on the open market with no restrictions for developmental purposes and what it can be sold for agricultural purposes. After an agreement is reached with the landowner, an agricultural conservation easement is executed, protecting the agricultural use of the land for future generations. Once the easement is in place, the landowner still owns the land, retains all private property rights, can sell the land or pass it on to heirs, and has been fairly compensated for not exercising the developmental rights. The goal is to create blocks of protected farmland thereby helping to create a long-term business environment for agriculture. Why is preserving farmland important to Ingham County? The purpose of the farmland preservation program is to enhance the quality of life and viability of our rural and urban communities through the voluntary protection of valuable farmland in Ingham County. The program targets the following benefits: Economic Benefits of Farmland Protection o Agriculture provides economic diversity to the local economy o Creates a long term business environment for the future growth and changing market opportunities of the local agriculture industry o Ensures a safe, adequate local food supply Environmental Benefits of Farmland Protection o Watershed Program o Protects wildlife habitat o Preserves integral part of natural resource infrastructure Social Benefits of Farmland Protection o Helps maintain a quality of life for all citizens o Protects rural character, beautiful country side and scenic vistas o Promotes a sustainable and viable urban-rural community relationship How important is agriculture to Ingham County? Ingham County is one of the most agriculturally productive counties in the state with a market value for agricultural products of over $51 million annually. It is an important sector of the economy and provides many jobs. The farm gate value is multiplied seven-fold when one considers the impact on agribusinesses, processors, retailers and the impact of those dollars circulating in the local economy. Without the farmland base, agriculture cannot thrive or grow. Why is a farmland protection program important to agriculture? Once farmland is converted to development, it cannot be returned to farming. In today s marketplace, large blocks of farmland are needed to create a long term business environment for farm operations. Essential infrastructure such as farm equipment suppliers, processors, and other agribusinesses will leave if they do not have a sustainable customer base. In addition, the investment in farming operations requires a long term business environment to generate a return 7

8 over the next years. The uncertainty of land use patterns creates an impermanence syndrome, whereby farmers are not willing to make additional investments because of the likelihood that they will be surrounded by nonfarm neighbors who do not understand normal farming practices and the associated noise, dust and odors. Farmland protection is all about creating a long term business environment for agriculture, similar to what communities do for other commercial industrial businesses. Why is PDR in the best interest of the farmer? First, it is important to remember that the program is completely voluntary. Not every farmer may wish to participate, but the track record across the country indicates that there are more than 7 farmers on a waiting list for every farm that is preserved. The following aspects make this program attractive to farmers: Participation is completely voluntary and landowners receive fair market value for the development rights. All other private property rights remain intact. The landowner can access a portion of the land equity while still maintaining ownership and agricultural use of the land without having to sell it for development or non-farm uses. Cash from the sale of the development rights can be used for reducing debt, lowering operation costs, improving or expanding farm operations, investing in value-added agriculture initiatives, retirement, or be passed on to heirs with proper estate planning. Proceeds from easement sales are often recycled back into the local economy, supporting agribusiness and creating additional economic development. Property taxes and inheritance taxes are based only on the residual agricultural value of the land rather than the full developmental value thereby reducing the tax burden on farmers and enhancing the annual bottom line and overall profitability. Farmland is now more affordable for younger farmers; the program eases the transfer of property to future generations and other farmers who are interested in farming. Expanding farming operations is often not an option when competing with developmental values. The landowner can still borrow against the reduced equity in their land. Other states track records show remaining land retains excellent (and increasing) resale value. 8

9 I What is a Purchase of Development Rights Program? A purchase of development rights (PDR) program is a means of compensating farmers for their willingness to accept a deed restriction on their land that limits future development of the land for non-agricultural purposes. Landowners are compensated for the fair market value of their land, based on the difference between what it can be sold for on the open market with no restrictions and what it can be sold for once an easement is placed on the land. State certified appraisers determine these values and the agreement is negotiated on an individual basis with the farmer in a willing seller, willing buyer atmosphere. Permanent protection of farmland community benefits from economic activity generated by agriculture, stable land use patterns, fewer infrastructure needs, lower cost of community services and from enhanced rural character. Participation is completely voluntary and landowners receive fair market value for development rights. All private property rights remain intact. Cash from sale of development rights can be used for reducing debt, lowering operating cost, improving or expanding farm operations, college educations, retirement, etc. Proceeds from easement sales are often recycled back into local economy. Landowner can access portion of land equity while still maintaining ownership and agricultural use of land and without having to sell it for development or non-farm uses. Property taxes and inheritance taxes based only on residual agricultural value of the land rather than the full developmental value. Farmland is now affordable for younger farmer and eases transfer of property to future generations. Landowner can still borrow against reduced equity in their land. Other states track records show remaining land retains excellent (and increasing) resale value. 9

10 I Ingham County Purchase of Development Rights Program Potential Questions and Answers Q. If I sell my development rights to the county in exchange for a permanent agricultural conservation easement, do I still own the land? A. Yes, you are simply ensuring that your farmland will be preserved for future agricultural use and generations. You still own the farm and may continue to enjoy its use. Q. What is an agricultural Conservation Easement? A. An easement is a right. A conservation easement is a recorded legal document that limits the type and amount of development that may occur on a property. You may own a particular farm property fee simple meaning that you have all rights to occupy, use, and enjoy the land. One right you have is the right to develop that property for commercial, residential, or other uses as prescribed in your township s zoning ordinance. When we say that we would like to purchase an agricultural conservation easement on your property, we mean we would like to purchase only the development rights associated with farm parcels so that they are preserved as farmland for the future. Q. Why should I sell my development rights to the county? A. Landowners have chosen to participate in the program for many reasons. Some farmers do not plan to develop their property, and appreciate the ability to access some of the land s equity while continuing to farm. Proceeds from easement sales have been used, for example, for the payments of debts, or to finance needed capital investments. If you intend to pass the farm on to heirs, selling your development rights may offer special tax advantages. Only you can determine if the benefits of the program will work for you and your family. Q. Is there a market for deed restricted farmland? A. Yes. Due to its relatively low cost, there is a high demand for deed-restricted farmland among established farmers looking to increase their landholdings and new farmers who want to purchase affordable farmland. Some participants in the program have sold their development rights as a first step to selling the farm. This ensures the land is not developed and will remain as farmland. Q. How do you determine the value of my development rights? A. The easement value of your farm is affected by a number of variables including location, zoning, road frontage, soil types, and development pressure. To determine the easement value, a state certified appraiser will be hired to appraise the property. The appraiser values the fee simple or before easement value of your land and its restricted or after easement value. The difference between the two values is the appraised value of your development rights, or what the county will pay you for your agricultural easement. For example: Before Easement = $ per acre, value of land unrestricted After Easement = $ per acre, value of land restricted Payment = $1800 per acre, value of development rights (The price the county would pay to preserve the land) Q. If I sell my development rights to the county will the public have the right to come on my property? A. No. The public is not granted any right to use your land. County elected officials remain strong proponents for the strengthening of right-to-farm laws and ordinances to protect farm properties that are preserved under the 10

11 program. This will help to further strengthen your protection from public violations of your rights as a landowner. Q. When would the county buy my development rights? A. The county reviews all of the applications submitted by the application deadline. Following preliminary approval by the Agricultural Preserve Board, it is anticipated that the landowners will be made an offer within six months. Once a contract of sale is executed, the easement sale will close within approximately six months. In the event that a large number of applications are received, the appraisals, and consequently, offers would be done in batches so the timeline might be slightly longer. Q. What happens after I submit my application? A. All applications are reviewed to determine their relative ranking according to the county s adopted scoring system. The scoring includes soil classifications, parcel size, surrounding land uses, proximity to existing livestock farms, development pressure and more (see attached selection criteria). Based on the results of the ranking, the county will determine which applications will receive preliminary approval. Approved farms are then appraised in order to determine their easement value. Q. Am I required to accept the county s offer? A. No. The Purchase of Development Rights Program is entirely voluntary. After you are informed of the offer you can either accept the value or reject it and walk away. It is up to you. 11

12 Selection Criteria for Farmland Preservation Program 2016 Application Cycle Tier I Criteria I. Agricultural Characteristics 55 points II. Development Pressure 48 points III. Additional Ag Protection Efforts 35 points IV. Other Criteria 10 points Tier I Total Points I. AGRICULTURAL CHARACTERISTICS (55 POINTS) points (last revised February 9, 2016) 1) Agricultural Productivity Prime and Unique Soils Maximum Points: 20 Prime and Unique Soils Prime under all circumstances 20 points Prime if adequately drained 15 points Not prime or unique 0 points Example: 70% of parcel is prime under all circumstances (0.70 x 20 pts) = 14 points 30% of parcel is prime if adequately drained (0.30 x15 pts) = 4.5 points Total points = 18.5 points 2) Size of Parcel (s) Maximum Points: 15 Points for parcels between 15 and 200 acres are calculated by multiplying 0.1 times the parcel size. Any parcel above 200 acres receives 20 points. Parcels between 15 and acres must be in specialty crop production. Parcels that are acres receive 0 points. Parcels less than 40 acres will receive a zero for Size of Parcel, unless there is Additional Agricultural Income, in which case parcels 15 acres or more receive points. Example: Parcel size is 150 acres: 150 x 0.1 = 15 Example: Parcel is 85 acres: 85 x 0.1 = 8.5 Example: Parcel is 350 acres: 350 x0.1 = 35; 20 points, the maximum possible Example: Parcel is 13 acres: (0 points for parcel less than acres) 3) Additional Agricultural Income Maximum Points: 15 Points will be awarded to operations that have value-added agriculture either through animal related production or through production of a specialty crop (crops other than corn, wheat, soybeans), or both, with total sales over $5, annually. Example: Parcel is integral to farm operation that produces a specialty crop, which grosses over $15,000 annually. Total points = 15 points 4) Proximity to Existing Livestock Farms Maximum Points: 5 A livestock operation for this purpose means a farm with more than 50 animal units (EPA definition: 1000 lbs = 1 unit) Parcel is contiguous to an existing livestock operation 5 points Parcel is located between 0.5 miles and 1 mile of an existing livestock operation 3 points

13 Parcel is located further than 1 mile from an existing livestock operation 0 points *Contiguous for this section means no other parcel is located between the parcels. Parcels separated only by a road are considered contiguous. II. DEVELOPMENT PRESSURE (48 POINTS) 5) Proximity to Existing Public Sanitary Sewer or Water, or Both Maximum Points: 10 Linear (straight line) distance to existing, usable public sanitary sewer, or water services, or both, will result in the following scoring options: Less than one-half (1/2) mile from sewer or water 5 points One-half (1/2) mile or more but less than 1 mile 7 points One (1) mile or more but less than 2 miles 10 points Two (2) miles or more but less than 5 miles 5 points More than 5 miles 0 points Example: Parcel is located 3 miles from existing sewer lines. Total points = 5 points. 6) Proximity to Designated Population Center in Ingham County (As Defined in Regional Growth: Choices For Our Future, Summary Report, Tri-County Regional Planning Commission, September 2005 Maximum Points: 30 Farm boundary is 1 mile from, or within the population center 30 points Farm boundary is within 1 to 2 miles from population center 28 points Farm boundary is within 2 to 3 miles from population center 26 points Farm boundary is within 3 to 4 miles from population center 24 points Farm boundary is within 4 to 5 miles from population center 22 points Farm boundary is more than 5 miles from population center 0 points Example: Farm is located 2 miles from designated population center. Total points= 28 points 7) Road Frontage (paved or gravel) Maximum Points: 8 Emphasis is placed on parcels with greater linear distance of road frontage, placing the farmland under a greater threat of fragmented development. Frontage can be gravel, paved, or both and must be adjacent to the subject parcel. Road frontage of 5280 feet (1 mile) or more 8 points Road frontage of 2640 feet (1/2 mile) to 5279 (just under 1 mile) 6 points Road frontage of 1320 feet (1/4 mile) to 2639 (just under ½ mile) 4 points Road frontage less than ¼ mile 0 point Example: Parcel has 1 mile of road frontage. Total points = 8 points III. ADDITIONAL AGRICULTURAL PROTECTION EFFORTS (35 POINTS) 8) Location to Protected Property Maximum Points: 20 Parcel is near other private land which has been permanently protected from development through a conservation easement or deed restriction (development rights may have been purchased, transferred or donated). Linear distance is used from nearest farm boundary. Parcel is adjacent to protected land 20 points Parcel is not adjacent but within 1/2 mile of protected land 15 points Parcel is not adjacent but within 1 mile of protected land 10 points Parcel is not adjacent but within 2 miles of protected land 5 points Example: Parcel is adjacent to property under a permanent conservation easement = 20 points 9) Block Applications Maximum Points: 15 13

14 Emphasis is placed on applications which consist of two more landowners who create a 150-acre or more block of contiguous farmland. Contiguous blocks of farmland have a greater potential for creating a long-term business environment for agriculture. Parcels included in a block application must be contiguous (touching but may be separated by a road). Each applicant in the block application will receive points for this section. Two or more landowners apply together to create 1000 or more contiguous acres 15 points Two or more landowners apply together to create 750 to 999 contiguous acres 10 points Two or more landowners apply together to create 500 to 749 contiguous acres 8 points Two or more landowners apply together to create 300 to 499 contiguous acres 6 points Two or more landowners apply together to create 299 to 150 contiguous acres 5 points Contiguous acreage of 149 acres or less 0 points Example: Four landowners, with varying parcel acreage, submit a block-application of about 800 contiguous acres. (Each of the four landowners would receive 10 points for this section). Note: If a parcel in a block application is preserved, the remaining landowners will continue to receive full points for this section of the scoring criteria in future cycles, provided they still wish to participate in the block application. IV. OTHER CRITERIA (10 POINTS) 10) Additional Agricultural Characteristics Maximum Points: 5 Additional agricultural characteristics are USDA certified organic farm or Centennial farm. Parcel has one or more additional agricultural features 5 points Parcel does not have an additional agricultural feature 0 points 11) Michigan Agricultural Environmental Assurance Program (MAEAP) Maximum Points: 5 Participation in the MAEAP demonstrates a commitment to environmental stewardship above and beyond a conservation plan. The State Agriculture Preservation Board has identified the MAEAP as a priority to providing matching funds. Farms verified under the MAEAP must show verification to receive points. Farm is MAEAP verified 5 points Farm is not MAEAP verified 0 points TIER I: TOTAL POINTS POSSIBLE IS