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What is it? 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 programs (PDRs). 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:
- Farmland Tax Credit repayments - MCL 324.36111 through 36113
- Annual Treasury transfer fees - MCL 206.51(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.