Ann Arbor launches program to help land-insecure farmers purchase property
ANN ARBOR, Mich. (CBS DETROIT) - The city of Ann Arbor has launched a new Buy-Protect-Sell initiative to help land-insecure farmers purchase farmland.
It's part of the city's Greenbelt program, which was launched in 2003 as a way for the city to purchase farmland surrounding Ann Arbor to conserve it.
Remy Long, deputy manager of land acquisition for the program, said the city is on pace to exceed its goal of preserving up to 10,000 acres in Washtenaw County.
"To date, this year marking the 20th anniversary of the Greenbelt, we've conserved over 7,600 acres across 85 properties surrounding the city of Ann Arbor."
The Buy-Protect-Sell approach is used by agencies around the country to purchase properties for preservation outright and then conduct a competitive proposal process.
Because the properties have protected status, they can be sold at a reduced price, making farmland more accessible.
"The number one barrier for starting a farm is affordable farmland access," said Long. "There aren't many affordable farmland purchasing opportunities and the permanent conservation of farmland reduces its value so that it is more affordable to a new and beginning farmer."
Long said the preservation process can reduce the value of a property by as much as 40-70%.
The city is now taking proposals for its first-ever affordable farmland property in Northfield Township.
Located on Nollar Road, the price for 54 acres is $326,000.
The property can also be sold as two parcels at $122,000 for 20 acres and $204,000 for 34 acres, according to officials.
Long said it's a fraction of what it would sell for on the open market.
According to the city's website, individuals must meet all the following criteria to be considered eligible to purchase the property:
• (1) not own any farmland property; OR (2) if the applicant does own farmland property, have a gross annual farm income less than $250,000; 3. OR (3) if the applicant does own farmland property and has a gross annual farm income over $250,000, the applicant must demonstrate that their land ownership or ability to farm is not secure, whether due to excessive costs, insufficient land, poor soil viability, or other reason. If applicant is an entity or multiple individuals, this statement must apply to the entity and all individuals collectively.
• have a taxable income of less than $237,5944. If applicant is an entity or multiple individuals, this statement must apply to the combined taxable income of the entity and all individuals.
• not be a legal entity comprised of more than 25 full-time members, shareholders, or employees.
• provide evidence that, for at least two years at an average of 20+ hours per week in the last 10 years, they have materially and substantially participated in the operation of any farm; OR they have another equivalent qualifying combination of agricultural training, education, and/or experience. o If applicant is an entity, the eligibility statement must apply to the majority of the comprising individuals.
• submit a Farm Plan for the requested parcel(s).
• within 3 months of entering a sales contract, offer evidence of financial readiness to purchase the parcel(s). The City will provide reasonable sales contract terms to meet the selected applicant's financing needs. The City will not provide financing, lease-to-own, or land contract.
• be willing to work with the City on a closing timeline that may be up to but will not exceed one year from sales contract execution. (however, targeted closing time is March 2024)
• sign the Sale Acknowledgment acknowledging the basic terms of the conservation easement.
The city is now accepting purchase proposals through September 11.
For more information, visit the Greenbelt program's website.
