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By: David Marrison, OSU Extension Field Specialist, Farm Management

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A map of the state of ohio

Description automatically generatedDrought conditions continued to degrade across Ohio. According to the U.S. Drought Monitor report on September 17, 59.56% of Ohio is experiencing severe or greater drought conditions with 9.5% classified as D4 or exceptional drought conditions (Figure 1). It is important to remember that D4 conditions only occur once every 50 to 100 years. Approximately 98% of the state is experiencing at least abnormally dry conditions. One silver lining is the current seven-day forecast shows the potential for rain in many areas of Ohio next week which should help slow the progress of drought should it occur. 

The drought conditions have impacted both pastures and hayfields across Ohio. The Conservation Reserve Program (CRP) administered under the USDA Farm Service Agency permits emergency haying and grazing on certain CRP practices in a county designated as D2 or higher on the U.S. Drought Monitor, or in a county where there is at least a 40 percent loss in forage production.

Emergency use of CRP acres is available in eligible counties if the stand is in condition to support such activity and is subject to a modified conservation plan. Producers should contact their FSA office to determine if the county remains eligible and to obtain a modified conservation plan.

After a county is approved for emergency haying and grazing, conditions are reviewed monthly to determine whether continuing the emergency activities is warranted. To date, 70 counties (79.5%) in Ohio are eligible (as of 9/17/2024). These can be found in Table 1:

Table 1: Ohio Counties Eligible for Emergency CRP Grazing

County

State Date

 

County

Start Date

 

County

Start Date

Adams

8/20/2024

 

Hamilton

9/17/2024

 

Noble

7/16/2024

Allen

9/17/2024

 

Hancock

9/17/2024

 

Ottawa

9/10/2024

Ashland

9/17/2024

 

Hardin

9/10/2024

 

Paulding

9/17/2024

Athens

7/16/2024

 

Harrison

7/30/2024

 

Perry

7/23/2024

Auglaize

9/10/2024

 

Henry

9/10/2024

 

Pickaway

7/16/2024

Belmont

7/16/2024

 

Highland

7/30/2024

 

Pike

7/30/2024

Brown

8/20/2024

 

Hocking

7/23/2024

 

Preble

9/17/2024

Butler

9/10/2024

 

Holmes

9/17/2024

 

Putnam

9/17/2024

Carroll

8/20/2024

 

Jackson

7/30/2024

 

Richland

9/17/2024

Champaign

9/03/2024

 

Jefferson

7/23/2024

 

Ross

7/16/2024

Clark

9/03/2024

 

Knox

9/17/2024

 

Sandusky

9/10/2024

Clermont

9/10/2024

 

Lawrence

12/19/2023

 

Scioto

8/20/2024

Clinton

8/20/2024

 

Licking

8/27/2024

 

Shelby

9/10/2024

Coshocton

9/03/2024

 

Logan

9/10/2024

 

Tuscarawas

7/30/2024

Crawford

9/17/2024

 

Lucas

9/10/2024

 

Union

9/03/2024

Defiance

9/10/2024

 

Madison

7/16/2024

 

Vinton

7/23/2024

Delaware

9/03/2024

 

Marion

9/17/2024

 

Warren

9/03/2024

Fairfield

7/16/2024

 

Meigs

7/16/2024

 

Washington

7/16/2024

Fayette

7/16/2024

 

Miami

9/10/2024

 

Wayne

9/17/2024

Franklin

7/16/2024

 

Monroe

7/16/2024

 

Williams

9/10/2024

Fulton

9/10/2024

 

Montgomery

9/03/2024

 

Wood

9/10/2024

Gallia

7/30/2024

 

Morgan

7/16/2024

 

Wyandot

9/17/2024

Greene

9/03/2024

 

Morrow

9/17/2024

 

 

 

Guernsey

7/16/2024

 

Muskingum

7/16/2024

 

 

 

 

More information about the emergency grazing of CRP acreage can be found at: https://www.fsa.usda.gov/programs-and-services/conservation-programs/conservation-reserve-program/emergency-haying-and-grazing/index

Producers are encouraged visit their local Farm Service Agency office to report crop and livestock losses. By providing this data, producers can learn their eligibility for the FSA disaster programs. Producers can locate their local office at: www.fsa.usda.gov/oh FSA has also developed an on-line disaster assistance discover tool which allows producers to learn which of the many USDA assistance programs which might fit their operation due to this year’s drought. This easy-to-use tool can be accessed at: https://www.farmers.gov/protection-recovery/disaster-tool

References:

OSU Drought Response Page. Accessible at: https://kx.osu.edu/page/early-drought-response

US Drought Monitor. Accessible at: https://droughtmonitor.unl.edu/

Emergency Conservation Program. United States Department of Agriculture, Farm Service Agency. Source: https://www.fsa.usda.gov/programs-and-services/conservation-programs/conservation-reserve-program/emergency-haying-and-grazing/index

 

 

 

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By: Barry Ward, Friday, September 20th, 2024

Barry Ward, Leader, Production Business Management

Writing this feels like déjà vu. It feels like we’ve lived through this before and for good reason. The article I wrote last year about significant increases in Current Ag Use Value of farmland can be repeated almost word for word.

Again, large increases in the Current Ag Use Value (CAUV) of farmland in 2024 will result in higher property taxes for farmland owners in 2025. Twenty-four of Ohio’s eighty-eight counties will see property tax increases in 2025 due to higher CAUV. Several factors have led to this increase in ag use valuation. The average current ag use value is expected to be $1,616 per acre across all soil types (proposed final value). This compares to a value of $759 per acre in 2021 which represents an increase of 113%.

The Current Agricultural Use Value (CAUV) Program is a differential real estate tax assessment program for owners of farmland. The program allows for the assessment value of farmland parcels to be taxed according to their use value in agriculture (or their value related to income from agriculture) rather than the market value (defined as the value if the land were sold by a willing seller to a non-related willing buyer). To arrive at this “use value”, a formula is used that includes several variables to capitalize the net income from agricultural products.

Landowners with farmland and woodlands in Ohio are eligible to sign-up for the CAUV program through their county auditor’s office if they meet the requirements.

There are two paths for a parcel to qualify for the Current Agricultural Use Valuation (CAUV) Program. To qualify for CAUV, land must meet one of the following requirements during the three years preceding an application.

•Ten or more acres must be devoted exclusively to commercial agricultural use; or

•If under ten acres are devoted exclusively to commercial agricultural use, the farm must produce an average yearly gross income of at least $2,500.

Each of the 3517 different soil types in Ohio is assigned a current ag use value (CAUV) each tax year. The value represents the expected net present value of an acre of land devoted solely to agricultural production for the dominant crops in Ohio. To determine this value, an average of yields and prices for corn, soybeans, and wheat is used to determine gross income. Non-land costs are then subtracted from gross income for a measure of net income. Finally, this net income is divided by a capitalization rate based upon recent values of farm interest and equity rates.

Counties are subject to an update in CAUV every 3 years so only a portion (24 of the 88) have been updated in 2024 that will impact 2025 property taxes. As counties see updated values only every three years, there is the opportunity for large changes as many farmland owners will see this year.

Several factors have led to much of this increase in ag use valuation. Higher crop market prices and increased crop yields included in the formula have been significant drivers in the higher current ag use values. Price increases have been substantial as compared to the prices used in the 2021 calculations (the last time these counties underwent CAUV updates). Corn price has increased 22.6%, soybean price increased 18.8% and wheat price increased 16.0%.

Although we have seen substantial decreases in crop market prices this year, the prices used in the formula don’t reflect this yet. The prices used in the formula are based on a 7 year “olympic average” of United States Department of Agriculture (USDA) marketing year average prices. The higher crop prices in 2020 through 2022 continue to keep this price variable high in spite of recent falling crop prices.

 

A table with numbers and text

Description automatically generated with medium confidence

Yields used to determine values for each soil type increased 8.0% for corn, 5.7% for soybeans and 8.5% for wheat as compared to the yields used for the 2021 calculations.

Although Ohio farmers have seen significant increases in input costs since 2021 and the Ohio Crop Enterprise Budgets reflect this, there haven’t been enough years of these higher costs to significantly impact the cost variables used in the formula.

Low interest rates (capitalization rate) have also contributed to the increasing current ag use values as recent higher interest rates aren’t yet fully represented in the formula. The capitalization rate used in the formula in 2024 CAUV calculations was an increase at 8.2% as compared to the rate of 7.8% used in 2021, the last time these counties saw an update in CAUV. Recent higher interest rates will continue to increase the capitalization rate (denominator in the CAUV calculation) in future years which will help to moderate current ag use values.

For a detailed look at the variables and calculations that are used to determine CAUV for farmland, access the Ohio Department of Taxation online publication “2024 Current Agricultural Use Value of Land Tables Explanation of the Calculation of Values for Tax Year 2024”.

The Ohio Department of Taxation annually publishes this explanation of the CAUV valuation method complete with the measures used to calculate CAUV and examples of the calculations for certain soil units for the present year. This year’s document is titled “2024 Current Agricultural Use Value of Land Tables Explanation of the Calculation of Values for Tax Year 2024” and is available online at:

https://tax.ohio.gov/government/real-state/cauv

Woodlots

Those with woodlots will likely see decreases in CAUV for their parcels which will decrease property taxes on these parcels in 2025. This year the Ohio Department of Taxation updated the CAUV woodland clearing cost from $1,000 per acres to over $4,000 per acre based on data from the Ohio Forestry Association (OFA) and inflation data. The larger land clearing costs will result in all woodlands to be valued at the minimum CAUV of $230 per acre in 2024.

Legislative Changes

There has been quite a lot of conversation about legislative changes in determining property taxes in Ohio. There are a number of bills that have been initiated that address changes in valuation and/or taxation of property but none have made much progress. One bill that includes some language that would impact CAUV is Ohio House Bill 447.

Ohio House Bill 447 would modify and expand property tax homestead exemptions, gradually reduce school districts’ 20-mill floor for tax levies and modify the formula for determining farmland’s current agricultural use value (CAUV). The change to CAUV language in the bill would increase the tax additur (a value that reflects the statewide effective property tax rate on agricultural land) to include a 10% floor. In practice, this change would serve to lower the current agricultural use value for land devoted exclusively to agricultural use. This bill has seen little movement recently and remains in committee. Part of the reason that this bill and others haven’t progressed very far through the legislative process is the existence of the Joint Committee on Property Taxation Review and Reform.

A provision in the Senate version of the last biennial state budget was to require CAUV be determined by averaging the last three years of Current Ag Use Values. (This provision was ultimately excluded from the final biennial budget.) The current method for determining CAUV requires an update or reappraisal every 3 years. Significant changes in the variables that are used to calculate CAUV can lead to big changes in values during this this three-year interval. These large increases or decreases are often unanticipated by taxpayers. The provision that was considered would have required the Current Ag Use Value be calculated taking the current year calculated value plus the two prior years’ calculated values (for each soil type) and averaging the three. This proposed method would likely result in smaller increases and decreases in a given 3-year cycle for CAUV calculations. This provision continues to be discussed and may yet see further legislative consideration.

Joint Committee on Property Taxation Review and Reform

The Joint Committee on Property Tax Review and Reform in Ohio was created in the state's operating budget in 2023 to review the state's property tax system and make recommendations to the General Assembly. The committee is considering a wide range of legislative and administrative changes that may change the property tax system in Ohio and is required to issue a report by the end of the 2024.

Posted In: Crop Issues, Tax
Tags: CAUV Property Tax
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By: Barry Ward, Tuesday, August 13th, 2024

The Western Ohio Cropland Values and Cash Rents study was conducted earlier this year from January through April. This opinion-based study surveyed professionals with a knowledge of Ohio’s cropland values and rental rates. Professionals surveyed were rural appraisers, agricultural lenders, professional farm managers, ag business professionals, OSU Extension educators, farmers, landowners, and Farm Service Agency personnel. The study results are based on 131 surveys.

Respondents were asked to group their estimates based on three land quality classes: average, top, and bottom. Within each land-quality class, respondents were asked to estimate average corn and soybean yields for a five-year period based on typical farming practices. Survey respondents were also asked to estimate current bare cropland values and cash rents negotiated in the current or recent year for each land-quality class. Survey results are summarized below for western Ohio with regional summaries (subsets of western Ohio) for northwest Ohio and southwest Ohio.

Results from the Western Ohio Cropland Values and Cash Rents Survey show cropland values in western Ohio are expected to increase in 2024 by 3.3 to 5.8 percent depending on the region and land class. Cash rents are expected to increase from 3.2 to 3.8 percent in 2024 depending on the region and land class. Decreasing profit margins have competed with relatively strong farm equity positions and increasing property taxes to direct values and rents so far in 2024. Cropland values and cash rents are expected to increase although they are projected to be smaller increases than the past two years.

Factors Important to Ohio Cropland Values and Cash Rents

The primary factors affecting these values and rents are land productivity and potential crop return, and the variability of those crop returns. Soils, fertility and drainage/irrigation capabilities are primary factors that most influence land productivity, crop return and variability of those crop returns.

Other factors impacting land values and cash rents may include field size and shape, field accessibility, market access, local market prices, field perimeter characteristics and potential for wildlife damage, buildings and grain storage, previous tillage system and crops, tolerant/resistant weed populations, USDA Program Yields, population density, and competition for the cropland in a region. Factors specific to cash rental rates may include services provided by the operator, property taxes and specific conditions of the lease. This fact sheet summarizes the survey research data collected for western Ohio cropland values and cash rents:

https://farmoffice.osu.edu/farm-management-tools/farm-management-publications/cash-rents

Projected Estimates of Land Values and Cash Rents

Survey respondents were asked to give their best estimates for long-term land value and cash rent change. The average estimate of cropland value change in the next five years for western Ohio is an increase of 3.6 percent (for the entire five-year period). Responses for the five-year cropland value change ranged from an increase of 50 percent to a decrease of 50 percent.

The average estimate of cash rent change in the next five years is an increase of 2.7 percent. The cash rent change also had a large range, with responses ranging from an increase of 25 percent to a decrease of 50 percent.

Interest Rates

Survey respondents were also asked to estimate 2024 interest rates for two borrowing terms: 20 year fixed-rate mortgage and operating loan. The average estimate, according to survey respondents, of 20 year fixed-rate mortgage borrowing is 7.1 percent. According to the same respondents, the average estimate of operating loan interest rates is 8.3 percent.

The full survey research summary can be found at the Farm Office website: https://farmoffice.osu.edu/farm-management-tools/farm-management-publications/cash-rents

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By: Barry Ward, Tuesday, July 30th, 2024

Featured Discussion on the Downward Trend in Global Profitability of Crop Farming and a Bearish Outlook for 2024

During its annual conference from June 10th to 14th, the agri benchmark Cash Crop Network discussed recent developments in global crop production. I was fortunate to recently attend the agri benchmark conference in Valladolid, Spain. The conference was hosted by the Spanish Ministry of Agriculture who together with its operating company Tragsa, established and manages a network of 37 typical crop farms. Approximately 55 international experts from all over the world discussed recent results and topical issues of global crop production.

The Ohio State University College of Food, Agricultural and Environmental Sciences is a member of the agri benchmark network and I serve as the network representative for the College. The following are a few selected highlights from the conference.

Last year (2023) was difficult for most typical agri benchmark farms when compared with previous, more profitable, years.  Increasing machinery cost and lower output prices many farms experienced a massive downturn in return to land.

The projections for 2024 for the agri benchmark network, which is coordinated by the German Thünen Institute, are even more bearish. The likely relief provided by lower fertilizer prices will not fully compensate for the increase in machinery costs. In addition, based on global price projections, farm-gate production prices are likely to be lower in 2024 than in 2023. Many typical farms are likely to struggle with returns in 2024.

US renewable diesel boom – how US soybean production may increase

A number of U.S. states have implemented blending targets for renewable fuels. As a result, renewable diesel production has increased substantially. By 2029 this will lead to an annual demand of 8 million tons of soybean oil renewable diesel production (FAPRI-MU, 2024), a 3-million-ton increase in demand relative to 2020. The respective supply can be generated through more domestic crushing or an increase of soybean acreage; most likely, a combination of both options will be used. To satisfy this increased demand for soybean oil via expansion of soybean acreage, about 5.1 million ha (+15% of current soybean acreage) of additional farmland would be required. An increase in soybean acreage may come from either (a) shifting away from continuous corn rotations to corn-soy and (b) shifting corn-soy rotations toward corn-soy-soy. Based on agri benchmark data, Margaret Lippsmeyer from Purdue University showed that option (a) would require an increase in soybean prices of 6% and option (b) of 8% to make these rotations preferable over existing ones.

 

Ukraine grain exports: No specific effects on Central & Eastern European farm-gate prices

At the national level, agri benchmark farm-gate data did not yield an indication that growers in Central and Eastern Europe have been suffering from the inflow of Ukrainian grain. As the graph attached indicates, respective wheat margins between Western Europe and Central and Eastern Europe actually narrowed. However, agri benchmark partners mentioned that in regions close to the Ukrainian border lower than usual prices have been observed.

EU sugar production: Expanding and rather profitable in 2023

Due to high EU sugar prices in 2022, EU production increased by 7% in 2023. Therefore, the EU became a net exporter again. Since global sugar prices were still rather high, the negative impact on domestic prices was low. Thomas de Witte from Thünen Institute stated that profitability of sugar beet production was extraordinarily high – an advantage of 1.000 to even 2.000 €/ha over other crops could be observed. A possible future cut of 15 to 30 €/t in beet prices (or 20% to 40%) would still make beets competitive at wheat prices of 230 €/t.

Regenerative agriculture – a promising option to reduce environmental footprint?

The members of the agri benchmark Network discussed the concept and the environmental claims of regenerative agriculture. Many industry leaders and politicians are promoting this idea to address public concerns regarding agriculture; influential global consulting companies try to educate growers regarding the profitability of suggested measures such as cover crops and no-till. One discussion focused on the notion that proponents of regenerative agriculture oversell the potentials, in particular regarding greenhouse gas savings and economics. Furthermore, the two major sources for GHG emissions – nitrogen use and land use change – are not addressed. Considering these shortcomings, the network will be publishing a thesis paper on this topic and will suggest more meaningful indicators to define goals that effectively reduce GHG emissions and reduce pressure on biodiversity.

 

agri benchmark, a nonprofit, politically independent organization, provides comprehensive information and advice on crop production systems. With its proven and unique farm level data and a global network of on-the-ground experts, agri benchmark enables economic and environmentally sustainable decision-making by agricultural stakeholders worldwide.​

Let’s grow together – ​Your strategic partner for tomorrow’s agriculture

For more information visit: agribenchmark.org

Evolution of average return to land* across all crops (USD/ha)

Evolution of average return to land* across all crops (USD/ha)

* Total revenue (incl. decoupled payments) minus total cost (excluding land cost);
   weighted average per farm, simple average across all farms per region

Evolution of farm-gate wheat prices – regional agri benchmark averages (USD/t)

Evolution of farm-gate wheat prices – regional agri benchmark averages (USD/t)

Source: agri benchmark Cash Crop (2024)

Group picture from the conference

Group picture from the conference

Source: agri benchmark Cash Crop (2024)

 

By: Peggy Kirk Hall, Wednesday, June 05th, 2024

The U.S. Department of Agriculture Agricultural Marketing Service (USDA) is asking the agricultural community to weigh in on a new program aimed at the voluntary carbon market in the U.S.  The agency has published a Request for Information seeking input on what the agency should consider in developing rules for the new “Greenhouse Gas Technical Assistance Provider and Third-Party Verifier Program.”  The purpose of the new program, created by the passage of the Growing Climate Solutions Act last year, is to facilitate farmer, rancher, and private forest landowner participation in voluntary carbon markets by: (1) publishing a list of widely accepted protocols designed to ensure consistency, reliability, effectiveness, efficiency, and transparency of voluntary credit markets; (2) publishing descriptions of widely accepted qualifications possessed by covered entities that provide technical assistance to farmers, ranchers, and private forest landowners; (3) publishing a list of qualified technical assistance providers and third-party verifiers; and (4) providing information to assist farmers, ranchers, and private forest landowners in accessing voluntary credit markets.

Farmers haven’t engaged in the voluntary carbon market to the extent some predicted several years ago, when “carbon agreements” began circulating through the agricultural community.  A carbon agreement is a private  contract that compensates a farmer for adopting practices that sequester carbon, with one ton of sequestered carbon creating a “carbon credit.”  Those who pay farmers for the carbon credits can retain the credits or trade the credits through a carbon market.  The owner of the carbon credits can use the credits to offset their greenhouse gas emissions, with the goal of reducing their “carbon footprint.”

According to USDA Secretary Vilsack, “high-integrity voluntary carbon markets offer a promising tool to create new revenue streams for producers and achieve greenhouse gas reductions from the agriculture and forest sectors.  However, a variety of barriers have hindered agriculture’s participation in voluntary carbon markets and we are seeking to change that by establishing a new Greenhouse Gas Technical Assistance Provider and Third-Party Verifier Program.”  In its Request for Information, the agency seeks responses to eight questions:

Question 1: How should USDA define the terms “consistency,” “reliability,” “effectiveness,” “efficiency,” and “transparency” (see 7 U.S.C. 6712(c)(1)(A)) for use in protocol evaluation?

Question 2: What metrics or standards should USDA use to evaluate a protocol's alignment with each of the five criteria to be defined in Question 1? What should USDA consider as minimum criteria for a protocol to qualify for listing under the Program?

Question 3: In general, after a new protocol is published, how long does it take for a project to use the protocol and be issued credits ( i.e., what is the lag time between protocol publication and first credit generation)?

Question 4: Which protocol(s) for generating voluntary carbon credits from agriculture and forestry projects should USDA evaluate for listing through the Greenhouse Gas Technical Assistance Provider and Third-Party Verifier Program?

Question 5: Additional information for any protocol(s) identified under Question 4.

Question 6: How should USDA evaluate technical assistance providers (TAP)? What should be the minimum qualifications, certifications, and/or expertise for a TAP to qualify for listing under the Program?

Question 7: Should the qualifications and/or registration process be different for entities and individuals that seek to register as a TAP?

Question 8: What should be the minimum qualifications and expertise for a third-party verifier to qualify for registration under the Program?

The agency will accept comments on the questions until June 28, 2024.

Part of a broader policy initiative

USDA announced the Request for Information on the same day that Secretary Vilsack, Energy Secretary Granholm, and Treasury Secretary Yellen, published a Joint Statement of Policy and Principles for Voluntary Carbon Markets, which outlines seven principles for the government’s approach to advancing “high-integrity voluntary credit markets,” summarized in a White House Fact Sheet:

  1. Carbon credits and the activities that generate them should meet credible atmospheric integrity standards and represent real decarbonization.
  2. Credit-generating activities should avoid environmental and social harm and should, where applicable, support co-benefits and transparent and inclusive benefits-sharing.
  3. Corporate buyers that use credits should prioritize measurable emissions reductions within their own value chains.
  4. Credit users should publicly disclose the nature of purchased and retired credits.
  5. Public claims by credit users should accurately reflect the climate impact of retired credits and should only rely on credits that meet high integrity standards.
  6. Market participants should contribute to efforts that improve market integrity.
  7. Policymakers and market participants should facilitate efficient market participation and seek to lower transaction costs.

The recent USDA announcements once again suggest that there are many issues for farmers considering engaging in the carbon market.  Caution is usually warranted when dealing with a new, developing market.  For farmers who do want to enter into the carbon market, be sure to refer to our posts on Carbon as a commodity for agriculture? and Considering carbon farming? Take time to understand carbon agreements.  The Farmers Legal Action Group also has an excellent publication on Farmers Guide to Carbon Market Contracts in Minnesota, also useful for Ohio farmers.

 

Farm field covered in snow with pine trees and sunset in background
By: Peggy Kirk Hall, Monday, February 19th, 2024

Co-authored by Glen Arnold, OSU Extension Field Specialist in Manure and Nutrient Management

This week’s snow was a reminder that we’re still in the middle of winter in Ohio, with more cold weather yet to come.  Winter weather is a challenge for those who handle manure, and it’s equally challenging to know the laws for applying manure on frozen and snow covered ground.  Those laws vary according to several important factors:  whether ground is frozen or snow covered, whether a farm is operating under a permit, and the geographical location of the land application.  Here’s a summary of the different winter application rules and standards in effect this winter.

What is frozen ground?  Ohio’s rules don’t define the term frozen ground, but generally, ground is considered frozen if you cannot inject manure into it or cannot conduct tillage within 24 hours to incorporate the manure into the soil.

Farms with Permits.  Farms with permits from the Ohio Department of Agriculture (ODA) or Ohio EPA operate under different rules than other manure applications in Ohio, and they cannot apply manure in the winter unless it is an extreme emergency.  Movement to other suitable storage is usually the selected alternative.  Several commercial manure applicators have established manure storage ponds in recent years to help address this issue. 

Applications in the Grand Lake St. Marys (GLSM) watershed.  There is a winter manure application ban from December 15 to March 1 for the GLSM watershed,  8ODA has the authority to allow an application, but that is not likely during the winter period.  After March 1, applications on frozen ground or ground covered in more than one inch of snow may occur only if the manure is injected or incorporated within 24 hours of surface application. The rule is in OAC 901:13-1-11

Grand Lake St. Marys Watershed Map

Applications in the Western Lake Erie Basin (WLEB) watershed.  In those parts of western Ohio that are in the WLEB watershed, below, the House Bill 1 restrictions established in 2016 are still in effect.  The law prohibits any manure application on frozen ground.  Applications are permissible on snow-covered soil if the manure is injected into the ground or incorporated within twenty-four hours of surface application.  The law is in ORC 939.08.

Western Lake Erie Basin

Other parts of Ohio.  It’s important to note that the NRCS Nutrient Management Conservation Practice Standard Code 590 (NRCS 590) now applies statewide in Ohio (but does not replace the GLSM and WLEB restrictions).  NRCS 590 was revised in 2020 and states that the surface application of manure on frozen and snow-covered soil is not acceptable unless it is an emergency.  An emergency is a temporary situation created by unforeseen causes and only after all other options have been exhausted. In this emergency situation only, limited quantities of liquid manure may be applied to address manure storage limitations only until non-frozen soils are available for manure application. The Ohio Department of Agriculture will enforce NRCS 590 in counties outside of GLSM and WLEB only if there is a manure discharge from the field. If a citation is issued for a discharge, liability for the discharge will be based on the 590 standards.

All applications of liquid manure to frozen and snow-covered soils must be documented in the producers’ records and must be applied in accordance with ALL of the following criteria:

  • The rate of application shall not exceed the lesser of 5,000 gallons/acre or P removal for the next crop.
  • Applications are to be made on land with at least 90% surface residue cover (cover crop, good quality hay or pasture field, all corn grain residue remaining after harvest, all wheat residue cover remaining after harvest).
  • Manure shall not be applied on more than 20 contiguous acres. Contiguous areas for application are to be separated by a break of at least 200 feet.
  • Applications should be in areas of the field with the lowest risk of nutrient transport such as areas furthest from streams, ditches, waterways, and with the least amount of slope.
  • Application setback distances must be a minimum of 200 feet from grassed waterways, surface drainage ditches, streams, surface inlets, water bodies and 300 feet from all wells, springs and public surface drinking water intakes. This distance may need to be increased due to local conditions.
  • For fields exceeding 6% slope, manure shall be applied in alternating strips 60 to 200 feet wide generally on the contour, or in the case of contour strips on the alternating strips.

Stockpiling.  For farmers with solid manure, stockpiling could be an option. There are two different types of stockpiles: short-term and long-term.

The short-term stockpile standards are in NRCS Field Office Technical Guide 318,  Short Term Storage of Animal Waste and Byproducts Standard (“NRCS 318”). Essentially, short- term stockpile is a pile of solid manure being kept temporarily in one or more locations. It is considered a temporary stockpile as long as the pile is kept at the location for no more than 180 days and stockpiled in the field where the manure will be applied. Setback distances listed in NRCS 318 should be followed to prevent discharge to waters of the state. There are multiple recommendations listed in NRCS 318 that speak to location, timing, and preventative measures to use while stockpiling the manure short term.

The long-term stockpile standards are in NRCS Field Office Technical Guide 313 Waste Storage Facility Standard (“NRCS 313”). A long-term stockpile is directly related to solid manure being piled and kept at a facility for longer than 180 days at a permanent location. It is recommended that all permanent long term storage stockpiles follow the guidelines in NRCS 313 with the utilization of a stacking facility and the structural designs of fabricated structures. A stacking facility can be open, covered or roofed, but specific parameters should be in place to prevent manure runoff from the site—these recommendations are in NRCS 313.

Check with your SWCD office.  Regardless of where you are in Ohio, it’s probably best to check with your county Soil and Water Conservation District office before considering winter manure application in Ohio. The rules have changed, and you should become aware of those that affect your operation in your area.

 

 

First page of U.S. EPA existing stocks order for dicamba products.
By: Peggy Kirk Hall, Thursday, February 15th, 2024

A federal court decision last week vacated the registrations of dicamba products XtendiMax, Engenia, and Tavium for over-the-top applications on soybean and cotton crops, making the use of the products unlawful (see our February 12, 2024 blog post).  The decision raised immediate questions about whether the U.S. EPA would exercise its authority to allow producers and retailers to use "existing stocks" of dicamba products they had already purchased.  Yesterday, the U.S. EPA answered those questions by issuing an Existing Stocks Order that allows the sale and use of existing stocks of the products that were packaged, labeled, and released for shipment prior to the federal court decision on February 6, 2024 For Ohio, the EPA's order allows the sale and distribution of existing stocks until May 31, 2024 and the use of existing stocks until June 30, 2024.

Here is the EPA's order:

  1. Pursuant to FIFRA Section 6(a)(1), EPA hereby issues an existing stocks order for XtendiMax® with VaporGrip® Technology (EPA Reg. No. 264-1210), Engenia® Herbicide (EPA Reg. No. 7969-472), and A21472 Plus VaporGrip® Technology (Tavium® Plus VaporGrip® Technology) (EPA Reg. No. 100-1623). This order will remain in effect unless or until subsequent action is taken. The issuance of this order did not follow a public hearing. This is a final agency action, judicially reviewable under FIFRA § 16(a) (7 U.S.C. §136n). Any sale, distribution, or use of existing stocks of these products inconsistent with this order is prohibited.
  2. Existing Stocks. For purposes of this order, “existing stocks” means those stocks of previously registered pesticide products that are currently in the United States and were packaged, labeled, and released for shipment prior to February 6, 2024 (the effective date of the District of Arizona’s vacatur of the dicamba registrations). Pursuant to FIFRA section 6(a)(1), this order includes the following existing stocks provisions:

a.  Sale or Distribution by the Registrants. As of February 6, 2024, sale or distribution by the registrants of these products is prohibited, except for the
purposes of proper disposal or to facilitate lawful export.
b.  Sale or Distribution by Persons other than the Registrants. Persons other than the registrants, including but not limited to co-ops and commercial distributors, who are already in possession of these products as of February 6, 2024, may sell or distribute these products until the end date for sale and distribution of existing stocks identified in Table 1; except that such persons may distribute these products after the date identified in Table 1 solely for purposes of proper disposal, lawful export, or to facilitate return to the manufacturer.
c.  Distribution or Sale by Commercial Applicators. Notwithstanding paragraph 2.b, for the purpose of facilitating use no later than the relevant end date for use of existing stocks identified in Table 1, distribution or sale of existing stocks of these dicamba products that are in the possession of commercial applicators is permitted
until the relevant end date for use in Table 1.
d.  Use of Existing Stocks. As of the date of this order, use of XtendiMax, Engenia, and Tavium is permitted until the relevant date identified in Table 1, provided that such use of existing stocks is consistent in all respects with the previously approved labeling accompanying the product.

What happens next? 

The Existing Stocks Order addresses dicamba over-the-top applications for the current growing season, but it's not the end of the dicamba controversy.  One potential next step could come from the petitioners in the federal case that vacated the dicamba product registrations, Center for Biological Diversity v. EPA.  The petitioners could file a motion asking the Court to review the Existing Stocks Order--an action that took place in the previous dicamba cancellation case, National Family Farm Coaltion v. EPA (Monsanto).  The petitioners in that case unsuccessfully sought an Emergency Motion to enforce the vacatur and hold the EPA Administrator in contempt for issuing an Existing Stocks Order.  A second next step that may yet play out is an appeal of the recent federal decision by the EPA, which has 30 days from the February 6 decision date to file an appeal.  At least one thing is clear at this point:  the long-term future of dicamba over-the-top products will continue to exist in a state of uncertainty.

Read the full text of the EPA's Existing Stocks Order.

By: Peggy Kirk Hall, Wednesday, February 14th, 2024

As we enter the 2024 crop season, it's time for an update on economic and legal information that affects Ohio farmland leasing. Join our Farm Office team members on March 1, 2024 from 10 a.m. until noon for a special edition of our Farm Office Live webinars.  In the Ohio Farmland Leasing Update, we'll share the latest information on these leasing topics:

  • Cash Rent Outlook – Key Issues and Survey Data
  • Negotiating Capital Improvements on Leased Farmland
  • Dealing with Conservation Practices in a Farmland Lease
  • Executing and Recording Farm Leases
  • Legal updates and new Farmland Leasing Resources

Our speakers for the webinar include:

  • Barry Ward, Leader, OSU Production Business Management
  • Peggy Hall, Attorney, OSU Agricultural & Resource Law Program
  • Robert Moore, Attorney, OSU Agricultural & Resource Law Program

There is no cost to attend the Ohio Farmland Leasing Update, but registration is necessary unless you're already registered for our Farm Office Live webinars.  To register, visit go.osu.edu/register4fol.

 

Field of soybeans
By: Peggy Kirk Hall, Monday, February 12th, 2024

A federal district court in Arizona has vacated the registrations for dicamba products XtendiMax, Engenia, and Tavium, finding that the U.S. EPA violated pesticide registration procedures when it approved the product registrations in 2020.  As a result of the decision in Center for Biological Diversity v. EPA, the dicamba products are no longer legally authorized for use and application in the U.S.  Although there will likely be appeal of the decision, the new ruling creates uncertainty over the use of dicamba products for the upcoming crop season.

History of the case

If the court’s ruling feels familiar, that’s because it is a repeat of a 2020 Ninth Circuit Court of Appeals decision in National Family Farm Coalition v. EPA (Monsanto).  In that case, the court vacated the first “conditional” dicamba product registrations granted by the EPA in 2018.  The court found that the EPA had “substantially understated” and failed to acknowledge the risks of dicamba’s volatility and its effects on non-users.  The EPA then cancelled the product registrations in June of 2020, but allowed producers to use “existing stocks” of already purchased products to apply the products until July 31, 2020.  The Ohio Department of Agriculture shortened that timeline in Ohio due to growing conditions within the state, prohibiting applications of dicamba after June 30, 2020.

Bayer, BASF, and Syngenta immediately revised the label application instructions and restrictions for their dicamba products and resubmitted their registration requests to the EPA. In October of 2020, the EPA granted the applications and issued “unconditional” five-year registrations for over-the-top applications (OTT) of the products on cotton and soybean crops.  The EPA did not provide a notice and opportunity for the public to submit comments before it made the registration decision. The National Family Farm Coalition, Pesticide Action Network, Center for Food Safety, and Center for Biological Diversity filed the current lawsuit, claiming that the EPA violated federal law by granting the unconditional registrations without a notice and comment period.

The court’s reasoning in this case

EPA’s error.  The primary basis for the court’s decision is the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA), Section 136a(c)(4), which contains the notice and comment requirement for registration of a “new use” of a pesticide or herbicide.  It states that the EPA:

“. . . shall publish in the Federal Register. . . a notice of each application for registration of any pesticide that contains any new active ingredient or if it would entail a changed use pattern. The notice shall provide for a period of 30 days in which any Federal agency or any other interested person may comment.”

FIFRA further states that a “new use” of a product means, in part, “any additional use pattern that would result in a significant increase in the level of exposure, or a change in the route of exposure, to the active ingredient of man or other organisms.”

The EPA took the position that it did not have to provide the FIFRA notice and a comment period because the 2020 registration requests were not applications for a “new use” since EPA had previously approved the products.  The court strongly disagreed, however, emphasizing the previous court decision that had vacated those registrations because the EPA had failed to fully consider the risks of the products.  The EPA’s conclusion that the 2020 registrations were not for a new use “is so implausible that the Court cannot ascribe it to be a mere difference in view,” the court stated.  Stakeholders who would be affected by the dicamba registrations should have had an opportunity to “meaningfully weigh in during the decision-making process before EPA concluded whether OTT dicamba has unreasonable adverse effects on the environment,” said the court.

Remedy for the error.  The court explained that upon finding an agency has violated federal law, the presumed remedy a court must grant is to vacate the agency’s action.  The law requires that only in limited circumstances, when equity requires it, should a court remand without vacating an agency decision.  There are two factors the law requires a court to review in determining the remedy:  the seriousness of the agency’s error and the disruptive consequences of vacating the agency’s decision.  The court’s next step was to review those two factors and determine whether it should remand the issue with or without vacating the dicamba registrations.

Examining the first factor, the court concluded that the EPA’s error was “very serious” because it was likely that, had the agency considered field studies, data, and other information that would have been submitted during the comment period, the EPA’s registration decision likely would have differed from the decision it made to grant the five-year unconditional registration.  The history of the dicamba registrations were important to the court, and the judge noted that there had not been a notice and comment period for stakeholders who were opposed to approving dicamba products since 2016, when the EPA considered the original registration.  The court reiterated a long list of field studies, incident reports, and data generated since 2016 that the agency could have considered had it provided a comment period.  Noting that the EPA was “highly confident that control measures would eliminate dicamba offsite movement to only a minimal effect,” the court pointed to years of incident reports on dicamba offsite movement and concluded:

“This Court believes hearing from all stakeholders is likely to change the OTT dicamba registrations at least from unconditional to conditional, with data gathering requirements reinstated. Hearing from non-users of OTT dicamba may change the EPA’s circular approach to assessing costs for risks from OTT dicamba offsite movement. Instead of simply concluding there is no risk and, therefore, no costs to these stakeholders, EPA is likely to include the costs to these stakeholders when balancing the risks and benefits for OTT dicamba. Accordingly, the Court finds the EPA’s procedural error to unconditionally issue the “new use” 2020 dicamba registration, without notice and comment, was serious.”

The court then examined the second factor, the disruptive consequences of vacating the agency’s decision. The court recognized the benefits of dicamba products to the agricultural industry and that growers, through no fault of their own, would be in the difficult position of finding legal herbicides to protect their crops if the dicamba registrations were vacated.  Nevertheless, the court agreed with the reasoning in the previous dicamba case, National Family Farm Coalition v. EPA (Monsanto), that the seriousness of the EPA’s failure to assess the risks and costs for non-users of dicamba warranted vacating the registration despite the disruptive consequences.

What happens next?

There are two issues to watch now in the wake of the court’s decision. First is whether the EPA will appeal the federal district court’s decision.  The appeal would go the Ninth Circuit Court of Appeals, the same appellate court that reviewed the decision in the first dicamba appeal, National Family Farm Coalition v. EPA (Monsanto).  If the EPA also requests a stay, the appeal would put the federal district court’s decision on hold.

If there is not an appeal, the second issue to watch for is how the EPA and state agencies will direct the use of existing stocks of dicamba products.  The EPA could use its authority to allow continued use of existing stocks of dicamba products until a certain date, as it did in the previous case.  If the EPA does issue an existing stocks order, states could also address the extent of existing stocks use within their borders, as Ohio did in the previous case.

Follow the Ohio Ag Law Blog for continued legal information about Center for Biological Diversity v. EPA and review the federal district court’s opinion through this link.  Ohio growers should also refer to information from OSU’s Weed Science Extension Specialist, Dr. Allyssa Essman, available through OSU’s C.O.R.N. newsletter.

 

By: Barry Ward, Wednesday, February 07th, 2024

Barry Ward, Leader, Production Business Management

Large increases in the Current Ag Use Value (CAUV) of farmland throughout Ohio in 2023 has resulted in higher property taxes (some have seen significant increases) for farmland owners in 2024. Forty-one of Ohio’s eighty-eight counties will see property tax increases in 2024 due to higher CAUV. Several factors have led to this increase in ag use valuation.

The Current Agricultural Use Value (CAUV) Program is a differential real estate tax assessment program for owners of farmland. The program allows for the farmland parcels to be taxed according to their use value in agriculture (or their value related to income from agriculture) rather than the market value (defined as the value if the land were sold by a willing seller to a non-related willing buyer). To arrive at this “use value”, a formula is used that includes several variables to capitalize the net income from agricultural products.

Landowners with farmland and woodlands in Ohio are eligible to sign-up for the CAUV program through their county auditor’s office if they meet the requirements.

There are two paths for a parcel to qualify for the Current Agricultural Use Valuation (CAUV) Program. To qualify for CAUV, land must meet one of the following requirements during the three years preceding an application.

•             Ten or more acres must be devoted exclusively to commercial agricultural use; or

•             If under ten acres are devoted exclusively to commercial agricultural use, the farm must produce an average yearly gross income of at least $2,500.

Each of the approximately 3500 different soil types in Ohio is assigned a CAUV value each tax year. The value represents the expected net present value of an acre of land devoted solely to agricultural production for the dominant field crops in Ohio. To determine this value, an average of yields and prices for corn, soybeans, and wheat is used to determine gross income. Non-land costs are then subtracted from gross income for a measure of net income. Finally, this net income is divided by a capitalization rate based upon recent values of farm interest and equity rates.

Large increases in the Current Ag Use Value (CAUV) of farmland in Ohio in 2023 has resulted in higher property taxes (some have seen significant increases) for farmland owners in 2024. Counties are subject to an update in CAUV every 3 years so only a portion (41 of the 88 Ohio counties) have been updated in 2023 that have impacted 2024 property taxes. As counties see updated values only every three years, there is the opportunity for large changes as many farmland owners will see this year.

Several factors have led to much of this increase in ag use valuation. Higher crop market prices and increased crop yields included in the formula have been significant drivers in the higher current ag use values. Price increases have been substantial as compared to the prices used in the 2020 calculations.

Corn price increased 16%, soybean price increased 12% and wheat price increased 7.4%. Yields used to determine values for each soil type increased 7.3% for corn, 5.4% for soybeans and 7.2% for wheat as compared to the yields used for the 2020 calculations. These are substantial increases in both prices and yields in an historical context.

Low interest rates (capitalization rate) have also contributed to the increasing current ag use values as recent higher interest rates aren’t yet fully represented in the formula. The capitalization rate used in the formula in 2023 CAUV calculations was 8.0% as compared to the rate of 7.9% used in 2020, the last time these counties saw an update in CAUV. Recent higher interest rates will increase the capitalization rate (denominator in the CAUV calculation) in future years which will likely help to moderate current ag use values.

For a detailed look at the variables and calculations that are used to determine CAUV for farmland, access the Ohio Department of Taxation online publication “2023 Current Agricultural Use Value of Land Tables Explanation of the Calculation of Values for Tax Year 2023”.

The Ohio Department of Taxation annually publishes this explanation of the CAUV valuation method complete with the measures used to calculate CAUV and examples of the calculations for certain soil units for the present year. This year’s document is titled “2023 Current Agricultural Use Value of Land Tables Explanation of the Calculation of Values for Tax Year 2023” and is available online at:

https://tax.ohio.gov/government/real-state/cauv

 

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