The Current Agriculture Use Valuation (CAUV) has been a debate to many who own and operate farm ground all over the state of Ohio.
CAUV is a complex formula to evaluate the ground used for agricultural purposes. The restrictions are in depth and forms must be completed to maintain CAUV status. The CAUV is much like residential real estate tax valuations, meaning that it is re-evaluated every three years.
In 2014, Madison County residences and land owners faced a re-evaluation of their agricultural ground. Those in Madison County have also been hit hard with lower prices for their commodities. Ohio and Madison County farmers want to pay their fair share of taxes to help support the schools and communities.
The commodity prices — such as corn, beans and wheat — are part of the formula to evaluate what the taxes are on the agricultural ground. However, the formula hasn’t been updated. The formula is reflecting values almost three times greater then what those commodities are being sold for today.
Most farmers and land owners understand that there is a lag in correcting the formula. However, Ohio Farm Bureau has been working hard to get the lag corrected. Some of the action items they are working on are updating the capitalization rate and giving the minimum value to land committed to year-around conservation practices.
Those affected by CAUV are asking that the tax on farm property reflect the current economy so when the farm economy is up so is the value and vice versa.
However, this won’t help Madison County land owners for another three years. They will continue to pay a higher tax for the next three years, even though the formula and trend of commodity prices are trending down. Madison County Farm Bureau and the board agree that we need to take action on this important topic.
“We would like for everyone to contact their local representatives to help them understand how important the topic of CAUV is for all farmers in Madison County,” stated Dale Rapp, Madison County Farm Bureau president. “We want to pay our fair share of taxes, but it needs to be reflective of the current prices.”
Elizabeth Long is the communications action team leader for the Madison County Farm Bureau.