| Ohioans can look forward to a new tool in their farmland protection toolbox in 2005. The Ohio General Assembly passed House Bill 414 on December 10 to authorize the creation of an Agricultural Security Area (ASA) program. The bill represents four years of hard work, debate, and compromise by the bill’s sponsor, Representative Tony Core, as well as the bills many proponents, including the Ohio Department of Agriculture, the Ohio Farm Bureau Federation, and American Farmland Trust.
Under the new program, interested landowners whose holdings comprise 500 or more acres of contiguous farmland may voluntarily enroll in an Agricultural Security Area for 10 years. Enrollment requires a pledge on the part of the landowner to refrain from any non-agricultural development, and a commitment from the board of township trustees and county commissioners not to extend any new services or road improvements into the area for the 10-year period.
Enrolled landowners may receive a tax abatement of up to 75% (to be determined locally) on any agriculture-related new real property. Early withdrawal is permitted, but carries with it a $500 fine as well as recoupment of any tax abatement dollars.
ASAs are an important tool to have in our growing farmland protection toolbox—but these areas will only be as strong and effective as local officials make them. The full potential of ASAs will only be realized if they are carried out in accordance with a local comprehensive plan that targets areas in the community for agricultural protection. Furthermore, the tax abatement incentive is permissive, so local public officials will determine the amount (if any) of abatement provided. However, if well implemented, these ASAs could provide a meaningful protection that would give farmers a known time horizon to invest in their operations, as well as a possible tax incentive to help them do so.
ASAs will complement Ohio’s existing farmland preservation tools, which include the Current Agricultural Use Valuation program, the Agricultural Districts Program, and the Ohio Agricultural Easement Purchase Program. The Ohio Department of Agriculture is currently drafting an application for ASA enrollment. More information will be available in early 2005.
For more information on ASAs in Ohio, contact Sara Nikolic at the Ohio Office of American Farmland Trust at 624-469-9877 or the Ohio Department of Agriculture’s Office of Farmland Preservation at 614-728-6210.
More Information: House Bill 414 text, AFT Testimony by Sara Nikolic
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