In Michigan, agricultural land includes buildings on leased land used for agricultural operations. To qualify property as agricultural, over 50% must be used for agriculture.
Wildlife and Land Sales
Wildlife in Michigan includes deer, grouse, turkey, bear, ducks and geese. LandWatch lists 236,961 acres of rural land for sale in Michigan at an average price of $283,341.
Farming Statistics and Regulations
The Right to Farm Act helps resolve disputes between farms and neighbors. A farm must produce $1,000 of goods annually. Over 25% of Michigan’s land is farmland, mostly used for corn, soybeans, forages, wheat, vegetables, fruits and ornamental crops. Recent data shows 100,000 acres of Michigan farmland for sale valued at $85 million. The average Michigan farmer is 56 years old. Michigan contributes over $104 billion annually to the economy. Apples, cherries, and sugar beets are major crops. The average price of Michigan farmland is $5,850 per acre.
Under MCL 324.3601, certain farmland in Michigan may be enrolled in a development rights program by which the owner may receive state income tax credits for property taxes paid. To be eligible, the farm must be at least five acres in size and 51% or more of the property must be committed to an agricultural use.
The distribution of farms in Michigan shows about 80% of Michigan’s farms are in the southern half of the Lower Peninsula where soil and climatic conditions favorable for agricultural production are found. Land clearing contributes to several environmental issues including land degradation and declining water quality.
If you are going to sell retail, you need a sales tax license from Michigan Department of Treasury. Farms that produce and sell commodities to other farms or agri-businesses are exempt from sales tax and do not require a license. Keep farm records separate from your personal records. According to the Michigan Right-to-Farm Act at MCL 286.472(a), a “farm” is defined as the land, plants, animals, buildings, structures, including ponds used for agricultural or aquacultural activities, machinery, equipment, and other appurtenances used in the commercial production of farm products.
Hunting, Fishing, and Tax Credits
Along with public hunting lands, Michigan boasts over two million acres of private land managed as commercial forest for hunters to track white-tailed deer, elk, bear, grouse, and more. Bounded by four Great Lakes, it’s fair to say the fishing ain’t bad, either. Michigan is also a “right to farm state,” meaning farmers are protected from nuisance complaints from neighbors as long as the farm in question is following established state agricultural practices.
Farmland Preservation and Tax Incentives
PA 116, the Michigan Farmland and Open Space Preservation Act, is a law that works to preserve farmland by offering incentives to farmers who are willing to participate. Today, 3.3 million acres of land in Michigan is protected under this program. For tax purposes, land is considered agricultural if its principal use is devoted to agriculture with the intent of profit.
Michigan had 47,000 farms in 2017, with an average size of 209 acres. The total farmed acreage was 9.8 million. The average price for farm real estate in Michigan was $4,800 per acre in 2017, with cropland averaging $4,450 per acre and pasture land at $2,550 per acre.