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legal & financial: SFIA Payments

If you own more than 20 acres of woodlands in Minnesota, you should know about the Sustainable Forest Incentive Act (SFIA). SFIA provides an annual per-acre incentive payment in return for an 8-year commitment not to develop the land.

SFIA is designed to provide a financial incentive to keep forest land forested. Intact forests are Minnesota's scenic backdrop, provide renewable resources to support a $7 billion industry, protect water quality, and provide wildlife habitat.

In recent years the payment has been approximately $5 per acre per year.

Learn more about how SFIA works from the MN Department of Revenue's SFIA Fact Sheet.

To be eligible for the program, the landowner must:

  1. Own more than 20 acres of woodlands in Minnesota.
  2. Have a valid Forest Stewardship Plan (or other management plan--details are in the fact sheet) for the property.
  3. Owe no delinquent taxes on the property.
  4. NOT have the land enrolled in Reinvest in Minnesota (RIM), Conservation Reserve Enhancement Program (CREP), Conservation Reserve Program (CRP), Green Acres or Ag Preserves.
  5. Commit to NOT using the enrolled portion of the land for agricultural or residential purposes.
  6. Agree to remain in the program for a minimum of 8 years.

In order to receive the payment, the landowner must file a covenant with the county, then submit the SFIA enrollment application to the MN Dept. of Revenue (DOR).

Your completed application must be received by DOR no later than Sept. 30 in order to qualify for payment in that year.

The SFIA working group has been tasked to propose changes that will strengthen the program and increase landowner enrollment. Recommendations from this group are in consideration by the MN State Legislature. (We'll try to provide updates as we learn more.)

For details or to begin the process, visit the DOR's SFIA fact sheet.

For more information...

MN DOR's SFIA Fact Sheet

SFIA Covenant form (PDF), including list of restrictions

MFA's SFIA overview page

SFIA: A Landowner's Guide (PDF) and FAQs (18 p. PDF)