Part 2 - Programs to Consider For Your Private Woodland

We’ll pick up part two of our “Programs to Consider for Your Private Woodland” by starting with the Forest Crop Law. Then we will tackle the following:

1. Forest Crop Law
2. Woodland Tax Law
3. Forest Certification
4. Wisconsin Forestry Legacy Program
5. Harvesting Your Woods

FOREST CROP LAW

Forest Crop Law was enacted in 1927 and enrollment in the FCL was closed on January 1st, 1986. You may be asking yourself “Why bother to write about this?” Well, we bother to write about this because you, as a prospective client and land seeker, may run into a property that has been enrolled in this program.

The Forest Crop Law program was an incentive program to encourage private woodland owners to forward-thinking of sustainable, long-term management of their woodland. As the landowner, you follow an FCL management schedule outlining forestry practices, in exchange, the landowner receives a reduction in property taxes.

If you are considering purchasing a property in the FCL program you should be aware of your options. 

1. How am I able to find out on my own if the property I am considering is in an FCL program?
2. Was the property in a 25-year or 50-year period?
3. What must I do to withdraw the land from the program?
4. What are my options if the FCL is expiring?

If you are considering purchasing a woodland property, you can do your own title search in the county the property is located or look at the tax bill on the county website. You can use this helpful title search tutorial by clicking here. Be assured, as your UC MLP real estate agent, I am always on top of property stats. Count on it!

Once you have confirmed the FCL program on the property you will find out if the FCL was a twenty-five-year or fifty years program, and when it is scheduled to expire. You can also access the rate schedule by clicking here.

CONTINUING ON, LET IT EXPIRE OR WITHDRAW?

Whether or not to continue or withdraw from the FCL program will require some serious thought as well. The properties FCL has a program expiration date. It is up to you if you want to roll over your FCL into an MFL. This will NEED to be done before the FCL expires. If you choose to let the FCL expire, the property will go back to the regular property tax rolls.  

After purchasing the woodland property with an FCL, the clock is ticking. As the new owner, you must, within 10 days, complete the change of ownership form and send it in if you wish to continue in the FCL. You can get that document here.

However, if you decide to withdraw from the program, that’s when things get a little sticky. The property may be removed from the program, voluntarily, at any time. In withdrawing from an FCL, you will need to submit an application and you can get that here. A withdrawal tax assessment will be performed on the property and you will need to pay this assessment BEFORE the property can be withdrawn. You can access the tax assessment worksheet here.

The choice will be up to you. Certainly knowing ahead of time what your plans will be for your woodland property will be advantageous. There are many programs available through the DNR that should be considered for the tax benefits, as well as future sustainability.

In part three we’ll discuss the Forest Legacy Program, Forest Certification and harvesting from your woods! Thanks for stopping in at the Midwest Lifestyle Properties blog!