Current Agricultural Use Values have skyrocketed in recent years. Ohio Farm Bureau has identified a number of improvements to the CAUV formula to help stem increases and improve the accuracy of the CAUV calculation. As the Ohio General Assembly considers the budget bill, there is an opportunity to put OFBF’s most recent recommendations into law through the conference committee.
Ohio Farm Bureau is urging members to take action NOW by emailing or calling their state representatives and senators and asking them to include these important provisions in the budget bill.
Members can use the Farm Bureau Action Center to send their senator and representative the message that they need to support Ohio Farm Bureau’s CAUV changes. If members prefer to use the action center to call their representatives or senators, the talking points below can help them discuss this issue.
Decisions regarding the budget bill are being made in the next few days, so it is urgent that contacts be made as soon as possible. This is a unique opportunity to make important improvements to CAUV.
Action Request Talking Points
1. Remove non-farm influences from the formula by requiring the simple “Band of Investment” mortgage-equity appraisal method be used to calculate the capitalization rate.
o The current method used by the Department of Taxation includes numerous factors that treat farmland like other types of real estate investments.
o These include assumptions that farmland appreciates in ways similar to other real estate, and that farmers will only own the land for 5 years – both are incredibly inaccurate and not based on agricultural use.
o Using the “Band of Investment” method will reduce the impact of non-farm influences on the calculation, and will help to ensure that land is being accurately valued for its income potential from farming alone.
2. Strengthen environmental stewardship and improve water quality by placing all land committed to year-round “conservation practices” as defined in R.C. 5713.30(E) at minimum value.
o Those practices: include, but are not limited to, the installation, construction, development, planting, or use of grass waterways, terraces, diversions, filter strips, field borders, windbreaks, riparian buffers, wetlands, ponds.
o The CAUV formula doesn’t recognize land set aside for those purposes as less valuable compared to when it’s used for agricultural production, which serves as a disincentive to farmers to engage in these practices.
Use the Farm Bureau Action Center to ask legislators to support Ohio Farm Bureau’s CAUV changes.