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After years of advocacy from Ohio Farm Bureau and its partners, the Ohio Department of Taxation announced today that it will address inaccurate woodland calculations in the Current Agricultural Use Value program. These changes should result in significant tax savings for many woodland owners.

Along with the Ohio Forestry Association, Farm Bureau has asked the tax department to ensure better woodland value accuracy by using true costs of clearing land and drainage expenses based on forestry association and Ohio State University data. The department took that step today, announcing that these costs will be updated using market data and inflation information. With these updates, most woodland values will now be at the minimum CAUV value.

“These updates could not come at a more needed time. As we have seen significant increases in CAUV cropland values in 2023, and anticipate substantial increases in 2024, the inaccuracies in woodland values were a major weakness in the program,” said Leah Curtis, policy counsel and senior director of member engagement for Ohio Farm Bureau. “And while we have much to celebrate with this announcement, Farm Bureau will continue to advocate for broader CAUV reform to better address volatility.”

Accurate CAUV values for woodland are important to maintaining Ohio’s working forestland. Woodland CAUV values rely on “cost of conversion” deductions in the CAUV calculation, meant to represent the costs of converting woodland to cropland for valuation purposes. In 2016, Farm Bureau’s advocacy led to the department updating these costs for the first time in decades. However, Farm Bureau and OFA have continued to advocate for further updates that accurately match the real costs of clearing and drainage that landowners would experience.

“OFA put a great deal of work into providing relevant land clearing cost data to the committee,” said Jenna Reese, executive director of the Ohio Forestry Association. “We are glad the tax department has incorporated that data today. A more accurate formula removes the tax barrier for farmers who want to maintain their woodlands, and we will continue to assist our ag partners in securing accurate inputs for the CAUV formula.”

Ohio Farm Bureau has also filed an amicus brief in on-going litigation at the Ohio Supreme Court, arguing the costs of conversion have been arbitrarily low in past years. In that brief, Farm Bureau highlighted the duty to use accurate costs of conversion. A decision in that case has not been issued at this time.

This is a news release for use by journalists. Questions should be directed to Ty Higgins, 614-246-8231 or thiggins@ofbf.org.

Ohio Farm Bureau’s mission is working together for Ohio farmers to advance agriculture and strengthen our communities. Learn more at ohiofarmbureau.org.