Minnesota's Sustainable Forest Incentive Act Pays You!
What is the SFIA?
The Sustainable Forest Incentive Act (SFIA) provides incentive payments to encourage sustainable use of your woodlands. Property owners with qualifying lands are eligible to enroll in this program. Property owners can receive a payment for each acre of qualifying wooded land they enroll in SFIA. In return, they agree not to develop the land and to follow a Woodland Stewardship Plan while they are in the program. All enrolled land must remain in SFIA for at least 8, 20, or 50 years depending on your chosen covenant length.
What is a covenant?
A covenant is a document signed by the landowner that agrees to adhere to certain regulations of the SFIA program. It's important to note that a covenant is not a contract, but a condition of the SFIA program that stems from state law. When signing a covenant, you are agreeing to abide by the basic list of qualifications listed in the "What are the qualifications?" section below, as well as maintain these agreements for the specified duration you choose - 8, 20, or 50 years. A covenant will also include essential identifier information about your property such as a map, legal description, or certificate of title number. Click any of these links to read the covenants:
How much will SFIA pay me?
Payment amounts vary based on the length of your covenant and your total number of acres enrolled in SFIA. For land held in a conservation easement see Note below. The payment rates are adjusted each year based on statewide average market values and tax rates, but will not increase or decrease by more than 10 percent per year. Click here to view the rates.
Note: If your land was enrolled in SFIA in 2017 and also has a conservation easement, the payment rate is $7.00 per acre and that land is limited to an 8-year covenant.
What are the qualifications?
Qualifying properties must:
Be current on property taxes
Have 20 or more contiguous acres
Be at least 50 percent wooded land as defined in Minnesota Statute 88.01, subd. 7
Have a Woodland Stewardship Plan in place
Have an agreement (“covenant”) in place limiting the property’s use to forest management activities
Qualifying properties cannot:
Be enrolled in any other Financial Incentive Program
Be used for residential or agricultural purposes
Be improved with a structure, pavement, sewer, campsite, or road used for purposes that are not in the forest management plan
Be covered under a Lessard-Sams Outdoor Heritage Council easement or similar easement granted after May 30, 2013
How do I apply?
1. You must first sign a 8, 20, or 50 year covenant and have it registered with the recorder or registrar's office in the county where your land is located. You will need to allow up to 3 months for the county to process your request. Once processed, you will receive a Covenant Recording Number, which you will use in the next step.
2. After your covenant is processed and you have a Covenant Recording Number, you may apply to enroll in the SFIA program. Applications can be found at the Department of Revenue's website or by clicking here. Directions for filling out the application are found on pages 3 and 4. Read them carefully, and once you are finished filling out the application, submit it and any required documentation to the following address:
Minnesota Revenue
Mail Station 3340
St. Paul, MN 55146-3340
Is there a deadline to apply?
Yes. For payments beginning the following year, your enrollment application must be submitted by October 31 of the current year. For example, to qualify for payments starting in 2021, you must enroll in SFIA by October 31, 2020.
Who do I contact with questions?
For questions regarding the enrollment process for the Sustainable Forest Incentive Act (SFIA), contact the Department of Revenue using the following information. You can also click here for more specific FAQ regarding the SFIA program.
Phone: 651-556-6088
Email: proptax.sfia@state.mn.us
If you need help obtaining a Woodland Stewardship Plan, click here.
Written by Marissa Berguson.
