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Calhoun County
Farmland Preservation Ordinance
WHEREAS, the Calhoun County Board of Commissioners are
permitted to pass ordinances that relate to County affairs and that do
not contravene any general laws of this state MCL 46.11; and
WHEREAS; Calhoun County’s agricultural land is an economically
important resource that supports an important agricultural industry that
includes; dairy, livestock, food from grains, vegetables, and nursery
and greenhouse crops. Calhoun County’s climate, topography, and
accessibility make it well suited for the production, processing, and
distribution of agricultural products on a regional, national, and
international level; and
WHEREAS, Calhoun County’s economic base is also supported by a
variety of agriculturally related businesses including; farm equipment,
fuel, veterinarians, grain dealers, packaging plants, and professional
services; and
WHEREAS, in addition to its economic benefits, the county’s
farmland contributes significantly to the open space and natural
resource benefits, including rural character, scenic beauty, cultural
heritage, hunting and other recreational opportunities, and the
environmental benefits including watershed protection and wildlife
habitat. By enhancing the scenic beauty and rural character of the
county and providing other open space benefits, the county’s farmland
increases the overall quality of life and makes the county an attractive
place to live and work for all of the county’s residents, and
WHEREAS, due to the county’s natural resources, productive
farmland and rural character, it has become a desirable place to live
and work. The population in Calhoun County has continued to increase. As
the population increases and people move out into the countryside,
agricultural land is converted to residential and other developed uses.
There has also been a corresponding increase in residential parcels and
loss of farmland, and
WHEREAS, land suitable for farming is an irreplaceable natural
resource with soil and topographic characteristics that have been
enhanced by generations of agricultural use. When such land is converted
to residential or other more developed uses that do not require those
special characteristics, a critical resource is permanently lost.
Residential development in agricultural areas also makes farming more
difficult by increasing conflict over farming practices and increased
trespass, liability exposure and property damage. Because agricultural
land is an invaluable economic and natural resource, the county should
make an effort to maintain agricultural land in a substantially
undeveloped state to ensure the long-term viability of agriculture and
to create a long-term business environment for agriculture in the
county; and
WHEREAS, it is the policy of the State of Michigan and Calhoun
County to preserve and enhance productive farmland as evidenced by the
Calhoun County Comprehensive Plan and Township Master Plans, the State
Farmland and Open Space Preservation Act, the State Agricultural
Preservation Fund, the Conservation and Historic Preservation Easement
Act, portions of the County Zoning Act, and other state and local
statutes and policies. These measures by themselves, however, have not
effectively provided sufficient long-term preservation of farmland in
Calhoun County from the pressure of increasing residential and
commercial development; and
WHEREAS, generally, farmland has a greater market value for
future residential development than its market value for farming. The
features of good farmland, such as permeable soils and open space, are
also the features desired for residential home sites. This fact
encourages the speculative purchase of farmland at high prices for
future residential development, regardless of the current zoning of such
lands. Farmland which has a greater development potential and market
value than its agricultural value does not attract sustained
agricultural investment and eventually is sold to non-farmers and
removed from agricultural use; and
WHEREAS, the purchase of development rights and the placement
of an agricultural conservation easement on farmland through the Calhoun
County Farmland Preservation Program as provided for in this Ordinance
is a public purpose of Calhoun County. Financing of such purchases
requires that the County enter into agreements with property owners to
obtain such development rights. Properties on which the County has
purchased development rights and entered into an agricultural
conservation easement should remain substantially undeveloped in order
to remain viable for agricultural use
BE IT THEREFORE RESOLVED that the Calhoun County Board of
Commissioners approve the Calhoun County Farmland Preservation
Ordinance.
Adopted by County Board of Commissioners on February
15, 2003
Ordinance No. 8
An Ordinance creating the Calhoun County Farmland Preservation
Program which preserves productive farmland by acquiring development
rights voluntarily offered by landowners, authorizes the cash purchase
and/or installment purchases of such development rights, places an
agricultural conservation easement on the property which restricts
future development, and provides the procedures and guidelines governing
the purchase of development rights and the placement of an agricultural
conservation easement.
BE IT RESOLVED BY THE CALHOUN COUNTY BOARD OF COMMISSIONERS:
Declaration of Purpose of the Program. It is the purpose of
the Calhoun County Farmland Preservation Program and this development
rights ordinance to preserve productive farmland in order to maintain a
long-term business environment for agriculture in the county, to
preserve the rural character and scenic attributes of the county, to
enhance important environmental benefits and to maintain the quality of
life of county residents. Further, it is recognized that this ordinance
is but one of several farmland preservation strategies encouraged
throughout the County. Other strategies include agricultural zoning,
quarter-quarter zoning, sliding scale zoning, and various overlay
techniques.
Section 1: Definitions
- “Agricultural conservation easement” means a conveyance via
written instrument, in which, subject to permitted uses, the owner
relinquishes to the public in perpetuity his or her development rights
and makes a covenant running with the land not to undertake
development.
- “Agricultural use” means substantially undeveloped land devoted to
the production of plants and animals useful to humans, including
forages and sod crops; grains, feed crops, and field crops; dairy and
dairy products; poultry and poultry products; livestock, including
breeding and grazing of cattle, swine, captive cervidae, and similar
animals; berries; herbs; flowers; seeds; grasses; nursery stock;
fruits; vegetables; Christmas trees; and other similar uses and
activities. Agricultural use includes use in a federal acreage
set-aside program, a federal conservation reserve program, or a
wetland reserve program. Agricultural use does not include the
management and harvesting of a woodlot.
- “Development” means an activity that materially alters or affects
the existing conditions or use of any land in a manner that is
inconsistent with an agricultural use.
- “Development rights” means an interest in land that includes the
right to construct a building or structure, to improve land for
development, to divide a parcel for development purposes or to extract
minerals incidental to a permitted use or as set forth in an
agricultural conservation easement.
- “Development rights ordinance” means an ordinance adopted under
the County Zoning Act MCL 125.201, et seq., as amended.
- “Farmland” means 1 or more of the following:
- A farm of 40 or more acres in single ownership, with 51% or more
of the land area devoted to an agricultural use.
- A farm of 5 acres or more in single ownership, but less than 40
acres, with 51% or more of the land area devoted to an agricultural
use, that has produced a gross annual income from agriculture of
$200.00 per year or more per acre of cleared and tillable land. A
farm described in this subparagraph enrolled in a federal acreage
set-aside program or a federal conservation reserve program is
considered to have produced a gross annual income from agriculture
of $200.00 per year or more per acre of cleared and tillable land.
- A farm designated by the department of agriculture as a
specialty farm in 1 ownership that has produced a gross annual
income of $2,000.00 or more from an agricultural use. Specialty
farms include, but are not limited to, greenhouses; equine breeding
and grazing; the breeding and grazing of cervidae, pheasants, and
other game animals; bees and bee products; mushrooms; aquaculture;
and other similar uses and activities.
- “Parcel” means a contiguous quantity of land in single ownership.
- “Permitted use” means any use expressly authorized within an
agricultural conservation easement consistent with the farming
operation or that does not adversely affect the productivity or
agricultural use of the land. Storage, retail or wholesale marketing,
or processing of agricultural products is a permitted use in a farming
operation if more than 50% of the stored, processed, or merchandised
products are produced by the farm operator for at least 3 of the
immediately preceding 5 years. Permitted use includes oil and gas
exploration and extraction, but does not include other mineral
development that is inconsistent with an agricultural use.
- “Single Ownership” means the party or parties having a freehold
estate or fee simple interest in land.
- “PDR program” means a program as defined in the County Zoning Act
MCL 125.201, et seq., for the purchase of development rights by a
county, and specifically includes the Calhoun County Farmland
Preservation Program.
Section 2: Authorization
- Pursuant to the County Zoning Act MCL 125.201, et seq.,
the County Board of Commissioners is authorized to purchase the
development rights of farmland throughout the County. Such acquisition
may be by purchase, gift, grant, bequest, devise, covenant or
contract. The County shall only purchase development rights on
farmland that are voluntarily offered for sale by a property owner.
- The County is authorized to enter into installment
purchase contracts, options, and agreements or take receipt of
donations of easements, consistent with applicable law. The County is
authorized to pay interest on the declining unpaid principal balance
at a legal rate of interest consistent with prevailing market
conditions at the time of execution of the installment purchase
contract.
- The County may contract with recognized and legally
established nonprofit land trusts or other experienced and qualified
individuals, parties or entities that would assist the County in the
process of negotiating easements and purchase contracts, establishing
baseline studies and procedures for monitoring, and actual monitoring
of any agricultural conservation easements acquired under this
Ordinance.
- The Calhoun County Planning Department under the
authority of the Calhoun County Board of Commissioners shall
administer the Farmland Preservation Program.
Section 3: County Agricultural Preservation Board
- The County Board of Commissioners shall create a seven
member body under this Ordinance to be named the County Agricultural
Preservation Board. The seven voting members shall be residents of the
county and will be appointed by the County Board of Commissioners and
will include: (a) one County Commissioner, liaison or designee, (b)
three individuals with agricultural interests, (c) one representative
that is an elected official in township government, (d) one individual
with real estate or development interests, and (e) one individual
representing local natural resource conservation interests.
- Members of the County Agricultural Preservation Board
shall serve three-year terms, with the exception that the County
Commissioner representative shall be designated on an annual basis.
The initial term shall be staggered so that one of the agricultural
representatives and the real estate representative serve an initial
one-year term, another agricultural representative and the local
township representative serve an initial two-year term and the third
agricultural representative and the local conservation representative
serve an initial three-year term. Members may be re-appointed to
successive three-year terms by the County Board of Commissioners. The
County Board of Commissioners shall have the discretion to remove
members for neglect of duty or malfeasance in office or other good
cause. Vacancies due to removal or resignation shall be filled for the
remainder of a term by appointment by the County Board of
Commissioners. Members shall not be compensated for their services
unless so directed by the County Board of Commissioners.
- The County Agricultural Preservation Board shall oversee
the county’s farmland preservation program and shall be responsible
for:
- Establishing selection criteria for the ranking and
prioritization of applications to the program. The selection
criteria must be approved by the County Board of Commissioners prior
to each application cycle.
- Establishing a points-based appraisal formula for
determining the value of the agricultural conservation easements.
- Reviewing and providing oversight in scoring all
applications according to the adopted selection criteria.
- Ranking and prioritizing the top scoring applications
for acquisition and determining whether the development rights
should be purchased.
- Approving the restrictions and permitted uses under the
agricultural conservation easement.
- Establishing the price to be offered to the property
owner and initiating negotiations for the purchase of development
rights and agricultural conservation easement. All purchases of
development rights and agricultural conservation easements must be
submitted to the County Board of Commissioners for approval.
- Establishing monitoring procedures and overseeing
subsequent monitoring to ensure compliance with the agricultural
conservation easement. Enforcement of the agricultural conservation
easement in the case of non-compliance shall be the responsibility
of the County Board of Commissioners or its designated agent.
- Individual County Agricultural Preservation
Board members shall disclose any potential conflict of interest and
may not vote when a conflict exists. Conflicts of interest include,
but are not confined to, situations where (1) the board member is the
applicant; (2) the member is a close relative of the applicant; (3)
the board member has a close business association or ties with the
applicant; (4) the board member, a relative, or a business associate
could receive financial gain or benefit from the acceptance of the
application; or, (5) other conflicts of interest as defined by law.
- To the extent of available funding and as approved by the
County Board of Commissioners in consultation with the County
Agricultural Preservation Board, the County may contract with
qualified and experienced individuals or entities for consulting or
staffing services.
Section 4: Eligibility for Application
Any property owner may submit an application to the County Farmland
Preservation Program provided it meets the following requirements:
- The property owner has signed the application indicating that he
or she is interested in voluntarily selling the development rights to
the parcel.
- At least 51% of the parcel’s area is devoted to an active
agricultural use and no more than 49% of the parcel may be devoted to
non-agricultural open space consisting of wetlands, woodlands, or
otherwise unusable land.
- If the parcel is located within a city, village or township that
administers a zoning ordinance, the municipality has also signed the
application indicating it’s approval of the application to the County.
The County shall not purchase development rights under a development
rights ordinance from land subject to a city, village, or township
zoning ordinance unless all of the following requirements are met:
- The development rights ordinance provisions for the PDR program
are consistent with the Master Plan upon which the city, village, or
township zoning is based.
- The legislative body of the city, village, or township adopts a
resolution authorizing the PDR program to apply in the city,
village, or township.
- The property is not designated for commercial, industrial, or
residential uses at densities in excess of 5 dwelling units per acre
under the County, Township, City or Village Master Plan.
- Agricultural activities are a permitted use on the parcel under
all applicable zoning ordinances.
- The property has an approved and implemented resource conservation
plan that meets USDA-NRCS standards.
Section 5: Criteria for Reviewing and Ranking Applications
The County Agricultural Preservation Board shall establish selection
criteria for ranking and prioritizing all eligible parcels submitted to
the County Farmland Preservation Program. The selection criteria shall
place an emphasis on farmland that:
- As part of the application procedure for the specific
proposed purchase of development rights, the city, village, or
township provides the county with written approval of the application.
- Has a productive capacity suited for the production of
feed, food and fiber and has a greater potential for long-term
agricultural production. Specific selection criteria may be based on
soil classifications, parcel size, agricultural income, enrollment in
the Farmland and Open Space Preservation Act, or the implementation of
a soil conservation plan.
- Is under the threat of development. Specific selection
criteria may be based on proximity to public sanitary sewer or water,
the extent of development activity in the municipality or the amount
of road frontage.
- Complements other farmland protection efforts in the
County. Specific selection criteria may include proximity to other
permanently protected farmland, proximity to other protected lands or
surrounding land enrolled in the State Farmland and Open Space
Preservation Act, or inclusion in an agricultural zoning district.
- Has additional matching funds available for the purchase
of development rights provided by a local unit of government,
landowner or private sources.
- Other factors considered important by the County
Agricultural Preservation Board such as unique physical, historical or
environmental characteristics.
Section 6: Application and Selection Process
- Based upon available resources and at the discretion of the County
Agricultural Preservation Board, the county may on an annual basis
conduct a voluntary application and selection process for property
owners who wish to sell development rights under the County Farmland
Preservation Program.
- The County Agricultural Preservation Board shall begin each
application cycle by giving notice at least 90 days in advance of the
application deadline that the county is accepting applications to the
County Farmland Preservation Program. Notification shall be given in
at least one newspaper of general circulation within the county,
through the county Farm Bureau, County Conservation District, County
MSU-Extension Service, local township offices and other organizations.
- The application may require information to be filled out by the
property owner, the county Conservation District and the local unit of
government.
- All applications shall represent the applicant’s intent to sell
the development rights of the property to the County subject to
mutually acceptable terms. The application will remain active by way
of annual written approval of the landowner, provided there is no
subsequent modification to the scoring criteria or application that
requires additional information. Local cities, villages, and townships
will be asked to sign a letter of continued support for standing
landowner applications, and all applications, both new and old, will
be scored and ranked for each cycle.
- The County Agricultural Preservation Board shall give notice to
each city, village, or township in which an application for the
purchase of development rights has been received, and the disposition
of that application.
- At the close of the application deadline, an initial determination
of eligibility shall be completed by the County Agricultural
Preservation Board or designated staff. The property owner shall be
notified if the application is not eligible for the program. Each
application shall be evaluated and scored according to selection
criteria approved by the County Agricultural Preservation Board and
the County Board of Commissioners prior to the application cycle.
- The County Agricultural Preservation Board shall rank parcels
according to the selection criteria score but shall also individually
evaluate and prioritize the top scoring parcels. The County
Agricultural Preservation Board may reprioritize the top scoring
parcels based on individual review of each application and establish a
priority on which development rights should be purchased first based
on available funds. The written rationale for reprioritization of the
top scoring parcels shall be included with each application.
- Agricultural conservation easement value shall be based upon a
price established by the County Agricultural Preservation Board using
a points-based appraisal method established in section 10 and approved
by the County Board of Commissioners.
- The final ranking and prioritization of applications shall be
submitted to the County Board of Commissioners for their approval.
- Upon mutual agreement to purchase terms by the property owner, the
County Board of Commissioners, and the County Agricultural
Preservation Board, a title search shall be completed before signing
and recording of the agricultural conservation easement. Any questions
or concerns regarding clear title to the property shall be resolved
prior to signing of the agricultural conservation easement. All
individuals, parties or entities with an interest in the property must
be willing to agree to the terms and provisions of the agricultural
conservation easement.
- The County Board of Commissioners shall approve the purchase of
development rights and the agricultural conservation easement. The
County Board of Commissioners may alter the recommendation by the
County Agricultural Preservation Board to purchase the development
rights only if there are insufficient funds, or upon a finding of fact
that the selection criteria had not been accurately or appropriately
applied to a specific application.
- Once the application has been approved for purchase by the County
Board of Commissioners, the county and the property owners shall sign
the agricultural conservation easement and it shall be legally
recorded with the County Register of Deeds office.
- The County shall notify the appropriate local unit of government
of each agricultural conservation easement.
- The agricultural conservation easement will be monitored in
accordance with procedures and guidelines established by the County
Agricultural Preservation Board.
Section 7: Agricultural Conservation Easement Provisions
- Upon the agreement of the purchase and sale of development rights
by the County Agricultural Preservation Board, the property owner and
the County Board of Commissioners, the County and the property owner
shall execute a perpetual agricultural conservation easement, approved
by the County Agricultural Preservation Board and the County Board of
Commissioners. The agricultural conservation easement shall contain a
provision indicating that the easement runs with the land and may not
be terminated except as provided for in this Ordinance and the
easement.
- Restrictions on that portion of the property included in the
agricultural conservation easement shall include, but not be limited
to, the following:
- Property shall not be divided into parcels less than 40
acres in size.
- The construction of residences for new owners of any
divisions shall be prohibited.
- Construction of any other buildings, unless they are
built for uses consistent with farming operations shall be
prohibited.
- Commercial or industrial activity that is inconsistent
with a normal farming operation shall be prohibited.
- Excavation of topsoil, sand, gravel, rock, minerals or
other materials that significantly impairs or interferes with the
agricultural values of the property shall not take place without
prior written approval.
- Public access may not be required under the
agricultural conservation easement.
- Permitted uses and retained development rights in the agricultural
conservation easement shall include, but not be limited to, the
following:
- Construction of buildings necessary for and consistent
with agricultural uses.
- The right to construct one additional residence for an
individual essential to the operation of the farm as defined in MCL
324.36101 et seq., Farmland and Open Space Preservation. Any
structure must be in conformance with all applicable federal, state
and local laws, ordinances and regulations.
- The right to maintain, renovate, add on to, or replace
existing structures. Structure built must be in conformance with all
applicable federal, state and local laws, ordinances and
regulations.
- The right to sell, mortgage, bequeath or donate the
property, provided that any conveyance shall be subject to the terms
of the easement.
Section 8: Duration of the Agricultural Conservation Easement
- The agricultural conservation easement shall be permanent and run
with the land, regardless of transfers in property ownership absent an
action for eminent domain.
- Upon a court’s determination in eminent domain proceedings that
the repurchase of the development rights from the County is necessary
for a specific public interest, need or purpose, the party acquiring
the property through eminent domain or the landowner shall pay to the
county the fair market value of those development rights at the time
of the repurchase, as determined by a State Certified Appraiser, or
utilizing the points-based appraisal in section 10, before the
termination of the agricultural conservation easement. The value of
the development rights shall be determined as the difference between
the fair market value of the property with all development rights
intact and the value of the property for agricultural use with an
agricultural conservation easement in place. If the appraiser has a
conflict of interest associated with a potential appraisal, the
appraiser shall report the conflict to the County, and the County
shall select another appraiser to complete the appraisal.
- The County will deposit the proceeds from any repurchases into the
farmland preservation fund and the proceeds shall be used to purchase
additional development rights and agricultural conservation easements
on additional farmland within the county.
Section 9: Determining the Value of the Agricultural Conservation
Easement
- The County Agricultural Preservation Board, with concurrence of
the County Board of Commissioners, shall establish a points-based
appraisal method and formula for determining the value of the
agricultural conservation easement prior to each application cycle.
The formula shall establish a Base Value based on the parcel’s soil
characteristics, size and proximity to other protected farmland. The
Base Value shall be increased if the parcel qualifies for a market
value adjustment based on the parcel’s location within the county and
the amount of road frontage. In determining the market value
adjustment, an average of actual vacant land sales of parcels over 20
acres in size zoned for agricultural purposes sold during the prior
three years shall be determined for each township. The parcel may also
qualify for a premium based on its proximity to sewer and water as
determined by a formula established by the County Agricultural
Preservation Board. The County Agricultural Preservation Board shall
review the points-based appraisal method at the end of each
application cycle, and compare agricultural conservation easement
values relative to actual fair market sales in the county.
- The property owner may obtain, within a reasonable time frame, an
appraisal of the development rights from a State Certified Appraiser
at the property owner’s expense. The appraisal may calculate the value
of the development rights as the difference between the fair market
value of the property with all development rights intact and the value
of the property for agricultural use with an agricultural conservation
easement in place. The County Agricultural Preservation Board may
establish guidelines, consistent with state standards, for the State
Certified Appraiser to use in determining the fair market value or the
agricultural value.
- The County Agricultural Preservation Board, with the concurrence
of the County Board of Commissioners, shall approve the price to be
offered and paid for the agricultural conservation easement. If the
property owner obtains an independent appraisal, the County
Agricultural Preservation Board may elect to renegotiate the initial
offer based on qualified circumstances.
- The property owner may be paid a cash payment or offered an
installment purchase contract, or a combination of both.
Section 10: Related Costs
The cost of services ordered by the County Agricultural Preservation
Board in relation to the County’s Farmland Preservation Program shall be
paid from all available farmland preservation program funding sources
within the County, including state and federal matching funds, which may
include the cost of appraisal, engineering, surveying, planning,
financial, legal, environmental assessments, title searches, developing
baseline assessments and monitoring easements. The County shall not be
responsible for any expenses incurred by the property owner incident to
this transaction that the County Agricultural Preservation Board has
determined are the responsibility of the property owner.
Section 11: Farmland Preservation Fund
- Available funding for the County Farmland Preservation
Program shall be deposited in a separate farmland preservation account
established by the County Treasurer. Money in such farmland
preservation account may be temporarily deposited in such institutions
or invested in such obligations as may be lawful for the investment of
county money. The revenues from the deposit and/or investment of the
farmland preservation fund shall be applied and used solely for the
purpose of purchasing development rights and agricultural conservation
easements under this Ordinance, making payments obligated under
installment purchase contracts, promoting farmland preservation
programs, or paying for costs of administering or enforcing the County
Farmland Preservation Program.
- Supplemental or matching funds from private sources or
other governmental agencies, including local municipalities, the
State, or Federal Government, may become available to pay a portion of
the cost of acquiring development rights or agricultural conservation
easements, or to supplement or enlarge such acquisitions.
- The County Board of Commissioners, pursuant to the County
Zoning Act, may finance the County Farmland Preservation Program
through one or more of the following sources:
- General appropriations by the County
- Proceeds from the sale of development rights by the
county under Section 9
- Grants
- Donations
- General fund revenue
- Bonds or notes
- Special assessments as permitted by law
- Other sources approved by the County Board of
Commissioners and permitted by law
Section 12: Amendments
This Ordinance may be amended by the County Board of Commissioners
after receiving input from the County Agricultural Preservation Board.
Section 13: Severability
Any provision of this Ordinance which is found by a court of
competent jurisdiction to be invalid, void or illegal shall in no way
affect, impair or invalidate any other provision contained in the
Ordinance and such other provisions shall remain in full force and
effect.
Section 14: Effective Date
This ordinance shall become effective upon publication.
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Several photos included in this 
