What happens when a Farmland Development Rights Agreement expires?
During the last year of a Farmland Development Rights Agreement, the Agreement holder will be sent a notice asking if they wish their Agreement to be extended or to expire. Extension: After the initial 10 year agreement term, the Agreement may be extended for up to 90 years total, with a minimum of 7 years at a time. Expiration: If the Agreement holder chooses to let the Agreement expire, then repayment of tax credits received during the last seven years under the agreement is required. Michigan Department of Treasury will determine the amount of tax credits received during the last seven years. The landowner will be notified of the amount. If it is not paid within 30 days, a lien will be placed against the property. If credits were not taken during the last seven years, then no lien will be placed.
