Understanding a PA 116 FDRA Agreement in Michigan (and what it means for value, compensation, and future resale)
A PA 116 FDRA agreement refers to a Farmland Development Rights Agreement (FDRA) created under Public Act 116 of 1974 , Michigan’s Farmland and Open Space Preservation Act (now part of Part 361 of the Natural Resources and Environmental Protection Act ). This is a statewide, voluntary farmland preservation program that allows landowners across Michigan to commit land to agricultural use in exchange for tax benefits and relief from certain special assessments . While PA 116 applies uniformly throughout the state, its real-world impact can feel more pronounced in areas experiencing development pressure—such as parts of Washtenaw County, including Ann Arbor Township. ๐ What Is PA 116 and an FDRA? PA 116 is shorthand for Public Act 116 , Michigan’s long-standing farmland preservation law. An FDRA (Farmland Development Rights Agreement) is the specific, recorded contract between a landowner and the State of Michigan . By signing an FDRA, the landowner agrees to temporarily res...