ACEP-ALE Program TIP SHEET FOR MICHIGAN APPLICANTS

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1 ACEP-ALE Prgram TIP SHEET FOR MICHIGAN APPLICANTS

2 ACEP-ALE At a Glance Agricultural Cnservatin Easement Prgram Agricultural Land Easements: ACEP-ALE is a vluntary prgram f the United States Department f Agriculture Natural Resurces Cnservatin Service (USDA NRCS) t prtect agricultural lands by limiting nn-agricultural uses. Established by the 2014 Farm Bill, ALE replaces the frmer Farm and Ranchland Prtectin and Grassland Reserve Prgrams. Funds: ACEP ALE is a cst-share prgram that prvides up t 50 percent f fair market value f the agricultural land easement n apprved parcels. A statewide cmpetitive prcess uses bth natinal and state ranking factrs t select pririty parcels fr annual funding. ACEP ALE des nt cver cst f appraisals, surveys when needed, title search, legal and clsing csts, r mnitring and enfrcement f the easement. Eligible Entities r Partners: American Indian tribes, state and lcal gvernments, and nn-gvernmental rganizatins, including land cnservancies, that have farmland prtectin prgrams and meet ther entity requirements. Land cnservancies can be nn-certified r certified eligible entities, see explanatin belw. Eligible Lands: Crpland, grassland, pastureland and nnindustrial private frest land are eligible. NRCS priritizes applicatins that prtect agricultural uses and related cnservatin values f the land and thse that maximize the prtectin f cntiguus acres devted t agricultural use. State and natinal ranking factrs are used t identify pririty prjects. Match Requirements: ACEP-ALE prvides n mre than 50% f fair market value f an agricultural land easement s match dllars are required. Eligible entities must cntribute as least as much as NRCS. A landwner may dnate easement value as part f the eligibility entity share as lng as the entity cntributes its wn cash resurces in an amunt equal t half f the requested federal cntributin. See sectin n Match Requirements and Waivers belw. Enrllment: NRCS enters int cperative agreements (ALE Agreement) with eligible entities and a perpetual cnservatin easement is purchased. If an award is granted, each easement is required t have an agricultural land easement plan that prmtes the lng-term viability f the land. Applicatin: T enrll land thrugh ALE, eligible partners may submit applicatins anytime t NRCS, but it is unlikely that it will be reviewed until a deadline is established by the agency and all applicatins fr the year are in hand. The NRCS State Crdinatr may set mre than ne deadline in any ne federal fiscal year. Fr example, January 15, 2016 was the deadline fr applicatins fr FY 16 funding. Take nte that deadlines may nt always be the same mnth and day each year. It can take several mnths frm time f applicatin t ntice f award. Fr general questins regarding ACEP, cntact the NRCS State Crdinatr: Brian Thmas, Acting ACEP Crdinatr, r REVIEW BEFORE APPLYING Tip: If nt familiar with the prgram, first review the Critical Dcuments and Eligibility and Applicatin Requirements (fr the Entity, Land and Landwner) t determine if the prgram is a gd fit fr yur prject and the landwner. The timeline frm applicatin t clsing, it can take as lng as 18 t 24 mnths. If awarded a federal cst share, funds are nt made available until after clsing. Critical Dcuments All applicatin and ther imprtant frms can be fund under Dcuments at the Agricultural Cnservatin Easement Prgram/NRCS Michigan web page: Pre-Applicatin Assessment Tl Michigan requires a Pre-Applicatin Assessment Tl t be cmpleted, signed and submitted with an applicatin. Befre making an applicatin, use it t help determine if the applying entity, land and landwner meet eligibility requirements fr ACEP-ALE cst-share assistance. 2

3 Michigan Ranking Frm Anther imprtant dcument is the Michigan Ranking Frm, which is used t scre and rank parcels using bth natinal (50% f pints) and state factrs. Parcels are selected fr cst-share assistance based n their ranking. Nte that mre pints are received if mre matching funds are prvided. ACEP Cperative Agreement Template (Agricultural Land) Once an award is made, the Cperative Agreement Template (als knwn as Statement f Wrk) is used with nn-certified entities t cnstruct a legal dcument that stipulates the terms and cnditins under which NRCS will prvide ACEP-ALE cst-share assistance t the Entity. (A grant agreement is used fr certified entities.) Minimum Deed Terms These terms must be incrprated r appended t an Agricultural Land Easement under ACEP-ALE. It is a gd idea t familiarize landwners with these terms. Entity Eligibility And Applicatin Requirements A land cnservancy acting as an eligible entity is: Organized fr and, at all times since the frmatin f the rganizatin, has been perated principally fr ne r mre f the cnservatin purpses specified in clause (i), (ii), (iii), r (iv) f Sectin 170(h)(4)(a) f the Internal Revenue Cde (IRC) f 1986; An rganizatin described in sectin 501(c)(3) f the IRC; and a Certified entity r nn-certified entity. 1 The fllwing infrmatin, listed by the crrespnding applicatin frm, will be required r requested frm the eligible entity as part f the ACEP-ALE applicatin package: NRCS CPA-41 Entity Applicatin Frm A Service Center Infrmatin Management Systems (SCIMS) recrd must be maintained at yur lcal USDA Service Center Lcatin befre applicatin. SCIMS is a repsitry f custmer infrmatin used by NRCS and ther USDA agencies when a client wants t participate in cnservatin prgrams r receive cnservatin assistance frm USDA. A Service Center Lcatr can be fund here: As incrprated nnprfits using a Emplyee Identificatin Number (EIN), land cnservancies applying fr NRCS grant funding must have a Data Universal Numbering System (DUNS) number and must be registered with the System fr Award Management (SAM). If yur rganizatin des nt currently have a DUNS number, yu can make an nline request: Once a DUNS number is btained, yu must als register with SAM, a gvernment-wide registry. Frmerly cvered by Central Cntractr Registratins (CCR), SAM registratin must be renewed annually. Infrmatin fr registering with SAM can be fund at If questins, lk fr this helpful dcument, Infrmatin n Obtaining a DUNS Number and Registratin with SAM, which can be fund in the Dcuments sectin f the ACEP/NRCS Michigan webpage: Eligible entities must have the authrity and capability t acquire, manage, and enfrce agricultural easements. (Answered by a yes r n checkbx, Michigan des nt require additinal dcumentatin). Similarly, eligible entities must have the capacity t mnitr and enfrce agricultural land easements. The applicatin frm asks hw many entity staff is dedicated t mnitring and easement stewardship. 1 Land cnservancies can apply t ACEP-ALE as a nn-certified entity. Certificatin, which requires a written applicatin t NRCS, is meant t help streamline actins and prvide ther benefits fr a class f entities that meet specific NRCS requirements and demnstrate a capacity t cmplete easements, mnitr and enfrce them. Hlding, managing and mnitring a minimum f 25 agricultural agreements is a requirement fr certificatin; that can be lwered t 10 if granted a waiver frm the State Cnservatinist. Certificatin advantages include the use f yur wn deed terms and cnditins and the bypass f NRCS review f sme dcuments prir t clsing. If interested in certificatin, cntact the State Crdinatr fr mre infrmatin. 3

4 All parcels within the applicatin must be subject t a written pending ffer. This must be attached t the applicatin.(als required under CPA-41A Parcel Sheet) Tip: It is a gd practice t use a nn-binding letter f intent. Availability f required funds fr each parcel at the time f applicatin (i.e. matching Nn-Federal Cash Cntributin).Tip: The applicatin des nt require dcumentatin f the funds, but a self-certificatin. The entity must prvide the ttal estimates f Fair Market Value, entity nn-federal cash cntributin, requested federal share, estimated purchase price and estimated landwner dnatin fr all parcels. These ttals are derived frm infrmatin prvided in Frm CPA-41A Parcel Sheets fr each parcel included in the applicatin. Any required waiver dcumentatin (See Match Requirements and Waivers belw) Entities must als submit SF-424, a standard applicatin fr federal assistance. Land Eligibility and Applicatin Requirements fr Each Parcel ACEP-ALE eligible lands are: Private r Tribal land that is agricultural land, including land n a frmer ranch; Subject t a signed pending ffer fr purchase f an agricultural land easement frm the eligible entity; Land that: Is at least 50% prime, unique, r ther prductive sil; Cntains histrical r archaelgical resurces; Prtects grazing uses and related cnservatin values by restring and cnserving land; r Furthers a State r lcal plicy cnsistent with the purpses f ACEP if prtected; Land that is identified as: crpland rangeland; grassland r land that cntains frbs, r shrubland fr which grazing is the predminant use; lcated in an area that has been histrically dminated by grass land, frbs, r shrubs and culd prvide habitat fr animal r plant ppulatins f significant eclgical value; pastureland; r nn-industrial private frest land that cntributes t the ecnmic viability f an ffered parcel r serves as a buffer t prtect such land frm develpment; Land that is in an area that has access t agricultural markets fr its prducts, infrastructure apprpriate fr supprting agricultural prductin, and ther supprt services; and Land that faces develpment pressure frm nnagricultural use. Lands Ineligible fr ACEP include: All lands ineligible under existing Farm and Ranchland Partnership Prgram, Grassland Reserve Prgram, and Wetland Reserve Prgram regulatin and plicy, and thse specifically identified in the ACEP statute: Lands wned by the United States, ther than land held in trust fr Indian Tribes Land wned by a State r lcal gvernment Land subject t an easement r deed restrictin which, as determined by NRCS, prvides similar prtectin as wuld be prvided by enrllment in ACEP Land where the purpses f the prgram wuld be undermined due t nsite r ffsite cnditins such as risk f hazardus substances, prpsed r existing rights f way, infrastructure develpment r adjacent land uses. Lands withut sufficient legal access t the entire easement area are nt eligible. Nte: Sufficient legal access fr ACEP means that the access is insurable, uncnditinal and transferable legal right f recrded access fr the duratin f the easement. It is the landwner s respnsibility t prvide NRCS with sufficient legal access. 4

5 The fllwing infrmatin, listed by the crrespnding applicatin frm, will be required r requested abut the prperty as part f the ACEP-ALE applicatin package. NRCS CPA-41A Parcel Sheet Eligibility criteria categries include land that has: prime, unique, r ther prductive sil and percentage; histrical r archaelgical resurces; prtects grazing uses and related cnservatin values; r furthers a State r lcal gvernment plicy cnsistent with the purpses f ACEP. Evidence f land wnership such as a prperty deed r current written purchase agreement. (Prf f mineral wnership is als required as part f the Michigan Applicatin Checklist] Parcel is subject t a written ffer. (Als required in CPA-41 Entity Applicatin; a cpy is included with the applicatin) Evidence and map f legal and physical access t the parcel. Estimated agricultural land easement value, csts, and cntributins f the fllwing fr each parcel: (Needed fr each parcel, ttals frm each parcel sheet are included in entity applicatin CPA-41) The estimated acres The fair market value f the agricultural land easement The ttal estimated entity nn-federal cntributin The requested federal share The estimated purchase price The qualified cntributin frm the landwner Tip: There are tw gd reasns t prepare an appraisal t determine fair market value and the requested federal share instead f simply estimating. First f all, any Federal cst-share will be capped at the amunt f the request. In ther wrds, shuld the value f the agricultural easement be actually higher than any estimate prvided at the time f applicatin, the applying entity may need t cver thse additinal csts. Secndly, additinal pints (10) are awarded in the ranking if a USPAP r Yellwbk Self-Cntained Appraisal has been cmpleted within the last fur mnths prir t applicatin. Signature f landwner Michigan Applicatin Checklist Legal descriptin f the prperty (survey, deed r title cmmitment). A lcatin map shwing the parcel and acreage being ffered. If multiple parcels, bundaries fr each as well as a larger prperty bundary. A map f prime, unique and statewide imprtant sils fr the parcel. A map shwing ther prtected parcels in relatin t the parcel being ffered. A narrative descriptin r evidence f hw the prtectin f the parcel will further a State r lcal plicy cnsistent with ACEP Tip: A narrative f abut a page, include any lcal prgrams/plicies as well as the Michigan Farmland Preservatin and Open Space Prgram as examples. Narrative statement regarding the threat f cnversin r fragmentatin frm nn-agricultural develpment fr each parcel. (The Michigan Ranking Frm awards pints based n prximity t sanitary sewer and/r water lines) Cpies f any Phase I envirnmental site assessments (The Michigan Ranking adds pints fr cmpleted Phase I assessments) Prf f wnership f subsurface mineral rights (Preliminary Title Cmmitment) Tip: A preliminary title cmmitment shuld cver bth surface and subsurface wnership issues. Cpy f the pending ffer fr the parcel. Tip: Again, a nn-binding ffer is best in case federal cst-share is declined Michigan Ranking Frm Pay clse attentin t the Michigan Ranking Frm t maximize pints. Sme items may nt be required but can scre 5

6 additinal pints. Example: Existence f a farm r ranch successin plan r similar plan established t address farm viability can add 10 pints t the applicatin. Landwner Eligibility and Applicatin Infrmatin Requirements Landwner eligibility requirements include: Landwner Adjusted Grss Incme (AGI) must fall belw the limitatins f $900,000 with n pprtunity fr waiver. Use Farm Services Agency Frm CCC-941: Adjusted Grss Incme Certificatin and Cnsent t Disclsure f Tax Infrmatin. Landwners f recrd must establish farm recrds with Farm Service Agency. If the wnership f the prperty is a husband and wife, bth husband and wife must establish farm recrds. Yur landwner may already have their recrds n file. Check with yur lcal NRCS Field Office r the lcal USDA Service Center r Farm Services Agency. If prperty has n farm and tract number, then ne must be established. If there is a farm and tract number, ensure the wnership recrds are updated. If the prperty is wned by an entity (rather than ne r mre individuals), frm CCC-901 r 902 must be filed with the USDA Service Center. Cmpliance with Highly Erdible Lands (HEL) and Wetland Certificatin (AD-1026) must be current and n file with FSA. Agree t prvide access t the prperty. Tip: The gd news here is that many farmers will already have recrds n file with the Farm Service Agency and NRCS. It is imprtant that their recrds be current, hwever. Sme land prtectin practitiners simply cntact the agency r have the landwner d s t make sure all required recrds are in place. The fllwing will be requested frm a landwner in an ACEP-ALE applicatin: Signature f the landwner n each Parcel Sheet (CPA-41A). A CCC-901 if the landwner des nt have entity infrmatin n file with Farm Service Agency. Match Requirements and Waivers ACEP-ALE Federal cst-share and eligible entity match requirements: Federal share prvided by NRCS will nt exceed 50% f the fair market value f the agricultural land easement unless waived in special circumstances. The eligible entity is respnsible fr a share at least equivalent t the NRCS share. An eligible entity may include as part f its share a qualified cnservatin cntributin frm the landwner if the eligible entity cntributes its wn cash resurces in an amunt that is at least 50% f the Federal share. Fr example: Fair Market Value f Cnservatin Easement $200,000 Ttal Requested Federal Share $100,000 (50% f ttal cst*) Eligible Entity Cash Cntributin Must Be at Least $50,000 Dnated Cnservatin Easement Value frm Landwner $50,000 *Nte: Pints are given fr a federal cst share f less than 50% NRCS may waive a prtin f the eligible entity cash cntributin f an ACEP-ALE request if the NRCS determines the parcel is f Special Significance. In these cases, the federal cst-share des nt increase but instead allws an increase in the private landwner dnatin that is equal t the amunt f the waiver. The landwner dnatin must be vluntary and the land in active agricultural prductin. In Michigan, the adjustment is limited t 25% f the Federal cst-share s in the abve example, the dnative value culd increase t $75,000 and the entity cash cntributin lwered t $25,000. Fr Special Significance criteria and hw t make the request, see the Waiver Request Wrksheet. Waiver requests and all supprting dcumentatin must be: 6

7 Submitted by the entity in writing, One waiver request per parcel, and Submitted by State befre the applicatin cut-ff date t allw time fr review and make determinatin by selectin cut-ff date. APPLICATION At the Time f Applicatin: Eligible entities in Michigan must submit the frms listed belw (see Dcuments sectin f the ACEP/NRCS Michigan webpage) and ther infrmatin fr a cmplete applicatin. (Sme landwner infrmatin need nt be submitted but must be current and n file with the Farm Service Agency.) The applicatin itself is submitted t yur lcal NRCS ffice. Nte: Applicatin materials are subject t change, especially the Michigan Ranking Frm. Make certain yu acquire the mst recently updated frms and their cntents at: Tip: The lcal NRCS ffice can be extremely helpful in making certain all the crrect dcuments are in place give yurself plenty f time t wrk with them. 1. Cmpleted and Signed Pre-applicatin Assessment Tl. This tl must be cmpleted fr each parcel, althugh several parcels can be included in ne applicatin. 2. Cmpleted and Signed Michigan Applicatin Checklist, again ne fr each parcel in the applicatin. 3. NRCS CPA-41: Entity Applicatin, signed by the entity. 4. SF 424 (Federal Applicatin fr General Assistance), SF 424A (Budget Infrmatin Nn-Cnstructin Prgrams), SF 424B (Assurances Nn-Cnstructin Prgrams) 5. NRCS CPA-41A: Parcel Sheet fr each parcel, signed by entity and landwner 6. CCC-901: Farm Service Agency (FSA) frm t determine wnership interest if the landwner. Only needed if the landwner des nt have entity infrmatin n file with the Farm Service Agency 7. ACEP-ALE Ranking Frm: Cmpleted and signed by entity 8. ACEP-ALE Applicatin Data Sheet: Cmpleted and signed by entity 9. Average Adjusted Grss Incme (AGI) Certificatin and Highly Erdible Land and Wetland Certificatin (AD-1026) must be current and n file with Farm Service Agency. Reminder: Wrk with the District Cnservatinist t determine if the landwner s infrmatin is n file, 10. Cpy f Pending ffer fr the parcel(s). 11. ACEP-ALE Waiver Wrksheet if yu believe yur prject is f Special Significance and yu wish t have the eligible entity cash cntributin adjusted (by allwing an increase in dnative value frm the landwner). 12. CPA-230: Statement t Cnfirm Matching Funds. Prvide ne fr every parcel, signed by the landwner and the entity. 13. Additinal Checklist items fr each parcel: All maps, legal descriptin, statements and evidence as t hw parcel supprts state r lcal land prtectin prgram and level f threat frm urban develpment, prf f wnership f subsurface mineral rights, cpy f the pending ffer. AFTER THE APPLICATION Once a cmplete applicatin is submitted, it can take a few mnths befre award annuncements are made and as lng as 18 t 24 mnths t clsing. Successful cnservancies will receive a Ntice f Grant and Agreement Award, fllwed by the executin f a Cperative Agreement. The term f the agreement is three years, but entities have tw years t clse n the prperty assuming all ges well and there is n need t make an extensin request. Keep in mind that in additin t wrking with the landwner, the NRCS is an invested partner and must review and apprve all dcuments and plans prir t clsing unless yu cnservancy is a certified entity. Funding is nt made available until 7

8 clsing, but an advanced request t NRCS may result in the landwner receiving the federal cst share within 7 10 days f clsing. The cnservancy share will be due at clsing. Heart f the Lakes wuld like t thank the fllwing fr their assistance in preparing this dcument: Rbin Burke, Land Prtectin Manager, Legacy Land Cnservancy Sam Pltkin, Farm Prgrams Manager, Leelanau Cnservancy American Farmland Trust 8

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