After more than 10 years of advocating for accurate woodland inputs in the Current Agricultural Use Value formula, the Ohio Department of Taxation has accepted the Ohio Forestry Association’s data regarding land-clearing costs and updated those inputs in the formula.

“This is wonderful news for Ohio’s woodland owners and forest products industry,” OFA executive director Jenna Reese says. “With 86% of forests privately owned in Ohio, forest health and the industry depend on the woodland management decisions of landowners enrolled in CAUV.”

Before the updates, the artificially low land-clearing costs in the CAUV formula were a deterrent to landowners maintaining their woodland parcels. Many have had to clear woodlands for cropland because of values that are much higher in the formula than they are in reality.

Accurate conversion inputs such as land-clearing and drainage costs are critical for landowners enrolled in CAUV who previously faced significant tax barriers to maintaining their woodlands.

The agricultural value of farmland is determined by the following equation: (Income from agricultural production – non-land production costs) / capitalization rate = CAUV.

“For years Farm Bureau has advocated that these numbers be updated based on the real-world data from the Ohio Forestry Association,” says Leah Curtis, policy counsel and senior director of member engagement for OFB. “We are glad to see the tax department take this step and will continue to work with OFA to ensure accuracy for woodland values.”

Ted Finnarn, who has represented the Ohio Farmers Union on the CAUV ag advisory committee for more than 48 years, says “I, as a longtime member of the ag advisory committee, support the CAUV values that were presented at the public hearing, especially with the adjustment for woodland values concerning updating the costs of clearing and drainage. Much praise to the Ohio Forestry Association for bringing this information to the attention of the advisory committee and the Ohio tax department.” 

The values released by the Ohio Department of Taxation will be finalized at the end of the month after a comment period.

OFA is a 501(c)(6) that supports the management of Ohio's forest resources and the strengthening of member business opportunities in the forest products industry and related enterprises. Learn more at ohioforest.org.

Source: OFA