The Sustainable Forest Incentive Act (SFIA) is a program overseen by the MN Department of Revenue that provides direct incentive payments to landowners to encourage sustainable use of their woods, as outlined in the landowner’s Stewardship Plan. This is a great program for larger properties or those with low tax values. Enrollment in the program requires a covenant to be established on the property for a minimum length of time. There are 3 different minimum enrollment periods for covenants (8, 20, or 50 years), each with increasingly higher payments for longer enrollment periods. In each, the state pays you directly every year in the form of a check (taxable income), with the amount paid based on how many acres of land you’ve enrolled and your chosen covenant length. A Stewardship Plan is required by the state before enrollment can take place.
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 - a minimum of 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 one of the following to read more:
COVENANT LENGTHS & Withdrawal
Please note that the 8, 20, and 50-year covenant lengths are minimum enrollment periods, meaning: Your covenant does not expire unless you request termination, and thus your property will be required to follow all SFIA regulations until the covenant is removed. The first opportunity to request removal of the covenant from your property is exactly one-half of the enrollment period (example: 4 years into an 8-year covenant).
If you’ve been enrolled in the program for at least one-half the duration of the covenant, you can request termination by completing the SFIA Withdrawal Form. Revenue will send a confirmation letter with the date your land will be released. It’s important to note that there is always a waiting period (half the duration of the covenant) to remove land from the program after the department receives your request, regardless of when the request is made.
Example 1: If you request termination at year 10 of a 20-year covenant, you would be required to wait another 10 years (half the covenant length) before your enrollment is terminated at year 20.
Example 2: If you were to request termination at year 20 of a 20-year covenant, you would be required to wait another 10 years (half the covenant length) before your enrollment is terminated, and therefore you would have been enrolled for 30 years in total.
During the waiting period, the covenant is still binding and you continue to receive payments as long as you continue to fill out and return your SFIA Certification Form to the MN Dept of Revenue each year and meet all of the requirements of the program. You must also have a Stewardship Plan less than then years old to remain eligible for payments. If you don’t have a Stewardship Plan less than ten years old, you are still bound to all of the requirements of SFIA, but you will no longer be eligible for payments.
Once you have withdrawn, you cannot re-enroll in SFIA for at least three years. If state law is changed to reduce the SFIA payment rate more than 10% than what you received in the prior year, you may withdraw from the program without a waiting period.
How much does it pay?
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. The payment rates are as follows (as of 2026):
For new Sustainable Forest Incentive Act (SFIA) applications in 2026, land subject to a conservation easement will receive a payment of $4.67 per acre.
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.
All payments received are treated as taxable income.
new legislation for 2027 payments
Starting in 2027 SFIA payments will be calculated differently using a lower percentage. This may result in a payment that is lower. In addition to the calculation change, the payments may now decrease more than 10% each year.
Disclaimer: The 2027 estimated payment rates are based on the 2026 data and using the revised 2027 lowered percentages.
Please always visit the Department of Revenue for the latest information:
https://www.revenue.state.mn.us/sustainable-forest-incentive-ac
How do I get my payment?
The Minnesota Dept of Revenue will send you a certification letter by May 15 of each year you are enrolled in SFIA. To receive a payment, you must:
Initial and sign the letter to certify you are following the requirements and still eligible for SFIA.
Report changes to the parcel information of your enrolled land.
Return the completed letter by July 1 to get a payment by October 1 of that year.
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 registered Woodland Stewardship Plan in place
Have an agreement (“covenant”) in place limiting the property’s use to forest management activities
Qualifying acreage cannot be :
Classified as 2c Managed Forest Land by the assessor or enrolled in:
Reinvest in Minnesota (RIM)
Conservation Reserve Enhancement Program (CREP)
Conservation Reserve Program (CRP)
Green Acres
Agricultural Preserves
Rural Preserves
Used for residential or agricultural purposes
Improved with a structure, pavement, sewer, campsite, billboards, cell towers or roads used for purposes that are not in the forest management plan
Covered under a Lessard-Sams Outdoor Heritage Council easement or similar easement granted after May 30, 2013
Are there penalties to be aware of?
Yes. Because of the above qualifications and regulations, there are steep penalties for violating any restrictions while enrolled in SFIA. Landowners should take special care in planning for the future of their woods so they do not have any surprises down the line. Be prepared to always pay your property taxes, exclude any area you wish to develop or build on, and have a solid plan for how you want to use the property (i.e. farming or haying) and exclude any acreage as necessary. See below for the list of penalties for SFIA violations:
how do i apply?
You must first fill out and sign an 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. Once processed, you will receive a Covenant Recording Number, which you will use in the next step.
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 (applications must be postmarked by October 31) and any required documentation to the following address:
Minnesota Revenue
Mail Station 3340
St. Paul, MN 55146-3340
is there a deadline?
Yes. There are two deadlines to be aware of: Enrollment and Yearly Certification.
ENROLLMENT: OCTOBER 31
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 2022, you must enroll in the SFIA by October 31, 2021.
YEARLY CERTIFICATION: JULY 1
Within the first two weeks of May during each year you are enrolled in the SFIA, you will receive a letter from the MN Department of Revenue that asks you to fill out a form and return it by July 1st to certify that your land meets SFIA requirements. This form is important - it will allow you to receive your SFIA payment for that calendar year. For example: you receive a certification letter in May 2021 — you must fill this out and return it to the MN Department of Revenue by July 1st, 2021 to receive the 2021 SFIA payment.
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, contact us.
Much of the content for this page is owned and provided by the MN Dept of Revenue at this link.
© 2025 Minnesota Department of Revenue. “Sustainable Forest Incentive Act.” Sustainable Forest Incentive Act | Minnesota Department of Revenue, www.revenue.state.mn.us/sustainable-forest-incentive-act.