Family farm group wants end to skyrocketing farmland tax rate

The Ohio Farmers Union will continue its educational campaign on the causes and solutions to rural Ohio’s skyrocketing property taxes.

Farmland, woodland and conservation acres owners in Ohio have seen 50 to 300 percent tax increases since 2009 due to problems with the state’s CAUV formula.

CAUV – or current agricultural use valuation – is the complex formula used to determine tax values for agricultural land in Ohio. Since the Great Recession, anomalies in grain markets and historically low Federal Reserve interest rates have put CAUV out of balance.

“CAUV worked for Ohio family farmers well for more than three decades,” said Ohio Farmers Union President Joe Logan, “But, a perfect storm of recent events has thrown it off-track.”

“While farmers do expect their CAUV values to increase from time to time, it’s been quite a shock to the system for many self-employed farmers to see double and triple digit property tax increases. Many farmers around the state have now been through two of these increase cycles and it’s an unfair and unreasonable burden on Ohio’s farmers,” Logan added.

OFU and nearly all other farm groups in the state are advocating for some minor changes to the formula contained in two bills pending the Ohio General Assembly, HB 398 and SB 246. As part of their advocacy, OFU is sponsoring informational sessions around Ohio. The first was held in northwest Ohio in early April.

The next meeting will be held Friday, April 22, 1:00 p.m. at the Risley Agricultural Center, 5220 Root Road, Spencer, Ohio. The featured speaker will be Darke County attorney Ted Finnarn who is the OFU representative on the agricultural advisory board that provides information and ideas to the Ohio Dept. of Taxation. Finnarn has served in that capacity since the board’s inception in 1976. Finnarn is an OFU member and also works with the Ohio Farm Bureau Federation on CAUV.

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The lagging farm economy was a top focus today for the House Agriculture Subcommittee on General Farm Commodities and Risk Management. National Farmers Union (NFU) President Roger Johnson joined a panel of industry leaders to testify on behalf of NFU’s nearly 200,000 members who are currently facing a diverse set of challenges in the farm sector.

“As commodity prices continue to decline and farmers and ranchers struggle to adjust to lower prices, there is a growing burden felt by producers out in the countryside,” Johnson informed members of the committee. “Even more worrisome is the U.S. Department of Agriculture forecasts, which show a prolonged period of low commodity prices. This situation will result in trouble accessing credit, negative farm budgets, depressed markets and tests to the farm safety net.”

The downturned farm economy has put a significant strain on farm financials, Johnson explained.  “We are seeing this manifest itself in the Farm Service Agency’s loan portfolio, an early indication of challenges ahead,” he said.

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With the 2014 Agricultural Act in full effect and a new Farm Bill debate on the horizon, the National Farmers Union is conducting a survey of family farmers and ranchers across the country to gain a greater understanding of the effectiveness of these programs.

“As a farmer-led organization, we work closely with our diverse membership to advocate for policies that support family farmers and ranchers and the communities where they live,” explained NFU President Roger Johnson. “After the review, we will be able to better gauge the effectiveness of current farm policies and identify our advocacy priorities for the next Farm Bill process.”

The survey, announced earlier this month at the 114th Anniversary Convention in Minneapolis, Minn., is meant to complement the feedback gained through a simultaneous series of member listening sessions held across the country.

The survey will remain open through July 31, 2016, after which time responses will be collected and analyzed by NFU staff to establish policy proposals and engage partners for the upcoming Farm Bill debate.

“An educated and vocal membership is one of the things that makes NFU such a strong grassroots organization,” Johnson concluded. “We need to hear from a large number of our members to make sure the farm bill addresses the most serious challenges, including climate change and market consolidation, facing rural America today.”

Farmers and ranchers are invited to complete the NFU Farm Bill survey here.

Cultivating the next generation of farmers and ranchers to carry on the legacy of American agriculture is the main focus of the National Farmers Union Beginning Farmer Institute.

NFU encourages new farmers, starting an operation of any size, to apply for the 2016-17 program class.

Through sessions hosted in Washington D.C. and California, the program’s hands-on training emphasizes many of the challenges beginning farmers may face in their careers, such as business planning, access to capital, land acquisition, marketing, and more.

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“As the farm population continues to age, we are looking to the next generation of farmers and ranchers to continue to produce food, fiber and fuel. But farming can be an overwhelming business to get started if you don’t have the right tools,” said NFU president Roger Johnson. “For more than five years, the Beginning Farmer Institute has empowered new farmers from across the country to operate successful farm businesses.”

Farmers from all geographic regions and a diverse range of production methods have greatly benefitted from the training. The most recent graduates of the program, who were recognized at the NFU Convention in Minneapolis, Minn., earlier this month, represented seven states. Women and veterans have been among the program’s most active participants.

“More than half the participants have been women and nearly 10 percent have been veterans,” explained Johnson. “I am pleased to see the diversity of skills and backgrounds these beginning farmers are bringing to the industry.”

Applications for the 2016-2017 class must be postmarked by April 30, 2016, and the class roster will be announced on June 10, 2016. More information about the NFU Beginning Farmer Institute is available at here.

Farmland taxes (CAUV) and other state Ohio Farmers Union policy priorities will be among topics discussed with state legislators on April 12.

“We need every OFU member we can get to help us canvass the Capitol and stand up for the rights of family farmers in Ohio on April 12,” said Ron Sylvester, external relations director for OFU.

“While we’re in the midst of a heated – and unusal – presidential election year that seems to be bringing legislatures to a standstill, there are two important bills on Current Agricultural Use Valuation pending in the Ohio General Assembly. We need to keep the pressure on Columbus to do the right thing and return CAUV to its intended role in tax policy,” Sylvester said.

Family farmers around the state have seen their farmland tax bills go up 50 to 300 percent just since the end of the last recession.

OFU members are asked to come to Columbus on April 12. They will meet as a group in the Grant Hearing Room in the Capitol Building at 9 a.m. State Sen. Cliff Hite, Senate Agriculture Committee chairman, will meet with the entire group and talk about the legislature in 2016 and take questions. Members will then split up into groups and meet with other members of the House and Senate including their own representatives, party leaders and ag committee leaders and members of the Ways and Means and Finance Committees in the House and Senate.

We are asking folks to register so we can plan meetings and groups. You can register by calling Jerry Meyer at the OFU state office in Ottawa at 800-321-3671 or by entering a few quick pieces of information in the form below and clicking “submit.”