Agriculture Values Also Set to Rise in 2023

Butler County Auditor Nancy Nix informed the Butler County Commissioners and
lawmakers Thursday that the state expects farm values to increase an average of 110 percent statewide
in 2023.

grainAgricultural values are adjusted by the state during a county’s reappraisal or triennial update cycle.
Butler County is conducting a state-mandated triennial update in 2023 and the Department of Taxation
has recommended a 42-percent average increase in residential values.

The Current Agricultural Use Value (CAUV) program helps farmers with their expenses as those in the
program are taxed on the agricultural use value of their land instead of fair market value. There are
130,000 acres in Butler County enrolled in the CAUV program administered by the County Auditor’s

CAUV affects only agricultural “values.” Once CAUV values are calculated, tax calculations mirror the
calculations of residential properties.

The CAUV values are determined by the Ohio Department of Tax Equalization (DTE) based upon data
they receive from United States Department of Agriculture and The Ohio State University. Unlike fair
market values where sales from a three-year period are studied (with emphasis on the third year), CAUV
values are based on a study of seven years of crop income and expense data with the highest year and
lowest year being dropped from the analysis.

From what the DTE recently communicated to our office, the average CAUV soil value is set to increase
from $668 per acre to $1,403 per acre, or 110 percent. This increase is preliminary with final values
expected to be released in June.

“We have reached out to the DTE and the Ohio and County Farm Bureaus to express our concerns,” said

CAUV values also increased significantly during Butler County’s 2014 reappraisal cycle year. Those
increases led to an outcry from agricultural landowners and prompted the Ohio Farm Bureau to launch a
three-year campaign to lobby the DTE, legislature and administration for change. Those efforts paid off
with a revision of the CAUV formula, which was intended to be more consistent with real world
agricultural economic factors. The revised formula provided for more conservative values for the past
several years; but it seems we have come full circle, back to taxpayers facing a burdensome increase.

Any possible remedies to the farmer for these drastic increases would be similar to those the Auditor’s
Office submitted for residential properties, including modifying the 20-mill floor, re-introducing
rollbacks/credits, expanding Homestead exemption and eligibility, or capping the amount of value increase 
that can be taxed.