Fixing the Green Acres program

Green Acres really isn’t the place to be, according to a February 2008 report by the nonpartisan Office of the Legislative Auditor. Upon its release, the House Property Tax Relief and Local Sales Tax Division heard the auditor’s critique of the 40-year-old program, which gives farmland near developing areas a property tax break.

The division learned that the program doesn’t always protect the farmland, and is sometimes misused by landowners who try to hold onto their land until they can sell it to developers for a high value.

Rep. Lyle Koenen (DFL-Clara City) sponsors two bills, HF4160 and HF4123, to address some of the report’s findings. He worked with Rep. Randy Demmer (R-Hayfield) on crafting the legislation, in hopes to preserve farmland near areas of development. The bills were laid over April 4 for possible inclusion in the division’s omnibus bill.

The bills would tweak the definition of agricultural land; would repeal the minimum income requirement for the program; and would allow existing Green Acre recipients to be “grandfathered” into the updated program.

Several farmers said they’d like to have been more involved in the process to help ward off unintended consequences of the proposals. Others questioned why the proposals didn’t include dropping the limit of 10 acres for parcels that apply for the program.

Judy Erickson, a member of the Minnesota Fruit and Vegetables Grower Association, said parcels with less than 10 acres should apply because the demand for locally grown food is rising. Those who sell at farmer’s markets usually specialize in just a few types of produce and farm small parcels close to the metro.

“The public is looking for the availability of fresh, locally grown crops. It’s a niche market,” she said.

Sen. Gary Kubly (DFL-Granite Falls) sponsors SF3810, a companion bill to HF4123, which has been incorporated into the Senate tax bill in a slightly different version. Sen. Tom Bakk (DFL-Cook) sponsors the tax bill, SF2869, which passed the Senate on April 3.

HF4160 has no companion measure.