Home » Issues and Action » Main

Farmland Preservation

Farm Preservation in Leelanau County

Farmland preservation has been an important issue in Leelanau County for a number of years. The area’s natural beauty attracts developers who, if unregulated, would build over the very elements that give the county its diversity and character. It is important to provide opportunities for local farmers to retain their farms and pass them on to their children.

In 1992, the County Issues Discussion Group (CIDG), currently the Leelanau County unit of LWV/GTA, took on a study of Farm Preservation. For two years, the group studied existing programs such as Purchase of Development Rights (PDR) and PA116, a state program which lowered farmers’ taxes in exchange for an agreement not to develop their farmland.

At the end of this study, CIDG organized a luncheon for women in agriculture to find out what these women knew about farm preservation programs; we found that they knew very little. Soon after the luncheon, CIDG was invited to join a group to plan a farm preservation program for Leelanau County. Brian Price of the Leelanau Conservancy and Jim Bardenhagen from the MSU Extension Office organized this new group which became the Agriculture Alliance. After much discussion and study, the Ag. Alliance decided to explore the development of a PDR Ordinance. They formed a Task Force and hired a consultant. The goal of the ordinance was to preserve and support the agriculture economy in Leelanau. Extensive analysis of maps and data was done to show the present status of agriculture. PDR Ordinances from many parts of the country were studied and bus tours were taken to see some of them in action. Telephone and written surveys were sent to local citizens; two surveys were sent to all farmers in the county. The CIDG helped with compiling data and mailing of surveys. The surveys showed strong support for farm preservation and the Task Force decided to prepare a Farm Preservation Ordinance for a PDR program for Leelanau county.

How does a PDR program work? A farmer voluntarily decides to sell his rights to develop his property and is paid the difference in value of an acre of his land with and without development rights. (This is similar to selling mineral or oil rights.) The farmer retains all other rights; he only loses his right to develop his property. This is a permanent agreement between the farmer and the County and passes with the property when it is sold or inherited. The agreement could only be broken if the farmland is no longer able to be farmed. The farmer would have to pay back, with interest, the money he gained by selling his development rights.

This is how the Leelanau County PDR Ordinance would work. If a farmer decides to sell his development rights, first he must meet the eligibility requirements.

Size: At least 40 acres with 20.5 acres in agricultural use or at least 20 acres in agricultural use with at least $200 per acre in annual return

A farm which is all contiguous land under one ownership with at least some land in agricultural use. An application may include more than one farm if all are under the same ownership and no farm is more than one mile from another.

If a farmer meets the eligibility requirements, he is put on a waiting list. The farmer must have his land appraised. The number of farms that can be preserved depends on how much funding is available. Funding can come from federal, ftate or local matching grants, township and or county millages, foundations, private donations, or the farmer can donate some of his development rights.
Every year, farmers on the “list” are scored by the following criteria.

• Is the farm part of a block of farms that have been preserved?
• How economically viable is the farm?
• How likely is the farm to be developed? Example: farm with scenic vistas
• Are there matching funds available or is the farmer willing to donate some of his development rights?
• What is the price of the land per acre?
• Is there a family member who would buy the farm in the future?

Each criteria is given a certain number of points. The scores are added and the top scoring farms are saved first. The number of farms preserved depends on the amount of funds available. A farmer can remain on the list if he is not chosen.

In September,2001, Leelanau County became the first county in Michigan to appoint a Farmland Preservation Board. The Task Force delivered the draft PDR Ordinance to the Farm Preservation Board who refined the Ordinance and presented it to the County Commissioners for approval.

The main problem remaining was how to fund the program. PDR is a very expensive program. (A 50 acre farm could cost around $300,000.) It appeared that the best way to fund the program would be a County millage. In November of 2006, Leelanau County asked for .5 mills for 15 years for farm preservation. The millage did not pass due to concerns such as raising taxes, government intrusion into property rights, taking land available for development, and too favorable treatment for farmers. The County Commissioners rescinded the Ordinance. As a result six farmers who were in the process of applying for State PDR funding at that time had to withdraw their applications.

Since then, the Conservancy has been able to preserve several farms using private and Federal funds. (At this time, US Dept. of Agriculture funds do not require a PDR ordinance approved by the County.)

In 2009, the Leelanau Conservancy developed a “farmability” program in which a farmer is given $10 per acre for taxes in exchange for not developing his land for 10 years.
It is hoped that this program will revive interest in Farm preservation.

For more information on the Farmland Preservation Program, link to information on the MDA Farmland Preservation site on the State of Michigan's Department of Agriculture

Farmland Preservation Consensus Questions

1. How important is it to preserve farmland in Benzie, Antrim, Grand Traverse, Kalkaska and Leelanau Counties?

Very Important
Somewhat Important
Not Important

2. Should county and/or local governments pass farmland preservation ordinances which would allow farmers to access public funds for PDRs (Purchase Development Rights)?

Yes
No

3. How should farmland preservation be funded? (Circle all that apply.)

County or township government
State government
Federal government
Private contributions