The Ohio Soybean Association (OSA) is voicing its support of language in the proposed state budget that would reform the Current Agricultural Use Value (CAUV) program. In recent years, farmland in Ohio has seen up to a 300 percent increase in taxable value, putting a significant burden on family farmers during a time of lower crop prices.
The proposed changes include that the interest-capitalization rate used in the formula will be modified to lessen the influence of non-farm factors and be phased in over six years.
“Farmers are getting tax bills that are many times what they were less than ten years ago and at the same time experiencing lower prices for their crop,” said Todd Hesterman, OSA president and Henry County soybean farmer. “Reform is needed to create stability for family farmers.”
The bill will also remove disincentives for farmers to engage in conservation practices by stipulating that CAUV land enrolled in a federal conservation program for at least three years be valued at the lowest possible based on soil type.
On Tuesday, the Ohio House approved House Bill 49, the state’s main operating budget, which included the amendment that makes changes to CAUV. The Senate is expected to vote on the bill in the coming weeks.