MichiganSB 06892025-2026 Regular SessionSenateWALLET

Land use: farmland and open space; relinquishment of farmland from development rights agreements; expand legal arrangements triggering. Amends sec. 36111 of 1994 PA 451 (MCL 324.36111). TIE BAR WITH: SB 0688'25, SB 0690'25, SB 0686'25, SB 0687'25, SB 0685'25Last Action: ASSIGNED PA 0072'25 WITH IMMEDIATE EFFECT

Sponsored By: Dan Lauwers (Republican)

Became Law

Land use: farmland and open space

Your PRIA Score

Score Hidden

Personalized for You

How does this bill affect your finances?

Sign up for a PRIA Policy Scan to see your personalized alignment score for this bill and every other piece of legislation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.

Free to start

Bill Overview

Analyzed Economic Effects

5 provisions identified: 3 benefits, 1 costs, 1 mixed.

Liens recapture farm tax credits

When you end or give up land under a farmland agreement, the state places a lien to claw back your farm tax credits. For early releases, the lien equals all credits from the last 7 years (including the year of termination) plus 6% simple interest from when each credit was received until the lien is recorded. If you release only part, the lien is prorated by that part’s share of taxable value; some full or partial releases use a prorated 7‑year lookback based on time under the agreement. If your agreement was approved or rejected locally on or after July 1, 2012 and ends at term, the lien also earns interest at the adjusted prime rate + 1% per year until paid. The agency must give 30 days’ notice; if you pay within 30 days, no lien is recorded. The lien comes due when you sell the land or convert it to a banned use. After payment, the state records a discharge and ends its interest; lien proceeds go to the Agricultural Preservation Fund.

Conservation deals remove land from agreements

If your farmland is placed under a qualifying agricultural conservation easement or a purchase of development rights, that land is automatically removed from the agreement. Any land not covered by the easement stays in the agreement until its original end date, and that date cannot be extended. If the agreement ends and your land then goes under one of these conservation tools, or is removed automatically as above, no lien applies.

Small-acre releases for buildings and homes

You may remove land from a farmland agreement for two uses with approvals. For buildings that already existed when the agreement was recorded, you may release up to 2 acres, or up to 5 acres if needed to include all buildings. For a home for a person essential to the farm, you may release up to 2 acres. The local government and the state agency must both approve, and you need a zoning variance if the lot is smaller than local minimums. After approval, you must record the relinquishment with the county and give a copy to the state.

Automatic renewal for farmland agreements

If you have followed the program rules, you can renew your farmland agreement by asking in writing. The renewal must be at least 7 years. The state sends a copy of the renewal contract to your local government.

Effective only with companion bills

This law takes effect only if Senate Bills 688, 690, 686, 687, and 685 also become law. When that happens, this act takes immediate effect.

Sponsors & Cosponsors

Sponsor

  • Dan Lauwers

    Republican • Senate

Cosponsors

  • John Cherry

    Democratic • Senate

  • Kevin Daley

    Republican • Senate

  • Sam Singh

    Democratic • Senate

  • Sue Shink

    Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 140 • No: 3

House vote 12/16/2025

passed; given immediate effect

Yes: 103 • No: 3 • Other: 4

Senate vote 12/2/2025

PASSED

Yes: 37 • No: 0

Actions Timeline

  1. ASSIGNED PA 0072'25 WITH IMMEDIATE EFFECT

    12/23/2025Senate
  2. FILED WITH SECRETARY OF STATE 12/23/2025 12:36 PM

    12/23/2025Senate
  3. APPROVED BY GOVERNOR 12/23/2025 11:06 AM

    12/23/2025Senate
  4. PRESENTED TO GOVERNOR 12/19/2025 2:58 PM

    12/23/2025Senate
  5. ORDERED ENROLLED

    12/18/2025Senate
  6. FULL TITLE AGREED TO

    12/18/2025Senate
  7. GIVEN IMMEDIATE EFFECT

    12/18/2025Senate
  8. returned to Senate

    12/16/2025House
  9. inserted full title

    12/16/2025House
  10. passed; given immediate effect Roll Call #332 Yeas 103 Nays 3 Excused 0 Not Voting 4

    12/16/2025House
  11. read a third time

    12/16/2025House
  12. placed on immediate passage

    12/16/2025House
  13. placed on third reading

    12/16/2025House
  14. read a second time

    12/16/2025House
  15. referred to second reading

    12/11/2025House
  16. reported with recommendation without amendment

    12/11/2025House
  17. referred to Committee on Agriculture

    12/2/2025House
  18. read a first time

    12/2/2025House
  19. received on 12/02/2025

    12/2/2025House
  20. PASSED ROLL CALL # 310 YEAS 37 NAYS 0 EXCUSED 0 NOT VOTING 0

    12/2/2025Senate
  21. PLACED ON IMMEDIATE PASSAGE

    12/2/2025Senate
  22. RULES SUSPENDED

    12/2/2025Senate
  23. PLACED ON ORDER OF THIRD READING

    12/2/2025Senate
  24. REPORTED BY COMMITTEE OF THE WHOLE FAVORABLY WITHOUT AMENDMENT(S)

    12/2/2025Senate
  25. REFERRED TO COMMITTEE OF THE WHOLE

    11/12/2025Senate

Bill Text

  • Public Act

    12/23/2025

  • As Passed by the House

    12/16/2025

  • As Passed by the Senate

    12/2/2025

  • Introduced

    10/30/2025

Related Bills

Back to State Legislation