(dm) "Livestock" means bovine animals, equine animals, goats, poultry, sheep, swine, farm-raised deer, farm-raised game birds, camelids, ratites, and farm-raised fish.
(e) "Nonprofit conservation organization" means a nonstock corporation, charitable trust, or other entity whose purposes include the acquisition of property for conservation or agricultural preservation purposes, that is described in section 501 (c) (3) of the Internal Revenue Code, that is exempt from federal income tax under section 501 (a) of the Internal Revenue Code, and that is a qualified organization under section 170 (h) (3) of the Internal Revenue Code.
(f) "Political subdivision" means a city, village, town, or county.
(g) "Professional appraisal" means an appraisal conducted by a certified general appraiser, as defined in s. 458.01 (8).
(h) "Purchase cost" means the amount paid to a landowner to acquire an agricultural conservation easement from the landowner.
(i) "Transaction costs" means out-of-pocket expenses incurred in connection with the acquisition, processing, recording, and documentation of an agricultural conservation easement, including out-of-pocket expenses for land surveys, land descriptions, real estate appraisals, title verification, preparation of legal documents, reconciliation of conflicting property interests, documentation of existing land uses, and closing. "Transaction costs" does not include costs incurred by a cooperating entity for staffing, overhead, or operations.
(2) PROGRAM. (a) The department shall administer a program under which it, together with cooperating entities, purchases agricultural conservation easements from willing landowners. The department may pay as its share of the cost to purchase an agricultural conservation easement under this section an amount that does not exceed the sum of the following:
1. Fifty percent of the fair market value of the agricultural conservation easement.
2. The reasonable transaction costs related to the purchase of the agricultural conservation easement.
(am) The willingness of a landowner to convey an agricultural conservation easement for less than full market value does not reduce the amount that the department may pay as its share of the cost to purchase the agricultural conservation easement.
(b) The department, after consultation with the council under sub. (13), shall solicit applications under sub. (3) at least annually. The department shall issue each solicitation in writing and shall publish a notice announcing the solicitation. In soliciting applications, the department may specify the total amount of funds available, application deadlines, application requirements and procedures, preliminary criteria for evaluating applications, and other relevant information.
(3) APPLICATION. A cooperating entity may apply to participate in the program under this section by submitting an application that complies with requirements contained in the department's solicitation under sub. (2) (b) and that contains all of the following:
(a) Identifying information for the cooperating entity, including information showing that the cooperating entity is a political subdivision or nonprofit conservation organization.
(b) A description of the land that would be subject to the proposed agricultural conservation easement, including location, acreage, and current use.
(c) The name and address of each owner of land that would be subject to the proposed agricultural conservation easement.
(d) Evidence that all of the owners under par. (c) are willing to convey the proposed agricultural conservation easement.
(e) An indication that the cooperating entity is willing to arrange the purchase of the proposed agricultural conservation easement in accordance with this section and share in the purchase cost, subject to reimbursement under sub. (9) of the department's agreed upon share of the costs.
(f) The purpose of and rationale for the proposed agricultural conservation easement.
(g) Information needed to evaluate the application using the criteria in sub. (4) and in the department's solicitation under sub. (2) (b).
(4) APPLICATION EVALUATION CRITERIA. The department may not approve an application under sub. (3) unless the department determines that purchase of the proposed agricultural conservation easement will serve a public purpose. In making this determination, the department shall consider all of the following criteria:
(a) The value of the proposed agricultural conservation easement in preserving or enhancing agricultural production capacity in this state.
(b) The importance of the proposed agricultural conservation easement in protecting or enhancing the waters of the state or in protecting or enhancing other public assets.
(c) The extent to which the proposed agricultural conservation easement would conserve important or unique agricultural resources, such as prime soils and soil resources that are of statewide importance or are unique.
(d) The extent to which the proposed agricultural conservation easement would be consistent with local land use plans and zoning ordinances, including any certified farmland preservation plans and zoning ordinances under ch. 91.
(e) The extent to which the proposed agricultural conservation easement would enhance an agricultural enterprise area designated under s. 91.84.
****NOTE: This paragraph depends on combining the farmland preservation (09-0203) draft with this one. If the drafts are not combined, this paragraph must be deleted.
(f) The availability, practicality, and effectiveness of other methods to preserve the land that would be subject to the proposed agricultural conservation easement.
(h) The proximity of the land that would be subject to the proposed agricultural conservation easement to other land that is protected for agricultural use or conservation use and the extent to which the proposed agricultural conservation easement would enhance that protection.
(i) The likely cost-effectiveness of the proposed agricultural conservation easement in preserving land for agricultural use.
(j) The likelihood that the land that would be subject to the proposed agricultural conservation easement would be converted to nonagricultural use if the land is not protected by the proposed agricultural conservation easement.
(k) The apparent willingness of each landowner to convey the proposed agricultural conservation easement.
(5) PRELIMINARY APPROVAL OF APPLICATIONS. The department may give preliminary approval to an application under sub. (3) after evaluating the application under sub. (4) and consulting with the council under sub. (13). The department shall give its preliminary approval in writing. Approval of an application is contingent on the signing of a contract under sub. (6m).
(6) INFORMATION RELATED TO PROPOSED EASEMENT. A cooperating entity that receives a preliminary approval under sub. (5) shall submit all of the following to the department:
(a) A copy of the proposed instrument for conveying the agricultural conservation easement.
(b) A professional appraisal of the proposed agricultural conservation easement.
(c) A statement of the purchase cost of the agricultural conservation easement.
(d) An estimate of the transaction costs that the cooperating entity will incur in connection with the purchase of the proposed agricultural conservation easement.
(e) The record of a complete search of title records that verifies ownership of the land that would be subject to the proposed agricultural conservation easement and identifies any potentially conflicting property interests, including any liens, mortgages, easements, or reservations of mineral rights.
(f) Documentation showing to the satisfaction of the department that any material title defects will be eliminated and any materially conflicting property interests will be subordinated to the proposed agricultural conservation easement or eliminated.
(6m) CONTRACT WITH COOPERATING ENTITY. After a cooperating entity complies with sub. (6) and the department determines that the proposed instrument of conveyance complies with sub. (7), the department and the cooperating entity may enter into a written contract that specifies the terms and conditions of the department's participation in the purchase of the proposed agricultural conservation easement. The cooperating entity shall agree to pay the full purchase cost and the transaction costs related to the purchase of the proposed agricultural conservation easement, subject to reimbursement under sub. (9) of the department's agreed upon share of the costs.
(7) PURCHASE OF EASEMENT. After a cooperating entity has entered into a contract under sub. (6m), the cooperating entity may, in accordance with the contract, purchase the agricultural conservation easement on behalf of the cooperating entity and the department if the agricultural conservation easement does all of the following:
(a) Prohibits the land subject to the agricultural conservation easement from being developed for a use that would make the land unavailable or unsuitable for agricultural use.
(b) Continues in perpetuity, except as provided in par. (dm).
(c) Provides that the cooperating entity and the department, on behalf of this state, are both holders of the agricultural conservation easement.
(d) Prohibits any holder of the agricultural conservation easement other than the department from transferring or relinquishing the holder's interest without 60 days' prior notice to the department.
(dm) Provides that a court may do all of the following if, at any time, the court finds that due to unforeseen circumstances it is no longer possible for the agricultural conservation easement to serve its original purpose:
1. Terminate the agricultural conservation easement.
2. Order the property owner to pay compensation to the holders of the agricultural conservation easement, including this state, under the terms the court determines to be appropriate.
(e) Complies with any other conditions specified in the contract under sub. (6m).
(8) ACCEPTANCE AND RECORDING OF EASEMENT. A cooperating entity that purchases an agricultural conservation easement under sub. (7) shall submit the agricultural conservation easement to the department for its acceptance. Upon acceptance by the department, the cooperating entity shall promptly record the agricultural conservation easement and acceptance with the register of deeds of the county in which the land subject to the agricultural conservation easement is located and shall provide to the department a copy of the recorded instrument conveying the agricultural conservation easement, certified by the register of deeds under s. 59.43 (1) (i).
(9) PAYMENT. The department shall reimburse a cooperating entity for the department's agreed upon portion of the purchase cost and transaction costs related to the purchase of an agricultural conservation easement after the cooperating entity does all of the following:
(a) Complies with sub. (8).
(b) Submits documentation showing that any material title defects have been eliminated and any materially conflicting property interests have been eliminated or subordinated to the agricultural conservation easement, as required by the contract under sub. (6m).
(c) Submits proof of the amount of the purchase cost and transaction costs that the cooperating entity has paid, consistent with the contract under sub. (6m).
(10) TRANSFER OR RELINQUISHMENT OF HOLDER'S INTEREST. The transfer or relinquishment of another holder's interest does not affect the department's interest in an agricultural conservation easement.
(11) ENFORCEMENT OF EASEMENT. The department or any other holder of an agricultural conservation easement purchased under this section may enforce and defend the agricultural conservation easement.
(12) RECORD OF EASEMENTS. The department shall maintain a record of all agricultural conservation easements purchased under this section.
(13) COUNCIL. The department shall appoint a council under s. 15.04 (1) (c) to advise the department on the administration of this section.
(End)
LRB-0203LRB-0203/2
RCT&MES:cjs:md
2009 - 2010 LEGISLATURE
DOA:......Miner, BB0112 - Change farmland preservation program
For 2009-11 Budget -- Not Ready For Introduction
2009 BILL
AN ACT ...; relating to: farmland preservation, the farmland preservation tax credit, the farmland tax relief credit, making an appropriation, and granting rule-making authority.
Analysis by the Legislative Reference Bureau
Agriculture
Farmland Preservation Program
General
This bill makes numerous changes in the Farmland Preservation Program, which contains some of the requirements that a farmer must meet to qualify for the farmland preservation tax credit. The Farmland Preservation Program includes farmland preservation planning, farmland preservation zoning, farmland preservation agreements, and soil and water conservation requirements.
Under current law, for a farmer to qualify for the farmland preservation tax credit the farm must be in a zoning district zoned exclusively for agriculture under a zoning ordinance certified by the Land and Water Conservation Board (LWCB) or be covered by a farmland preservation agreement executed by DATCP, or both. In order for DATCP to enter into a farmland preservation agreement, the county in which the farmer lives must have a farmland preservation plan that is certified by LWCB.
Under the bill, DATCP certifies farmland preservation plans and zoning ordinances.
Farmland preservation planning
This bill requires every county to adopt a farmland preservation plan. The bill does not require that a county get its plan certified, but if a county does not have a certified plan, a farmer in the county is ineligible for the farmland preservation tax credit, unless the farm is covered by a farmland preservation agreement entered into before the bill becomes law.
The bill provides that the certifications of current farmland preservation plans expire according to a schedule specified in the bill, except for certifications that currently contain expiration dates. The expiration dates in the bill range from December 31, 2011, to December 31, 2015. The higher increase in the population per square mile of a county, the sooner its farmland preservation plan certification expires. A county must submit an updated farmland preservation plan that meets the requirements in the bill and get it certified by DATCP to enable to farmers in the county to continue to claim the farmland preservation tax credit. Under the bill, DATCP must certify a plan for a period of not more than ten years.
The bill requires a county to include all of the following in its farmland preservation plan:
1. A statement of the county's policy and goals related to farmland preservation and agricultural development.
2. A description of trends and plans related to development that may affect farmland preservation and agricultural development.
3. A description of current agricultural uses of land in the county; agricultural resources, such as available land and water; agricultural infrastructure, such as processing and transportation facilities; trends in the county related to agricultural land use; and actions that the county will take to preserve farmland and promote agricultural development.
4. An identification of farmland preservation areas, which are areas that the county plans to preserve for agricultural use and for related uses, such as facilities for processing agricultural products or agricultural waste.
The bill requires a county that has a comprehensive plan (including what is commonly known as a smart growth plan) to ensure that the farmland preservation plan is consistent with its comprehensive plan.
The bill requires a county seeking to have DATCP certify its farmland preservation plan to submit the plan and related information to DATCP. The county must certify that the plan complies with the requirements in the bill. DATCP may certify the plan based on the county's certification or may review the plan and determine whether it does comply with those requirements. The bill requires a county with a certified farmland preservation plan to submit any amendments to the plan to DATCP for certification.
The bill establishes a program under which DATCP awards planning grants to counties. A grant may reimburse a county for up to 50 percent of the cost of preparing a farmland preservation plan. DATCP may not distribute more than 50 percent of a grant before the county submits the plan to DATCP for certification.
Farmland preservation zoning
Under this bill, as under current law, a city, village, town, or county (political subdivision) may adopt a zoning ordinance that enables farmers to be eligible for the farmland preservation tax credit.
The bill provides that certifications of current farmland preservation zoning ordinances expire according to a schedule specified in the bill, except for certifications that currently contain expiration dates. The dates range from December 31, 2012, to December 31, 2016. The higher the increase in population per square mile of a political subdivision, the sooner its certification expires. A political subdivision must submit an updated farmland preservation zoning ordinance that meets the requirements in the bill and have it certified by DATCP to enable the farmers in the political subdivision to continue to claim the farmland preservation tax credit based on the zoning ordinance. Under the bill, DATCP must certify a zoning ordinance for a period of not more than ten years.
Under the bill, to be eligible for certification, a farmland preservation zoning ordinance must be substantially consistent with a certified county farmland preservation ordinance.
Under current law, land in a farmland preservation zoning district must be limited to agricultural use, with certain exceptions. Current law allows, as conditional uses, agriculturally related, religious, utility, institutional, or governmental uses that are consistent with agricultural use and are necessary in light of alternative locations available. Family farm businesses may also be allowed, with a conditional use permit, if they are conducted in existing structures.
Under the bill, in addition to agricultural uses, a political subdivision may allow accessory uses and agriculture-related uses in a farmland preservation zoning district with a conditional use permit. Accessory uses are conducted on a farm and include uses that are incidental to agricultural uses and family farm businesses. Agriculture-related uses include businesses that sell farm equipment or supplies and businesses that store or process agricultural products or that process agricultural wastes. A political subdivision may also include undeveloped natural resource and open space areas in a farmland preservation zoning district. DATCP may promulgate rules that specify additional uses that may be allowed in farmland preservation districts without a conditional use permit.
The bill also specifies other uses that may be allowed in a farmland preservation zoning district with a conditional use permit. Generally, transportation, communications, utility, governmental, institutional, religious, and nonprofit community uses are in this category if the political subdivision makes certain determinations. The determinations include that the proposed use and its location in the zoning district are reasonable and appropriate, considering alternative locations, that the use is reasonably designed to minimize the conversion of land from agricultural use or open space, and that the use does not substantially impair the agricultural use of surrounding parcels that are zoned for agricultural use.
Current law requires a political subdivision to specify a minimum lot size for farmland preservation zoning districts. This bill eliminates that requirement.
