• 3 times the assessed value of property, as determined by DOR under Wis. Stat. § 73.03 (use value program); or
• An amount specified by the county in its Farmland Preservation Zoning Ordinance Wis. Stat. § 91.48(1)(b).

If a county chooses to impose a HIGHER penalty, the county gets to keep the additional revenues generated. Therefore, a county has a financial incentive to impose a higher penalty.

Conversion Penalty Hurts Farmers and is Bad Land-Use Policy:

The proposed FCP will hurt farmers and is bad land-use policy for the following reasons:

• Conversion penalty will decrease the value of farmland. Based upon the state’s average assessed value for farmland in 2009 ($270 per acre), the new tax will increase the cost of farmland for development by an additional $810/acre (or $32,400/40 acres), which will be passed on to the farmer who is selling the land. Because most farmers sell their land when they are ready to retire, this fee will directly affect the retirement savings of affected farmers.
• Conversion penalty is unfair to existing farmers –While most of the changes related to farmland preservation go into effect whenever a county recertifies its farmland preservation plan, the FCP goes into effect January 1, 2010. In other words, the FCP applies to farmers (a) who were unaware of the FCP at the time they entered into a farmland preservation agreement, and (b) who are currently subject to exclusive agricultural zoning but are not part of a farmland preservation agreement and thus did not receive any of the benefits related to such agreements.
• Conversion of farmland is only allowed on farmland that absolutely and positively should no longer be used as farmland -- To convert farmland out of farmland preservation zoning district, a local government must either (a) get the rezoning certified by DATCP, or (b) find ALL of the following: (1) the land is better suited for a use not allowed in the farmland preservation zoning district, (2) the rezoning is consistent with the local comprehensive plan, (3) the rezoning is substantially consistent with the county certified farmland preservation plan, and (4) the rezoning will not substantially impair or limit current or future agricultural use of surrounding parcels. In other words, farmland cannot be converted to another use unless the land is CLEARLY (as determined by the comprehensive plan, farmland preservation plan, and neighboring land uses) better suited for another use. So, why does the state want to tax land that good planning says should no longer be used as farmland?!
• Conversion penalty applies to land that should no longer be included in a farmland preservation plan – Under the Farmland Preservation Program, farmland preservation plans are supposed to exclude “any area that is planned for nonagricultural development within 15 years after the date on which the plan is adopted.” However, many of these plans have not been updated for years (in some cases up to 15 years) to reflect the change in growth patterns. As a result, these outdated farmland preservation plans continue to include areas that should be used for nonagricultural development and excluded from the farmland preservation plan. More importantly, because (a) these plans have not been updated and (b) the FPCR goes into effect on January 1, 2010 BEFORE most of the farmland preservation plans will be updated, the FPCF will apply to land that should be designated for nonfarm development and excluded from the farmland preservation plan.
• Planning is the key to protecting farmland and providing affordable housing. While providing affordable housing is important to Wisconsin families and our state’s economy, so too is protecting farmland. We can have both, but the key is good local planning, not state-imposed penalties for converting land from one use to another. If a local community decides that land is better suited for a different use and amends its comprehensive plan and related zoning ordinances to reflect this change in use, it seems unreasonable for the state to impose a penalty to discourage this from happening.