Minnesota Forest Programs: SFIA & 2c
Minnesota offers two programs for private forest landowners: SFIA pays you an annual incentive for keeping your land intact, while 2c reduces your property taxes by reclassifying your forestland. We handle the plans and paperwork for both.
Do You Qualify?
If you own 20 or more contiguous acres of forestland in Minnesota, you likely qualify for real financial benefits through SFIA or 2c. SFIA pays you an annual incentive — your property taxes are unaffected. 2c directly reduces your property taxes. Both programs require a forest management plan — which is exactly what we write. We handle the entire process, from the initial property assessment to plan writing and program enrollment.
SFIA — Sustainable Forest Incentive Act
SFIA provides an annual per-acre incentive payment directly to landowners as a reward for keeping their forestland intact and not developing it. It is not a property tax reduction — your property taxes remain unchanged. Instead, the state sends you a check every fall based on your enrolled acres and covenant length. We've helped hundreds of landowners enroll.
- Annual per-acre rebate payment from the state
- Requires 20+ contiguous acres of forestland
- A standard 3 acres (or more if needed) is allowed to be deducted for a building site, as long as the total qualifying acres is 20 acres.
- Must have a DNR-approved Forest Stewardship Plan
- 8-year minimum enrollment covenant
- Rebate amount set annually by the legislature
- Open to private, non-corporate landowners
- Public access required only for landowners with 1,920+ acres (large corporate timberland — does not apply to most private landowners)
2c Managed Forest Land Classification
The 2c classification reduces your property tax by classifying your forestland at a lower tax rate. Unlike SFIA, there's no public access requirement, making it ideal for landowners who value privacy. You still need a management plan, which we provide.
- Property tax classification, not a rebate
- Requires 20+ contiguous acres of forestland
- Must have a forest management plan on file
- Reduces property tax by reclassifying land use
- Regular rural land (1b) or rural vacant land is taxed at 1% of land value. Homestead ag land (2a homestead) is taxed at 0.5%. Non-homestead ag land is at 1%. 2c managed forest is between the two at 0.65%.
- No public access requirement
SFIA vs 2c Comparison
Both programs offer real savings. Here's how they compare.
From First Call to Tax Savings
We make the process simple. Here's what to expect.
Free Consultation
Call Erik to discuss your property, goals, and eligibility. No cost, no obligation.
Property Walkthrough
Erik visits your property to assess timber, soil, wildlife habitat, and management opportunities.
Plan Development
We write your Forest Stewardship Plan (SFIA) or Management Plan (2c) — tailored to your goals.
DNR Approval & Enrollment
We submit your plan for approval and handle all the enrollment paperwork.
Start Saving
Begin receiving your annual SFIA incentive payment or your 2c property tax reduction. We stay available for ongoing guidance.
About SFIA & 2c — In Erik's Own Words
A personal note from Erik Eggen, Certified Forester.
Dear Landowner,
Would you be interested in an annual payment from the state — or in lowering your property taxes? I can help you with either.
I am a forester, writing Forest Management Plans for private landowners. If you have me write you a plan, you will then qualify for either 2c or SFIA. Plans are tailored to your goals. Most people plan to do nothing and let the trees grow or improve the deer/grouse habitat — these are common goals and qualify for plans.
I charge a minimum fee of $1,000 for 40–100 acres, or $7/acre for larger parcels. With SFIA, this fee typically pays for itself in the first year or two of annual incentive payments. With 2c, it pays for itself through property tax savings within the first couple years. You can have one or the other, but not both — these programs were developed to help stop the fractalization of rural property.
SFIA — Sustainable Forest Incentive Act
This program pays you for not subdividing your land. The longer you put it in the program, the more the payment. Choose from:
- 8-year covenant — $12.13/acre/yr.
- 20-year covenant — $16.79/acre/yr.
- 50-year covenant — $21.46/acre/yr.
If you sell or transfer your property, the covenant goes with the land until it expires. There is a $46 recording fee. The state will send you an incentive payment check every fall, annually. SFIA does not change your property taxes — it is a separate annual payment on top of whatever property taxes you owe. When the covenant expires, you can drop from the program or continue. SFIA is transferable if you choose to sell or transfer the land. We deduct 3 acres for current or future building sites.
2c Managed Forest Tax Class
This program is simpler and less restrictive than SFIA, but pays less. It is just a property tax classification — it reduces your property tax on the raw land by 35%. We deduct 10 acres for current or future building sites.
With both programs, no development (subdividing land) is allowed, and farming acres (hay/crop fields, pasture) would be deducted from your total acres. With 2c, you never have to allow public access or hunting. With SFIA, public access is only required if you own 10,000 or more acres — it does not apply to most private landowners. You do not have to cut timber.
SFIA is a better bang for the buck in north and central MN, and 2c is better around the metro and south, depending on your property taxes.
I sign up 50–60 landowners every year for these programs. They have been around for over 20 years. If you are interested, email me at erikdebe@brainerd.net or call 218-232-3055. We will figure out which program is better and estimate your tax savings. If you want to proceed, I will give you an estimate and make an appointment to meet with you on your land. There is no obligation.
Ready to get started?
Download, fill out, and return this agreement to begin your Forest Stewardship Plan.
Find the Right Program for Your Land
SFIA pays you an annual incentive. 2c reduces your property taxes. Call Erik to find out which is right for you — free, no-obligation consultation.