A Tax Break Farmers Can Use

The carrot is generally a better motivator than the stick--not only more humane but usually more effective too.

That’s why we have more enthusiasm for improved tax incentives to encourage farmers to keep their land in agriculture than we felt for the Save Open Space and Agricultural Resources (SOAR) approach.

Saving the farms was one stated goal of the SOAR campaign, although its leaders concede that their primary mission was controlling urban sprawl. Local farm organizations fought SOAR vigorously, arguing that it would reduce the value of their land and limit their options if farming became unprofitable or if they were ready to retire. Nonetheless, two-thirds of Ventura County voters passed laws that require a public vote before land designated agricultural or open space can be rezoned for development.

In contrast, the Ventura County Board of Supervisors last week approved expanded tax breaks for agricultural landowners who agree to continue farming for at least two decades. Under the revised guidelines, farmers would have the option of extending a 10-year contract to preserve prime cropland an additional 10 years in return for a greater reduction in property taxes. Landowners who opt to convert current 10-year contracts to 20-year pacts would see their property-tax break jump from 30% to 35%.

That means land protected under the state’s Land Conservation Act, popularly known as the Williamson Act, will be taxed at a level closer to its current value as farmland than its hypothetical value if it were subdivided and developed.

Countywide, 129,659 acres currently have 10-year protection under 1,200 separate contracts. Of those 1,200 contract holders, 10% are opting to convert to the 20-year plan this year, bringing 1,522 acres of prime farmland into longer-term protection, and another 25% will probably convert next year, according to the county official who keeps track of such things.

The loss in tax income to county coffers will total $40,000 to $80,000 a year, officials estimate. Considering that agriculture contributes about a billion dollars a year to the Ventura County economy, and that surveys consistently confirm that most county residents consider farming an essential factor in the county’s rural lifestyle, that seems like a bargain.

Like the Right to Farm ordinance that shields farmers from nuisance lawsuits so long as they comply with regulations, and like contracts that provide water at a discount, the Williamson Act gives farmers the kind of help they really can use. It provides tangible compensation for the very real limits placed on the options of those who own farmland.