The Current Agricultural Use Value Program was implemented within the State of Ohio to save open spaces and to permit the valuing of farmland on its ability to produce income rather than on market value. The CAUV law can provide significant tax savings benefits to those involved in agricultural production if qualifications are met.

What is the Current Agricultural Use Value Law?

The law is an outgrowth of the Constitutional Amendment passed by the voters of the State of Ohio to save our open spaces, and to protect the farmer from paying high property taxes for his farmland.

What are the eligibility requirements?

[1] Any tract of agricultural land of 10 acres or more which has been in agricultural use for the last three (3) years is eligible. A smaller tract may be included in this program if the tract produced an average income of $2,500 or more from sales of agricultural products during the previous years or if there is an expected gross income of that amount.

[2] The land must be devoted exclusively to agricultural use.

Do you have to own a farm for three years before you can apply?

No. The farm has to qualify, not the owner.

For what length of time is the application effective?

The CAUV application must be filed each year. The County has devised a very simplified renewal procedure requiring only a notification from year to year. back to top | back to faq's

What happens if I don't re-file my CAUV Application?

If you do not re-file your application for a Current Agricultural Use Valuation, then the Auditor is required to value the property at its true market or current market value to recoup the taxes for the current tax year and for the three (3) years in the past. back to top | back to faq's

When does the parcel of property become subject to recoupage?

There are two general reasons for recoupage. First, the failure to reapply for Current Agricultural Use Value, and second, when a change in use in the parcel occurs, so that the land is not used exclusively for agricultural purposes. At that point, the Auditor will notify the owner and recalculate the property's bill. back to top | back to faq's

What happens when the land is converted from agricultural use?

As noted in Section 5713.34 of the Ohio Revised Code:

"Upon the conversion of all or any portion of a tract, lot, or parcel of land devoted exclusively to agricultural use a portion of the tax savings upon such converted land shall be recouped as provided for by Section 36, Article !!, Ohio Constitution by levying a charge on such land in an amount equal to the amount of the tax savings on the converted land during the three (3) tax years immediately preceding the year in which the conversion occurs. The charge shall constitute a lien of the state upon such converted land as of the first day of January of the tax year in which the charge is levied and shall continue until discharged as provided by law." back to top | back to faq's

How much in terms of tax reduction might I expect?

The actual reductions are dependent on the Current Agricultural Use Value (CAUV) which is placed upon the land. Major factors affecting the value are soil type, soil region and land capability class. Agricultural commodity prices and production costs also enter in the CAUV value. The resulting CAUV value replaces the appraised value; the tax value is set at 35 percent of the CAUV value. The CAUV values are readjusted on a three-year cycle by the State Tax commissioner to account for changing agricultural production costs and commodity prices. back to top | back to faq's

How does the CAUV appraisal differ from the fair market value?

The fair market value normally depends upon establishing the value for the farm land based on comparing it to recent sales of similarly situated farms. The CAUV system depends upon capitalizing the expected net income received from farming. back to top | back to faq's

What are some the the major advantages of the CAUV program?

[1] Provides tax relief on agricultural land.

[2] If the tract of land contains woodland as well as cropland, the CAUV Law will often provide a greater tax relief than the Ohio Forest Tax Law because that law applies only to land acreage. back to top | back to faq's

What are some of the disadvantages?

[1] Owner MUST file annually.

[2] There is a recoupment penalty equal to the tax savings for the past three (3) years if the land use changes to nonagricultural use or there is a failure to reapply.

[3] Tracts under 10 acres do not qualify unless the gross annual income from sales of agricultural products is $2,500 or more. back to top | back to faq's

Is there an opportunity to discuss the valuation formula's creation?

The agricultural advisory committee meets in October to discuss possible changes and adjustments in rates. In February an open meeting is held to officially adopt the rates for the current year. Both meetings are open to the public. Ask your County Auditor or Farm Bureau representative for dates and location information. back to top | back to faq's

How are a house and other buildings on a CAUV property valued?

The CAUV law only allows land that is being directly used for agricultural purposes to be valued using the CAUV valuation formula. Therefore all homes and structures on an agricultural property, plus a one-acre home site, are appraised at their fair market value. back to top | back to faq's

When must I file for CAUV?

At any time after the first Monday in January and prior to the first Monday in March of any year. back to top | back to faq's

Where should I file my application?

All applications are to be filed with the Auditor's Office. Trained personnel can assist individuals in completing their CAUV applications. back to top | back to faq's

Is there a cost to filing?

Yes there is. The State Legislature has a mandated a $25.00 per application initial filing fee. The fee stays in the County Real Estate Assessment Fund for use in financing the program. There is no charge for annual renewal. back to top | back to faq's

Where can I find more information about the Current Agricultural Use Value (CAUV) program?

You can find more information about Ohio's CAUV program through:

1. Calling your local Farm Bureau representative.

2. Talking with your Brown County Auditor. 
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*Section 5713.30(A) of the Ohio Revised Code defines "Land Devoted Exclusively to Agricultural Use" as follows:

        (1) Tracts, lots, or parcels of land totaling not less than ten acres that, during the three calendar years prior to the year in which application is filed under Section 5713.31 of the Revised Code, and through the last day of May of such year, were devoted exclusively to commercial animal or poultry husbandry, aquaculture, apiculture, the production for a commercial purpose of timber, field crops, tobacco, fruits, vegetables, nursery stock, ornamental trees, sod or flowers, or the growth of timber for a noncommercial purpose, if the land on which the timber is grown is contiguous to or part of a parcel of land under common ownership that is otherwise devoted exclusively to agricultural use, or were devoted to an qualified for payments or other compensation under a land retirement or conservation program under and agreement with an agency of the federal government;

        (2) Tracts, lots or parcels of land totaling less than ten acres that, during the three calendar years prior to the year in which application is filed under Section 5713.31 of the Revised Code and through the last day of May of such year, were devoted exclusively to commercial animal or poultry husbandry, aquaculture, apiculture, the production for a commercial purpose of timber, field crops, tobacco, fruits, vegetables, nursery stock, ornamental trees, sod, or flowers where such activities produced an average yearly gross income of at least twenty-five hundred dollars during such three-year period or where there is evidence of an anticipated gross income of such amount from such activities during the tax year in which application is made or were devoted to an qualified for payments or other compensation under a land retirement or conservation program with an agency of the federal government.

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