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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

Prior to applying for a grant, a local unit of government must be qualified to be eligible to make a grant application. To qualify for the current fiscal year that begins on October 1, the local unit of government must be approved by MDARD in the previous fiscal year (no later than September 30 prior to application). For a local unit of government to qualify to apply for a grant under MCL 324.36203, the following requirements must be met.

  1. The local unit of government has adopted a development rights ordinance providing for a purchase of development rights program pursuant to the county zoning act, 1943 PA 183, MCL 125.201 to 125.240, the township zoning act, 1943 PA 184, MCL 125.271 to 125.310, or the city and village zoning act, 1921 PA 207, MCL 125.581 to 125.600, that contains all of the following:
    1. An application procedure.
    2. The criteria for a scoring system for parcel selections within the local unit of government.
    3. A method to establish the price to be paid for development rights, which may include an appraisal, bidding, or formula-based process.
  2. The local unit of government has adopted, within the last 10 years, a comprehensive land use plan that includes a plan for agricultural preservation or the local unit of government is included within a regional plan that was prepared within the last 10 years that includes a plan for agricultural preservation.

The Agricultural Preservation Fund Board has also adopted policies that describe the comprehensive land use plan requirements, and the requirement that the local unit of government have a monitoring and enforcement plan for conservation easements.

Qualified Local Program - Annual Grant Application Cycle

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 by the indicated deadline. Contact information and due date will be included on the attached cover letter.

Fiscal Year Annual Estimated Timeline

Date(s) Actions
01-Oct New Fiscal Year Begins
Dec - Jan Grant Application Announcement (usually due 60 days after advertisement)
Early Spring Eligible Grant Applications Due (Local Preservation Programs)
MDARD reviews and scores eligible grant applications submitted.
Grant scoring and recommendations submitted to the Board for consideration and approval.
Grant Award Press Release
Request Information from Recipients and Prepare Draft Grant Agreements
Grant Agreements Signed.
Note - Grants Are Issued with a 2 Year Term and Recipients May Request One 2 Year Extension If Necessary.
Process New Grants and Manage Local Closings.
Conduct Local Conservation Program Outreach and Guidance to Local Programs for New Grants.
Ongoing Year Round (MDARD)
  • Manage New and Existing Grants
  • Conservation Easement Monitoring
  • Outreach And Guidance to Local Programs.
  • Manage Donation of Conservation Easements.

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. Local programs are selected based on the scoring system adopted by the board that focuses on quality agricultural parcels and program achievements.

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.
  • The Board has adopted minimum easement terms that must be used when accepting a grant. Contact MDARD Farmland staff for more information.
  • 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).
  • Learn more about the Agricultural Preservation Fund Board, including a list of board members, meeting schedule, and past meeting minutes.