Ingham County
Farmland and Open Space Preservation Board
P.O. Box 319
Mason, MI 48854
(517) 244-7197 stacy@sheridanland.com
Purchase of Development Rights Program Application Deadline:
July 1, 2013 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 48854
Applications must be received in a sealed envelope!
Name (list all)
(include all persons recorded on the deed(s), i.e. spouses, partners, siblings, parents etc.)PLEASE PRINT
Company Name (If any)
Address
Telephone
(Street/Rd)
(Daytime)
(City)
(Evening)
(State)
(Cell)
(Zip)
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?
If yes, please explain
3.) Tax Parcel ID # and acreage for each: Acres:
/
/
(yes / no)
Parcel ID Number:
/
/
/
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4.) How is your land currently zoned? (circle one)
Agricultural
Commercial/Industrial
Agricultural Residential
Other
Commercial
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
Wheat
Acres
Acres
Certified Organic
Certified Organic
Acres
Acres
Acres
Certified Organic
Certified Organic
Certified Organic
Soybeans
Hay
Other
Livestock
Beef Cattle
Dairy
Horses
Head:
Head:
Head:
Certified Organic?
Certified Organic?
Certified Organic?
Pigs Head: Certified Organic?
Sheep Head: Certified Organic?
Chickens Head:
Turkeys Head:
Specialty Crop
Fruit Acreage:
Certified Organic? Yes No
Certified Organic?
Certified Organic?
Vegetable Acreage:
Certified Organic? Yes No
Total 2011 Sales:$
7.) Is the nominated property within 1 mile of a livestock operation (1000 unit)?
Yes Owner’s Name
Address of operation
(street)
Total 2011 Sales:$
(city)
#of head
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8.) Total acreage
9.) Total Cropland acre including pasture
10.)
11.)
Total Forest Land
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
14.)
If yes, list verification number (with MDA)
Yes
Is the farm a verified Centennial Farm? Yes No
I certify that the statements made above are a true and accurate representation of the facts regarding the
nominated property.
X
Date Print Name
X
Signature
X
Print Name
X
Signature
X
Print Name
Date
Date
X
Signature
X
Print Name Date
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P.O. Box 319, Mason, MI 48854 Ph: 517.244.7197 Fax: 517.676.7358
Dr. Paul K. Kindel, Chairperson
Dr. Carol (Jake) Wamhoff, Vice-Chairperson
Members
William Rogers
Comm. Don Vickers
Gabriel Biber
Dr. Kirk Heinze, Secretary
Dr. Kirk Heinze
Dr. Paul K. Kindel
Laurie Koelling
Laurie Koelling, Treasurer Fred Pallottini
Dr. Carol (Jake) Wamhoff
To: Interested Landowner
From: Ingham County Farmland and Open Space Preservation Board
Date: April 1, to July 1, 2013 (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’s Farmland Protection Efforts – PDR
 Ingham County Purchase of Development Rights Program o Potential Questions and Answers
 Ingham County Farmland Preservation Application Form
 Steps to Completing the Ingham County PDR Application
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 July 1, 2013 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 48854
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.
Please call Connie Vernon with MSU Extension at (517) 676-7207 or e-mail at cvernon@ingham.org
or Stacy Byers at
(517)244-7197 or e-mail at stacy@sheridanland.com
if you have any questions.
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Application Deadline: July 1, 2013 at 11:00 a.m.
Step 1: 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.
Step 2: 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.
Step 3: 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) 676-4644 x. 3 or e-mail at karry.trickey@mi.usda.gov
nd
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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 over the next 10-15 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 non-
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farm 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.
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I
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.
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Q.
A.
I
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.
A.
What is an agricultural Conservation Easement?
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.
A.
Why should I sell my development rights to the county?
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.
A.
Is there a market for deed restricted farmland?
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.
A.
How do you determine the value of my development rights?
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 = $3000.00 per acre, value of land unrestricted
After Easement = $1200.00 per acre, value of land restricted
Payment = $1800 per acre, value of development rights
(The price the county would pay to preserve the land)
If I sell my development rights to the county will the public have the right to come on my property?
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 program. This will help to further strengthen your protection from public violations of your rights as a landowner.
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Q.
A.
Q.
A.
Q.
A.
When would the county buy my development rights?
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.
What happens after I submit my application?
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.
Am I required to accept the county’s offer?
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.
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