At the heart of Ohio’s agricultural valuation lies a list of soil types, a
key factor in determining the Current Agricultural Use Value (CAUV) for farmland. This list, crafted by CFAES scientists working with the U.S. Department of Agriculture’s Natural Resources Conservation Service and state agency partners, is essential for tax assessments and reflects the state’s commitment to its agricultural roots.
The CAUV program, a significant benefit for Ohio’s farmers, ensures that farmland is taxed based on its agricultural output rather than its market value. This approach often leads to lower taxes for farmers, aligning with the program’s voluntary nature. The Ohio Department of Taxation uses a detailed formula that includes net farm income data from the past five to seven years, focusing on Ohio’s primary crops: soybeans, corn, and wheat.
Professor Brian Slater, a CFAES soil science expert, explains that the formula involves yield tables for each soil type. The yield tables were established in 1984. Current crop yields are matched against the 1984 tables for growth by the tax department, based on a 10-year average to come to a fair CAUV.
“The yield potential for each soil type is scaled relative to the major crops, ensuring that the CAUV remains fair and consistent,” he said.
A committee of CFAES researchers, who recognize the importance of soil quality in land valuation, has been instrumental in this process. The yield tables originated from county soil surveys and have evolved through collaboration with various agencies to ensure fair taxation based on the land’s physical value.
Ohio boasts a diverse range of agricultural soils, with over 480 series and 3,521 variations, each influenced by factors such as slope, erosion, and texture. This diversity is managed through an active soil survey, part of a national cooperative effort to map soils for agricultural purposes.
While the CAUV program primarily considers yields from corn, soybeans, and wheat, it also calculates values for woodland. The CAUV table of soil values serves as an objective measure for comparing land productivity, simplifying the process while maintaining relevance to Ohio’s farming landscape.
This research-led approach by CFAES not only promotes fair taxation but also supports the state’s agricultural advancement by providing farmers with valuable insights into their land’s potential, fostering a sustainable and prosperous future for Ohio’s farming community.