LANSING, Mich. — The Michigan Senate on Tuesday approved legislation sponsored by state Sen. Kevin Daley as part of a bipartisan package to clarify eligibility for the state’s Farmland and Open Space Preservation Program, commonly known as PA 116.

“This is about saving family farms. This important legislation would ensure that a great program like PA 116 runs smoothly and continues to help support family farmers for generations to come,” said Daley, R-Lum. “Recent actions by two state departments created chaos and unnecessary financial stress for Michigan farmers, with many farmers being told that they now owe years of back taxes.”

A Michigan Department of Treasury review of tax credit eligibility resulted in tax returns of several landowners being withheld. The Department of Agriculture and Rural Development (MDARD) used consent agreements filed with local registers of deeds to waive the state’s interests for certain purchases of development rights under the PA 116 program, resulting in a loss of eligibility.

“We’re working to resolve this issue, restore consistency and preserve this critical credit for our hardworking farmers,” Daley said.

Senate Bills 685-690 and 699 would grandfather in existing agreements by specifically allowing landowners with both a conservation easement and either an agricultural conservation easement or development rights agreement to claim a tax credit. The bills also expand the tax credit for agricultural conservation easements and development rights agreements to conservation easements and to open space preservation programs.

Daley’s bill, SB 686, would allow a small parcel — not to exceed one acre — to be removed from the farmland preservation program if that change would make the boundaries of the land more regular and thereby benefit farming conditions for the land.

Among the groups supporting the bills in committee were the Michigan Farm Bureau, Michigan Environmental Council and multiple county preservation boards.

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