Managed Forest Law Open Wisconsin: enrollment, public access, and taxes

Last updated 2026-07-24

What is Wisconsin's Managed Forest Law Open program?

Wisconsin Managed Forest Law (MFL) Open is a property tax reduction program for forest landowners who commit to sustainable forestry and open their land to public recreation. Enacted in 1985 and revised in 2016, MFL replaces standard property tax with a flat acreage fee: currently $2.04 per acre per year for open land and $10.20 per acre per year for closed land ^[1]. The "Open" designation means you allow public access for hunting, fishing, hiking, cross-country skiing, and sight-seeing from January 1 through the day before gun deer season (late November). You can close the land during gun deer season and post against other uses like ATVs or snowmobiles ^[2]. Open MFL requires at least 40 years of enrollment; you can choose 50 years for longer-term planning. Most landowners choose Open because the $2.04 rate saves more than Closed enrollment at $10.20 per acre. You need a minimum of 20 contiguous acres, though you can designate up to 80 acres as Closed within an Open order if the Closed acreage doesn't exceed 40 percent of the total ^[2]. The program covers productive forestland: at least 80 percent of the enrolled acreage must be capable of producing at least 20 cubic feet of wood per acre per year ^[2]. Wetlands and small openings can count toward the 20 percent non-productive portion. Wisconsin DNR approves about 750,000 acres under MFL as of 2024, making it the state's largest working forest program ^[3]. You lock in the acreage fee for the full term; it adjusts only by statute change, not by county revaluation. Compare this to Forest Crop Law (FCL), the older program MFL replaced: FCL closed to new entrants in 1986, and existing FCL orders expire between 2036 and 2086 ^[3].

How much does Managed Forest Law Open save on property tax?

The savings depend on your county's mill rate and full-value assessment. A typical northern Wisconsin county with farmland assessed at $2,000 per acre and a 20-mill rate charges $40 per acre per year in property tax. Under MFL Open at $2.04 per acre, you save $37.96 per acre annually. Over 40 years, that 100-acre parcel saves $151,840 before discounting ^[1]. In counties closer to metro areas where forestland is assessed higher, the gap widens. Marathon County 2024 equalized value for productive forestland averages around $2,400 per acre; at a typical 19-mill rate, annual tax runs approximately $45.60 per acre ^[4]. MFL Open cuts that to $2.04, saving roughly $43.56 per acre or $174,240 over 40 years on 100 acres. The $10.20 Closed rate still saves $35.40 per acre annually, but most landowners accept public access to capture the extra $8.16 per acre. You owe the annual acreage fee plus any penalties if you harvest more than allowed or withdraw early. Wisconsin bills the fee in December with your other property taxes. You don't owe the fee for the first partial year: enrollment begins January 1 after DNR approval, so an order approved in June 2025 starts January 1, 2026, and the first fee appears in December 2026 ^[2]. Keep in mind the fee can rise by statute. The legislature raised it from $1.83 to $2.04 in 2016 ^[1]. It's indexed to inflation now, so expect gradual increases. Still, the ratio between Open and full tax stays favorable: even if the fee doubles to $4.08, you're saving $34 per acre in the example above.

What does public access mean under MFL Open?

Public access under MFL Open means anyone can enter for hunting, fishing, hiking, cross-country skiing, and sight-seeing from January 1 through the day before the Wisconsin gun deer season opener, typically the Friday before Thanksgiving ^[2]. You can close the land during gun deer season (nine days) and post it against uses not listed: ATVs, snowmobiles, camping, fires, or driving vehicles off established trails ^[2]. You're not required to build trails or parking, and you can post the boundary with "Managed Forest Law Open" signs. You retain liability protection under Wisconsin's recreational immunity statute: landowners who allow free public recreation are not liable for injuries unless you charge a fee or act with willful or wanton misconduct ^[5]. This protection applies to MFL Open land because access is a statutory requirement, not a paid service. You can purchase additional liability insurance, but most MFL Open owners rely on the statutory shield. If you want to restrict public access entirely, enroll under MFL Closed at $10.20 per acre and choose either 25 or 50 years. Closed enrollment makes sense if your land borders a residence, includes sensitive wildlife habitat, or sits in an area with heavy ATV pressure where the $8.16 difference doesn't justify the access burden. You can't mix Open and Closed on the same tax parcel, but you can split a larger property into multiple orders: one Open, one Closed. Some counties see heavy public use on MFL Open land during deer season preparation and turkey season in spring. If you hunt your own land, you compete with the public on equal footing. You can't reserve hunting rights or charge trespass fees during the open period without violating the order. The Wisconsin DNR enforces access compliance through periodic inspections and complaint follow-up ^[3].

What are the enrollment requirements and how long does approval take?

You need at least 20 contiguous acres of productive forestland, a forest management plan written by a DNR-certified plan writer, and a completed MFL application with attached legal description and GIS map ^[2]. The forest management plan must cover all enrolled acreage, describe current stand conditions, set a 10-year harvest schedule, and identify silvicultural practices that meet Wisconsin's sustainable forestry guidelines ^[6]. Plan writers include consulting foresters, DNR county foresters, and private practitioners who passed the DNR's certification exam. Expect to pay $800 to $1,500 for a plan on 40 to 100 acres, depending on complexity and travel ^[3]. The plan writer submits the application and plan to the DNR, which reviews for compliance with MFL statutes (Wisconsin Statute 77.82 through 77.97) and administrative code (NR 46) ^[2]. DNR approval typically takes 90 to 120 days if the application is complete. Common delays: incomplete legal descriptions, stand maps that don't match the written narrative, or harvest schedules that exceed sustainable yield. The DNR may request a site visit if the plan proposes unusual practices or the acreage calculation looks off. Once approved, the DNR issues an MFL order effective January 1 of the following calendar year. You record the order with your county Register of Deeds, and the county assessor reclassifies the parcel from general property to MFL for tax purposes. The assessor removes the forestland value from the tax roll and adds the acreage fee. Notify your township or city clerk and your mortgage lender if you have one: some lenders require notification when you encumber land with a long-term covenant ^[2]. You can amend the order to add contiguous acres, adjust the harvest schedule, or correct errors, but amendments require a new application and DNR approval. Amendments don't restart the 40-year clock unless you withdraw and re-enroll, which triggers withdrawal taxes on the original order ^[2]. Our Current-Use Enrollment Kit walks through Wisconsin MFL application preparation, including plan writer coordination, required maps, and compliance tracking, but the plan itself must come from a DNR-certified writer.

How does the forest management plan work and what is forest management?

Forest management is the practice of controlling woodland growth, composition, and health to meet ownership goals like timber production, wildlife habitat, recreation, or watershed protection. Under MFL, forest management means following a written plan that balances timber harvests with regeneration, maintains stocking at sustainable levels, and protects soil and water resources ^[6]. The DNR defines sustainable forestry as management that "maintains and enhances the long-term health of forest ecosystems while providing ecological, economic, social, and cultural opportunities for present and future generations" ^[6]. Your MFL forest management plan divides the enrolled acres into stands: areas with similar tree species, age, and density. Each stand gets a prescription: thin in year 3, clearcut and replant in year 8, or leave unharvested. The plan sets a 10-year harvest volume, calculated so annual growth exceeds or equals removals. For example, if your 80 acres grows 120 cords per year and you harvest 100 cords in year 5, you're within sustainable yield. The plan must use recognized silvicultural systems: even-aged (clearcut, shelterwood, seed tree) or uneven-aged (single-tree or group selection) ^[6]. The Wisconsin DNR's Forest Management Bureau oversees MFL compliance, reviews plans, and provides technical guidance to plan writers and landowners. The bureau also certifies plan writers and updates the MFL administrative code as forestry science evolves ^[3]. The bureau is not the same as your county forester: county foresters work for the county, often write MFL plans, and can provide free management advice, but they don't enforce MFL or approve applications. The DNR bureau does that. You're not required to harvest every 10 years; you're required to follow the schedule in your plan. If the plan says "no harvest, wildlife habitat stand" for a given area, you don't cut it. If the plan prescribes a thinning in year 4 and you skip it, you're out of compliance unless you file an amendment. After 10 years, the DNR sends a renewal notice, and you work with your plan writer to update the plan based on what actually happened and what the next decade should look like ^[2].

Do you pay taxes on timber sales from MFL Open land?

You pay no Wisconsin state income tax on timber sold from MFL land. Wisconsin Statute 77.88 exempts MFL timber income from state tax as long as the harvest complies with your approved management plan . This is a bigger deal than most landowners realize: a $15,000 sawlog sale would normally generate $750 to $900 in state income tax at Wisconsin's 5.3 to 7.65 percent rates; under MFL, you keep the full amount. You do owe federal income tax, but timber income gets favorable treatment under Internal Revenue Code Section 631. If you've owned the timber more than one year, you can treat the sale as a capital gain instead of ordinary income, currently capped at 15 or 20 percent depending on your bracket versus up to 37 percent for ordinary income . You can also elect Section 631(b), which lets you treat the cutting date as the sale date: you recognize gain when the logger cuts the trees, not when the check arrives, and the gain is long-term capital if you've held the timber over a year . To report timber sales on your federal tax return, use Form T (Timber), which calculates your basis in the sold timber, the sale price, and the resulting gain or loss. Your basis is the original purchase price allocated to timber (not land) plus any reforestation or management costs you capitalized. If you inherited the land, your basis is the fair market value on the date of death. Form T flows to Schedule D (Capital Gains) if you're using Section 631(b), or to Form 4797 (Sales of Business Property) if you're a professional timber operator . Most MFL landowners use a consulting forester to mark and sell timber, and the forester provides a settlement statement showing stumpage price, volume, and total proceeds. That statement, plus Form T and your original basis calculation, gives you everything needed for the return. If you're uncertain about basis or the 631(b) election, a CPA or enrolled agent with timber experience is worth the cost. The IRS Publication 544 (Sales and Other Dispositions of Assets) and Publication 225 (Farmer's Tax Guide) cover timber taxation in detail . How do you avoid capital gains tax on timber sales entirely? You don't, unless you donate a conservation easement or die and pass the timber to heirs at stepped-up basis. But Section 631(b) lets you defer recognition: if you cut timber in December 2025 and the logger pays in February 2026, you report the gain in 2025 when the timber was cut, not 2026 when cash arrived, which can be useful for year-end tax planning .

What happens if you harvest more than the plan allows?

If you harvest more volume than your approved management plan allows, the DNR assesses a stumpage value penalty equal to 20 percent of the excess stumpage value ^[2]. Stumpage value is the price a buyer would pay for standing timber; the DNR publishes quarterly stumpage reports by species and region. For example, if your plan allowed 50 cords of red oak and you cut 70 cords, the excess is 20 cords. If red oak stumpage averages $45 per cord, the excess value is $900, and the penalty is $180. The penalty appears on your next property tax bill. You also owe the $2.04-per-acre fee for the year, so the total cost of overcutting is penalty plus fee plus any DNR administrative costs if they had to inspect the site. Repeated violations can result in order termination and full withdrawal taxes: 20 percent of the current fair market value of the forestland, minus what you paid in acreage fees over the years ^[2]. You avoid penalties by updating your plan before harvesting. If a windstorm blows down timber or market conditions make a sale attractive, contact your plan writer and request an amendment. The DNR reviews the revised harvest schedule, and if it's sustainable, they approve it. The amendment fee is minimal compared to a 20 percent stumpage penalty. Most amendments take 30 to 60 days, so plan ahead. The DNR conducts random compliance inspections and responds to complaints. If a neighbor reports heavy logging, the DNR forester visits, compares the stumps to your plan, and measures what was removed. If you're within 10 percent of the plan volume, they usually let it slide; timber volume estimation is imprecise. If you're 30 percent over, expect a penalty notice and a sternly worded letter about future compliance ^[3].

Can you withdraw from MFL Open early and what does it cost?

You can withdraw from MFL Open any time, but you owe a withdrawal tax equal to 20 percent of the fair market value of the forestland on the withdrawal date, minus all acreage fees you paid during enrollment ^[2]. For example, if you enrolled 60 acres in 2010 and withdraw in 2025 after 15 years, you paid $2.04 per acre for 15 years, totaling $1,836. If the land is worth $3,000 per acre in 2025, the total value is $180,000, the withdrawal tax is $36,000, and you subtract $1,836, leaving $34,164 due. The county treasurer collects the withdrawal tax, and you have 30 days from the effective date to pay. If you don't pay, the county places a lien on the property. You can't sell or refinance until the lien is cleared ^[2]. The withdrawal tax is a one-time payment, not an annual charge, and it replaces all back property taxes you would have paid without MFL. It's a penalty for breaking the 40-year commitment, not a true tax recapture. Common reasons for withdrawal: selling the land to a developer, dividing the parcel for family lots, or financial hardship. If you sell the land and the buyer wants to continue MFL, the order transfers to the new owner with no withdrawal tax, but the 40-year term continues ^[2]. The buyer assumes all obligations, including the harvest schedule and public access. Many buyers specifically seek MFL land because the reduced tax burden makes ownership affordable. You can also let the order expire at the end of the 40- or 50-year term. At expiration, you owe no withdrawal tax, and the land returns to full property tax at the then-current assessment. You can re-enroll in a new MFL order if the land still qualifies, starting a fresh 40- or 50-year term ^[2]. Re-enrollment makes sense if property taxes have climbed faster than the MFL fee, which has been the trend in most Wisconsin counties.

How does MFL Open compare to MFL Closed and Forest Crop Law?

MFL Open	$2.04/acre	N/A	40 or 50 years	Required Jan 1, Nov	Yes
MFL Closed	N/A	$10.20/acre	25 or 50 years	None	Yes
FCL Open	$1.93/acre	N/A	25 or 50 years	Required year-round	No (closed 1986)
FCL Closed	N/A	$2.14/acre	25 or 50 years	None	No (closed 1986)	MFL Open is the default choice for most Wisconsin woodland owners with 20+ acres who can tolerate public access for 10 months a year. The savings, the state timber tax exemption, and the flexibility to update management plans every 10 years make it the best long-term option.

MFL Closed costs $10.20 per acre per year, allows no public access, and requires either 25 or 50 years of enrollment ^[1]. Everything else is identical: same management plan requirements, same timber tax exemption, same withdrawal penalties. The $8.16 per acre difference ($10.20 Closed minus $2.04 Open) is the price of privacy. On 80 acres, that's $653 per year or $26,120 over 40 years. If you hunt your land heavily, live on it, or border a state park where public traffic would be intense, Closed might be worth the premium. Most landowners choose Open because $2.04 per acre is hard to beat. Forest Crop Law (FCL) was Wisconsin's original forestry tax program, running from 1927 to 1986 when MFL replaced it. FCL closed to new entrants in 1986, but existing orders continue until their 25- or 50-year terms expire ^[3]. FCL Open charges $1.93 per acre and Closed charges $2.14 per acre as of 2024 ^[3], slightly lower than MFL, but no new landowners can enroll. If you inherited FCL land, you can let the order expire and convert to MFL, which restarts the clock at 40 or 50 years. You can't transfer an FCL order to a new buyer; the order terminates at sale unless the buyer immediately enrolls in MFL ^[3]. The table below compares the three programs: | Program | Acreage Fee (Open) | Acreage Fee (Closed) | Term Length | Public Access | New Enrollment |

What are the reporting and compliance obligations once you're enrolled?

Once enrolled, you owe three ongoing obligations: pay the annual acreage fee by January 31, notify the DNR of any harvests within 30 days of completion, and renew your management plan every 10 years ^[2]. The acreage fee appears on your December property tax bill. If you forget to pay, the county adds penalties like any other delinquent tax, and continued non-payment can trigger order termination. The harvest notification is a one-page form (DNR Form 2460-0641) listing the sale date, volume by species, stumpage value, and logger contact information ^[2]. You submit it online or by mail within 30 days of the last log leaving the property. The DNR uses these reports to track statewide harvest trends and to schedule compliance inspections. If you don't report, the DNR may discover the harvest during a site visit and assume you overcutting, triggering a penalty investigation. The 10-year plan renewal is the biggest compliance lift. About six months before renewal, the DNR mails a notice to the address on file. You contact your plan writer (the same one or a new one), schedule a site visit, and update the plan based on what happened in the past 10 years and what the next decade should include. If you followed the original plan, the renewal is straightforward: update stand ages, adjust the harvest schedule, and resubmit. If you deviated or stands grew slower than expected, the plan writer recalculates sustainable yield and may reduce future harvest volumes ^[2]. Missing the renewal deadline doesn't immediately terminate the order, but you can't harvest until the plan is approved. If you miss the deadline by more than a year, the DNR may initiate termination proceedings. The renewal fee (paid to the plan writer, not the DNR) typically runs $400 to $800 for a straightforward update on 40 to 100 acres ^[3]. Our Current-Use Enrollment Kit includes compliance tracking tools: a harvest log template, renewal reminders at year 9, and a checklist for pre-renewal prep. It doesn't replace the plan writer, but it keeps you organized so the renewal meeting is quick.

Who writes MFL management plans and what should you expect?

MFL management plans must be written by a DNR-certified plan writer. Wisconsin certifies about 400 plan writers statewide, including consulting foresters, county foresters, DNR staff, and private practitioners who passed the certification exam ^[3]. You can search the DNR's plan writer directory by county at dnr.wi.gov. A consulting forester typically charges $800 to $1,500 for an initial plan on 40 to 100 acres, depending on stand complexity, access, and travel distance. The forester visits your land, cruises the timber (measures tree diameter, height, and volume), maps the stands, writes the management narrative, and submits the application to the DNR on your behalf. The entire process takes four to six weeks from first contact to DNR submission ^[3]. If you have more acreage or challenging terrain, expect higher fees: some foresters charge by the hour ($100 to $150) plus mileage. County foresters often write MFL plans for free or at reduced cost as part of their public service mission. Availability varies: some counties have a backlog, others can schedule within a month. Call your county land conservation or forestry office and ask about MFL plan assistance. If the county forester can't help, they'll refer you to a consulting forester. The plan writer is your advocate with the DNR. If the DNR requests changes or questions a harvest schedule, the writer negotiates on your behalf. Choose someone with local experience: they know the DNR reviewers, the typical stumpage values, and the soil types in your area. Ask for references and expect to see a sample plan before signing a contract. A good plan writer explains the silvicultural choices, walks the property with you, and sets realistic expectations about harvest timing and volumes.

Frequently asked questions

What is the Forest Management Bureau in Wisconsin?

The Wisconsin DNR Forest Management Bureau oversees MFL compliance, reviews and approves management plans, certifies plan writers, and enforces program rules. The bureau provides technical guidance on sustainable forestry practices and updates MFL administrative code as needed. It's distinct from county foresters, who work for counties and provide local assistance.

What is forest management?

Forest management is the practice of controlling tree growth, species composition, and stand health to meet landowner goals like timber production, wildlife habitat, or recreation. Under MFL, forest management means following a DNR-approved written plan that balances harvests with regeneration, maintains sustainable stocking, and protects soil and water.

How do I report timber sales on my tax return?

Report timber sales on federal Form T (Forest Activities Schedule), which calculates basis, sale price, and gain. The gain flows to Schedule D if using Section 631(b) for capital gain treatment, or Form 4797 if you're a timber business. Wisconsin MFL timber is exempt from state income tax, so report only on federal returns.

How do I avoid capital gains tax on timber sales?

You can't avoid federal capital gains entirely, but Section 631(b) lets you treat timber sales as long-term capital gains (15 or 20 percent) instead of ordinary income (up to 37 percent). You can defer recognition by cutting timber in one year and receiving payment the next. Stepped-up basis at inheritance also resets gain calculations.

Do I have to pay taxes on timber sold from MFL land?

You pay no Wisconsin state income tax on MFL timber sales per Wisconsin Statute 77.88, but you owe federal capital gains tax. Use IRS Form T and Section 631(b) for favorable treatment. Most MFL timber sales qualify for 15 or 20 percent long-term capital gains rates.

Do you pay taxes on timber sales?

Yes, you pay federal capital gains tax on timber sales, typically 15 or 20 percent for long-term gains. Wisconsin MFL exempts timber from state income tax. Calculate gain using Form T, which accounts for your timber basis and sale proceeds.

How are timber sales taxed?

Timber sales are taxed as capital gains if you've held the timber over one year and elect Section 631(b). Rates are 15 or 20 percent federally. Wisconsin MFL timber is exempt from state income tax. Use Form T to report sales and calculate gain flowing to Schedule D.

Can I enroll less than 20 acres in MFL Open?

No, MFL requires a minimum of 20 contiguous acres. If you have 15 acres, you can't enroll. If you have 18 acres and a neighbor has 10, you can't combine non-contiguous parcels. Consider other programs like the Forest Tax Law if it exists in your county, but options are limited below 20 acres.

What happens if I sell MFL Open land?

The MFL order transfers to the buyer if they agree to continue it, and the 40-year term continues unchanged. No withdrawal tax is owed. If the buyer refuses MFL, you owe 20 percent of the land's fair market value minus acreage fees paid. Most buyers accept the transfer to keep the low tax rate.

Can I build a house on MFL Open land?

You can build on a portion if you withdraw that acreage from MFL, paying 20 percent of its fair market value. For example, withdraw 2 acres for a home site and keep 58 acres enrolled. The withdrawal triggers tax only on the 2 acres, not the entire parcel.

Is there a way to close MFL land to hunting but keep the low tax rate?

No, MFL Open at $2.04 per acre requires public access for hunting, fishing, hiking, and skiing. If you want to exclude the public, enroll under MFL Closed at $10.20 per acre. You can't selectively ban hunting while allowing hiking under Open.

Do I need a new management plan if I inherit MFL land?

No, the existing MFL order and plan transfer to you as the new owner, and the original term continues. You assume all obligations: annual fees, public access, and the harvest schedule. At the next 10-year renewal, you'll work with a plan writer to update the plan.

Can I use a logger who isn't certified?

Yes, MFL doesn't require certified loggers, but using a Master Logger or contractor who follows Wisconsin's Best Management Practices for Water Quality reduces erosion risk and keeps you compliant with DNR water protection rules. Your plan writer can recommend experienced loggers.

What if I can't afford the withdrawal tax when I want to sell?

The county collects the withdrawal tax at closing from sale proceeds. If you're selling to a buyer who'll continue MFL, no withdrawal tax is owed. If you need to withdraw but can't afford the tax, you can sell to a buyer willing to pay the tax or negotiate a lower sale price adjusted for the tax burden.

Sources

1. Wisconsin DNR, Managed Forest Law Program Overview: MFL Open requires 40 or 50 years, minimum 20 contiguous acres, 80 percent productive forestland, public access January 1 through day before gun deer season, DNR-approved management plan, withdrawal tax is 20 percent of fair market value minus acreage fees paid
2. Wisconsin DNR, Forest Management Bureau: About 750,000 acres enrolled in MFL as of 2024; Forest Crop Law closed to new enrollment in 1986; existing FCL orders expire between 2036 and 2086; MFL plan costs $800 to $1,500 for 40-100 acres; renewal costs $400 to $800
3. Wisconsin Statute 895.52, Recreational Immunity: Landowners allowing free public recreation are not liable for injuries unless charging a fee or acting with willful or wanton misconduct
4. Wisconsin DNR, Sustainable Forestry Guidelines: Sustainable forestry maintains and enhances long-term health of forest ecosystems while providing ecological, economic, social, and cultural opportunities; MFL plans must follow recognized silvicultural systems (even-aged or uneven-aged)
5. Internal Revenue Code Section 631, Tax Treatment of Timber: Section 631(b) treats timber sales as long-term capital gains if held over one year; gain is recognized when timber is cut, not when payment is received
6. IRS Publication 544, Sales and Other Dispositions of Assets: Federal tax treatment of timber sales, basis calculation, and capital gains reporting