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The Current Agricultural Use Valuation (CAUV) program was created in 1973 by an amendment to the Ohio Constitution and was designed to exclusively benefit commercial agricultural production. While in the CAUV program, commercial farmland is taxed at its agricultural use value instead of its true market value, which is often significantly higher. This allows commercial farmers to continue in agricultural production amidst rising real estate values, without having to sell or develop their land.

Farms with more than 10 acres of cropland may qualify without having to meet an income level. Farms with fewer than 10 acres must submit evidence that the total gross income from the sale of agricultural products has exceeded $2500 for each of the past three years prior to the application. Farmland may also qualify automatically if it receives regular payments while involved in a land retirement or conservation program under an agreement with an agency of the Federal government.

(A) "Land devoted exclusively to agricultural use," means:

  1. Tracts, lots, or parcels of land totaling not less than ten acres that are 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 were devoted to and qualified for payments or other compensation under a land retirement or conservation program under an agreement with an agency of the federal government.
  2. Areas of timber or woodland that occur on the parcel and that are grown for a non-commercial purpose may also qualify for the agricultural reduction, if the land on which the timber is grown is adjacent to or part of a parcel of land under common ownership that qualifies under item 1 above.
  3. Tracts, lots, or parcels of land totaling less than ten acres, used for any of the purposes described in number 1 above, may also qualify as "land devoted exclusively to agricultural use," where such activities produced an average yearly gross income of at least $2500. If this parcel qualified for payments or other compensation while involved in a land retirement or conservation program under an agreement with an agency of the federal government, the $2500 average yearly gross income requirement is waived.

(B) Land taxed under Ohio Revised Code (ORC) section 5713.23, and receiving the 50% reduction in value as permanent forestland, cannot additionally qualify for the CAUV tax reduction.

While in the CAUV program land is taxed at its agricultural value. This is calculated by determining the types and amount of the different soils on the property. All soil information for Franklin County has been incorporated into the digital mapping system of the Auditor's office. The acreage of all soil types on a property can now be calculated quickly and accurately through this computer mapping system for all parcels in Franklin County.

Once the total acres of a soil type have been determined, that acreage is multiplied by the corresponding value for that soil. All soil types have a value associated with them that is calculated by the Ohio Department of Taxation. The additive value of all the soil types found on the property now becomes the new value of the land for taxation purposes while the parcel is enrolled in the CAUV program, or until the soil values change. Only the land that is used for an agricultural purpose qualifies. Home site or residential and other miscellaneous areas not used for agriculture are taxed at their full market value.

While the parcel is taxed at its agricultural value it will begin to accumulate an annual "tax savings". This "tax savings", also referred to as agricultural recoupment, is the difference between the dollar amount of real property taxes levied on the agricultural value and the property taxes that would have been levied had the parcel been taxed at its full market value. If the land use changes, the property no longer qualifies for the program, or by failure to renew the parcel(s) in the program, a lien equal to the past three years of tax savings-or the agricultural recoupment-will be assessed against the property.

To apply for the CAUV program a complete Initial Application, DTE form 109, must be filed for every parcel in the farm unit. This application may be obtained at the Auditor's office or on the website and filed after the first Monday in January and prior to the first Monday in March of the year in which the valuation is sought. A $25.00 filing fee must be submitted with the application.

After the application is received, the parcel will be entered into the program, pending an initial inspection. Every parcel in the program is inspected to determine that it qualifies as "land devoted exclusively to agricultural use," as defined by the Ohio Revised Code Section 5713.30. If the parcel qualifies on that basis the value of the land will be adjusted to the agricultural use of the property. The difference in the value will be reflected by a reduction in the current tax bill. After a parcel is enrolled, each year the parcel owner must file a renewal form and the land must continue to be "exclusively devoted to agricultural use" to remain on the CAUV program.

For more information about the CAUV program contact the Franklin County Auditor at 462-6254 or E-mail at mkbetts@franklincountyohio.gov.