Questions & Answers

What is a Farmland Development Rights Agreement (FDRA)?

Through a Farmland Development Rights Agreement (FDRA), you receive property tax relief in return for your pledge not to change the use of your land.

Caution: The FDRA restricts development of your land. Before making any changes to property covered under this agreement or to its ownership, consult the Michigan Department of Agriculture and Rural Development (MDARD). Some changes may make your property ineligible for credit.

You aren't eligible to claim a farmland preservation tax credit until the transfer of the ownership of the FDRA is complete. The FDRA is not final until MDARD receives a copy that has been recorded at the Register of Deeds. If MDARD hasn't received a recorded copy by the filing deadline, file your return without claiming the credit for that agreement. Once MDARD receives a recorded copy, you can file an amended MI-1040CR-5 with an amended MI-1040.

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