Farmland Preservation Program

In exchange for farming your land and meeting conservation standards, you can receive an annual income tax credit. The amount of the tax credit depends on whether your land is located in a farmland preservation zoning district or covered by a farmland preservation agreement or both.

In addition to having an agreement within one of the state’s AEAs or being in a farmland preservation zoning district:

• You must be the landowner. You do not need to be the farm operator and can rent out your land to a producer.
• You must be a Wisconsin resident.
• Your land must have produced $6,000 in gross farm revenue in the past year, or $18,000 in the past 3 years. If the land is rented out, the owner can claim the tax credits based on gross farm revenue produced by the renter. The actual rent received by the landowner is not counted toward gross farm income. However, other payments received, such as payments for enrolling land in the federal Conservation Reserve Program (CRP), Managed Forest Law (MFL), and other state and federal programs, can be used to meet the gross farm revenue requirement.
• Your farm must meet state soil and water conservation standards. New claimants must also submit a certification of compliance with soil and water conservation standards. Obtain a certificate of compliance from your county’s conservation department. Compliance inspections are required by Land Conservation staff every 4 years to verify compliance in the program.
• You must be able to certify that all property taxes owed from the previous year have been paid.
• A farmer is not eligible for the farmland preservation tax credit if they choose to apply for the Homestead Tax Credit on any of their land.

Wisconsin Act 42 Changes Effective 12/8/23

Eligible landowners may collect one of the following per acre amounts by filing Schedule FC-A with their income tax return:

• $10/acre for qualifying acres that are in a farmland preservation zoning district but are not subject to a farmland preservation agreement.
• $10/acre for qualifying acres that are subject to a farmland preservation agreement in an AEA but are not located in a farmland preservation zoning district, OR qualifying acres that are subject to a farmland preservation agreement signed before July 1, 2009 that has been modified to meet current eligibility requirements.
• $12.50/acre for qualifying acres that are in a farmland preservation zoning district and subject to a farmland preservation agreement in an AEA or a farmland preservation agreement signed before July 1, 2009 that has been modified to meet current eligibility requirements.

There is no cap on the amount of credit that an individual can claim or on the amount of acreage eligible for a tax credit. However, if the total amount of claims exceeds $27 million in a given year, that state is obligated to prorate the value of the credits available to individuals.

How does the Wisconsin Act 42 changes affect back dated tax credit claims?

Current farmland preservation participants are eligible to file for the farmland preservation tax credit up to four years from the unextended due date for that tax credit. Back dated tax credit claims made for any tax year prior to 2023 will be subject to the original tax credit rates:

• $5 per acre for qualifying acres that are subject to a farmland preservation agreement in an AEA but are not located in a farmland preservation zoning district, OR qualifying acres that are subject to a farmland preservation agreement signed before July 1, 2009 that has been modified to meet current eligibility requirements;
• $7.50 per acre for qualifying acres that are in a farmland preservation zoning district but are not subject to a farmland preservation agreement; or
• $10 per acre for qualifying acres that are in a farmland preservation zoning district and subject to a farmland preservation agreement in an AEA or a farmland preservation agreement signed before July 1, 2009 that has been modified to meet current eligibility requirements.

Agricultural Enterprise Areas (AEAs) are community led efforts that establish an area as being important to Wisconsin’s agricultural future. Local communities can voluntarily pursue an AEA designation. Your land must be within an AEA in order to sign a farmland preservation agreement. If it is, contact your county land conservation department to submit an application. If it is not in an AEA you can file a petition.

Farmers and local governments can work together to file a petition for AEA designation. DATCP accepts petitions once a year. At least 5 farm owners, the county, and the municipality must file the petition together. More information is available on the Department of Agriculture, Trade and Consumer Protection website.

If your land is in an AEA and you sign a 15-year agreement, you may claim a tax credit of $5/acre per year or $10/acre per year if your land is also located in a farmland preservation zoning district. In exchange for the tax credit, you keep the land in agricultural use and meet state soil and water conservation standards. The agreement follows the land. Subsequent landowners must follow the terms of the agreement unless they terminate it.

Zoning is a tool that can promote agriculture, restrict non-agricultural use in an agricultural area, and limit land use conflicts. If your land is in a certified farmland preservation zoning district, you may be able to claim the $7.50/acre tax credit. Contact your local zoning administrator’s office to determine if you own land within a certified farmland preservation zoning district.

There is a $50 inspection fee for new claimants and renewal inspections every 4 years payable to Outagamie County.

Please contact the Outagamie County Land Conservation Department at (920) 832-5073 with any questions or comments regarding the Farmland Preservation program.