Peggy Kirk Hall, Asst. Professor, OSU Extension Agricultural & Resource Law
It’s the time of year when farmers clear fields and fence rows of corn stalks, branches and other debris and use a common management practice--piling the debris and burning it in the field. Because outdoor fires such as this create air emissions and wildfire concerns, Ohio has laws that regulate open burning activities. Burning certain materials at certain times in certain places may violate the open burning laws and cause a health or safety issue. It’s important to know when open burning of crop debris and field residue is permissible, and to take precautions to minimize risk and liability.
There are several areas of law in Ohio that address open burning. The Ohio Environmental Protection Agency (OEPA) oversees regulations on the open burning of materials that may produce harmful air emissions that affect human and environmental health. Ohio also has laws that regulate open burning to minimize the danger of wildfires; these laws may be enforced by the Ohio Department of Natural Resources (ODNR) Division of Forestry or local law officials. Additionally, a local government might have local ordinances that regulate open burning.
In regards to crop debris in farm fields, it is typically permissible for a farmer to burn the debris. However, the law creates duties to conduct the burn responsibly and imposes some conditions on what, where and when to burn. Violating the laws can lead to criminal charges, fines and civil liability to harmed parties.
What can you burn?
Ohio law allows the burning of “agricultural wastes” under certain conditions. The definition of agricultural waste includes materials such as crop debris, as well as other materials. According to Ohio law, agricultural waste includes:
- Waste material generated by crop, horticultural, or livestock production practices, landscape wastes that are generated in agricultural activities and woody debris and plant matter from stream flooding.
- Bags, cartons, structural materials and containers for pesticides, insecticides, fungicides, rodenticides, miticides, nematocides, fumigants, herbicides, seed disinfectants and defoliants, if the manufacturer has identified open burning as a safe disposal procedure. Farmers may add seed bags and cartons to the burn pile as long as the label states that open burning of the materials is safe.
Agricultural waste does not include:
- Standing or fallen buildings, building materials, food waste, dead animals, materials made from petroleum or containing plastic, rubber, grease or asphalt. A farmer may not add these materials to the burn pile.
- Debris resulting from the clearing of land for new agricultural, residential, commercial or industrial development—this type of waste is defined as “land clearing waste.” Open burning of land clearing waste requires prior written notification to Ohio EPA.
Where can you burn?
Several regulations determine acceptable locations for burning crop debris and other agricultural waste:
- Agricultural waste may only be burned on the property where the waste is generated; the waste may not be taken to a different property for burning and a farmer cannot receive and burn waste from another property.
- If the burning is inside a “restricted area,” then prior written notice to Ohio EPA must be provided at least ten days in advance of the burning. A “restricted area” is an area where there is higher population density. The law defines a restricted area as:
- Any area inside city or village limits.
- Any area within the 1,000-foot zone outside of a city or village with a population of 1,000 to 10,000.
- Any area within a one-mile zone outside of a city or village with a population of more than 10,000.
- The fire must occur in a location where it will not obscure visibility for roadways, railroad tracks or air fields.
- The fire must be more than 1,000 feet from any neighboring building inhabited by people, such as homes, stores, restaurants, schools, etc.
When can you burn?
There are definite times when burning of crop debris and other agricultural waste is not permitted unless certain conditions are met.
- Ohio’s wildfire laws limit open burning in rural areas during the months of March, April, May, October and November, when wildfire risk is highest due to dry vegetative conditions and dry winds. During these months, open burning in rural areas is completely prohibited between the hours of 6 a.m. and 6 p.m., when volunteer fire departments are not well-staffed. An exception to this prohibition applies to farmers under the following conditions:
- Open burning may occur in a plowed field or garden, if the burn pile is at least 200 feet from any woodland, brush land or field containing dry grass or other flammable material. If a farmer can’t meet this 200 foot buffer zone requirement, the farmer should wait until after 6 p.m. to conduct the burn.
- Open burning should only occur when atmospheric conditions will readily dissipate any smoke and potential contaminants. If weather conditions are foggy, rainy or causing air inversions, smoke and contaminants will not readily disperse and the farmer should not burn the materials.
- Even if all other legal requirements for open burning are met, open burning is not allowed when air pollution warnings, alerts or emergencies are in effect.
What about prescribed burning?
Both the ODNR and Ohio EPA have authority over prescribed burning—intentional burns for horticultural, silvicultural, range or wildlife management practices. Prescribed burning requires prior written permission from Ohio EPA and--if taking place during March, April, May, October or November--the burn must be conducted by a Certified Prescribed Fire Manager with permission by the Chief of ODNR’s Division of Forestry. See the Division of Forestry’s website for more information on becoming a Certified Prescribed Fire Manager and requesting permission for prescribed burns.
Prior notice to Ohio EPA
For burns that require advance notice to the Ohio EPA, farmers may use the notification form on the Ohio EPA website at http://www.epa.ohio.gov/dapc/general/openburning. The form seeks information about what will be burned and when and where the burn will take place; this allows the EPA to ensure that the burn is permissible.
Legal duties for conducting open burning
Ohio law also imposes duties for managing open burns. Ohio Revised Code 1503.18 establishes a duty to prevent fire escape. The law requires any person who starts a fire near trees, woodland or brush land to take steps to prevent the fire from escaping. All leaves, grass, wood and inflammable material surrounding the place must be removed to a safe distance and all other reasonable precautions must be taken to keep the fire under control. The law also states that a person should extinguish or safely cover an open fire before leaving the area.
Ohio EPA’s regulations impose several other duties for managing burns. As mentioned above, burning of agricultural waste should take place at least 1,000 feet from any neighbor’s inhabited buildings. The wastes should be stacked and dried to provide the best practicable condition for efficient burning and weather conditions should not prevent dispersion of the smoke and emissions. If the size of an agricultural waste pile exceeds 20 feet in diameter by 10 feet in height (or 4,000 cubic feet), the farmer must provide written notification of the burn to the Ohio EPA at least ten days before burning.
The above analysis explains Ohio’s laws on open burning; remember that the local government might have a local law that also regulates burning activities. Check with your local fire department to know whether any local regulations apply to the situation.
What if a farmer violates open burning laws?
Violation of the open burning laws creates several risks for farmers. Ohio EPA has the authority to issue fines of up to $1,000 per day per offense. The EPA states that it takes enforcement action against repeat offenders or violations that cause significant harmful emissions. Otherwise, EPA enforcement officers prefer to issue warnings to first-time offenders and educate on how to conduct open burns that minimize pollution impacts. EPA enforcement officers regularly patrol their districts, investigate fires they see and investigate complaints from neighbors or others who report burning activities. According to the EPA, the most common violations by farmers include burning substances that are not “agricultural wastes” such as tires and plastics, failing to meet the 1,000 foot setback requirement and burning waste from another property.
Conducting open burns that violate Ohio’s wildfire prevention laws can result in third degree misdemeanor charges, which carry penalties of up to $500 and 60 days of jail time per violation. Any person may report a potential illegal burn that creates wildfire risks to the local law enforcement or Division of Forestry.
Equally and perhaps more important is the risk of civil liability from an open burning incident. We all know that the “burn police” can’t observe everyone all the time, but civil liability doesn’t require intensive monitoring—it requires harm. Where an open burn causes harm to people or property, civil liability may arise. An open burn that reduces roadway visibility and results in an auto accident, escapes the property and harms neighbors or neighboring property or significantly interferes with other owners’ property use could result in a negligence or nuisance lawsuit. The farmer who violated open burning laws or failed to properly manage the fire could be liable for all harm resulting from the fire.
Peggy Kirk Hall, Asst. Professor, OSU Extension Agricultural & Resource Law Program
A written lease is a valuable tool to use in a farm lease situation, but many farm lease arrangements never progress beyond a conversation and a handshake. A written lease brings certainty to the farming arrangement by laying out important terms such as lease duration, notice of termination, payment provisions and conservation practices. Verbal farm leases are risky; problems can arise with legal enforceability and disputes over rights and obligations. For those dealing with a verbal lease agreement, here are a few strategies for protecting interests in the verbal farm lease situation.
Put the verbal lease in writing. The first recommendation is no surprise; attorneys have long encouraged farmers to use written farmland leases rather than relying on verbal agreements. But many landowners and tenants are uncomfortable using a written lease, for a variety of reasons. Consider the following concerns and recommendations for addressing them:
- “We’ve always operated on a verbal agreement and a handshake.” Transitioning from a long-time verbal agreement to a written lease can be awkward and uncomfortable, and the landowner or tenant farmer who wishes to make the change may be uncertain about how to introduce the change. To address an awkward transition, consider using a third party to “intervene” and facilitate the process of converting to a written agreement. Have a farm manager, attorney or accountant explain the reasons for moving to a written agreement and begin the process of discussing lease terms. Provide the other party with ample time to respond and to consider its own concerns and suggested lease terms.
- “We don’t want everyone to know the terms of our lease.” Landowners and tenants often express concern that a written farm lease must be recorded in the county recorder’s office, thus revealing private terms such as the price paid for the lease. In this case, the parties may utilize a provision under Ohio law referred to as the “memorandum of lease.” Ohio Revised Code section 5301.251 allows the parties to record a shortened form of the farmland lease. The only provisions the parties must include in a recorded memorandum of lease are the names and addresses of the landowner and tenant, the date of executing the agreement, a description of the leased property, the starting date and duration of the lease and any rights of renewal or extension. With the recorded memorandum of lease, there is public notice that the lease exists but key terms remain confidential between the landowner and tenant. The parties can include a term in the written lease verifying their agreement to execute and record a memorandum of lease rather than recording the entire lease.
- “A written lease is overwhelming or too much detail.” It is true that farmland leases can be lengthy and detailed, although attorneys usually have sound reasons for drafting detailed leases. Note that the parties can make a gradual transition. Even a simple lease or a checklist can bring certainty to the relationship by outlining key obligations or providing resolutions if problems arise in the future. Additionally, there are many good resources that simplify and explain farm lease provisions, and a few good “model” leases for reference. For helpful resources, visit the website http://aglease101.org .
Pay attention to lease payments and possession. If the parties can’t convert a verbal lease to a written lease, be aware that one problem with a verbal lease is that it’s not clear when the lease agreement actually begins. In the event of a dispute, Ohio courts often look to factors such as possession and lease payments to determine the term of the lease. Two indicators that a farm lease agreement is in place are possession of the property by the tenant coupled with acquiescence by the landowner, or a lease payment made by the tenant and accepted by the landowner. Both parties should be mindful of these important actions and should maintain records to document these occurrences.
Address financial fairness. Determining the payment amount for a farm lease is a challenging task, particularly when the farm economy is in flux. Disagreement over the lease price can quickly end a verbal farm lease relationship. Thorough research and equitable approaches can maintain the lease relationship by ensuring a financial arrangement that is responsive to the market and fair to both parties. OSU’s Farm Management website at http://aede.osu.edu/programs-and-research/osu-farm-management contains data on farmland values and cash rental rates. Consider a flexible cash lease to accommodate economic changes; information on flexible cash leases is also available through OSU’s Farm Management website and at http://www.aglease101.org.
Maintain records of the lease relationship. Good records that document the leasing history can help establish a “course of dealing” between the parties. While a written farm lease is preferable, a record of how the parties managed the lease or handled issues in the past can be a useful point of reference for ensuring consistency in the relationship. If there is litigation over the lease, a court might rely on proof of the parties’ course of dealing to help resolve an issue. Both parties should maintain thorough records of payments, agreements, farm management practices, soil sampling, nutrient applications, improvements and any other facts or data that establish the details of the leasing relationship.
Maintain communication. Don’t underestimate the power of good communication between the leasing parties. A landowner can provide a tenant with valuable certainty by keeping the tenant informed on potential changes with land ownership or financial management. Tenants can keep a landowner apprised of the condition of the farm property by providing reports on a regular basis, especially in the case of an absentee landowner or a crop share lease. A report that includes pictures and a brief summary of improvements made, management practices adopted or crop share calculations may go a long way toward ensuring a solid leasing relationship.
A written and comprehensive farm lease is a valuable tool for farmland owners and tenant farmers alike; those who still rely on verbal farm leases should carefully consider making a transition to a written lease. Parties that continue to use a verbal farm lease face legal and financial risks, but can adopt some practices to help protect the verbal farm lease situation. For resources and examples of written farm leases, see http://aglease101.org.
Program revisions include new rules to address manure impacts on Ohio lakes
The Ohio Department of Natural Resources (ODNR) will hold a public hearing next week for its proposed revisions to the Ohio Agricultural Pollution Abatement Program, a water quality program that encourages voluntary actions to manage water pollution impacts from agricultural and silvicultural land uses, provides cost-sharing for agricultural pollution prevention, and allows ODNR to take measures against those who do not voluntarily address an agricultural pollution problem. For purposes of the program, "agricultural pollution" is the failure to use appropriate practices in farming or silvicultural operations to abate soil erosion or water quality impacts caused by animal waste or soil sediments. Local Soil and Water Conservation Districts are initially responsible for implementing the program, with final oversight and enforcement authority held by ODNR's Division of Soil and Water Resources.
The rule revisions come partially as a result of the agency's mandatory five-year review of the program. However, several new rules--undoubtedly the most controversial proposals--are in response to the high blue-green algae levels in Grand Lake St. Mary's and other Ohio lakes this past summer. Studies indicate that manure is one of the contributors to the proliferation of the blue-green algae. A plan of action to improve the lake's water quality developed in July by ODNR, the Ohio Department of Health and the Ohio EPA proposed several actions related to manure management, including these new rules for the Agricultural Pollution Abatement Program:
- Declaration of a "watershed in distress." The rule would give the chief of ODNR's Division of Soil and Water Resources, with the approval of the Ohio Soil and Water Conservation Commission, the authority to declare a "watershed in distress" where the watershed has aquatic life and health that is impaired by nutrients or sediment from agricultural land uses and where there is a threat to public health, drinking water supplies, recreation, or public safety and welfare.
- Pollution minimization in distressed watersheds. The distressed watershed designation requires all owners, operators and persons responsible for land application of manure in the watershed to minimize pollution by following applicable standards, methods or management practices; failure to do so is a program violation, regardless of whether pollution actually results from the failure.
- Land applications of manure in distressed watersheds. After a watershed remains designated "in distress" for more than two years, the rule places restrictions on land applications of manure, including required prior approval from the state for applications between December 15 and March 1, injection or incorporation for manure applied to frozen or snow pack ground before December 15 or after March 1 and limitations on applications during certain types of weather. Additionally, all owners and operators in the distressed area must maintain 120 days of manure storage.
- Nutrient management plans in distressed watersheds. Each owner, operator or person responsible for producing, applying or receiving more than 350 tons or 100,000 gallons of manure annually in a distressed watershed must develop a nutrient management plan as specified by the regulations.
In response to the proposed new rules, the Ohio Farm Bureau has already indicated that, while it supports the general intent to address water quality issues in Grand Lake St. Marys, it is concerned that the distressed watershed provisions are too vague and may exceed ODNR's scope of authority. The legislature originally granted ODNR's authority for the Ohio Agricultural Pollution Abatement Program in Ohio Revised Code Chapter 1511. Interestingly, in the joint plan of state actions for water quality improvement at Grand Lake St. Mary's, the state agencies admitted that they were asking the Ohio General Assembly to support "additional state regulatory authority" by way of approval of the proposed rule revisions by the legislature's Joint Committee on Agency Rule Review (JCARR). Whether this additional authority exceeds the scope of authority originally granted by the Ohio legislature is a question that JCARR will address in its review of the proposed rules.
The remaining proposed revisions to the agricultural pollution abatement program regulations intend to address a need for more rapid handling of pollution situations as well as problems identified through a program review conducted last year by an appointed advisory committee. Other revisions in the rules package include:
- The inclusion of manure applicators as parties responsible for land application of manure, in addition to the current rule's allocation of responsibility for the owners or operators of animal feeding operations.
- A number of changes designed to create more flexibility and efficiency in program oversight and administration by allowing earlier involvement of the Division of Soil and Water Resources.
- An increase of cost share monies to a maximum of $30,000 and expansion of the types of practices eligible for cost-sharing;
- A change throughout the rules from "animal waste" to "manure," which includes animal excretia, discarded products, process waste water, process generated waste water, waste feed, silage drainage, and compost products from mortality composting, on farm biodigerster operations or animal excretia composting.
- Required facility modifications where seepage of animal manure occurs.
- Changing "concentrated animal feeding operations" to "animal feeding operations" throughout the rule and clarifying that the program does not apply to facilities regulated through the state's Livestock Environmental Permitting Program or NPDES permit program.
The ODNR has posted the rules package and supporting materials on its website. The public hearing for the rules proposal will take place on November 8, 2010.
Bill makes wind and solar in Ohio competitive with neighboring states
Passed by both chambers of the Ohio legislature early morning on Friday, June 4, S.B. 232 provides tax exemptions for certain sources of new power generation. The bill was sponsored by State Senator Chris Widener and enjoyed bipartisan support. A press release from the Governor’s office makes clear he intends to sign it into law as soon as he receives it.
The new law will eliminate both the tangible personal property tax and the real property tax on new advanced energy projects. Qualified energy sources include wind, solar, and all other renewable energy resources as defined in Ohio Revised Code Section 4928, in addition to clean coal, nuclear energy, and the cogeneration of electricity from waste heat sources. To qualify, new projects involving wind, solar and other renewables must be under construction by January 1, 2012 and in service by January 1, 2013. All other qualified energy sources must be under construction by 2017.
One impetus for this change in tax treatment is that the current tangible tax rate energy companies pay is not competitive with other states. In Ohio, the tax rate for wind facilities stands at approximately $40,000 per megawatt, while solar is approximately $100,000 per megawatt. This compares to a range of $3,000 to $9,000 per megawatt in neighboring states.
The Ohio Department of Development will certify the exemption and base new payment rates (payment in lieu of taxes) on the number of Ohioans employed in the construction and installation of a qualified facility. Energy companies will have to comply with several other requirements including road repair, first responder training, and the establishment of university partnerships to promote the education, training and curriculum development of renewable energy industries.
The new rates will be as follows:
- Solar - $7,000 per MW
All other facilities:
- $6,000 per MW when 75% or more Ohio-domiciled employees are employed during construction and installation.
- $7,000 per MW when 60% or more Ohio-domiciled employees are employed during construction and installation.
- $8,000 per MW when 50% or more Ohio-domiciled employees are employed during construction and installation.
The bill also addresses Current Agricultural Use Valuation (CAUV) property and provides that the installation of an energy facility will not cause the remaining portion of a CAUV tract to be ineligible for CAUV.
The new law may signify the beginning of wind development in Ohio’s rural communities. Three wind projects have already received an Ohio Power Siting Board certificate and may be the first projects situated to apply for the new tax exemptions. Information regarding the three approved wind projects and four pending projects can be found on the Ohio Power Siting Board website.
Full text of S.B. 232 is available here.
Bill introduced in Ohio House of Representatives to clarify liability standards
A recurring problem around Ohio may be resolved if H.B. 503 progresses through the General Assembly before the end of the year. Representatives Bubp (R-88th Dist.) and Garrison (D-93rd Dist.) recently introduced the bill to revise Ohio's animals at large law. The proposal clarifies the standards for civil and criminal liability under the law.
The animals running at large law, found in Ohio Revised Code Chapter 951, states that no owner or keeper of horses, mules, cattle, sheep, goats, swine, or geese "shall permit" the animals to run at large on public roads or outside of their enclosures. Many law officers, prosecutors and judges have interpreted the word "shall" as a trigger for automatic liability--if an animal is out, the owner is liable. But in a case before the Ohio Supreme Court, the court stated that the law does not establish automatic liability. The court explained that the law creates the duty to exercise ordinary care to keep animals from running at large and sets up a "rebuttable presumption" of liability. An animal owner whose animals are found running at large has the opportunity to rebut the presumption of liability and prove that he or she exercised ordinary care to contain the animals. Despite the Supreme Court opinion, animal owners have continued to be subject to prosecution under an automatic liability standard.
H.B. 503 removes the possibility of interpreting the animals at large law as a strict liability law and lays out two different standards for civil and criminal liability. An owner or keeper of animals who "negligently" permits animals to run at large is liable for all damages caused by the animal, and an owner or keeper who "recklessly" permits animals to run at large is guilty of a fourth degree criminal misdemeanor. Under Ohio law, "negligence" is the failure to exercise ordinary care, while "recklessness" is acting with indifference to consequences and with disregard to a known risk.
H.B. 503 would alleviate the problems many animal owners in Ohio have faced--potential criminal liability when natural disasters, vandals, pranksters or neighbor disputes, rather than the owner's action or inaction, caused the release of the animals. A disturbing increase in such incidents led the Ohio State Bar Association and its Agricultural Law Committee to work with H.B. 503 sponsors to develop the revisions. View H.B. 503 here.
Proposal would ensure that on-farm bioenergy activities qualify for CAUV and are exempt from zoning regulation.
A legislative proposal in the Ohio House of Representatives would include on-farm bioenergy production activities in two key provisions of Ohio law: qualification for differential tax assessment under the Current Agricultural Use Valuation program and exemption from local zoning authority. Representatives Pryor and Domenick introduced House Bill 485 in mid-April with assistance from the Ohio Department of Agriculture. The bill was referred to the House Agriculture and Natural Resources Committee, but no other action on the bill has taken place.
The proposal addresses "biodiesel production, biomass energy production, electric or heat energy production and biologically derived methane gas production" where at least 50% of the starting material or feedstocks are from the same tract, lot or parcel on which the energy production takes place. This 50% requirement targets on-farm energy production, where a farm is producing and processing the energy inputs, as long as no more than 50% of the supplementary inputs derive from other properties.
The bioenergy production activities that meet the 50% rule would be included in the CAUV' program's definition of "land devoted exclusively to agricultural use" in ORC 5713.30, thus guaranteeing eligibility for the CAUV property tax rate. The bioenergy production activities would also become part of the definition of "agriculture" for purposes of county and township zoning, ORC 303.01 and ORC 519.01. Because counties and townships have limited zoning authority over "agriculture," the proposal would ensure that a county or township could not use zoning authority to prohibit the qualifying bioenergy production activities.
H.B. 485 is available online, here.
Since 2000, Ohio law has allowed property owners to avoid the probate process with a transfer on death deed, a deed that automatically transfers real property to a designated beneficiary upon the death of the property owner. Under a new Ohio law, such transfers now require the preparation of an affidavit rather than a transfer on death deed. The new law also allows those who hold "survivorship rights" in property to transfer their rights upon death, which the previous law prohibited.
The changes occurred in S.B. 124, which became effective upon the governor's signature on December 28, 2009. The Ohio State Bar Association's Real Property Law Section proposed the changes to simplify the transfer on death process and remove confusion over the rights of those holding survivorship deeds.