Local PDR Program Guidance

Agricultural Preservation Fund Guidance Local Program Qualifications, Grant Applications and Scoring

Purpose of the Fund

The Agricultural Preservation Fund and associated Agricultural Preservation Fund Board provides grants to eligible local units of government and their qualified Purchase of Development Rights (PDR) programs. The term "local unit of government" refers to counties, cities, townships, and villages that have the authority to zone property as provided by law. Applications for grants occur on an annual basis. If an applicant receives a grant, the grants may be used for the purchase of permanent agricultural conservation easements to preserve farmland.

The Agricultural Preservation Fund has three revenue sources:

1. Farmland Tax Credit repayments - MCL 324.36111 through 36113
2. Annual Treasury transfer fees - MCL 206.51(3)
3. Agricultural Use Recapture tax - MCL 211.1001 through 1007

If the Agricultural Preservation Fund balance exceeds $5 million after grants have been awarded, the Agricultural Preservation Fund Board may approve the Purchase of Development Rights by the Michigan Department of Agriculture and Rural Development.

Agricultural Preservation Fund Board (APFB)

The APFB was established through legislation in 2000 to award grants to local agricultural conservation easement programs. The Board is comprised of 7 members, appointed by the Governor, and is responsible for the distribution of grants. The Board makeup includes:

• Board Chairman - Director of the Department of Agriculture and Rural Development, or their designee.
• Director of the Department of Natural Resources, or their designee.
• Two individuals representing agricultural interests.
• Three individuals representing the general public.

Grant Program

Grant application minimum requirements and scoring criteria are found in the Policies and Procedures for the Agricultural Preservation Fund Board.

A selection committee within the Michigan Department of Agriculture and Rural Development will review and score all grant applications using the approved scoring criteria. The results will be presented to the Agricultural Preservation Fund Board at a public meeting for consideration, evaluation, and award.

Starting Up a County/Township PDR Program

Grant applications may be submitted by eligible local units of government. For a local unit of government to qualify, a county or township must have zoning authority, be covered under a master plan that includes farmland preservation, successfully passed a Purchase of Development Rights Ordinance, and created a plan for monitoring conservation easements.

Comprehensive Land Use Plan

The comprehensive land use plan must be prepared within the last ten years and last updated within the past five years. This comprehensive land use plan must contain an agricultural preservation component with the following information included:

• The areas included for agricultural preservation are clearly depicted on the future land use map.
• A description of how and why the preservation area was selected.
• Goals for farmland preservation
• Language indicating why farmland should be preserved in the community (cost of services studies, economic benefit to the community, etc.)
• Text describing the strategies intended to be used to preserve the agricultural land, including the PDR and any other techniques.

Adopting PDR Ordinance

A development rights ordinance providing for a PDR program in accordance with the applicable zoning act (county, township, or city and village) that contains the following:

• A method to establish the price to be paid for development rights which may include an appraisal, bidding, or formula-based process.
• An application procedure
• Criteria for a farmland parcel selection-scoring system.

Monitoring Conservation Easement Plan

A monitoring and enforcement plan for the farmland conservation easements must be established.

Active County/Township Programs - Grant Applications

Local units of government with approved PDR programs may submit a grant application. For a local unit of government to be eligible to submit a grant application, the following requirements must be met:

• Adopted a development rights ordinance providing for a PDR program in accordance with the applicable zoning act (county, township, or city and village) that contains the following:
  • An application procedure
  • Criteria for a farmland parcel selection-scoring system
  • A method to establish the price to be paid for development rights which may include an appraisal, bidding, or formula-based process.
• Within the last 10 years, adopted a comprehensive land use plan that includes a plan for agricultural preservation or is included in a regional plan meeting the same requirements.

Item to be included in the grant application include:

• A list of the parcels proposed for PDR
• Size and location for each parcel
• Amount of local matching funds
• Estimated value of the agricultural conservation easement
• The amount of funding provided by the applicant, the landowner, or other entity.

A grant application notice will be sent out to qualified PDR programs when the fiscal year grant cycle begins. The notice will include a blank application form. Applications will be due 60 days after the application release. Completed applications must be submitted to MDARD-PDR@Michigan.gov by the indicated deadline.

Fiscal Year Annual Estimated Timeline

Application Selection Criteria

The full scoring criteria can be found in the Policies and Procedures for the Agricultural Preservation Fund Board. The scoring criteria are used to fairly rank the individual applications. The selection criteria can be broken down into two main categories, each containing many subcategories. The first category delegates points based on the property characteristics and the second category delegates points based on the local PDR program. Local programs are selected based on the scoring system adopted by the board that focuses on quality agricultural parcels and program achievements.

Scoring criteria points are summarized in the scoring table below.

More Details

• A policy for installment payments has been adopted by the Board. For more information, please see Policies and Procedures for the Agricultural Preservation Fund Board
• The state and local unit of government will jointly hold the agricultural conservation easements. The state may delegate enforcement authority to the local unit of government.
• An agricultural conservation easement may be transferred back to the property owner subject to the terms of the easement established by the local unit of government if agreed to by the state and local unit of government.
• Additional information about the Board and the Agricultural Preservation Fund may be found in Part 362 of the Natural Resources and Environmental Protection Act (MCL 324.36201 – 36207).

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