JEFFERSON, Ohio — Last year, soil values under Ohio’s Current Agricultural Use Value program soared by up to 300% in some places, further burdening landowners and farmers who had enrolled looking for help.
With higher interest rates on the horizon, farmland tax values may begin to fall, bringing CAUV values down with them, which should be welcome news for some in Ohio’s agricultural community — but maybe not for everyone.
“I’m always going to give it to you straight. You may not like the answer sometimes,” said Ashtabula County Auditor Scott Yamamoto at an Ohio Farm Bureau membership breakfast event March 8 in Jefferson, Ohio.
The CAUV program allows working farmers to substantially lower their tax bills. Instead of farmland being taxed based on what it could be worth if it were sold for development or other purposes, CAUV allows it to be taxed based on its actual use for agriculture, resulting in lower property taxes for farmers.
The Ohio Department of Taxation determines CAUV tax values based on the many different soil types across the state. Each soil type has a pre-assigned value calculated through a formula that considers everything from cropping patterns to crop yields and prices as well as production costs and capitalization rates.
As part of Ohio’s routine property value reassessment, Ashtabula County is scheduled for reappraisal in 2026, meaning new CAUV rates will take effect in 2027. At the breakfast, Yamamoto was upfront about the reality of the process.
“If you didn’t like your value in 2023 going up, you’re probably not going to like it in 2026,” he said. “I’m just being honest and forward about it.”
To determine CAUV rates, assessors are looking at three things: They calculate a farm’s projected gross income, subtract production costs, and then, divide the resulting net income by a capitalization rate based on the interest rate of a typical 15-year loan for a farm. With interest rates rising over the past three years, Yamamoto said he expected a significant impact on future CAUV values.
“The higher the interest rate is, believe it or not, the lower the values come in,” Yamamoto said. “So, as we’re moving forward through CAUV and when the state is creating these new values, we think that there could be a softening of the CAUV going forward.”
The potential relief is coming after steep increases in CAUV soil values in 2023, which left many farmers questioning the benefits of remaining in the program. Some landowners saw their CAUV values triple, leading to sharp increases in property taxes.
“A lot of people get frustrated. They call our office and say, ‘CAUV went up 300%. My value went up 32%. My taxes went through the roof. When is this going to stop? And do I bother being on CAUV anymore? It just seems like it’s futile,’” Yamamoto said.
Despite these frustrations, he stressed that CAUV remains a valuable program, even though the discount used to be a bit better in years past. Today, land enrolled in the program is taxed at only 30% of its full market value, meaning farmers receive a 70% discount on their property taxes over what they otherwise would pay outside of the program.
“So yes, we did lose some value there, but it’s still a good value. And we want you to continue being in that program,” Yamamoto said.
For those seeking more information in Ashtabula County, Yamamoto encouraged landowners to visit the county auditor’s website where historical CAUV rates for all soil types are tracked and available for review. Landowners outside of Ashtabula County can visit their county auditor’s website for the same information.
Changes to forested land
Yamamoto also addressed changes in Ohio’s forestry tax laws. The Ohio Department of Natural Resources has stepped back from managing forest tax programs, shifting that responsibility to county auditors. Landowners currently enrolled in ODNR’s forestry program are being encouraged to switch to CAUV, as it offers a better tax discount. Under the forestry program, the certified acreage is taxed at half its market value, whereas CAUV taxes land at just 30% of its market value.
“The requirements are very much the same. You have to have at least 10 acres either way, whether you’re on forestry or whether you’re on CAUV,” Yamamoto said. “As long as you own a bunch of parcels that add up to more than 10 acres, you’re good.”
The shift means that rather than self-certifying compliance as forestry landowners currently do, CAUV participants will be subject to county inspections to verify they are managing their forestland properly.
“This kind of keeps everybody honest, right? We’re out there making sure that you’re doing what you’re supposed to,” Yamamoto said, reassuring attendees that his office is dedicated to helping landowners through the process, which often seems incredibly complicated.
“We’re going to be transparent about everything,” he said. “We’re going to make sure that we work with you.”
Mandy Orahood, organization director of the Ashtabula County Farm Bureau, echoed that sentiment, emphasizing the role the farm bureau plays in supporting landowners.
“Farm Bureau is always here. All you have to do is give us a call. We’ve got the resources for you,” Orahood said.
She pointed out a recent success story in Trumbull County, where farm bureau advocacy led to $2 million in overpaid property taxes being refunded to farmers.
“Luckily, the county auditor, Martha Yoder, on her first day in office, I got to call her and tell her I found this issue, and she was able to work through it,” she said. “We’ve been doing it for the last year and a half, and she was finally able to get through the process of reissuing those farmers their overpayment of taxes.”
For more information about CAUV, visit The Ohio Department of Taxation online.
